Child Care

Refundability 101 3

In Utah, raising a family with children is expensive. Whether or not a family can afford child care depends on income remaining after paying basic household expenses.

To help policymakers understand these challenges, we're introducing the Utah Child Care Affordability Calculator. Developed by the Committee for Economic Development in collaboration with Voices for Utah Children, Promise Partnership Utah, and Utah Community Builders, this tool helps illustrate a clearer picture of the finances of everyday Utah families.

The Utah Child Care Affordability Calculator isn't for families choosing child care. Instead, it's a policy tool. It helps policymakers understand how families' finances intersect with child care costs. By selecting a county, users can see if families, based on median income, can afford licensed child care after covering basic expenses.

This tool highlights the hurdles families face in affording child care and accessing the Child Care Assistance Program. It's a call to action for policymakers to address child care affordability.

 

Access the Child Care Affordability Calculator Here 

 

Published in News & Blog

This open letter was released on January 31, 2024, by Neighborhood House and Voices for Utah Children, two non-profit organizations working together with other community partners to create a better childcare system in Utah for the benefit of all the children in care. You can sign on, too, by completing this short form

The undersigned community leaders urge the Utah State Legislature to take bold action on proposals that invest more dollars into Utah’s early education and childcare infrastructure.

Investing in a robust, high-quality childcare system and creating in-state infrastructure, is one of the best investments we can make for our children, and our state.

A well-supported early care and education system supports families by increasing their earning potential so they can get out of, and stay out of, poverty. It also contributes to the success of children in our school systems and as future contributors to our community.

Approximately 77% of Utahns live in a childcare desert, demonstrating that the majority of our state lacks sufficient licensed childcare to meet families’ needs (Voices for Utah Children, 2023). This predicament stems from both limited availability of services and the strikingly high cost of quality care. When available, the high cost of care inhibits lower income families from participating in the workforce.

For childcare to be considered affordable, the U.S. Department of Health and Human Services suggests that a family should pay no more than 7% of its household income for childcare services. In more than half of Utah's 29 counties, families are burdened with paying between 15% and 20% of their annual income for infant/toddler care at licensed childcare facilities. (Voices for Utah Children, 2023)

The current amount of investment by state government is insufficient to address these needs. Choosing high-quality childcare is out of reach for most families, and is unattainable by most childcare providers because of the labor-intensive nature of the industry.

Without government investment, families are left with low quality options that endanger children, and disincentivize providers. We are calling on the Utah Legislature to invest more dollars into the childcare industry. With cross sector collaboration between business, the philanthropic community, and government entities, we can address this crisis and become a model for the nation.

This is truly an investment, as the long-term positive outcomes for our state are significant.

  • Utah's economic prosperity is directly tied to the success and stability of its workforce. Currently, Utah’s economy loses $1.36 billion annually due to lack of childcare access. (U.S. Chamber of Commerce, 2022)
  • Investing in our children during the most formative times of their lives staves off costly interventions that come later in life, including in our school systems. (Davis Schoch, 2023)
  • The outcomes are proven: Adults who receive early childhood education as children are more likely than their peers to finish high school, have higher lifetime earnings, and avoid involvement in the criminal justice system. (Davis Schoch, 2023)

We urge you to use your influence and position to champion increased prudent investment in our state’s childcare system.

Please, take bold action for our state’s future.

Letter Signatories
(as of March 31, 2024)

