Childcare is expensive all over the country, but parents in Minnesota have it especially hard. According to data from Childcare Aware, for example, daycare for infants cost 21 percent of the state median household income in 2022, making Minnesota the sixth most expensive state in the country.
This is no accident. Compared to most states, Minnesota has stringent rules that raise the cost of care for providers. American Experiment documented this phenomenon in a 2022 report. The report noted, for example, that requiring a high school diploma for childcare workers raises the cost of daycare for infants by about $1,900. Requiring a bachelor’s degree added another $1,900.
In Minnesota, childcare center workers are required a bachelor’s degree. Those using other avenues must have a high school diploma, take post-secondary credits, and possess thousands of hours of childcare experience, which is costly.
A new report by the Knee Center for Regulatory Research at West Virginia University has collaborated these findings. Specifically, the report created an index on state childcare regulations which included the following indicators:
- Group size
- Child-staff ratio
- Training requirements
- Education requirements
Scores ranged from 0 to a maximum of 10, with lower scores indicating a more stringent regulatory environment. Minnesota scored a 2.21 and was the seventh most restrictive state for childcare.
The government is to blame
Indeed the economics of childcare are challenging. But that is true all around the country, so it does not explain why Minnesota is more expensive compared to most states.
What explains the relatively unaffordable childcare in Minnesota, is government regulation. Minnesota has stringent rules for daycare centers, which raises tuition for parents. If nothing is done to change those rules, no amount of spending will make childcare more affordable.