AUSTIN (KXAN) — Every year, families spend thousands of dollars on childcare in Texas.

According to research at the University of Texas at Austin, the cost adds up to nearly 14% of the state’s average median household income.

But even with the high costs, childcare advocates said caretakers are not paid a livable wage. It’s a problem both local and national groups discussed on Wednesday.

‘It’s extremely expensive’

University of Texas LBJ School of Public Affairs Professor Steven Pedigo said running a childcare center can be very challenging.

“It’s extremely expensive. You’ve got the facility cost that you’re providing,” Pedigo said. “We’ve got certain requirements by the number of teachers and or assistants that have to be in a classroom. You’ve got food costs.”

It’s going to take a partnership between both public and private sectors to help, according to Pedigo.

“Think about how the state actually puts more dollars in just in this space,” Pedigo said. “How do we incentivize the private sector to kind of help step up at the table to actually maybe alleviate some of these costs?”

Along with the cost issue, Pedigo said there is a supply issue as well.

“50% of all counties in the state of Texas are childcare deserts.”

Steven Pedigo, University of Texas LBJ School of Public Affairs Professor

A recent policy brief by researchers at the LBJ School of Public Affairs, including Pedigo, outlined different opportunities to improve the current childcare system.

Possible solutions included:

• Economic incentives: better reimbursement rates, tax exemptions, low-interest loan
• A streamlined Texas Rising Star accreditation process: remove barriers to expansion
• Employer child care assistant program: help employees afford care

Childcare as an economic booster

This is an issue childcare advocates addressed on Wednesday. Texas’ own Employers for Childcare Task Force held a virtual townhall.

Business leaders were joined by childcare providers, advocates and other stakeholders to discuss ways to expand access to affordable childcare for working families.

“Our inadequate childcare system in our state today is costing Texas over $11 billion every year. That’s lost productivity. That’s lost tax revenue.”

Kelsey Erickson Streufert, Texas Restaurant Association Public Affairs Officer

Kelsey Erickson Streufert is an executive committee member with the task force. Streufert said a lack of affordable childcare really impacts working parents.

“Either they can’t find high quality childcare, or if they find it, it is going to cost them more to put their child or children into that childcare system than they can make in many different types of jobs,” Streufert said.

It’s one of the reasons that the Austin chapter of the Texas Restaurant Association is working to create a childcare pilot program for hospitality employees.

“The collaboration is happening at a local level to make sure that we’re addressing that challenge for our folks here in the Austin area,” Streufert said.

‘So stressed’

Finding childcare has caused William Alexander and his family anxiety in the past.

“It’s something that you’re so stressed about as a parent,” Alexander said. “We got on waitlists pretty soon after my wife became pregnant. We were on four or five waiting lists.”

Alexander said cost is a challenge for many.

“We’re struggling to find anything in Austin of any quality below $1,500 a month. In most cases, that doesn’t cover food. It doesn’t cover snacks.”

William Alexander, parent

Alexander said he hopes to see movement on this issue soon. The childcare center where his daughter goes to is at risk of closing.

“It just reintroduced us to how challenging this whole process is,” Alexander said.