  • Lisa Eccles, President and COO, George S. and Dolores Doré Eccles Foundation
  • Spencer and Kristine Eccles
  • Larry H. & Gail Miller Family Foundation
  • Clark and Christine Ivory Foundation
  • Angela and Zeke Dumke
  • Jeffrey & Helen Cardon Foundation
  • Richard K. and Shirley S. Hemingway Foundation
  • Carol W. and John H. Firmage, III
  • Millerberg Family Giving Fund 
  • Semnani Family Foundation 
  • The McGuire Family Foundation 
  • BMW of Murray
  • MINI of Murray
  • BMW Pleasant Grove
  • Firmco
  • Motoring Skins
  • Krystal Nielsen, Lil Oaklies Childcare
  • Katie Ricord, Utah Association for the Education of Young Children
  • Kristy DeGraaf, Childcare Provider, Children’s Tylenol National Childcare Teacher of the Year
  • IJ & Jeanné Wagner Jewish Community Center
  • Salt Lake Chamber
  • Neighborhood House
  • The Children’s Center Utah
  • Utah Non-Profit Association
  • Utah Afterschool Network
  • United Way of Salt Lake
  • Ogden Contemporary Arts
  • Utah Child Care Cooperative
  • YWCA Utah
  • Holy Cross Ministries
  • Early Childhood Alliance
  • Utah Care for Kids Network
  • Utah Center for Civic Improvement
  • Voices for Utah Children
  • South Valley Unitarian Universalist Society (Salt Lake City)
  • Canyon Creek Services (Cedar City)
  • Friends of the Children Utah (Kearns)
  • YCC Family Crisis Center (Ogden)
  • Seekhaven, Inc. (Moab)
  • Peace House (Park City)
  • English Skills Learning Center (Murray)
  • Northeastern Utah Friends Against Family Violence (Vernal)
  • Ashley Ence, Sunny Kids, LLC (Saint George)
  • Moab Community Childcare (Moab)
  • Bright Beginnings Academy (South Jordan)
  • KaRis KiDdos (Magna)
  • North Star Children's Center (Kaysville)
  • Little Geniuses Learning Center LLC (Pleasant Grove)
  • Little Orchard Preschools and. Learning Centers (Bountiful)
  • ABC Great Beginnings (Taylorsville)
  • Kool Kidz Adventure Academy (Clearfield) 
  • Tiny Woodland LLC (Bountiful)
  • Erin Aguilar (North Salt Lake)
  • Nando Arroyo (Salt Lake City)
  • Michelle Barker (Woods Cross)
  • Jenn Bean (Midvale)
  • Stacy Bernal (Ogden)
  • Robyn Blackburn (American Fork)
  • Ana Castaneda (Salt Lake City)
  • Merry Clift (Salt Lake City)
  • Dana Cremeno (Park City
  • Mikenna DeBruin (Draper)
  • Erica Flugan (Salt Lake City)
  • Carlie Fowles (Manti)
  • Maria Sara Gonzales (Salt Lake City)
  • Reverend Brent Gundlah (Salt Lake City)
  • Janie Harris (Nephi)
  • Tyler Harris (Nephi)
  • Jessica Jauregui (Salt Lake City)
  • Caressa King (American Fork)
  • Heather Larsen (Nephi)
  • Rhiana Medina (Moab)
  • Rylee Messick (Eagle Mountain)
  • Jessica Mirabile (Sandy)
  • Monique Montoya (West Valley)
  • Hayley Neff (Salt Lake City)
  • Curtis Price (Salt Lake City)
  • Stephen Scoville (Salt Lake City)
  • Sally Tauber (Park City)
  • Marisela Valerio (Salt Lake City)
  • Maria Zavala (Salt Lake City) 
  • Jamie Bitton (Ogden)
  • Kate Blanch (Ogden)
  • Tricia Bunderson (Lehi)
  • Amariah Gibbs (Salt Lake City)
  • Brenda Gonzalez (Salt Lake City)
  • Brittany Greenwood (West Jordan)
  • Eddie Greenwood (Salt Lake City)
  • Todd Hepworth (Santaquin)
  • Robin Hough (Salt Lake City)
  • Jeff Howell (Salt Lake City)
  • Jennifer Johnson (Syracuse)
  • Mariana Kraschowetz (Salt Lake City)
  • Amber Lewis (Kaysville) 
  • Alysse Loomis (Salt Lake City)
  • Lianna Lopez (Kamas)
  • Natalie Mason (Salt Lake City)
  • Bree Murphy (Salt Lake City) 
  • Reverend David Nichols (Salt Lake City)
  • Reba Kiger-kolasch (Salt Lake City) 
  • Connie Roller (Salt Lake City) 
  • Jennifer Rosas (Salt Lake City) 
  • Eduardo Rubalcava (Magna)
  • Sean Schilling (Smithfield)
  • Susan R. Madsen (Bountiful) 
  • Reverend Jamie White (Salt Lake City) 
  • Mackenzie Genecov (Park City)
  • Lucia Miramontes (Salt Lake City)
  • Julie Adam (Salt Lake City)
  • Shelby Averett (Salt Lake City)
  • Alison Dedman (Cottonwood Heights)
  • Monica Delgadillo (Bountiful)
  • David Durrant (Cottonwood Heights)
  • Elaine Ellis (Salt Lake City)
  • Hannah Eldredge (Salt Lake City)
  • Kayley Heier (North Salt Lake)
  • John Hewes (Salt Lake City)
  • Lindsay Larkin (Salt Lake City)
  • Jen Milner (Salt Lake City)
  • Brittany Mitchell (Salt Lake City)
  • Elizabeth Moon (Salt Lake City)
  • Reverend Chelsea Page (Salt Lake City)
  • Melanie Pehrson (Salt Lake City)
  • Erica Sánchez (West Valley City)
  • Catherine Sharpsteen (Salt Lake City)
  • Brooke Skelton (West Valley City)
  • Karla Smith (Salt Lake City)
  • Sadé Turner (Salt Lake City)
  • Paul Walker (Farmington)
  • Sue Womack (Springville)
  • Gabriella Archuleta (Holladay)
  • Sebastian De Freitas (Salt Lake City)
  • Jason Johnson (Salt Lake City)
  • Allison Nicholson (Salt Lake City)
  • Kalolaine Tamoua (Salt Lake City)
  • Cassidie Archuleta (Murray)
  • Richard Biren (Lehi)
  • Neal Davis (South Jordan)
  • Emmie Gardner (Bountiful)
  • Molly McFadden (Salt Lake City)
  • Meredith Muller (Salt Lake City)
  • Ze Min Xiao (Salt Lake City) 
  • Maggie Beers (Salt Lake City)
  • Vicki Dickinson (West Jordan)
  • Aubrey Meyer (Salt Lake City)
  • Maureen O'Malley Kirschner (Salt Lake City) 
  • Rebecca Burggraaf (Salt Lake City)
  • Jacqueline Diaz (Salt Lake City)
  • Emilie Anderson (Salt Lake City)
  • Nirla Harris (South Jordan)
  • Hannah McBrayer (Salt Lake City)
  • Danelle Montero (Salt Lake City) 
  • Diane Nielsen (Millcreek)
  • Brennan Replogle (Salt Lake City)
  • Leigh Tolboe (Salt Lake City)
  • Liliana Torres (West Jordan)
  • Sara Troutman (Salt Lake City)
  • Marcus Volk (Salt Lake City)
  • Grace Watts (Tooele)
  • Chris Weigel (Salt Lake City) 
  • Maxine Baldwin (Riverton)
  • Sam Mecham (West Jordan)
  • Melea Rogers (Ogden)
  • Rose Valderramos (Salt Lake City)
  • Jackilyn Wadsworth (West Valley City)
  • Jeanetta Wadsworth (Smithfield)

