Department of Legislative Services staff presented a systems-level analysis of Maryland's child care market, describing four intersecting factors—provider capacity, teacher supply, affordability and quality—that determine supply and demand for child care in the state.

"High cost to open a child care facility is 1 of the many challenges involving provider capacity," DLS appropriation staff Laura Hyde said, noting an average home-based operation serves 4 to 6 children and can cost about $37,000 per year to run with very slim profit margins. Hyde detailed licensing and accreditation requirements and statewide counts: roughly 6,700 licensed providers and about 200,000 licensed slots, leaving an estimated 30% gap between need and licensed capacity.

On workforce, Hyde said Maryland child care teacher pay is low: "childcare teachers typically earn minimum wage, which is about $31,000 per year," and lead teachers average $37,000 to $43,000. Hyde and other presenters highlighted that low wages, limited benefits and more attractive alternative jobs hamper recruitment and retention.

DLS also outlined Maryland's quality infrastructure: licensing, a 24-month accreditation process, and Maryland EXCELS, a five-level quality rating that offers bonuses for higher-rated providers. Hyde reported 70% of eligible licensed programs participate in EXCELS and that 34% of participating facilities had ratings of 3, 4 or 5 in fiscal 2024.

To address capacity and workforce, Hyde and the DLS presentation summarized state and county programs: growing opportunities for family child care (county-run expansion pilots), the childcare capital support revolving loan fund, stabilization grants funded during COVID-19, and Blueprint-funded accreditation and incentive grants. The Maryland childcare credential program and childcare career and professional development fund were described as supply-side investments to raise workforce credentials and offer bonuses for training.

Advocates and lawmakers at the hearing emphasized that these structural challenges will require sustained investment and policy innovation. Laura Wheeldreier of Maryland Family Network said pathways into higher-quality careers for long-term providers should be respectful of existing provider experience while expanding formal credential and pay pathways.

Provenance:
DLS systemic analysis and provider/teacher detail: Laura Hyde presentation (block_6 through block_27, tc 02:16 to 17:31). Program listings and capacity supports: DLS slides and examples (block_18, tc 11:36). Quality and credential program details: (block_27, tc 17:31).