Universal Childcare

The Problem

Childcare in Denver costs $1,400-2,200/month per child. That’s $16,800-26,400/year - more than in-state tuition at CU Boulder. For a family with two children, childcare can exceed their rent.

The result:

• Parents (disproportionately mothers) drop out of the workforce entirely
• Low-income families rely on informal, unregulated care
• Childcare workers - who are responsible for human development at its most critical stage - earn $13-16/hr (poverty wages)
• Employers lose productive workers and spend billions on turnover

The American childcare system is a market failure. It’s too expensive for parents, pays poverty wages to workers, and produces worse outcomes than public systems in other countries. The market cannot solve this - every country with universal, affordable childcare has achieved it through substantial public investment and a publicly structured system.

What Denver Currently Does

Colorado provides childcare subsidies through the Colorado Child Care Assistance Program (CCCAP), which helps low-income families afford licensed care. The state also launched Universal Pre-K for 4-year-olds through CDEC. But CCCAP has income cutoffs that exclude many working families, waitlists are common, reimbursement rates are too low for providers to sustain quality, and neither program addresses the 6-month to 3-year gap. Denver’s Preschool Program (DPP) provides tuition credits for 4-year-olds, supplementing state Pre-K. None of these programs approach universal access, and childcare worker wages remain at poverty level ($14.50/hr median in Denver, BLS 2024).

Our Solution

The Denver Universal Childcare Act

Modeled on the systems in France, Sweden, Denmark, and Finland - adapted for Denver.

1. Universal Access from 6 Months

• Guaranteed childcare slot for every Denver child from 6 months to kindergarten entry
• No waitlists - capacity is the city’s responsibility
• Full-day programs (7 AM - 6 PM) to match working parents’ schedules
• Located in public facilities, schools, community centers, and licensed neighborhood providers

2. Income-Based Fees (Capped)

• Free for families earning under 200% FPL (~$62,000 for family of 4)
• Sliding scale above that, capped at $200/month per child regardless of income
• No family pays more than 5% of household income on childcare
• Compare: Sweden caps childcare at ~$150/month. France’s École maternelle is free from age 3. Denmark caps at ~$500/month (with subsidies reducing most families’ cost to near-zero).

3. Living Wages for Childcare Workers

• Starting salary: $25/hr (matching Denver’s minimum wage target)
• Parity with K-12 teachers for credentialed early childhood educators
• Full benefits: health insurance, retirement, paid leave
• Professional development and career ladder
• Rationale: You cannot have quality childcare with poverty-wage workers. Period.

4. Quality Standards

• Maximum ratios: 3:1 for infants, 4:1 for toddlers, 8:1 for preschool
• Curriculum: play-based, developmentally appropriate, trauma-informed
• Bilingual programming (English/Spanish) in all centers
• Outdoor play requirements
• Inclusion mandate: all centers serve children with disabilities, with appropriate support

The Evidence: This Works

The Quebec Model - Proof It Pays For Itself

Quebec’s $7/day universal childcare program, launched in 1997, is the most studied example in North America:

• 70,000 more mothers entered the workforce
• Tax revenue increase from those mothers’ earnings exceeded the program’s cost
• Net cost to government: negative - the program generates more revenue than it costs
• Child poverty rates decreased
• Children from low-income families showed improved developmental outcomes

Nobel laureate economist James Heckman’s research shows that every $1 invested in early childhood education returns $7-13 in long-term economic benefits through higher earnings, lower crime, better health outcomes, and reduced social service costs.

This is not an expense. It is the highest-return public investment available.

How We Pay For It

Estimated annual cost: $150-200M/year for universal coverage

Funding sources:

1. City allocation: $80-100M from general fund (Denver’s budget is $1.6B+)
2. Federal/state matching: Head Start, CCDBG, and Colorado early childhood funds ($40-50M)
3. Employer payroll assessment: 0.3% payroll tax dedicated to childcare fund ($50-60M)
4. Revenue offset: Increased tax revenue from parents entering/staying in workforce (Quebec’s program shows this eventually covers the full cost)

Net long-term cost: Zero or negative. When parents can work, they pay taxes. When children receive quality early education, they require fewer interventions later. The investment pays for itself within 5-10 years.

Frequently Asked Questions

“This is too expensive.” It’s more expensive NOT to do it. Denver currently loses billions in economic output from parents who can’t work, turnover costs from parents leaving jobs, and long-term costs from children who don’t receive quality early education. Quebec proved the program pays for itself.

“Parents should raise their own children.” Many parents want to. This gives them the CHOICE. Currently, most families MUST have two incomes to survive in Denver - but childcare costs consume one of those incomes. Universal childcare gives parents real options: work full-time, work part-time, or stay home - without financial ruin.

“Why should taxpayers fund other people’s childcare?” For the same reason taxpayers fund K-12 education: an educated, healthy population benefits everyone. Early childhood is when the brain develops most rapidly. Public investment here has the highest return of any social spending. And every other wealthy country has figured this out already.

“Won’t this put private childcare centers out of business?” No. Licensed private providers can participate in the system and receive public funding for serving families. This is how France, Sweden, and Denmark operate - a mix of public and licensed private providers, all meeting quality standards, all affordable for families.

“Doesn’t Colorado already have CCCAP and Universal Pre-K?” CCCAP has income cutoffs that exclude many working families, waitlists, and reimbursement rates too low for quality care. Universal Pre-K covers 4-year-olds for 15 hours/week. Neither addresses the 6-month to 3-year gap, and neither is universal. We build on what exists and close the gaps.

“Where will the workers come from?” This is a real challenge. The childcare industry faces massive staffing shortages - because it pays poverty wages. Our proposal starts workers at $25/hr with full benefits. When you pay living wages, people come. Quebec’s universal childcare program resolved its staffing shortage by raising wages and offering professional development.

References

• Economic Policy Institute. (2023). Child Care Costs in the United States. (Denver childcare cost data.)
• BLS Occupational Employment and Wage Statistics. (2024). Childcare workers, Denver metro area. ($14.50/hr median.)
• Colorado CCCAP program data and eligibility thresholds.
• Baker, M., Gruber, J., & Milligan, K. (2008). “Universal Child Care, Maternal Labor Supply, and Family Well-Being.” Journal of Political Economy. (Quebec universal childcare impact.)
• Heckman, J. (2006). “Skill Formation and the Economics of Investing in Disadvantaged Children.” Science. ($7-13 return per $1 invested.)
• CU Boulder in-state tuition (2024-2025): $13,590/year. (Comparison to childcare costs.)