Latest news with #Corrine
Time Magazine
3 days ago
- Business
- Time Magazine
Why So Many Childcare Centers Are Closing
For nearly 18 years, Corrine Hendrickson has run a family daycare out of her home in rural Wisconsin, navigating the low pay and long hours because she loves the job. But at the end of August, before a new school year begins, she's shutting down Corrine's Little Explorers for good. With the disappearance of federal and state subsidies that kept her afloat for the last few years, she says, the model no longer works, and she doesn't want to have to choose between raising rates or taking a pay cut. She's not alone: in Wisconsin, other childcare centers are closing ahead of the new school year. 'We're getting to an inflection point,' she says. 'I think enough of us are going to close that they're going to have to do something.' Across the country, childcare centers are struggling as they never have before. A perfect storm of rising costs, worker shortages, and the expiration of federal and state grants makes it extremely difficult for these businesses to operate. Childcare has long been in crisis. Overhead costs like buildings and liability insurance are expensive, and to take care of young kids, centers need a lot of staff, which means they have to spend a lot on payroll. But they also can't charge too much money, or families will drop out. 'Childcare is a textbook example of a broken market,' said Janet Yellen, back in 2021 when she was Secretary of the Treasury. Read More: Why So Many Women Are Quitting the Workforce But for all the struggles of childcare providers in recent years, the pandemic provided an unlikely source of hope. The American Rescue Plan included $24 billion for a Child Care Stabilization program that helped 220,000 centers keep paying wages, benefits, rent, utilities, and other costs. Another $15 billion went to help expand access to childcare. Some of that funding expired in Sept. 2023; the rest expired one year later. And while some states were able to move around federal funds or pass temporary legislation to financially support childcare facilities, that funding is expiring in much of the country. 'It was already a non-sustainable business model, and it got even worse,' says Julie Kashen, senior fellow and director for women's economic justice at the Century Foundation, a left-leaning think tank. 'The pandemic funding really helped prop it up, but ultimately turned into a bridge to nowhere.' Indeed, Corrine Hendrickson said she was actually most solvent during the pandemic; the federal funding even allowed her to hire an extra substitute employee. But, she says, she had been thinking of getting out of the childcare business leading up to the pandemic. She only makes a profit of $20,000 a year, which is an extremely low salary for all the work she does. When it became evident that neither the federal nor state government was going to continue to support childcare providers in Wisconsin, she says, she decided to close her business. The end of funding appears to be leading to many closures. North Carolina, for example, was able to stretch its federal pandemic dollars through June 2024. But after that, 43 centers across the state closed, according to Candace Witherspoon, director of the division of child development and early education in North Carolina. The state was able to release some stopgap funding that lasted through March 2025, but when that ended, even more programs closed. The state has seen 158 programs shutter since the beginning of the year, she says. Read More: 'People Are Going to Die': Cuts Leave Domestic Violence Support Groups Reeling The federal funding allowed many centers to raise pay from $11 an hour to $14, Witherspoon says, but even the higher rate is not enough to attract and retain workers when fast-food restaurants and other businesses pay considerably more. About half of childcare providers in the state aren't able to offer health insurance for their workers, and about 43% of childcare workers in the state are on some form of public assistance like Medicaid and food stamps. Yet demand for childcare is high. 'North Carolina is in crisis because many of our parents are being forced to leave the workforce' since they can't find care for their children, Witherspoon says. In North Carolina, there's only one infant and toddler spot for every five families applying for care. When childcare centers close or parents are unable to find a spot for their children, one parent—usually the mother—often drops out of the workforce to care for the kids. Between the second quarter of 2023 and the third quarter of 2024, the number of people who reduced their hours to part-time or who left the labor force altogether due to childcare rose 43%, according to the Federal Reserve Bank of Kansas City. One analysis of the childcare stabilization funds dispersed during the pandemic found that they helped the mothers with young children stay in the workforce. About 26% of the money spent to stabilize childcare actually ended up back in the government's coffers through tax receipts. As federal and state dollars expire, the childcare business is getting even tougher. Inflation is driving up costs like rent and insurance. Labor is becoming more expensive, and providers are facing more competition from other businesses that can pay better. And roughly 20% of the childcare workforce is made up of immigrants, which means that the Trump Administration's deportation campaign is affecting some workers. One childcare provider in Seattle, for instance, was recently detained by ICE. Read More: Positive Economic Data Is Still Hiding Bleak Reality for Many Families The cost of childcare now exceeds the price of college tuition in 38 states and Washington, according to an analysis conducted by the Economic Policy Institute, a left-leaning think tank. Meanwhile, the median wage in early care and education falls below 97% of other occupations, according to the Center for the Study of Child Care Employment at the University of California, Berkeley. The median wage is $13.07 an hour, but ranges from $10.60 in Louisiana to $18.23 in Washington, D.C. For many providers, raising prices is not an option. Already, prices have grown by 29% since 2020—faster than overall inflation, according to Child Care Aware, an advocacy group. 