Report: Economic Benefits of Affordable Child Care for Colorado
December 19, 2022
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In this report, the Colorado Fiscal Institute analyzed the potential effects of making child care affordable for parents of young children. Our analysis showed:
- Colorado families who have access to free child care earn nearly $10,000 more on average than families who don’t have that access.
- Free child care leads to mothers working more, and if universal child care was available it would boost the labor participation rate of Colorado moms by 11 percentage points.
- Rural Colorado has the most to gain from increasing access to free child care.
- The median wage in most Colorado counties is not enough to make child care worth the high cost.
- Affordable child care policy solutions include expanding the Early Childhood Educator Tax Credit, ensuring subsidy rates reflect the true cost of care, and moving towards full-time early learning for all ages.
- One of the biggest barriers to equitably paying for these investments is Colorado’s TABOR law, which prohibits the most equitable financing solutions.
Read the full report
Read a two-page fact sheet with the most relevant data
