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Federal rule requires states to conduct a child care market rate survey every three years as a condition of receiving federal funding from the Child Care and Development Fund (CCDF). Market rate surveys help states establish child care subsidy rates that are high enough to allow low-income working families to enter the child care market and afford equal 1721458 access to a range of care.
In Colorado, the Department of Early Childhood (CDEC) sets rates for child care subsidies paid out through the Colorado Child Care Assistance Program (CCCAP) across the state. This study identifies the prices charged in different communities for different types of care and age groups across Colorado. This effort to identify child care market prices has two primary goals.
The first goal is to inform the rates reimbursed for child care through the Colorado Child Care Assistance Program (CCCAP) and to provide a benchmark for setting current subsidy rates in order to meet the federal definition of equal access. State legislation enacted in 2018 (HB18-1335) further elevates the importance of the market rate study by requiring the allocation of CCCAP funds to be based on a formula which combines the estimated eligible population and appropriate reimbursement rates.
The second goal relates to the broader mission of CDEC. Families across the state depend on the availability of affordable child care every day, whether or not they qualify for CCCAP. The results of this study provide vital information on the affordability of child care as well as an indication of how well the markets for that care are functioning.
Download and read the study here.
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