By Missy Modesitt, Executive Director, Muncie BY5—
MUNCIE, IN—Indiana’s early childhood care system is spiraling into chaos. From massive economic losses to unbearable burdens on families and providers, the situation is not only unsustainable—it’s indefensible.
A recent report revealed the lack of reliable child care is costing Indiana more than $4.2 billion each year. These losses stem from working parents being forced to miss shifts, reduce hours, or quit their jobs entirely due to inconsistent or unaffordable care options.
It’s not a theoretical problem—it’s happening in real time across the state. Nearly sixty percent of parents report missing work because of child care breakdowns. Over forty percent have left a job altogether. This is more than an inconvenience. It’s a direct blow to Indiana’s workforce and economy.
At the heart of the problem are child care providers—many of them underpaid, overworked, and barely hanging on. The state is watching a steady exodus from the field. Wages for early childhood educators remain at the bottom of the occupational ladder, with more than 80% earning below a living wage. Home-based providers face new challenges as insurance companies drop coverage and operating costs soar. Many can no longer justify staying in business, and those who do often take on personal debt just to keep classrooms open.
Meanwhile, families are left with limited options. State programs like the Child Care and Development Fund (CCDF) and On My Way Pre-K are struggling to meet demand. Even as the need grows, these programs are projected to serve fewer children next year. Waitlists grow longer. Quality care becomes harder to find. And every child left out is a lost opportunity for early learning and healthy development.
The state is trying to respond. Lawmakers have introduced proposals to simplify licensing and lower barriers to entering the field. They’ve suggested reducing age requirements for staff, extending licensing periods, and increasing group sizes for home-based providers.
But many of these changes focus on deregulation rather than investment. Without meaningful funding, easing rules could put children at risk without solving the real problem.
Indiana cannot deregulate its way out of a care crisis. What’s needed is a commitment to fully fund voucher programs, support educators with living wages and benefits, and treat early care as a public good, not a private burden. Ivy Tech and other institutions are trying to train the next generation of educators, but even that effort is hampered by low pay and high turnover. Local pilot programs are making a difference in some communities, but they need sustained public support to grow and last.
This crisis isn’t abstract. It’s visible in every empty classroom, every provider closing their doors, every parent forced to choose between working and caring for their child. It’s visible in the billions of dollars lost and the children left behind. The path forward requires courage, coordination, and investment. Anything less than that is not reform—it’s negligence. Indiana must wake up to the scale of this crisis before the foundation of early education collapses entirely.
About BY5
Muncie BY5 is a 501c-3 nonprofit organization that formed with a mission to transform our community by connecting Kindergarten readiness to economic success. We are the leading organization for early childhood awareness in Muncie and Delaware County, Indiana. Through a variety of task force and volunteer efforts, we improve opportunities for children aged 0-5 to reach their developmental potential. We are a backbone organization, meaning we provide strategic guidance, direct support, and coordination for early care and education programs across our community. By partnering with local organizations, we help align efforts, drive a shared vision, and ensure Muncie and Delaware County’s early childhood providers and youngest children have access to the resources they need to thrive. Learn more at https://www.muncieby5.org/.