'If I raise tuition, will I lose too many families to stay afloat? If I don't raise tuition, will I be able to stay afloat?' says Meghann Carrasco, the founder and executive director of Seedlings to Sunflowers, a nonprofit childcare provider in Maine. The center used the pandemic funding to stay open for all but two months during the pandemic, and is now struggling because its Pre-K program is under-enrolled. The center raised prices 16% this year, the most it has ever raised tuition, and lost some families who couldn't afford it, Carrasco says. Even with the tuition increase, Seedlings to Sunflowers was only able to stay open because it embarked on a fundraising campaign in its community, securing $25,000 in interest-free loans and donations. 'The amount of programs closing daily is more than we've ever seen,' Carrasco says. Read More: Why So Many Seniors Can't Afford Long-Term Care Most providers say that without federal or state funding, they do not have a long-term future. Federal funding for childcare was close to becoming a reality in 2021, when the House passed a child care solution in the Build Back Better Act, but it was stripped from the next version of the bill, which became the Inflation Reduction Act. Democrats in Congress introduced a bill in April 2025 that would increase federal spending on childcare, but it's unlikely to go anywhere, especially in a political climate where some Republicans are backing policies that encourage more mothers to stay at home. For now, says Kashen of the Century Foundation, childcare providers have to hope that their states will help them survive. This creates a patchwork system where providers in certain states—often blue states—will stay open and educate more children, while others, in red states, will close or only stay open for people who can afford it. New Mexico, for instance, passed a constitutional amendment in 2022 guaranteeing the right to early childhood education. The state devoted a portion of money from oil and gas development fees to early care and education, amounting to about $150 million a year for early childhood education programs. Vermont passed Act 76 in 2023, which will fund childcare through a 0.44% payroll tax; Massachusetts added half a billion dollars in funding for childcare providers in 2024; and Connecticut passed a bill in 2025 that creates a new endowment for early childhood education. Most states, though, passed nothing at all.
Yahoo
09-04-2025
- Business
- Yahoo
Alberta-based Corinne, 69, wonders if her retirement savings will last
Alberta-based Corinne* has been happily retired for the last three years, but at 69, she wants to make sure her retirement savings will last and potentially fund a retirement home until her death. Over the past 10 years, Corinne has prioritized paying down debt and saving while also helping her young adult children pay for university, a down payment for a home and the purchase of a new vehicle. Today, she is a mortgage-free homeowner and avid traveller, spending about $10,000 a year on trips. While she describes herself as comfortable financially, since retiring she has had to draw down $15,000 a year from her registered retirement savings plan (RRSP) to help meet unexpected expenses and maximize contributions to her tax-free savings account (TFSA). Corinne receives a total net income of $48,000. This includes $20,800 in Canada Pension Plan (CPP) and Old Age Security (OAS); $23,000 from a defined benefit pension plan that is indexed to inflation; and $5,000 from a registered retirement income fund (RRIF) that was converted from a locked-in retirement account (LIRA). Her total annual expenses are: $43,350 (this does not include TFSA contributions). Corrine's home is valued at $650,000. While she is open to downsizing, the cost of a condo plus condo fees in her desired area don't represent a significant savings. Her investment portfolio includes: $110,000 in cash and cash equivalents; $165,000 in a TFSA invested in Canadian equity mutual funds; $320,000 in an RRSP invested in Canadian fixed-income mutual funds; $2,000 in Guaranteed Investment Certificates (GICs); and $53,000 in a LIRA invested in fixed-income mutual funds and Canadian common shares. She also has a whole life retiree life insurance policy from her employer valued at $10,000. While she has been working with a financial planner from her bank, she acknowledges she doesn't have a clear understanding of investing. 'Am I invested in the right investments? When should I convert my RRSP to a RRIF? What are the tax implications of drawing down funds from my RRSPs and how do I avoid any OAS clawback?' Corinne is also concerned about current economic conditions, cost-of-living increases and the devaluation of the Canadian dollar. 'Should I cut down on travel and only budget for $3,000 annually? Will I be able to afford to move into an assisted living residence if necessary?' Corinne's focus on living within her means and paying down debt has placed her in a comfortable financial position and allowed her to be generous with her children, providing an early inheritance, said Graeme Egan, a financial planner and portfolio manager who heads CastleBay Wealth Management Inc. in Vancouver. 