Business of Child Care

Mayor-to-Mayor Roundtable Series

Lead like a Mayor: Child Care as Infrastructure

NEXT ROUNDTABLE:

Thursday, May 15, 2025 | 10:00AM CST
Hosted by Business of Child Care

Understanding the Numbers:
The ROI of Saying Yes

Join fellow mayors and civic leaders for a data-driven session focused on how child care infrastructure impacts workforce participation, local earnings, and civic viability. This roundtable will explore cost modeling, provider economics, and the fiscal frameworks that allow local governments to say yes with confidence — and without long-term subsidy reliance.

Briefing Recap: Mapleton’s Path to Yes

Mayor-to-Mayor Roundtable | April 2025
Featuring Mayor Jeff Annis | Mapleton, MN

Child Care Is Economic Development Infrastructure

At the inaugural Mayor Roundtable, Mayor Jeff Annis of Mapleton, MN shared how his city redefined child care as core infrastructure — no different than roads, broadband, or wastewater systems. This shift reframed the issue not as a social program but as an economic necessity. “We talk about roads, the water and sewer lines, and all these things… but daycare just doesn’t come up. Maybe that’s why we’re in the situation we’re in.”

Key Takeaways from the April Roundtable:

  1. Reframe the Problem: Treat Child Care Like Infrastructure
    Child care isn’t a fringe issue — it’s a foundational requirement for economic growth, particularly in rural areas. Communities must recognize it as infrastructure that enables workforce participation and long-term vitality. Mayor Annis emphasized, “If we can’t solve this, it’s not just a family issue. It’s an economic issue for the whole town.”
  2. Strategy First, Then Action: Community Planning Matters
    Mapleton partnered with SMIF to conduct interviews and surveys that revealed child care as a top-three local concern. This data gave the city the clarity and mandate to act. “As we interviewed folks and did questionnaires… daycare came up as being a top 3 issue,” noted Annis.
  3. Outdated Models Can’t Deliver: The Center Model Exposed
    Years of struggling with mold, closures, and renovation costs revealed how fragile the traditional center-based model had become. Even minor upgrades triggered costly discoveries, highlighting the risks embedded in aging facilities. “We were going to put new flooring in and — holy mold! All over the place.”
  4. Endless Subsidies Are Not a Strategy
    Mapleton was faced with spending over $100,000 annually to keep a small-scale center afloat, with no long-term sustainability in sight. The city realized it couldn’t subsidize somethign that wasn’t working.
  5. The Pivot to Child Care House: A Right-Sized Solution
    The Child Care House model offered infrastructure matched to Mapleton’s scale, while also opening the door for local entrepreneurship. The financial model finally aligned with local resources and demand. “We couldn’t make the numbers work for a center. They just didn’t work. This model — the numbers work.”
  6. Say Yes with Confidence: No More Maybes
    A defined roadmap, business startup supports, and site-ready delivery removed the uncertainty that so often paralyzes local decision-making. Mapleton could say yes without relying on unclear funding or unstable operating assumptions. “Once you’ve got the roadmap, and it’s not all ‘maybes,’ it becomes a decision — not a wish.”
  7. Measure What Matters: Real Economic ROI
    By restoring local child care supply, Mapleton projects an annual workforce wage unlock of nearly $400,000. That translates to over $6 million in economic value over two decades — all from a $300,000 investment. “That’s a return we can explain to anybody,” said Annis.
  8. Not Just One House: Momentum Builds Quickly
    The first Child Care House has sparked new interest from local providers and property owners alike. Multiple community members have already stepped forward to explore future placements. “Three young gals who worked in neighboring towns — now they’re asking about running one. They think they could do this.”
  9. Young Entrepreneurs Welcome: Building a Rural Business Pipeline
    The model is not only solving for care access — it’s creating business opportunities for the next generation. Mapleton is already looking at additional properties and actively supporting the pipeline of new providers. “To me, this is just the first of maybe 3 or 4,” said Annis. “We’re already looking at other properties that might be suitable.”

 

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