A new floor

Colorado’s new minimum wage means raises for child care workers and tuition increases for parents

PHOTO: Ann Schimke
Loveland's Teaching Tree Early Childhood Learning Center was one of the first two centers in the state to get a Level 5 rating in the Colorado Shines rating system.

Child care teachers and assistants absolutely deserve the raises that come from Colorado’s new minimum wage of $10.20 an hour, their bosses say, but the pay increases also mean that many providers will pass on the new expenses to tuition-paying parents already stretched thin by child care costs.

“I don’t know how much more parents can pay,” said Diane Price, who heads a nonprofit network of seven centers in Colorado Springs.

In some parts of the state, early childhood advocates also worry that the raises mandated by the minimum wage hike will cause some workers to lose public benefits by pushing their income just above the eligibility threshold — making it harder, not easier to make ends meet.

In a field working to professionalize its ranks, pay its workers more, and raise awareness about the educational and economic value of quality child care, many observers say the minimum wage increase is a step in the right direction.

“It’s an important move,” said Christi Chadwick, director of the “Transforming the Early Childhood Workforce” project at the nonprofit Early Milestones Colorado. “The thing I struggle with is we’re still not getting people out of poverty and paying them on par with the public school system.”

Price, the president and CEO of Early Connections Learning Centers, said, “Shame on us that we even have to have this discussion that early educators are in a category that pays minimum wage.”

The latest minimum wage increase, which took effect Jan. 1, is the second of four annual increases mandated by a ballot measure approved by Colorado voters in 2016. The last step of the phase-in process will boost the minimum wage to $12 in 2020.

Colorado is among 29 states — most in the northeast and west — that have set a minimum wage higher than the federal rate of $7.25 an hour, according to the U.S. Department of Labor.

Child care providers here say advance planning and clear communication with parents have helped them incorporate raises into their budgets.

Price, who raised tuition slightly at her centers last August, said she anticipates a budget hit of about $600,000 over the four-year phase-in period.

But that’s not just because her lowest paid staff members are getting raises to comply with the minimum wage law. Like many other child care directors, she’s giving raises across the board out of fairness to veteran employees.

Price said she didn’t want entry-level employees to catch up with those who already hav a Child Development Associate credential or an associate’s degree.

Heather Griffith, who leads the for-profit Young Peoples Learning Center in Fort Collins, is taking the same approach. Her whole staff, except two brand new employees, have received raises.

She’s already sent out a letter notifying parents that tuition will go up 6.5 percent on February 1 – that’s an additional $16 a week for a full-time preschool slot. It’s the second of three tuition hikes Griffith will institute during the minimum wage phase-in period.

While the higher costs are hard on parents, “it’s a lot tougher for these teachers to survive on non-livable wages,” Griffith said. “I’m 100 percent in support of this minimum wage hike.”

Griffith hasn’t gotten much pushback over the impending tuition increase. The thriving economy helps. Also, she said, parents like the care her centers provide and wouldn’t be able to find it for much less unless they switched to unlicensed care, which is mostly unregulated.

Anne Lance, who heads the non-profit Teaching Tree Early Childhood Learning Center in northern Colorado, said she began planning — and frontloading — wage increases for all staff shortly after the 2016 ballot measure passed.
Currently, her entry-level teaching assistants start at $10.50 an hour even though she’s only required to pay $10.20.

“I had to get way ahead of the game … so in a couple years when it gets closer to that $12, it’s not going to kill me,” said Lance, who operates one center in Loveland and one in Fort Collins.

While the center’s two sites serve many low-income children who qualify for state child care subsidies or state-funded preschool slots, there are some tuition-paying families in the mix, too.

It’s those parents who may feel the sting of the minimum wage increases over the next couple years. Lance said she’ll keep her tuition increases to a modest 3 percent this year, but may have to jump up to 5 percent in 2019 and 2020.

On average, lead teachers with several years of experience at Teaching Tree make about $13.50 an hour. While that’s above the minimum wage, it’s not much to live on for employees on their own or those who are single parents, Lance said.

In Colorado, about one-third of child care teachers qualify for some kind of public assistance to cover housing, food, health insurance, or child care costs, according to a 2017 survey of child care workers in the state.

