Lincoln, Neb. – A report released Wednesday by First Five Nebraska titled “Growing with Care: Child Care and Economic Opportunity in Lancaster County” warns that the region’s child‑care shortage is costing the local economy $288.8 million in lost business output each year.
Economic impact on jobs and tax revenue
The study estimates the shortage translates into 1,115 fewer jobs, $264.2 million less in labor income, and $10.44 million in lost state income‑tax revenue for Lancaster County.
Family expenses rising
Anne Brandt, executive director of Lincoln Littles, said the average annual cost of care for one child in the community is $15,392. Because nearly half of parents use care for more than one child, the average family expense climbs to almost $28,000 per year.
Nearly one‑third of parents who need child care report at least some difficulty finding it, with cost the most frequently cited barrier. Households earning less than $100,000 annually are more than three times as likely to describe finding child care as “very difficult” compared with those earning over $100,000.
Declining supply of licensed programs
Since 2019, the number of licensed child‑care programs in Lancaster County has fallen 26 percent, dropping from 442 to 329 in 2026. Home‑based providers have been hit hardest, decreasing 35.2 percent over the same period.
Despite the drop in program count, total licensed capacity has remained relatively stable, rising slightly from 15,226 spots in 2019 to 15,331 in 2026. However, the report projects the county still needs capacity for an additional 736 children to meet reasonable demand within a short drive.
Local leaders respond
City officials say addressing affordability, access and quality will require continued investment and cooperation. The City of Lincoln has directed more than $2 million in local and federal funding toward early‑childhood care, education and workforce initiatives.
Lincoln Littles has contributed over $5.1 million since 2019 to help families secure quality care, while Lancaster County’s Childcare Grant Program provides financial assistance to families and supports facility improvements.
The report was sponsored by the City of Lincoln, Lancaster County, the Lincoln Chamber of Commerce and Lincoln Littles. Local leaders hope the findings will guide future investments, partnerships and policy decisions aimed at strengthening the child‑care system and supporting the county’s workforce.
Original reporting: KLKN-TV – News, Weather and Sports for Lincoln, Nebraska — read the source article.
