>> Eric: ALL RIGHT.

ALWAYS GOOD, PROFESSOR, YOU COULD DO THIS FOR A LIVING.

>> I COULD, MAYBE I SHOULD.

>> Mary: CRITICAL FUNDING FOR THE STATE'S CHILDCARE PROVIDERS IS SET TO EXPIRE THIS SUMMER.

LAWMAKERS HAVE PROPOSED SOME REPLACEMENT FUNDS BUT MANY WORRY IT MAY NOT BE ENOUGH.

REPORTER KAOMI LEE WENT TO MOWER COUNTY IN SOUTHEAST MINNESOTA TO LEARN MORE ABOUT THE POSSIBLE IMPACT.

>> IT'S 7:00 A.M. AND THERE'S NOTHING ELSE THAT 27-YEAR-OLD PAT ELIF WOULD RATHER BE DOING.

>> I'M UP IN THE MORNING, THERE'S NO REASON NOT TO BE HERE.

>> ELIF HAS BEEN WORKING AT KID'S CORNER N AUSTIN SINCE 19 THE 7.

IT'S THE WRAPAROUND DAYCARE IN THE PUBLIC SCHOOL SYSTEM.

EACH WEEKDAY ELIT ASSISTS PRE-K TO FOURTH GRADE STUDENTS.

THEY COLOR, MAKE CRAFTS AND PLAY GAMES.

>> OH, I JUST LOVE THEM.

IT'S SO MUCH FUN AND IT GETS ME MOVING.

>> AT 8:30 SHE'LL GO HOME OR GO EXERCISE.

AT 1:30 SHE'LL BE BACK TO DO IT ALL OVER AGAIN.

SHE SAYS IT'S TOO SOON TO TALK ABOUT RETIRING.

>> I DON'T KNOW, I'M ENJOYING IT RIGHT NOW, EVERYTHING IS GOING OKAY, HEALTH IS GOING DOWN.

THAT WILL BE DETERMINED PROBABLY SOMETIME DOWN THE ROAD.

>> HER BOSS SAYS SHE'S LUCKY TO HAVE ELIT.

CARRIE SAYS SHE CAN'T FIND ENOUGH GOOD STAFF.

>> RIGHT NOW OUR NEW NORMAL, TYPICALLY PRE-COVID HAD 450 STUDENTS IN OUR SCHOOL AGE CHILDCARE PROGRAM.

NOW WE'RE AT 250 AND THAT'S STRICTLY BECAUSE OF STAFFING.

>> 75 KIDS HAVE BEEN ON THE WAITING LIST ALL YEAR.

OLDER WORKERS LIKE ELIT ARE IDEAL.

THEY'LL WORK A SPLIT SHIFT AND THEY MIGHT BE MOTIVATED BY SOMETHING OTHER THAN MONEY.

>> OUR WAGES ARE REALLY IN LINE WITH OTHER CHILDCARE IN OUR REGION.

THEY HAVE A REALLY NICE BENEFIT PACKAGE, BUT THERE'S STILL OTHER PLACES, YOU CAN GO TO KWIK TRIP AND START AT CONSIDERABLY MORE.

>> EXPERTS SAY MEDIAN PAY FOR CHILDCARE WORKERS IN MINNESOTA IS 11.50 AN HOUR.

THE STATE ALSO RESTRICTS THE NUMBER OF KIDS PER WORKER.

>> YOU KNOW, IT'S ONE OF THOSE DOUBLE-EDGED SWORDS.

I NEED MORE STAFF SO I CAN HAVE MORE KIDS SO I CAN HAVE MORE MONEY, YOU KNOW, THAT COMES IN TO SUPPORT MORE KIDS AND MORE STAFF.

>> STATE LICENSED HOME DAYCARE AND CHILDCARE CENTERS MADE IT THROUGH COVID WITH HELP FROM THE GOVERNMENT.

KIDS CORNER RECEIVED $9,000 A MONTH THROUGH THE AMERICAN RESCUE PLAN ACT BUT LAST MONTH THE GRANT WAS CUT IN HALF.

AT THE END OF JULY T STOPS ALTOGETHER.

WERMAGER SAYS THAT'S MONEY THAT DIRECTLY IMPACTS STAFF AND TRAINING.

>> WE CAN EXIST WITHOUT IT, WE DID BEFORE.

BUT THE WORLD IS DIFFERENT AFTER, AFTER COVID.

THE WORLD'S DIFFERENT.

