Earlier this month, New Mexico’s governor made an extraordinary announcement. Beginning as soon as November, child care and preschool will be offered at no cost for all New Mexican families. The effort aims to lift the state from its perennial ranking near 50th among states in child well-being and education, while building the foundation for higher family incomes and a stronger economy over time.
While various forms of educational support have been introduced over the decades, energy revenues are making this ambitious plan possible. State leaders call it an “investment,” and rightfully so. Being the first state in the nation to make such a comprehensive investment in children, families and the economy has drawn attention from major outlets, including The Washington Post (Sept. 18).
Child care is generally a broken business model without corporate or government support. Costs are higher than most families can afford, wages for early childhood educators are too low to make a living and business owners struggle to stay afloat. At the same time, parents want quality curriculum for their children, which requires either adequately trained caregivers or accessible training programs.
New Mexico estimates that universal child care and preschool will save parents an average of $13,000 per year and make an additional 12,000 children eligible for free care. The initiative also includes low-interest loans for centers’ capital construction and a promise to reduce red tape. Centers paying starting wages of $18 to $21 per hour for caregivers will be eligible for additional state support, according to The Post.
Colorado, and all states, should follow suit. While Colorado has promised preschool for all, the program quickly proved more expensive than expected, leaving funding gaps. Child care remains largely funded by higher-wage parents or provided as an employee benefit by institutions and a few large companies. It is still far from being universally accessible.
Providing child care is an ongoing concern in La Plata County, which is why the La Plata Economic Development Alliance, the Early Childhood Council of La Plata County, the Regional Housing Alliance of La Plata County and the city of Durango released an Early Childcare Strategic Investment Plan in January 2025 (see: tinyurl.com/545s7enj). La Plata County, like New Mexico, views child care as a high-return investment.
Researchers say child care is good economics at multiple levels. When available, it more than pays for itself. Mothers – who still provide the bulk of child care – can participate in the workforce, full- or part-time, boosting household income and contributing to local and state economies. For many mothers, this also offers the freedom to pursue interests outside full-time caregiving.
Studies suggest that every dollar spent on child care generates $2 to $2.50 in family and broader economic value. For one dollar to produce two, employers and governments must provide the economic supports necessary to make quality child care accessible.
Ramping up child care and preschool offerings will take time in New Mexico, but the benefits – improved family well-being, higher education scores and economic growth – are expected to follow. Colorado should be moving in the same direction.
