Grace Day Home, the oldest licensed day-care facility in the state, announced June 7 that it will close in September after 84 years because of rising workers’ compensation costs and the loss of state funding.

“We are deeply saddened that we have to close. We don’t enter into this decision lightly,” said Sister of St. Francis Janet Gwinn, president of Grace Day Home’s board of directors. “We have made this decision after many months of prayer, discernment and consultation.”

The Sisters of St. Francis of Penance and Christian Charity began providing child care in Sacramento in 1915, when mothers working at a nearby cannery left their children with the sisters at St. Stephen Convent.

In 1918 the sisters, aided by Bishop Thomas Grace, started fund raising for a permanent location to build a day-care facility. They later purchased property at Seventh and S streets.

In June 1920, Bishop Grace laid the cornerstone for the new facility, and on Dec. 19, 1920, he dedicated Grace Day Home. He noted how all in Sacramento were interested in the project, since children of every race, color and creed were admitted.

In March 1922, the facility received its first license from the state.

Since that time, thousands of infants and pre-school children have been a part of the Grace Day Home’s legacy of care. While the Sisters of St. Francis no longer operate the facility, they retained ownership and remained on the board of directors.

In a letter to families with children enrolled at the center, Sister of St. Francis Maria Elena Martinez, provincial minister, explained: “With the many uncertainties facing us in the future, particularly those around state funding and finances, it is difficult, if not impossible, to make realistic, positive projections for Grace Day Home.”

Sister Martinez thanked Katriona McLean-Lucas and Gina Queral, current administrators of Grace Day Home, for their “untiring and wholehearted dedication and enthusiasm for the ministry of providing outstanding care for small children.”

Sister Gwinn told The Herald that $600,000 to $1 million would be needed to keep Grace Day Home going for the coming year. She said one of the primary reasons for the closure is the tremendous increase in the cost of workers’ compensation insurance.

She added that the 30 employees at Grace Day Home had not received salary increases for some time. “We consider this an issue of justice and we don’t see the picture changing in the near future,” she said.

Currently 115 children are enrolled at the center, with many coming from single-parent families who are able to attend only with government subsidies or help from other charities, Sister Gwinn said.

“This decision has been made even more difficult because we know that closing affects the lives of so many families,” she said.

“We trust that God will provide, and if Grace Day Home is meant to stay open, some way will be found. If a generous benefactor comes forward, we will certainly not turn away any assistance.”

Bishop William K. Weigand, in a statement to The Herald, expressed “profound gratitude and deep appreciation” to the Sisters of St. Francis for 84 years of ministry at Grace Day Home.

“It is with sadness and a sense of loss that we face the closing of this landmark of Catholic care and hospitality to countless children and their families,” he said.

“Thousands of children have received excellent care and an educational headstart, thanks to the caring staff of Grace Day Home,” the bishop added.

“The closing of this historic institution will be keenly felt by many Sacramento families, but its legacy of loving care will live on in those families whose children have experienced the presence of Christ through the dedicated service and ministry extended at Grace Day Home.”

Plans are underway to prepare for the closure of Grace Day Home and for possible future use of the facility, Sister Gwinn said.

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