The Barton County Commission’s support for Great Bend Economic Development Inc.’s planned childcare facility was unanimous, and commissioners noted its importance in addressing workforce woes. But, they tabled until March 30 GBED President Sara Hayden’s request for a $435,714 county match to help fund the project. Commissioners are waiting to see if the City of Great Bend would pony up more for the effort.
“We would like to break ground as soon as possible,” Hayden said. They are shooting for the end of summer or early fall.
Hayden said they would like to have most of the funding lined up by then. They are expecting state funding for childcare to become available toward the end of the year.
“We see this as an opportunity to expand this childcare center faster, which means going into other communities faster than we normally would,” she said. “If we’re able to get the ground broken on this first center, that makes our applications for other centers more viable.”
Last year, Hayden said her group, in partnership with the Golden Belt Community Foundation, received a Community Service Tax Credit Program grant from the Kansas Department of Commerce. Since then, GBED has continued to seek funding.
They have finalized an architectural drawing. A location was selected, she said. The current property owner wants to keep it private for now, but the site is centrally located.
So far, GBED has raised $285,714 through the tax credit. They also have $70,000 from the city and $80,000 from private donations.
That gives the effort $435,714 in total assets.
“At this time, we’re asking the commission consider matching that with a grant in the form of $435,714,” Hayden said. They would then use that $871,428 to aid in the submission of a matching-funds grant.
Since it is a competitive grant, she said she was unable to disclose its source. But, the application is due by the end of March.
“Sara, you are a heck of an ambassador for this project and you have come in here and you have made me understand that childcare is an important issue in our county,” District 5 Commissioner Jennifer Schartz said. “It’s an overall important decision to make.”
But, “our money that we gave you did not go to this project and yet you’re seeking an additional $435,000 from us,” she said.
The commission last year voted to match the City of Great Bend and pitch in $250,000 to fund GBED’s efforts. Of the city’s portion, $70,000 is going to the childcare plan, but none of the county’s share has any earmarks.
“Even if you don’t (offer the money), we are going to move forward with this project,” Hayden said. “It’s important to the county, not just Great Bend. It is important to get people back to work.”
Some concerns
“While I understand the need and I understand the importance, I also think that the city needs to step up in a bigger fashion,” Schartz said. “We know that if this child care facility is in Great Bend, Great Bend will reap the profits more-so than the other cities would.”
Furthermore, “we all know that we’re going to face a very, very tough budget season and I would like to see us make this vote after the budget process.”
The county would tap federal American Rescue Plan Act COVID-19 relief funds to cover the match. But, the commission may find another need for it such as property tax reduction of “whatever else might come down the pike,” she said.
“Is there no individual entrepreneur who is willing to invest their own money and their own time into this type of project?” said District 4 Commissioner Jim Daily said. “It sounds to me like you’re asking us to invest in a project that may or may not go like a house on fire.”
Like Schartz, Daily liked the idea. “What I have a problem is government funding it.”
He asked if they had the city’s commitment to contribute the same amount.
“I do not have the city’s commitment for any additional funding,” Hayden said. She hasn’t asked yet because they are eying other city partnerships, but she is willing to approach city officials.
“Why are you hitting the county for it?” Daily said.
“Because the county has been so very supportive. So we wanted to reach out to the county first,” Hayden said.
There are home daycare providers that are trying to get licensed through KDHE. “We think that’s wonderful. We want to support all of them.”
But, it is not a lucrative field and many of these providers are barely breaking even, she said. The GBED center would be self-sustaining.
“Commissioner Schartz or Commissioner Daily, do you guys have a better plan for $435,000?” said commission Chairman Shawn Hutchinson, District 3. Hutchinson was the strongest supporter for making the matching contribution.
“This particular childcare facility is going to be in Great Bend, which will help the entire county, not just Great Bend,” Hutchinson said. “And I don’t know of anything else that we have that we can put people back to work at this scale for this type of money. So I’m going to be in favor for it.”
Krier asked if Schartz and Daily would support offering $70,000 now, which would match what the city has offered, or perhaps splitting the $435,000. Both said they would consider that.
But, in the end, the motion was made to table the matter until Wednesday, March 30, and it passed unanimously. The commission meets jointly with the City Council on Monday, March 28, and can discuss the matter then.
What is the need?
“So Sarah, how many children need childcare in our county now?” Hutchinson said.
Hayden said the county has a childcare capacity of 797. But, the demand is 1,502, leaving 705 children without services.
These kids are staying with grandparents, parents who are staying home, or with family members who are at home.
There are existing daycares, but not enough, she said. Most have waiting lists of up to a year, especially for infants, and parents are paying an average of $130 per week per chid for childcare.
“One of the things (I thought about) was how are we serving our children the best way possible,” Hutchinson said. And, “I’m a strong advocate for economic development. I think that the words childcare center and economic development and, really workforce development, are interchangeable.”
He cited Superior Essex in Hoisington where there’s 50 jobs available at an average pay of $50,000 a year. “That’s $2.5 million that is not coming into our community through payroll.”
When looking at filling those openings, potential employees need housing and amenities, but they also need daycare, he said.
“I’m a strong, strong advocate for this going through at this time because of the time-sensitive nature of the secondary grant that will double the funds that you already have,” he said.
District 1 Commissioner Kirby Krier asked if the county’s contribution could be contingent upon GBED receiving the grant. Hayden said that would be possible.
“If Great Bend Economic Development gets this money, they’re going to proceed with this childcare facility, whether they get the second grant or not,” Hutchinson said. The balance needed would likely come from a loan.
“We’re moving forward no matter what,” Hayden said. “We’re trying to seal up the last bits of funding to make that happen and to move this on to an even wider scale project.”
This facility won’t solve all of the needs, but it’s a start, Hayden said. But if they continue and meet those needs, statistics show 564 new people could enter the workforce, resulting in an additional $22,377,264 in income each year.
The county’s employment rate of 2.6% is deceptive, she said. There are people wanting jobs, but have given up looking because they can’t find someone to watch their kids.
About the center
The facility will be a 501c3 non-profit under the umbrella of GBED called Advancing Barton County Childcare Inc. They would hire a director to run this center and then the subsequent centers in other county communities.
They are building new instead of retrofitting an existing building, she said. To meet stringent Kansas Department of Health and Environment standards, this makes more sense.
The cost will be about $1.2 million. So, with the county match and the grant funds, they would be close to that target.
The facility will provide services for 59 children each, she said. That is a magic number, Hayden said, adding that serving more than that requires meeting additional KDHE guidelines.
But, Daily asked, “what if it suddenly goes south” and is not self-supporting?
“This is not (just) a concept. We have all of the numbers worked out for our facility down to the penny,” Hayden said. They also have the site and a site plan.
The plan is to, eventually, open additional centers in other county communities, she said. The planning for this was done by a childcare task force under GBED. They are working closely with Garden City to duplicate successful efforts there led by the Finney County Economic Development Corporation.
The Finney County Childcare and Early Learning Network was awarded tax credits to help expand services.
“When they did this, they took careful consideration to make sure that this was self-sustaining,” Hayden said.
“Also, we could pay daycare providers” a decent wage, she said. Top wages at most current facilities are $10 to $11 an hour, but GBED wants to start people at $15 an hour for part-time positions and in the area of $50,000 with benefits for the directors.
“That is revolutionary for childcare,” she said. So, this helps jobs on two fronts – better wages and childcare availability.
