All posts tagged: long-term sustainability

Private Equity Has Its Eyes on Child Care

Private Equity Has Its Eyes on Child Care

Last June, years of organizing in Vermont paid off when the state’s House and Senate passed landmark legislation—overriding a governor’s earlier veto—that invests $125 million a year into its child-care system. The bill expanded eligibility for state assistance to 575 percent of the federal poverty level, meaning that more than 7,000 new families are expected to receive money for child-care expenses. Funding will also become available to help day-care centers recruit and retain teachers and expand capacity; centers will also receive additional money for providing nonstandard hours of care. But now advocates are worried that the wrong people stand to benefit from the program’s generosity. Any time there is a windfall of public money, with few strings attached, unintended consequences are nearly certain to follow. Thanks to the new law, more Vermont families will have more to spend on child care, and centers will receive additional money without explicit rules around how to spend it. Both of those facts will make child care an attractive target for private-equity groups looking for an industry with lots …