ERIC Number: ED458029
Record Type: Non-Journal
Publication Date: 2001
Reference Count: N/A
The Fiscal Impact of Colorado Child Care Assistance Program Payments on the Child Care Industry: An Assessment of How the Child Care Provider Underwrites Publicly Purchased Child Care, 2001.
Colorado Office of Resource and Referral Agencies, Inc., Englewood.
The Colorado Child Care Assistance Program (CCCAP) purchases child care for low-income families to enable their participation in the workforce. This report describes CCCAP and its effect on child care centers and family child care providers. The report notes that each county in Colorado sets the daily purchase price of child care, with most counties' purchase price below 75 percent of the open market rate. When counties purchase child care below the open market rate, child care vendors subsidize the cost of service to CCCAP clients. The report notes that the average CCCAP payment for children in child care centers is $21.94 per week less than the open market rate. Child care centers may limit the number of CCCAP children to offset their financial losses or accept no CCCAP children. Other actions include charging more to full-paying clients or cutting programs. The CCCAP payment for family child care providers is $13.85 per week less than the open market rate. Family child care providers must work an extra two weeks per year to compensate for their financial loss of accepting one child on CCCAP. The report maintains that Colorado counties should reward the small business owners willing to work with CCCAP rather than punishing them with below open market rate payments. The paper concludes by asserting that Colorado's child care fiscal policy must address the purchase price of child care in CCCAP and the operating costs as well. (KB)
Descriptors: Day Care, Early Childhood Education, Employed Parents, Family Day Care, Financial Support, Low Income Groups, Public Policy, State Programs
CORRA, 7853 E. Arapahoe Ct. #3300, Englewood, CO 80112. Tel: 303-290-9088; Fax: 303-290-8005; e-mail: firstname.lastname@example.org; Web site: http://www.corra.org.
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: Colorado Office of Resource and Referral Agencies, Inc., Englewood.
Identifiers - Location: Colorado