Working parents need access to affordable, quality childcare and our Commonwealth needs a dependable workforce. The childcare industry is struggling with their own workforce challenges as well as rising costs. These factors have contributed to a decrease in childcare availability in Pennsylvania in addition to causing some childcare centers to close.
 
While the childcare industry continues to struggle with financial hardships, private equity firms have been buying up childcare centers with the goal of prioritizing enrollment and reducing operational costs.[1] Private equity firms now own 8 of the 11 largest US child care chains by capacity.[2] As a result, private equity firms are able to make a 15 to 20 percent profit while increasing fees for parents.[3]
 
For this reason, I will be introducing a resolution that would direct the Joint State Government Commission (JSGC) to study the impact of private equity in childcare. JSGC would be required to examine actions taken by other states to evaluate the outcomes of private equity firms involved with the childcare industry and would be required to issue a report with its findings and legislative recommendations.  
 
It is important that the impact of private equity in childcare is evaluated in order to ensure the best of interests of children are prioritized and parents are provided affordable, quality childcare. Please join me in co-sponsoring this important resolution to study the impact and role of private equity firms in childcare.  

____________________________________
[1]Aaron Lowenberg, “As Private Equity’s Role in Child Care Increases, Concerns Arise,” New America. May 6, 2024. https://www.newamerica.org/education-policy/edcentral/as-private-equitys-role-in-child-care-increases-concerns-arise/
[2] Aaron Lowenberg, “As Private Equity’s Role in Child Care Increases, Concerns Arise,” New America. May 6, 2024. https://www.newamerica.org/education-policy/edcentral/as-private-equitys-role-in-child-care-increases-concerns-arise/
[3] Elliot Haspell, “Toddlers and Investors Aren’t Playmates: The Threat of Private Equity in Child Care,” Capita. September 9, 2023. https://capita.org/publication/toddlers-and-investors-arent-playmates-the-threat-of-private-equity-in-child-care/#:~:text=This%20brief%20focuses%20on%20the%20influence%20of%20private,child%20care%20chains%20and%20their%20increasing%20political%20clout.