Childcare providers in Texas are facing a crisis as rising costs and legislative changes threaten their operations. During a recent government meeting, several business owners shared their struggles, highlighting the urgent need for reform in the state's childcare system.

Glenda Gonzalez, owner of Kiddie Academy in Richmond, Texas, described how her enrollment dropped by 50% over the past two years. She attributed this decline to public schools offering free full-day pre-K programs, which has made it difficult for private centers to compete. Gonzalez noted that her operational costs have skyrocketed, with insurance premiums tripling and property taxes increasing significantly. She warned that without a substantial increase in enrollment, she may have to cut staff or reduce programs.

James Heteboe, who operates six Kiddie Academy locations, echoed these concerns. He reported a loss of $1.5 million in revenue due to the expansion of universal pre-K under House Bill 3. This legislation has led to a significant drop in enrollment, forcing him to lay off staff and struggle to maintain quality programs. Heteboe emphasized that quality childcare is essential for a thriving workforce and economy, yet many families are unable to afford it.

Eric Barnard, owner of the Goddard School in Southlake, shared his experience of a 30% revenue loss after local schools expanded their pre-K services. He highlighted the financial strain on families, which often leads to one parent leaving the workforce due to high childcare costs. Barnard called for better integration of childcare providers into the state's educational funding system to ensure families have access to quality options.

The meeting underscored the critical state of childcare in Texas, with providers urging lawmakers to develop a comprehensive plan to support the industry. With over 86,000 children on waitlists for state subsidies, the need for immediate action is clear. The testimonies from these business owners reveal a sector in distress, struggling to survive amid rising costs and increased competition from public education.