Ongoing public funding is necessary for Nashville’s childcare centers prioritizing low‑income families
Data shows a gap in community-based early learning centers’ true costs of care versus revenue
NASHVILLE, Tenn. — A new white paper from the Nashville Early Education Coalition (NEEC) and United Way of Greater Nashville finds that the dozen community‑based child‑care centers serving Davidson County’s low‑income families cannot cover the true cost of care without sustained public funding.
“These centers are providing high-quality early learning and care to so many families, which is critical to the development of Nashville’s youngest learners,” said Melanie Shinbaum, NEEC Executive Director. “Childcare is economic infrastructure. When centers can’t afford to keep teachers, classrooms sit empty, parents leave the workforce, and businesses lose talent. Public investment is the bridge between successful families and a stronger city, and we must continue to look for creative funding solutions.”
In 2022, Metro Nashville created a two‑year, $5.3 million stabilization fund, administered by United Way of Greater Nashville, for 12 community childcare centers serving low‑income families in Davidson County. The money was distributed through monthly grants from April 2022 to December 2024, and allowed providers to add additional seats, raise teacher pay, and improve curriculum, while also generating detailed operating data. Launched in 2024, NEEC continues the work of increasing access to high-quality, affordable childcare, while helping to analyze that data and guide informed policy solutions.
Key findings from Sustaining Childcare for Nashville’s Low‑Income Families: A Call for Public Investment:
- Together, these 12 providers provided care for nearly 1,000 children every month, and yet still operated with a gap between operating costs and revenue.
- To maintain operations, providers are forced to pay teachers low wages — in some cases 50-66 percent lower than Davidson County’s living wage — a reality that fuels frequent turnover in the early childhood education industry.
- Each provider lost and hired approximately one teacher per month, forcing some critically needed childcare seats to remain closed, despite family wait‑lists.
“While K-12 public education relies on state, local, and federal funding, early childhood education serving birth to three does not have comparable sustained public funding,” said Erica Mitchell, United Way of Greater Nashville President and CEO. “And while parents cannot afford to pay higher tuition, early childhood educators cannot afford to continue earning low wages, and businesses cannot afford the labor shortage that results when parents are forced to leave the workforce. Because of their mission to serve low-income families, and despite efficient operations, these community-based childcare centers are not able to be financially solvent without public funding.”
Read the full report on our website.
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About NEEC
The Nashville Early Education Coalition serves as a catalyst and champion for affordable and high-quality early learning. We collaborate with families, childcare providers, employers, and policymakers to ensure that every family has access to affordable, high-quality early education, so parents can work, children can thrive, and our city grows stronger. Learn more at www.nasheec.org.
For more information contact:
Kelli Gauthier, Chorus
301-471-2842
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