From crisis to collaboration: Tackling Northeast Indiana’s childcare shortage

When Allie Sutherland and her family moved from California to Fort Wayne five years ago, they quickly encountered a familiar struggle– finding reliable, affordable childcare for their toddler and infant.

"I had a list of maybe 40 childcare providers, and no one would even take my name for a waitlist,” Sutherland recalls. “I didn’t know what to do.”

After hours of calls and research, Sutherland finally found a spot for her children, but the experience stayed with her. It made her realize the challenges her family—and many others—face in a state grappling with a childcare crisis.

Indiana is one of many states confronting severe shortages in early childhood care. Across the state, demand for childcare far outstrips supply, with nearly 40 percent of children living in "childcare deserts," where there is fewer than one childcare spot for every three children. Moreover, only 25 percent of early childhood education programs in Indiana meet high-quality standards, according to Brighter Futures Indiana, a statewide initiative focused on improving access to affordable, quality early education and care.

The issue isn't just about availability; it’s also about cost. In Indiana, yearly childcare costs for an infant can range from $7,000 to over $15,000—making it unaffordable for many families. For some, these high costs force parents to choose between working and staying home with their children.

But the problem isn’t only impacting families. Employers are also feeling the strain. A recent report by the Indiana Chamber of Commerce estimates that the state's economy loses about $4.22 billion annually due to childcare issues, including $1.17 billion in lost tax revenue.

Indiana University Public Policy InstituteA study by the U.S. Chamber of Commerce Foundation, Early Learning Indiana, and Indiana Chamber of Commerce shows that the Indiana economy loses billions of dollars each year due to insufficient childcare.The economic impact of the childcare crisis has prompted local leaders to seek out innovative solutions to ease the burden on families and childcare providers alike.

Community solutions take root

In 2021, Sutherland began working with local business leaders and community organizations to address this issue. Her journey began after connecting with Sherry Grate, vice president of community impact at Ambassador Enterprises, a private equity firm based in Fort Wayne, which was also looking for ways to improve childcare access. 

Through conversations with Grate, Sutherland observed that some counties, like Kosciusko, Wabash, and Noble were beginning to make progress in addressing the childcare crisis. The main barriers—affordability and high operating costs for providers—were starting to see solutions in these areas, largely because they had strong local leadership and engaged community teams.

This led Sutherland and Grate to ask, "What if we could expand this success across all the counties?"

Out of these discussions came the creation of the Northeast Indiana Early Childhood Coalition (NEIECC), a regional initiative focused on improving access to quality childcare across 11 counties in Northeast Indiana. The coalition was founded in December 2021, with Sutherland at the helm. Its goal is to work collaboratively with local communities to address both the immediate needs and long-term systemic challenges in childcare.

Each of the coalition’s counties has its own leader and steering committee, which works alongside local organizations, like community foundations, to address unique needs. Their aim is to address specific local challenges while advocating for broader regional solutions that can create lasting systemic change.

"We want to foster collaboration and ensure childcare is viewed not just as an early childhood issue but as a community-wide concern," says Sutherland. "By bringing together schools, nonprofits, local governments, and funders, we're building solutions that are not only practical but sustainable."

The coalition takes a multifaceted approach to improving childcare access in the region. One key initiative is its work to expand the availability of high-quality early childhood education by supporting childcare providers with professional development opportunities, such as training, certifications, and best practice resources. NEIECC also advocates for increased public and private investment in early childhood care, engaging with local policymakers to improve funding and policy frameworks that make childcare more accessible and affordable for families.

Northeast Indiana Early Childhood CoalitionThe NEIECC board chair and representatives from the 11 counties.Additionally, NEIECC facilitates collaboration among local businesses, educators, and community leaders to identify gaps in childcare availability and develop targeted solutions. This includes helping employers create childcare benefits for their employees and working with local governments to increase the capacity of childcare facilities. The coalition also conducts research and data collection to assess the region's childcare needs and inform decision-making. Through these efforts, NEIECC seeks to create a more sustainable childcare ecosystem in Northeast Indiana, helping families gain better access to care and supporting workforce participation.

Innovative programs

One of the coalition’s most promising initiatives is the Tri-Share Plus program, set to launch this fall. This innovative model divides childcare costs among three partners: employers, families, and a dedicated fund. It aims to make childcare more affordable for families while ensuring that childcare providers can cover their operational costs without overburdening parents.

The issue of childcare affordability is twofold. First, many families find childcare unaffordable due to its high cost. Second, childcare providers face challenges with high turnover and staffing shortages because they operate on limited budgets, making it difficult to offer competitive wages or benefits. This creates a cycle where rising costs for families are met with increasing gaps in available care, exacerbating the overall demand.

To break this cycle, this program will distribute the financial burden of childcare. Modeled after a similar program in Michigan, the initiative will involve employers, families, and a fund covering a portion of the costs. This will help families access more affordable care while ensuring providers receive fair compensation for their services.

The program is being piloted with funding from the Strategic Development Commission. Providers participating in the program will need to be licensed or registered, ensuring safety and quality standards. Families will have the flexibility to choose from a variety of providers within this framework.

Sutherland says employers have expressed strong support for the program, eager to contribute to a solution that will not only benefit employees but also support the local childcare ecosystem. The Tri-Share initiative is seen as a historic investment by the community to solve a critical issue that impacts families, businesses, and the economy as a whole.

In addition to reducing the financial burden on families, the program will work with childcare providers to optimize business practices, helping them cover the true costs of care without raising tuition fees.

Leslie Friedel is the CEO of Fort Wayne-based Stillwater Hospice, one of the first employers participating in the Tri-Share Plus program. She says that nearly 90 percent of their workforce is women, and sees the challenges childcare poses firsthand. Friedel notes that employees rarely leave Stillwater for another employer. She says most typically, it’s because they need to take care of their children or other family members.

"Our hope is to see employees maintain full-time work while accessing high-quality childcare," says Friedel. 

Looking ahead

The childcare crisis in Indiana may seem overwhelming, but efforts like the Northeast Indiana Early Childhood Coalition and the Tri-Share Plus program illustrate that communities are beginning to take collective action. By engaging all sectors—businesses, local governments, community organizations, and families—regional solutions are taking shape to address both the cost and availability of childcare, ensuring that children, families, and employers can thrive together.

Northeast Indiana Early Childhood CoalitionNEIECC hosts meetings where attendees can learn about new initiatives and have discussions around early childhood challenges."I feel really lucky to be in this community that I think really gets it and is working to make a difference,” Sutherland says. “If we want to be a community of choice, if we want that quality of life, we want more economic development, people to come and our community to thrive– this is the linchpin.”

NEIECC will host a regional meeting on December 4th from 9-11 a.m., bringing together communities from across the region to discuss early childhood challenges and share updates on new initiatives. The meeting will take place at Stillwater Hospice.

Employers interested in participating in Tri-Share Plus can reach out to Sutherland for an initial conversation at [email protected].
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Read more articles by Katy Anderson.

Katy Anderson is a freelance contributor for Input Fort Wayne who has dedicated nearly two decades to crafting narratives about Northeast Indiana. Fueled by curiosity, she loves unraveling the stories behind the region's unique people and places. Her favorite topics to write about are science, technology, and workplace culture.