KIDS' NEEDS ARE DIFFERENT, FAMILY'S NEEDS ARE DIFFERENT.

>> NON-PROFIT FIRST CHILDREN'S FINANCE HAS BEEN SURVEYING CHILDCARE PROVIDERS SINCE 2021.

>> THE CHILDCARE SECTOR IS REALLY IN A WAIT AND SEE.

>> CHILDCARE IN THE STATE WAS ALREADY AT A CRISIS LEVEL BEFORE THE PANDEMIC.

A NEW SURVEY OUT THIS SPRING SHOWS ENROLLMENT HAS STABILIZED, BUT A TIGHT WORKFORCE AND SKYROCKETING INFLATION SPELL TROUBLE AHEAD.

>> THERE IS A LOT OF UNCERTAINTY IN THE SECTOR.

WE ASK, WE ASK PROVIDERS HOW LONG THEY EXPECTED TO STAY IN BUSINESS.

20% OF THEM SAID ONE YEAR OR LESS.

AND THEN A FURTHER 50% OF THEM SAID THEY DON'T KNOW.

>> FOR A BUSINESS THAT IS REALLY FOUNDATIONAL TO THE REST OF THE MINNESOTA ECONOMY TO HAVE 70% SAYING I DON'T KNOW OR I'VE GOT LESS THAN A YEAR IS PRETTY SCARE TOY TO THINK ABOUT.

>> PEARL SAYS THE COST OF CHILDCARE HAS MOSTLY BEEN LEFT TO YOUNG PARENTS WHO CAN'T AFFORD PRICE INCREASES AND HOME PROVIDERS AND CENTERS THAT ARE STRUGGLING TO BREAK EVEN.

PEARL SAYS GOVERNMENT SUPPORT NEEDS TO CONTINUE.

>> NOTHING'S A DONE DEAL BUT BOTH THE SENATE AND HOUSE AND THE GOVERNOR HAVE FUNDING FOR RETENTION GRANTS IN THEIR PROPOSALS, BUT THEY'RE AT VARYING LEVELS OF FUNDING.

>> THE PANDEMIC AFFECTED THE CHILDCARE CRISIS IN EACH COMMUNITY LITTLE BIT DIFFERENTLY.

IN AUSTIN, ONE EMPLOYER DECIDED TO DO SOMETHING.

>> TWO, ONE!

WOO-HOO!

THIS WEEK HORMEL BROKE GROUND ON A $5 MILLION CHILDCARE FACILITY.

IT WILL BE 13,000 SQUARE FEET AND HAVE ROOM FOR 130 CHILDREN, NEARLY HALF OF THE SLOTS WILL BE FOR KIDS TWO AND YOUNGER.

HORMEL SAYS IT JUST MADE SENSE.

>> WE ATTRACT ALENT FROM ACROSS THE COUNTRY AND SO THEY'RE LOOKING AT WHAT SERVICES DO WE OFFER IN AUSTIN AND DO THEY WANT TO MOVE HERE.

WE ALSO SAW IT WAS A BARRIER TO RETAINING TALENT.

WE HAD NEW MOMS THAT WOULD LEAVE THE WORKFORCE BECAUSE THEY COULDN'T FIND CARE.

>> THE CITIZENS WIN, THAT'S WHAT EVERYBODY WANTS, WHETHER IT'S HORMEL FOODS BECAUSE THEY'RE GOING TO RECRUIT FOLKS TO WORK FOR THEM OR CITIZENS OF AUSTIN THAT ARE GOING TO HAVE, PEOPLE ARE GOING TO WANT TO BUY THEIR HOMES BECAUSE THEY'RE MOVING INTO THE COMMUNITY BECAUSE WE HAVE ALL THREE LAYERS WHETHER IT'S EMPLOYMENT AND SCHOOL SYSTEM AND NOW CHILDCARE.

>> AUSTIN IS GIVING HORMEL A 15-YEAR TAX ABATEMENT ON THE PROPERTY.

PRIORITY WILL GO TOWARDS HORMEL EMPLOYEES.

THE REST OF THE SLOTS WILL BE OPEN TO THE PUBLIC.

- AT KIDS CORNER THESE DAYS ENROLLMENT IS UNPREDICTABLE.

MORE PARENTS ARE WORKING FROM HOME, BUT WITHOUT STATE SUPPORT, WERMAGER SAYS SHE MIGHT HAVE TO RELY ON DONATIONS TO THINGS LIKE CRAYONS AND