3.3. Main Regulatory Constraints for Child Care Providers

In West Virginia, child care providers are required to demonstrate that they have enough funds to cover 6 months of operating expenses prior to opening a facility. This requirement places an undue burden on prospective child care business owners who often experience significant difficulties to raise this kind of capital. Centers and facilities must also provide “outdoor space” to children [101], and either have 75 square feet of space per child or make special accommodations (e.g., taking children outside in groups) to comply with such regulation [102]. Additionally, child care facilities (center-based and home-based) need to submit a detailed Needs Assessment and Letter of Intent (a certificate of need) to the state’s regulatory agency, so it can determine if there is a real need for a new provider in a given geographic area [103]. Neighboring states [104] do not have a certificate of need requirement for child care providers, and given the fact that West Virginia has a number of child care deserts or areas with an undersupply of such services, such a requirement might be unnecessary and could be revisited. 

Providers are also required to ensure that their staff meet all professional development requirements and keep their credentials current, including making sure that teachers and assistant teachers obtain and maintain a West Virginia Training Certificate in Early Care and Education (WVTCECE) or its equivalent [105]. Training requirements can be difficult to attain for those who live in rural areas. In actuality, many providers require job applicants for teacher and teacher assistant positions to have such credentials before considering them for a job opening.

The complex regulatory environment in West Virginia not only makes market entry more difficult for new actors (or at least less attractive), but it also prevents existing providers from staying in the black. In other words, it is not only a new startup issue, but also a retention issue for current businesses that are at risk of closing doors because they cannot operate in the current system. For instance, Encova Insurance gave up on opening a child care center upon finding out about the state’s outdoor space requirement. Additionally, roughly seven years ago, the Capon Bible Fellowship, which is located in a child care desert, was planning on opening a child care center at the old town elementary school, but strict regulatory requirements prevented it from opening doors. Some of the regulations included wider corridors, expensive playground mats and post-secondary degree requirements (even though most workers in this field make poverty-level wages). Furthermore, over the past few years, six child care centers closed in Hardy County, in part, because of the high costs associated with compliance with rigorous regulatory requirements. As a result, the Hardy County Child Care Center – one of the few providers open in the area – has a three-page waiting list.

Lastly, the strict regulatory environment in West Virginia also drives caregivers to the informal or underground economy, putting the safety of children at risk (since informal arrangements often do not comply with safety standards) and jeopardizing children’s success later in life due to the lack of quality in such services, especially related to the provision of an adequate program curriculum.