You can add your foundation, business, organization or name by completing our simple form below. 

Sign on today!

References

Davis Schoch, A. S. (2023). Children’s learning and development benefits from high-quality early care and education: A summary of the evidence. OPRE Report #2023-226. Office of Planning, Research, and Evaluation, Administration for Children and Families, U.S. Department of Health and Human Services.

U.S. Chamber of Commerce. (2022). Untapped Potential in Utah: How Childcare Impacts Utah's Workforce Productivity and the State Economy. 

Voices for Utah Children. (2023). Mapping Care for Kids: A County-Level Look at Utah's Crisis in Licensed Child Care. Salt Lake City.

Published in News & Blog

Utah’s family demographics have changed. 53% of Utah families have all available parents in the workforce, making child care a necessity. These days, most Utah families need two incomes to maintain financial stability. But Utah’s licensed child care system struggles to meet the demand. Licensed child care program capacity is only sufficient to serve about 36% of all children under six whose parents are working.

To provide a comprehensive picture of Utah's current child care crisis, this report produced by Voices for Utah Children examines the availability of licensed child care across the state, and in each individual county. By conducting a detailed analysis of both the demand and supply of child care services, the report aims to provide policymakers and the public with a clear understanding of the urgent need for child care reform.

Download a copy of the report here.

County-Level Data

Child Care Access Data Fact Sheets by County are also available on our Utah Care for Kids website. Look up child care access in your county today!

Look Up County

 

Statewide Data

Children Potentially in Need of Care

 
All Children Under 6 Years Old 289,240
Children Under 6 Years Potentially in Need of Care 154,229
 Rate of Children Under 6 with Potential Child Care Needs 53%

Licensed Child Care Programming

 
Home-based Child Care Programs 940 
Center-based Child Care Programs 427 
Total Licensed Slots 54,804 
Percent of Child Care Need Met 36%

Cost of Care for Families

 
Average Annual Cost Home-based Child Care for Infant/Toddler $8,267
Average Annual Cost Center-based Child Care for Infant/Toddler $11,232
Average Annual Cost Home-based Child Care for Preschool-Aged Child $7,311
Average Annual Cost Center-based Child Care for Preschool-Aged Child $8,487
Number of Children Eligible for Subsidies  81,805
Number of Children Receiving Subsidies  11,665
Rate of Eligible Children Receiving Subsidies 14%

Child Care Workforce Compensation

 
Median Hourly Wage for Child Care Professionals $12.87 
Median Annual Salary for Child Care Professionals $26,770 

 

Takeaways

There is insufficient licensed child care in Utah to meet the needs of working families.

