Colorado's Child Care Crisis: Local Efforts to Bridge the Gap

Colorado is grappling with a serious child care crisis.

The Burden of Cost

• For a single parent, child care can take up nearly half of their income.
• This is way above the federal affordability benchmark of 7%.

Shortage of Spots

• In 2023, over 40,000 parents in Colorado had to quit or change jobs because of child care issues.

Local Initiatives

• Some counties have started to subsidize child care through local taxes.
• This is a step in the right direction, but it's not enough to fix the whole problem.

The Colorado Child Care Assistance Program

• Helps low-income families pay for child care while they work or go to school.
• In 2023-2024, the program served over 30,000 children.
• But this is only about 10% of those who qualify.

Federal Rules and Funding

• New federal rules cap family co-payments at 7% of household income.
• But there's a catch: these rules don't come with extra funding.
• In Colorado, meeting these new requirements could cost an extra $43 million per year.

COVID-19 Relief Funding

• COVID-19 relief funding is running out.
• This funding helped stabilize and expand child care assistance.
• Without it, the system is becoming financially unstable.

Enrollment Freezes

• About one-third of Colorado counties are now freezing new enrollments.
• This means new applicants can't get subsidized care until the freeze is lifted.
• There's no telling when that will happen.

Impact of Freezes

• Without more funding, enrollment in the program could drop by 64%.
• This would leave many families without the help they need.

Larimer County's Struggle

• A family with two young children spends about 37% of their income on child care.
• Due to budget constraints, Larimer County has had an enrollment freeze since February 2024.
• Families affected by the freeze are struggling:
• Using fewer paid child care hours
• Facing higher costs
• Missing more workdays, which means less income.

Hope on the Horizon

• Counties across Colorado are introducing ballot measures to fund local solutions.
• These measures will generate millions of dollars annually for child care assistance and workforce compensation.
• These local investments won't solve the statewide funding deficit.
• But they can make a big difference in the communities where they're implemented.

A Model for Other States

• Other states are facing similar issues.
• They're also exploring regional solutions to stabilize funding.
• Colorado's efforts could serve as a model for other municipalities.