BOISE, Idaho (CBS2) — A new report highlights just how unaffordable and hard to access childcare is in Idaho.

The Annie E. Casey Foundation's annual Kids Count Data Book finds that challenges in accessing childcare cost Idaho's economy $525 million per year. That's why local advocates say it's important for the state and federal governments to invest in this sector.

In the 2023 Kids Count Data Book, Idaho ranks 38th when it comes to the number of young children in school.

"It is shocking except for the fact that Idaho is one of only three states in the entire country that does not invest in an early childhood system, so increasingly Idaho is beginning to fall behind," said Emily Allen, a policy associate with Idaho Voices for Children.

The report found 65 percent of kids three and four-years-old are not in pre-school.

"That very well may be contributing to lower proficiency scores in third and fourth grade in reading, and then we're also seeing a decline in math proficiency in eighth grade," Allen said.

And as the study shows, childcare programs aren't easy to access.

"About 50 percent of all Idaho children are living in what's considered a childcare desert. There's just not enough child care for the need," Allen said.

She says that could mean child care is too far away, or already full, and parents can only put their names on wait lists.

She's the mom of a 4-year-old daughter.

"I put my name on a couple of waitlists when I was expecting and I still haven't heard back from those lists," Allen said. "The reality is that you could be on the waitlist for a good one to two years and never hear back from your top choice."

The report also finds that parents are paying a significant portion of their income on childcare.

For example, year-round infant care in Idaho costs about the same as a year of tuition at an in-state public university.

"The national recommendation is you're not spending more than seven percent of your monthly budget on childcare and we're seeing that single mothers in the state of Idaho are spending as much as 25 percent of their income on childcare, and for single mothers, having access to childcare is essential. They're the only income and they must have opportunity to go earn a living to provide for their kids," Allen said.

Then there are the childcare workers, who are earing much less than other sectors and their peers in other states.

"This workforce is so special. These are people who have dedicated their lives caring for little tiny kids. They're so passionate about it and I think they deserve the utmost respect and investment from our state and at the federal level as well," Allen said.

The data book puts Idaho fifth to last in the nation for childcare worker wages.

At the end of this month, pandemic relief dollars that have helped stabilize the childcare sector will run out. Allen says that means she'll be paying about 10 percent more for her child's care.

"A 10 percent increase on a $1,000 bill is another $100 they're going to have to pull from somewhere... It's not insignificant when we put this in the context of working families," Allen said. "All of these childcare centers have anticipated the end of these dollars. For some, the plan has been to close. For some the plan has been to raise tuition rates for parents in order to sustain operations, and there is a category of business that are just on a wait and see basis."

She says potential solutions include the state subsidizing better pay for child care workers, or scholarships and student loan forgiveness programs.

"It is the critical backbone of our economy," Allen said. "We have a governor who is a very pro-education champion, so he very much I believe understands the value in preparedness and seeing those outcomes later on in the K-12 system."

She says there also needs to be more public-private partnerships. For examples, companies could offer employees with families more flexible work schedules, or the state could incentivize businesses to offer in-house childcare.

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