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A Rough Legislative Session for Utah Kids (Again)
Our 2024 Legislative Agenda
Utah Children's Budget 2023
The care for the children in our state and communities can be measured by our public investment in our smallest humans. From the fiscal year 2008 to 2022, Voices for Utah Children divided all state programs concerning children into seven categories, without regard to their location within the structure of state government to quantify the level of public funding and identify trends. The seven categories are:
- K-12 Education
- Health
- Food & Nutrition
- Early Childhood Education
- Child Welfare
- Juvenile Justice
- Income Support
An appendix of our tables, sources, methodology and description of programs can be found here.
How Much We Spend
The interactive circle chart below compares how much we spend by category, program, and source of funding, just use the filter and click the category to zoom in.
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K-12 Education makes up 92% of the state-funded portion of the Children’s Budget, while the federal-funded portion is more diversified across categories.
Spending Trends
We compare the budget to FY2008 because that was a peak year in the economic cycle before The Great Recession and all figures have been adjusted for inflation, so they are comparable across time.
- From FY2008 to FY2022, total public investment in children increased by 43%, growing much faster than Utah’s public-school enrollment (district & charter schools) by 26%, or the child population ages 0-17 by 13% from 2008-2021.
The federal share of the Children's Budget has fluctuated between 18-26% but had its biggest increase at the beginning of the Great Recession and the Covid-19 Pandemic. This is also when state funding for the Children's Budget has declined, for example real state & local K-12 education funding fell by $206 million since FY2020, the largest two-year decline since the Great Recession in 2008-2010. Several years after the Great Recession the federal share of the Children’s Budget decreased and the state share started to increase again, something that will hopefully happen again as pandemic relief funding rolls back.
Funding Sources: Federal vs. State
When the categories are disaggregated by source of funding, Food & Nutrition, Income Support, Health, and Early Childhood Education programs are mainly funded by federal sources, and Child Welfare, K-12 Education, and Juvenile Justice programs are funded mainly by state sources. And since Amendment G passed and allowed the income tax to be used to fund programs for children (in addition to K-12 and some Early Childhood Education & Nutrition Programs), the Child Welfare, Juvenile Justice, and Health categories are funded primarily by the income tax. In FY2022, 98% of Juvenile Justice, 100% of Child Welfare, and 88% of Health categories of the state funded Children's Budget were funded by the income tax totaling to $475 M.
When examining the state-funded portion of the budget since FY2008 each category has a different story.
- Juvenile Justice programs declined the most in dollar amount, $32.9 M or 28% mainly due to a reduction in correctional facility and rural programs and it also had an increase in early intervention services which advocates consider to be a goal of juvenile justice reform.
- Child Welfare programs declined by 16% or $21.8 M, mainly from the Service Delivery program which funds caseworkers to deliver child welfare, youth, and domestic violence services.
- Income Support declined 49% or $2.1 M and appears to be more cyclical, rising and falling with the Great Recession. Interestingly, the TANF grant is a mix of state and federal funds, and only a small amount goes to Income Support or cash assistance.[i]
- Food & Nutrition increased by 56% or $19.7 M due to an increase in liquor & wine tax revenues which supports the school lunch program.
- Early Childhood Education had the largest percentage increase of 109% or $42.0 M mainly from the Upstart program but increasing in every program except Child Care Assistance.
- Health has increased by 80% or $139.3 M from the Medicaid and CHIP program but also had a 58% or $12.4 M decrease in Maternal & Child Health.
- The category that has increased the most in dollar amount is K-12 Education.
K-12 Education Funding
State and local sourced funding for K-12 education increased by $1.6 billion in constant 2022 dollars from FY2008 to FY2022, but per-pupil spending only increased from $10,212 to $10,537 per student. This means that even though more is being spent in total dollars, it barely covers the increase in students during the same time.
In 1948, 100% of the income tax was allocated to public education, an increase from 75% when it was originally imposed in 1931. It was expanded in 1996 to include higher education, in 2021 to include non-education services for children and people with a disability, and may be expanded again depending on a 2024 ballot measure placed by the Utah Legislature.
The income tax rate has been reduced in 1996, 2006, 2008, 2018, 2022, and 2023. The graphs below illustrate a timeline of these changes and Utah’s total elementary and secondary public schools (district & charter) funding effort (including capital) as a percentage of personal income and rank compared to other states.
