SMALL CHILDREN ARE BIG BUSINESS FOR FLORIDAS ECONOMY 2003: The Economic Impact of Child Care in Florida.

SMALL CHILDREN ARE BIG BUSINESS FOR FLORIDA’S

ECONOMY2003: The Economic Impact of

Child Care in Florida

MGT of America, Inc., a national management research and consulting firm, completed the study.

The economic impact of Florida’s child care industry is measured by:

1. Direct effects: the revenue generated by existing jobs within the child care industry;

2. Indirect effects: revenue and purchases generated by related industries and jobs created as a result

3. Induced effects: purchases made and jobs created from spending by both the child care industry and related industry employees

How does child care impact Florida’s

economy ?

Child care…Enables parents to work and earn

money tosupport their families.

– In 2000, Florida’s working families with children younger than age six earned $5.6 billion.

– Researchers found that when working parents feel confident that their child is receiving optimal care, the businesses they work for experience less absenteeism and turnover, increased productivity, improved work quality, and better employee morale.

“The child care industry is vital to Florida’s economy. Policy makers and business leaders must shift the business of caring for children from a social, private policy to a broad, public responsibility that greatly impacts Florida’s infrastructure.”

Phyllis Kalifeh President

Florida Children's Forum

The Child Care Industry…

–Generates $3.87 billion in total revenue to industries.

–Employs 46,561 child care providers and related employees.

–Supports 626,483 children in Florida.

Child Care…

Generates ripple effects in Florida’s economy by:

– Creating economic momentum– Generating jobs– Producing revenue at the state

and local level

The Ripple Effect…• Stimulates related industries by the sale

of children’s games, toys, and dolls, as well as, cleaning materials and book publishing;

• creates more than 67,000 statewide jobs;

• and produces $138 million in tax revenue.

– $27 million on cleaning materials, sanitary paper, and plastic products.

– $23 million in books and magazines.

The child care industry purchases:

“High quality child care is critical to Florida's economic competitiveness.”

Frank Ryll

President

Florida Chamber of Commerce

The child care industry makes waves…

– For every $1 million dollars generated by Florida’s child care industry, approximately 22 jobs are created within the child care industry and 32 jobs in the overall economy.

– For every $1 million in child care revenue, $863,000 of additional revenue is generated in the regional economy.

Why are these findings important to economic development?

–The child care industry is not just a private responsibility.

–Reveals the need for continued and additional investments in child care.

–And, most importantly…

“This research allows policy leaders to talk, in concrete terms about the economic impact of Florida’s child care industry…this new research allows lawmakers to speak the language of investment.”

Florida State Sen. Evelyn Lynn (R) Chair, Senate Children and Families

Committee

Compare child care to other public policies…

– Federal transportation funds are routinely leveraged with private investments to build public transit systems and highways—a key system necessary for Florida’s overall public benefit and work force.

– Policies such as this recognize good public policy will lead to positive economic growth and societal gains.

Policy makers and business leaders should recognize

the child care industry as a critical component to

economic success.

• Recognize that child care can positively impact the bottom line and improve business stability.

• Bank of America pays child care costs for employees through the CCEP program.

How can the business community

make a difference?

“Our associates do their best work for our customers and clients when they are able to balance the many competing demands in their lives. We want to do all we can to create such a working environment for our associates. It's part of our commitment to achieve higher standards for our customers, our shareholders and our communities.”

Mike Fields President

Bank of America, Tallahassee

Bottom line, child care…

• Empowers families to work and contribute directly to economic stability.

• Paves the opportunity for children to learn during critical development stages of life.

• Cultivates Florida’s future work force by reducing the need for social service programs as children grow.

“Considering the future economic potential of Florida's work force is imperative to improving Florida’s economy and is essential to growth and progress. Skilled, educated workers attract new industries and increase economic activity.”

Bob BuesingLeadership Florida Graduate

Florida Children's Forum Board member

The Forum is urging state leaders to recognize the

economic impact of Florida’s child care

industry and make it a critical part

of policy making.