SPENCER, IOWA – Spencer Economic Development Corporation (SEDC) and First Children’s Finance (FCF) have released a Child Care Market Analysis and Strategic Plan for the Spencer area, outlining relevant child care data, child care market analysis, and FCF’s key findings regarding care in the area.
SEDC contracted with FCF to perform a child care study to better identify and understand the gaps in child care services in the community. The study was paid for in part by grants received from the Iowa Economic Development Authority (IEDA), Iowa Area Development Group (IADG), and Iowa Rural Development Council (IRDC).
In February 2025, FCF and SEDC released three surveys to the Spencer community: one for parents, one for employers, and one for child care providers. The findings from these surveys were compiled into a single market analysis report.
According to the US Census Bureau in 2023, there are 6,053 total workers age 16 and older in the 51301-zip code, with 90% of families with children ages 0-5 and 92% of families with children ages 6-17 have all parents in the labor force. According to the study, over the last 12 months, parents have experienced child care challenges that have affected their job with 66% indicating the most common problem of having to leave work early. Employers indicated the same statistic.
Child care providers indicated lack of space in local programs with 79% saying they had turned away families or put them on a waitlist due to lack of space or openings in their programs in the last 12 months. FCF estimates there are 1,317 children in Spencer from families likely to use a regulated child care setting. According to Iowa Health and Human Services, there are 737 regulated spaces available during the school year and 529 regulated spaces during the summer, indicating a shortage of up to 580 spaces during the school year and up to 788 spaces during the summer.
“Many of us have heard or experienced the need for quality and affordable child care services in the community, but this market analysis from First Children’s Finance has helped us put specific numbers to those needs,” shared SEDC President Philip Ramstack. “Being able to walk through the results of the study, and work with other community members on a strategic plan to create more availability going forward has been a valuable exercise and tool to support our community.”
After the market analysis, FCF led a strategic planning process, with a series of planning sessions held from April to July 2025. A total of 30 local individuals participated in the process, engaging in exercises to develop a vision for child care in the community, and goals and strategies to address the child care challenges identified through the child care market analysis.
Angie Duncan, Business Development Manager for First Children’s Finance, presented the findings from both the Market Analysis and Strategic Plan to the Spencer City Council in a Committee of the Whole meeting on September 15, and to the Clay County Board of Supervisors on September 16.
The final step in the process with FCF is to create a financial model and budget projects for a local child care center project. This process is expected to wrap up in December 2025.
This process has been guided by a steering committee consisting of Kevin Robinson (City of Spencer), Courtney DeLoss (Clay County), Philip Ramstack (SEDC), Sheriffa Jones (Spencer Chamber of Commerce), Terry Hemann (Spencer Schools), and Iowa Lakes Corridor Development Corporation staff.
Both the Market Analysis and Strategic Plan have been published and are linked on the SpencerEDC.com website.
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ABOUT THE SPENCER ECONOMIC DEVELOPMENT CORPORATION (SEDC)
Spencer Economic Development Corporation (SEDC) is a local economic development agency for the City of Spencer and surrounding area. The purpose of the organization is to foster, encourage, promote, assist or otherwise aid economic development growth and development in the City of Spencer and surrounding area.