In the rollout of the La Plata Early Childcare Investment Plan, we highlight the economic opportunity that growth in our local early child care system will bring to our community. We can better understand this industry crisis by comparing it to another industry that our workforce relies on.
Our tax dollars subsidize the oil and gas industry to the tune of at least $20 billion annually, and without it, our gas at the pump would be $15 a gallon. The workforce in La Plata County needs gas as much as they do early child care to perform their jobs. For electric-car-owning workers, early child care is even more critical than affordable gas. Child care and fuel may seem like comparing apples to oranges, but both power our community’s economic prosperity and future.
When the Early Childhood Council of La Plata County and the La Plata Economic Development Alliance partnered on the La Plata Early Childcare Investment Strategy, the data told the story of what is happening with early child care in La Plata County. A $34 million loss in wages annually, an industry with a 41% turnover rate, impoverished child care providers making $16 to $18 an hour on average, while the living wage in our county is $24 an hour.
In the economic world, we call early child care a market failure – the model is not profitable, and consumers cannot afford to pay more. When market failures occur, the government and/or private sector need to intervene to correct the market. It is virtually impossible – especially in a rural area – to run a child care business that breaks even and is affordable to families. While the economic case can be made for subsidizing the early child care industry, with the current state and federal situations, it is clear that local financing solutions for child care are essential if we want young families to live and work in La Plata County.
The Early Childcare Investment Fund is housed at the ECC, and we are raising $2.2 million for the first year of this five-year initiative, allocating $1.2 million to increase wages for early child care educators in La Plata County by $4 an hour. With the other $800,000, we can catalyze new child care providers, bring existing facilities to capacity, expand current facilities and create new ones, fund three new in-home providers, and support a bilingual program. Each piece of this first-year strategy will help create approximately 260 child care slots.
Since the report was written, our local capacity for children ages 0 to 18 months has decreased from 80 to 50 licensee slots. That means, in La Plata County, there are more than 680 infants with only 50 slots to serve them. Access to early child care is cited as one of the top two issues for area businesses in recruiting and retaining a quality workforce. There has never been a better time for our public, private and philanthropic partners to pool resources and dollars to combat this local economic loss, especially as it impacts business and sales – the largest portion of La Plata County’s tax base. Early Childcare is an industry that supports every other industry.
As we gather commitments for the La Plata Early Childcare Investment Fund for 2026, we want to remind our business and residents that there is a Colorado Child Care Contribution Tax Credit donors can take advantage of that allows taxpayers to claim 50% on qualifying monetary contributions made to child care. For any business or individual that makes a donation of over $2,500 to child care, they will receive 50% back in state tax credits. This is a way to double your impact and donations. Now is the time to invest in early child care. Today’s economy, tomorrow’s workforce and residents, and our community’s vitality rely on it.
Sarah Tober is executive director of the La Plata Economic Development Alliance, and Heather Hawk is executive director of the Early Childhood Council of La Plata County.