'Her pension income and Life Income Fund NOT MENTIONED IN QUESTION … RATHER 'LIRA'? payments more than cover her living expenses, and Corinne's investments – specifically her non-registered cash account – can fund her annual $10,000 travel budget for the next two years until the end of the year she turns 71, when she is required to convert her RRSP to a RRIF.' At that point, her RRIF income should safely cover travel and she should not have to use her cash account for living expenses, Egan said. 'Her minimum annual RRIF payment will be about $17,000 per year (5.28 per cent times $320,000 current balance) so that amount added to her existing income will bring her close to the OAS clawback threshold of $93,000 without exceeding it.' While the Canadian dollar may slip further, Egan said there isn't much she can do except hold U.S. dollars or euros. 'Having some non-Canadian equity exposure should play some defence in offsetting a weak Canadian dollar.' When it comes to her overall asset mix, he recommended investing a portion of her RRSP in equities so that her overall mix is closer to 40 per cent equities and 60 per cent fixed income — it is more conservative than this at present. 'As she ages, her equity mix should reduce to 30 per cent at age 75 and 20 per cent at age 80. Her fixed income is placed in the most suitable account: her RRSP.' To lessen her cost of ongoing investment management, Egan said Corinne could consider exchange-traded funds (ETFs) instead of retail mutual funds, which can have high management expense ratios (MERs). ETFs generally have much lower MER fees. 'This will enable her to pay less in management fees annually and help to improve long-term performance. She may have to open a self-directed TFSA and non-RRSP discount brokerage account respectively at her bank's discount brokerage arm to invest in ETFs. This will apply to her RRSP as well if she wants to switch to low-cost fixed-income ETFs from fixed-income mutual funds. There are all-in-one asset allocation ETFs which provide an easy way for Corrine to self-manage.' Her TFSA is mostly Canada focused. Egan said she could consider diversifying geographically by allocating one-third each to Canadian, U.S., and international equities, noting that stock markets outside Canada have performed better over the long term. 'Corinne could invest the non-registered cash balance of $110,000 in a high-interest savings account ETF while she waits to move to a longer-term investment strategy for this money. Assuming she does not need that much cash in the long term, she could consider investing about 40 per cent of this money in a dividend-producing ETF, which pays out monthly dividend income that is tax effective and provides more income for her for travel purposes and general living expenses. A dividend-income producing investment vehicle has the possibility of appreciating in value, too, when equities rise.' Sticking with a retirement plan during times of volatility Can I work past age 70 while collecting CPP and OAS? Can Gerard and Penelope afford to leave the corporate grind? As for the growing cost of living, Egan said Corinne's pensions (defined benefit, CPP and OAS) are all indexed to a degree to inflation. 'Equity investments tend to track or keep up with inflation, so only her fixed income portion is not indexed. 'Looking down the road, she will likely have to sell her current property to create the capital to generate income to be able to move into an assisted living residence.' Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). * Her name has been changed to protect privacy.
Yahoo
04-04-2025
- Entertainment
- Yahoo
Olivia Munn's Marriage to John Mulaney Started on a Lie
Olivia Munn revealed that her marriage to John Mulaney began with a hilarious proposal story that involved a lie from her side. The 'X-Men: Apocalypse' actor recently made a guest appearance on 'The Tonight Show Starring Jimmy Fallon.' During her conversation with the show's host, Jimmy Fallon, Munn talked about how she had to keep lying to her now-husband right before their marriage proposal and even after it. While appearing as a guest on 'The Tonight Show Starring Jimmy Fallon,' Olivia Munn disclosed that she 'tripled down' on a hilarious lie after John Mulaney proposed. The actor candidly shared the story, revealing that before the proposal, her best friend, Corrine, called her to check if she needed anything specific for her marriage proposal. It was the actor's now-husband, John Mulaney, who put Corrine to the task since he wanted to surprise Munn with a proposal that would make her happy. However, when Corrine called and asked Munn whether she was alone, she 'immediately betrayed' her trust by telling Mulaney that Corrine wanted to tell her 'something really interesting,' not knowing it was about nothing but their proposal plan. Munn explained that after hearing her best friend's words, she was 'freaking out.' She said, 'I just told him that she called me and wants to talk to me. Now Corrine's going to get in trouble.' Thus, to hide what her best friend actually talked to her about on the phone, Munn came up with a lie. The actor told Mulaney that Corrine's 'having really bad trouble in her marriage.' After that proposal was over, Mulaney told Munn that he knew that the talk about Corrine's marriage trouble was 'a lie.' However, Munn revealed that she didn't want to get caught, so she insisted that it wasn't a lie and that Corrine was having trouble in her marriage. However, Munn later decided to come clean both to her husband and longtime friend, Corrine. The post Olivia Munn's Marriage to John Mulaney Started on a Lie appeared first on Reality Tea.