There are more than 154,000 children under the age of six living in Utah with all available parents in the workforce. But, there are only 54,804 licensed child care spots in 1,367 programs statewide. Licensed child care program capacity is only sufficient to serve about 36% of all children under six whose parents are working. That means the working families of nearly two-thirds of Utah’s youngest children must rely on alternate arrangements (such as utilizing family members, hiring or sharing a nanny, alternating parent work schedules, using unlicensed child care providers, or some combination of these).

The high cost of child care makes it even less accessible to low- and middle-income families, and rural families struggle most.

Affordability remains a significant hurdle with child care costs often consuming a substantial portion of a family’s income. The U.S. Department of Health and Human Services defines affordable child care as care that costs no more than 7% of a family's income. In Utah, the average annual cost of care for two children under the age of six (one infant, one preschool-aged child is $16,890, taking up about 17% of family’s income. For a family in rural Grand County, the cost of that care is actually higher at $17,339, consuming 41% of their income. The lack of dramatic differences in child care prices from county to county is an illustration of how little flexibility providers have to reduce tuition costs for parents, even in areas of the state where family incomes clearly can’t keep up.

 How costs play out for a typical four-person family with one infant/toddler and one preschool-aged child

 
Median Four-Person Family Household Income $100,752
Average Annual Cost of Toddler/Infant Care $9,193
Average Annual Cost of Preschool-Aged Care $7,678
Considered "Affordable" Child Care for this Family  $7,053
Average Amount this Family Will Spend on Child Care $16,871
Percent of Income this Family Will Spend on Child Care 17%

Licensed child care is insufficient in every county in Utah, though the level of unmet need varies from place to place.

Summit County emerges as the county with the highest percentage of child care need met (54%), followed by Carbon, (48%) Sevier (45%), Grand (45%), Salt Lake (45%), and Iron Counties (41%). All other counties have less than 40% of child care need met with licensed program capacity, and multiple rural counties (Daggett, Piute, Rich, and Wayne) have no licensed child care available at all.

With substantial public investment, Utah’s child care system has grown 31% since the start of the COVID pandemic.

Through various federal funding streams, nearly $600 million has worked to grow Utah’s child care capacity from approximately 42,000 licensed slots in March 2020 to over 54,000 in August 2023. In contrast to many other states, Utah has managed to increase its licensed child care capacity - despite substantial pandemic disruptions - through stabilization grants paid directly to existing providers for wage supplementation, startup support for new programs, and a one-time worker bonus of $2,000 per child care professional. These financial investments both expanded the enrollment capacities of existing programs as well as recruited new providers into the sector. However, with the ending of this funding in October 2023, Utah risks jeopardizing this incredible progress.

Recommendations

1. Commit to Public Investment in Child Care

Utah’s child care crisis requires public investment. Funding is needed to bridge the gap between what families can afford and the true cost of care. While businesses can contribute, their capacity to address this crisis is limited. There is no sufficient source of investment to address child care’s market failure aside from public funding. Child care should be valued in the same ways as the public education system, ensuring equal access and opportunities for all children. Currently, the burden of expensive early education falls largely on Utah families, with minimal public support, even though most brain development occurs before age six.

2. Help Parents Afford the Care They Want

Utah’s current child care system doesn’t promote parent choice. Child care affordability and accessibility severely limit family choice when it comes to child care, forcing decisions based on cost or access, rather than preference. This also impacts family planning and career choices. Parents are forced to make difficult choices, such as changing jobs, adjusting school and work schedules, or choosing suboptimal child care situations. To address these issues, policymakers should consider improving the child care subsidy program, expanding the child tax credit, and finding ways to help alleviate the financial burden on Utah families.

