Early Education

Our childcare system has been in crisis for years. Families can't afford to pay, and costs keep climbing. Childcare providers struggle to make a living, with only their passion for kids to keep them going.

So, what is the state government going to do about it? Maybe nothing, it turns out. 

In early 2024, the Utah legislature passed a law inspired by a clever model from Kentucky to bring more childcare professionals back into the field. The "Kentucky Model" supports childcare workers by covering their childcare costs even if their income is above typical thresholds. Multiple states have followed Kentucky's lead and implemented this approach. 

HB461 "Child Care Grant Amendments," sponsored by Rep. Ashlee Matthews (D-Kearns), was the only proactive, positive step Utah’s legislature took this year to address the child care crisis. The law went into effect on May 1, technically. 

However, the state's Office of Child Care (OCC) has no plan or timeline for implementing Utah's "Kentucky Model" policy. Leaders within OCC and the Department of Workforce Services (DWS) say that the legislation's language —"subject to available federal funds"— allows them to decide whether the “Kentucky Model” will ever be put into practice. In a story about the policy aired on June 27, DWS Deputy Director Rebecca Banner told Ben Winslow of FOX13 News that the Child Care Development Fund (CCDF) money Utah receives from the federal government is "already spoken for." "[HB461 implementation] was contingent on being allowed by our federal rules and regulations and also by funding availability. We spent time over the last couple of months looking to see if we could implement this program, and we did not receive any additional funding."

The new program was not included in the Fiscal Year 2025 (FY25) Budget that OCC presented to the Office of Child Care Advisory Committee on May 8, one week after the law was meant to go into effect. The policy was also not included in Utah’s draft CCDF State Plan, which sets plans for child care subsidies in the years ahead. These omissions suggest that OCC does not intend to implement the program, regardless of the statutory direction to do so.

When HB461 went before the House Business and Labor Committee, legislators balked at spending any state funds on the program, though the estimated cost of a fully implemented Kentucky Model policy was only $2.5 million. That's less than 2% of OCC's projected $130.5 million subsidy budget for FY25. 

After confirming that federal guidelines permit such use of subsidy funding, Rep. Norm Thurston (R-Provo) added language indicating the program should be implemented with federal dollars if that funding is available and the program is approved by federal administrators. With this understanding that federal, not state, funding would be used to implement Utah's "Kentucky Model," the bill passed through the committee and legislature with overwhelming support and was signed by Governor Cox in March. 

Despite strong legislation support and an increase in federal subsidy funding of over $9 million for FY25, Utah’s OCC told advocates in May that they may choose not to follow the state law at all, prioritizing other expenses instead of workforce recruitment and retention.

This workforce-oriented, high-return strategy was conceived in another "red" state, making it a solid choice for state government in addressing Utah's childcare crisis. For every childcare worker who is able to work in the field due to this policy, between four and eight childcare spots become available to other Utah families. There is a clear and substantial return on investment when states use the "Kentucky Model.". 

Many childcare programs in Utah are operating below capacity due to staffing issues. A center licensed for 80 children may be able to care for only 50 due to vacant staff positions. A paid childcare benefit to attract new workers could help that center reach full capacity, supporting more Utah families. 

In Kentucky, where this innovative "child care support for child care workers" approach was initially born, it was the state's Office of Child Care that conceived and initiated the idea. In Utah, though, elected officials and childcare advocates will need to do a lot of extra work to get our own Office of Child Care to follow the law. 

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 

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.

When the pandemic hit, child care was one of the first sectors in crisis. But action in the form of federal aid and swift state program implementation prevented widespread program closures. The nearly $600 million Utah received in federal child care funds helped stabilize the historically struggling sector and defied national trends by expanding the number of child care slots available. This substantial funding is estimated to have supported child care services for over 85,200 children in Utah.

As federal COVID-era funds begin to wind down, child care providers and the parents they serve are looking to elected officials to ensure that the sector doesn’t immediately fall back into total crisis. Child Care Stabilization Grants, a key program of the funding, are currently playing a vital role in enabling child care providers to stay open, keep costs down for families, and raise wages in an industry that has been long plagued by inadequate compensation. Unfortunately, the lack of commitment from federal, state, or local governments to sustain these successful programs with new funding means most COVID-era programs will end, ultimately leaving parents with ballooning child care costs, and abandoning child care providers to navigate a broken system.

Starting in October, Utah families will begin to experience the impact of the child care funding cliff.

What change is happening this fall?

As federal funding runs out, Utah’s Office of Child Care (OCC) will reduce monthly Child Care Stabilization grant amounts by 75% in October. By June 2024, the grants will end entirely.

How will this change impact Utah providers and families?

Providers are preparing now for the impending grant reductions. For example, PC Tots, a program in Park City, already announced tuition increases due to a funding gap of $620,000 from the loss of ARPA money. One family reported a $1,000 monthly tuition increase for their two children enrolled in PC Tots, highlighting the financial strain this poses for many families.

The wind-down and ultimate end of stabilization grants also presents additional concerns for providers. When surveyed, 36.7% providers anticipate being unable to sustain wage increases for their child care staff or, in some cases, will have to cut wages. Without intervention, this will likely to lead to higher turnover rates among child care staff, resulting in more disruptions in care for families and a further reduction in available child care slots, statewide, due to understaffing.

How will the end of stabilization grants impact Utah's child care sector?

A recent report from The Century Foundation identified Utah as one of six states where half or more of all licensed child care programs statewide could close, without new funding to replace the federal support.

Their analysis estimates that in Utah:

• 35,614 children will lose access to child care.
• 663 child care programs will be forced to close their doors.
• Parents will experience a collective loss of $101 million in earnings.
• 1,304 child care jobs will be lost.

Deep, structural problems within the child care system existed well before the COVID pandemic; those problems will persist and worsen when COVID-era funding runs out. With 77% of Utahns living in child care deserts, parents already allocating 14-25% of their income on care, and providers making less than animal caretakers, we can’t afford to reduce our investment in child care. The child care market faces new challenges too. The current robust job market has made it increasingly difficult for child care providers to compete for good employees. And inflation has caused the cost of normal expenses to skyrocket for families. 

As we look towards the fall, parents and providers should prepare for these difficulties. But also, state and local policymakers need to pay attention and ask what they can do to mitigate a new child care crisis. 

This blog post is part of a series of blog posts examining Utah's child care funding cliff. You can find the other posts here:

• Utah's Child Care Crisis is About to Hit a Whole New Level
• How Much Will Each Utah County Soon Lose in Child Care Funding?
• What Happened with Child Care During the Legislative Session?

To learn more about our initiative to invest in child care, go to UtahCareforKids.org.