2/27/25 - ECEA Child Care Update
WHAT!?! That's right...resoundingly programs tell us that lack of children is their #1 reason their business is struggling. From a recent survey, 41% of programs stated that was their primary issue while 31% say that a shortage of staff is their primary concern. The "perfect storm" includes many factors including but not limited to:
- We know that according to the US Career Institute, 37.34% of Colorado workers are working from home remotely at least one day a week. That is the highest percentage in the nation.
- We also know that the unemployment rate in Colorado is 4.4% (Dec 2024) which is higher than the national average of 4.1%.
- Declining Birth Rates are expected until about 2028 or 2029. Nearly 2/3rds of counties have seen declines.
- Read our update below to find out more about the enrollment levels for Colorado child care programs now!
Enrollment rates...average rates by program type and what happens when we mix that with our profitability survey?
We shared last time an almost 2 year comparison on capacity in the industry. We broke it out by Community Based and School District programs. Not that the percentages in the left column are the closest average enrollment level of various industry providers statewide.
We then asked people to tell us about what percentage of enrollment rates they need in order to be "Profitable". We found that 33% of respondents did not include their own salary! To correct for that we added 5% to those programs break even point so that we can come up with an apples to apples comparison. That puts the industry, on average at a 85% enrollment level before reaching profitability. The AVERAGE for child care programs based on last reported enrollment numbers is at 72% enrollment. If you are enrolled higher than that you are doing better than the average provider.
Members are able to see the list of programs and their UPK enrollment numbers for their locality and statewide.
WHY are we talking RATIOS again? Remember the public testimony that was provided....? The fiscal impacts are real!
ECEA advocated for ratios and direct enrollment to be put back into SB25-119. We know that you are not able to rate until next calendar year due to the limited capacity to rate programs. We also know that rating costs tens of thousands of dollars. So many factors impact the rating and it's not a guarantee that you will be able to get a level 4 or 5 for your program. If you don't have it, your UPK classrooms have to drop to a 1:11 ratio next school year and 1:10 the year after. Fiscally, many of you cannot afford it! We are telling legislators about it but might need you to tell them directly via email in the near future!!
ECEA and ECEA members provided testimony yesterday on SB25-119 to emphasize why this rule change will have a devastating impact on the industry. Senator Scott Bright introduced an amendment adding the reinstatement of licensing requirements as the basis for UPK ratios in classrooms. Extreme politics are at play right now on this issue....we are updating our members about that!
Get Ready to SAVE--AMAZING SAVINGS ON FOOD/SUPPLIES - If you order from a food supply company, aren't already a part of a national savings network, serve 15 or more children, and serve meals....this program is for you! Watch the video to find out how much you can save!!
WHO is the Early Childhood Service Corp? If you don't know....you will want to! They have SUBS and so much more!!
If you don't know about the ECSC then you need to look into it! Lisa Armao and her team have done a PHENOMINAL job of bringing Second Career retirees into the industry to support YOUR program. They have subs, as well as qualified seniors that can work in your program for you directly. This is NOT a part of the sub network in Colorado...this program has over 100 people trained and qualified under their program that exceeds statewide sub programs that collectively have fewer than 30 working statewide!! There is a fee to participate....it's worth it! Something can only be built up if it has funding support.....and they want to help every program statewide!
JOIN TODAY! https://memberportal.coloradoecea.org/ap/Membership/Application/7rX9yxp6