3. Support the Critical Work of Child Care Professionals

Child care professionals face significant financial challenges. Low wages and a lack of benefits, including healthcare and retirement, have made the profession unsustainable, leading to high rates of turnover each year. Since Utah’s current child care system only meets 36% of the state's need, Utah must invest in the early child care profession to attract and retain a robust workforce. To support child care providers, policymakers should consider measures including state funding of Child Care Stabilization Grants, wage supplement programs, eliminating barriers to licensure, and increasing access to employment benefits.

For questions or inquiries regarding this report, please contact Voices staff members: 

Published in News & Blog

Child care certainly received its fair share of discussion this legislative session, but did anything really happen? The short answer is kinda. Here’s what happened.

Funding Requests

During the session, Voices for Utah Children teamed up with parents, child care professionals, and early childhood advocates to lobby the state legislature for more than $260 million to stabilize Utah’s child care system. This was, admittedly, a big ask. But the requests highlighted the reality of the child care sector’s needs. Many of the state funding requests aimed to replace expiring federal pandemic money that has been propping up the sector. This emergency federal funding will begin to end in June 2023 and will fully expire by June 2024. 

Child Care Stabilization Grants, Rep. Andrew Stoddard
Federal Child Care Stabilization Grants have been a lifeline for Utah's child care sector. Child care providers have indicated the lack of ongoing stabilization funding will result in one or more of the following three outcomes: child care programs will close, tuition will be raised for families, and/or employees will have lower wages. This funding would have allowed for a one-year extension of the stabilization grants currently received by hundreds of child care providers in Utah. 
Requested: $216 Million
Outcome: NOT FUNDED

Retention Incentives for Early Childhood Professionals, Sen. Luz Escamilla
In 2022, federal funding allowed Utah's Office of Child Care issued $2,000 bonuses to eligible workers serving in child care positions to provide recognition for their critical work throughout the COVID pandemic and to improve retention within the field. 9,368 child care professionals received retention incentives through this program. This funding request would have continued this incentive program for an additional two years while structural reforms were pursued. 
Requested: $38 Million
Outcome: NOT FUNDED

Regional Child Care Development Grants, Rep. Ashlee Matthews 
Through federal funding, Utah's six Regional Care about Child Care Resource & Referral Agencies supported new programs for rural outreach, small business training, start-up grants, and professional development. This funding would have continued these grants for another three years to continue programming that works to expand child care access and improve care in both rural and urban areas.
Requested: $2.1 Million
Outcome: NOT FUNDED

Child Care Licensing-Related Fees, Rep. Ashlee Matthews
With COVID-relief funding, the Office of Child Care Licensing has waived the fees associated with licensing in order to lessen the barriers to expanding, maintaining, and opening new child care programs. This funding would have extended this fee coverage for another three years as the state tackles the child care crisis. 
Requested: $3 Million
Outcome: NOT FUNDED

Child Care Solutions and Workforce Productivity Plan, Sen. Luz Escamilla
A priority of the Governor’s Office of Economic Opportunity’s Women in the Economy  Subcommittee, these funds will support strategic planning for child care solutions.
Requested: $250,000
Outcome: $150,000

Legislation

HB 167: State Child Care, Rep. Ashlee Matthews & Sen. Luz Escamilla
This bill provides the framework for State agencies to convert empty state buildings to on-site child care. It will allow private providers to rent the space and operate from the facility, creating greater access to child care for employees and the greater community.
Outcome: PASSED

HB 170: Child Tax Credit Revisions, Rep. Susan Pulsipher & Sen. Daniel McCay
This bill provides a non-refundable yearly tax credit of $1,000 per child between the ages of 1-3 for families making up to $43,000 for single filers and $54,000 for households filing married jointly. Because the bill’s original intent was to help with the cost of child care, we’d like to see this expanded to help children ages 0-6, as it did in the original bill. This legislation makes Utah the 13th state with its very own state child tax credit.
Outcome: AMENDED VERSION PASSED 

HB 282: Child Care Sales Tax Exemption, Rep. Christine Watkins
This bill would have allowed for a sales and use tax exemption for construction materials used to construct or expand a child care program.
Outcome: BILL NEVER HEARD IN COMMITTEE

Advocacy

While our policy wins feel small, it was a stellar year for child care advocacy. We hosted our first Child Care Advocacy Day, where we welcomed over 100 parents, kiddos, providers, and supporters of child care in Utah’s Capitol Rotunda! The turnout far surpassed expectations and we hosted many new faces. We look forward to continuing to grow our network of child care advocates and working on solutions to child care during the interim. 

  

To learn more about child care advocacy in Utah, visit UtahCareforKids.org.

Published in News & Blog
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