Unfortunately, the result is a downward trajectory and likely explains our second to last place in per-pupil funding in the country.[ii]
Utah's Education Funding Effort as a Percent of Personal Income
According to the fiscal notes, the last two bills that reduced the Income Tax rate in 2022 and 2023 estimated a loss of $1.3 billion in the Income Tax Fund from FY2022-2025 with more ongoing.[iii]
State & Local Funded Portion of K-12 Education
Another result of these changes has been shifts in the funding source for K-12 education. From the fiscal year 2008 to 2022, the federal-funded portion increased by 74% and the state-funded portion declined by 3%.
Meanwhile, Local sources have increased by 12%, possibly to meet the needs of their communities while state-funded sources decline and putting greater pressure on sources like the property tax which is more regressive than the income tax because it takes a greater toll on low-and middle-income families.
Rank of Utah's Education Funding Effort Compared to Other States
We Need to Prioritize Children in the Budget
While Utah doesn’t have the most kids than any other state, we do have the highest share of kids in our population. And we as a community are entrusted to make sure they are cared for, safe, and have the tools they need to achieve their aspirations. As the Utah Legislature drafts, holds hearings on, debates, and passes the Utah state budget we hope they prioritize our most vulnerable and precious group, Utah’s children.
[i] https://www.cbpp.org/sites/default/files/atoms/files/tanf_spending_ut.pdf
[ii] https://www.census.gov/programs-surveys/school-finances.html
[iii] https://le.utah.gov/~2022/bills/static/SB0059.html, https://le.utah.gov/~2023/bills/static/HB0054.html These fiscal notes show the loss from the income tax fund but they are not disaggregated by changes from the income tax rate or tax credit portion of the bills.
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!
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:
It’s Official: Access to Licensed Child Care Statewide is Really Bad (and Getting Worse)
We know that Utah’s child care crisis is bad, and is going to get worse. New data helps illustrate exactly how bad the situation is, in each county across the state.
Next week Voices for Utah Children will release a report titled, “Mapping Care for Kids: A County-Level Look at Utah’s Crisis in Licensed Child Care.” The report includes more detailed county-level analysis and data highlighting the inaccessibility of care and financial challenges faced by families and child care professionals. In addition, the report includes policy recommendations for Utah leaders to help resolve this crisis.
The full report will be available the week of October 23rd, but as a teaser, this blog highlights some key findings from the report.
There is insufficient licensed child care in Utah to meet the needs of working families.
Licensed child care program capacity is only sufficient to serve about 36% of all children under six whose parents are working. Parents face shortages in every county statewide, with rural families struggling most.
The high cost of child care makes it even less accessible to low- and middle-income families, and rural families struggle most.
The average annual cost of care for two children under the age of six (one infant/toddler, one preschool-aged child) for a Utah family costs about 17% of a 4-person family’s income. Cost varies little between rural and urban counties, but on average household median incomes are lower in rural areas. In Grand County, with the state’s lowest median annual income at $42,654, the cost of care for a family of four would comprise about 41% of a family’s income.
Child care providers receive insufficient compensation, and have few incentives to stay in the field.
Child care providers typically earn low wages and very limited benefits. The median hourly wage for child care professionals in Utah is just $12.87 per hour ($26,770/year), less than they could make as professional dog walkers. The poverty rate among child care providers in Utah is 23.1%, more than 8 times higher than that of K-8 teachers.
With substantial public investment, Utah’s licensed child care capacity has grown significantly since the start of the COVID-19 pandemic.
Thanks to federal funding streams totaling nearly $600 million, licensed child care capacity in Utah has grown by approximately 31% since March 2020. This growth is due primarily to child care stabilization grants made directly to licensed child care providers; those grants recently were reduced by 75%. Utah has been identified as one of six states that could see half or more of all licensed child care programs statewide close with the end of the stabilization grants.
Licensed child care is insufficient in every county in Utah, though the level of unmet need varies from place to place.
How does child care access and affordability compare in each county?
Our full report, “Mapping Care for Kids: A County-Level Look at Utah’s Crisis in Licensed Child Care” will be released the week of October 23rd. For questions about the report, this blog, or sources and methodology, please contact Jenna Williams at . For more information on efforts to improve Utah’s child care system or learn about the child care advocacy network, visit utahchildren.org/issues/early-childhood-education and utahcareforkids.org.