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

Colorado is grappling with a serious child care crisis. The cost of child care is a huge burden for many families. For a single parent, child care can take up nearly half of their income. This is way above the federal affordability benchmark of 7%. The state also has a shortage of spots in licensed child care programs. In 2023, over 40, 000 parents in Colorado had to quit or change jobs because of child care issues. This shows how big of a problem this is. Some counties in Colorado have started to take matters into their own hands. They have passed measures 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 has been a lifeline for many low-income families. It helps them pay for child care while they work or go to school. In 2023-2024, the program served over 30, 000 children. But even this is only about 10% of those who qualify. New federal rules aim to make child care more affordable. They 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. On top of that, COVID-19 relief funding is running out. This funding helped stabilize and expand child care assistance. Without it, the system is becoming financially unstable.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. Without more funding, enrollment in the program could drop by 64%. This would leave many families without the help they need. In Larimer County, the child care situation is just as tough. 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. They're using fewer paid child care hours and facing higher costs. They're also missing more workdays, which means less income. But there's hope. 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. 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.