Chadwick, of Early Milestones, said during visits last fall to the San Luis Valley and southeastern Colorado, early childhood leaders explained that some child care workers were quitting their jobs due to fears they would lose government benefits when minimum wage-related raises took effect.

To alleviate such concerns and make child care a profession that pays a living wage, more substantial raises are needed. But Chadwick and other leaders don’t expect further funding to come from a state-level effort.

Instead, they say it will be locally-funded initiatives — already underway in some Colorado communities — that pick up the slack.

“We have to pass things like mill levies and taxes that support early childhood,” said Griffith, of Young Peoples Learning Center. “We have to do it. We have to say yes to these things if what we want is a community that has educated kids ready to go into kindergarten.”

leading the state

Three things we heard at a gubernatorial candidates forum on early childhood

PHOTO: Ann Schimke | Chalkbeat
Jared Polis, the Democratic candidate for Colorado governor, and Lang Sias, the Republican lieutenant governor candidate, spoke at forum on early childhood issues.

Stark differences in how Colorado’s two would-be governors plan to tackle early childhood issues were clear at a candidate forum Monday evening.

U.S. Rep. Jared Polis, the Democratic nominee, envisions free full-day preschool and kindergarten for all Colorado children — a sweeping and pricey expansion of what’s currently available.

Republican lieutenant governor candidate Lang Sias, who stood in for gubernatorial candidate Walker Stapleton, said Republicans would focus public funds on narrower programs that benefit the poorest children.

Currently, Colorado funds early childhood programs for some of its young children. The state provides half-day preschool to 4-year-olds with certain risk factors, but the program covers only some of those who qualify. In addition, the state reimburses districts for just over half the cost of full-day kindergarten, leaving districts to pay for the rest or pass on the cost to families through tuition. Last spring, lawmakers expanded the state income tax credit for child care costs, but most families still need to come up with hundreds or even thousands of dollars a month.

Monday’s event at the Denver Museum of Nature and Science represented a rare opportunity to hear candidates address early childhood issues, which are often overshadowed on the campaign trail by topics such as housing, roads and health care. While the forum highlighted some of the big early childhood ideas championed by each campaign, it also left plenty of unanswered questions.

Stapleton, Colorado’s state treasurer, was originally slated to speak at the forum, but backed out citing family obligations. Sias, a state representative from Arvada and a member of the House Education Committee, spoke in his place.

Polis and Sias didn’t debate each other at Monday’s forum, or otherwise interact. Polis went first, giving a short statement about his early childhood platform then answering several questions posed by moderator Bill Jaeger, vice president for early childhood and policy initiatives at the Colorado Children’s Campaign. Sias followed suit.

The event was sponsored by Constellation Philanthropy, a group of funders focused on early childhood issues. (Constellation is a Chalkbeat funder.)

Here are three things we learned from the forum:

The candidates have different ideas about which young children need help and how to provide it

In discussing his plans to create universal full-day preschool and kindergarten, Polis talked about using a public-private financing mechanism that’s sometimes called “social impact bonds.”

In this kind of financing — also called “pay for success” — private investors or philanthropists pay up front for social programs and get repaid with interest if those programs save public money by reducing the need for costly services such as special education or reading remediation. If a project doesn’t yield the hoped-for savings, the investors lose some or all of their money.

Polis said if he wins in November, he’ll immediately “work out how to partner with philanthropy to create more early childhood education for all income levels.”

Currently a version of social impact bonds is being used to pay for full-day preschool for some students in the Westminster school district north of Denver, a fact Polis mentioned Monday. Still, the financing mechanism is relatively untested in Colorado’s education sphere and it’s unclear how it might be scaled to pay for something as ambitious as statewide full-day preschool and kindergarten.

When talking about the Republican ticket’s early-education priorities, Sias described early childhood education as “incredibly important” but “very inequitably distributed.”

“We want to focus our public spending on those who are least able to afford it on their own,” he said.

He cited a proposal for education savings accounts that allow families to set aside money tax-free for educational expenses, including early childhood education.

“We realize that is more focused on middle-class and above families,” he said, “but by targeting that money using that program, we feel we will have more available to target the folks at the bottom of the spectrum who really cannot avail themselves of that opportunity.”

Education savings accounts don’t typically work for low-income parents because they have no extra money to set aside for future expenses.

The candidates would take different approaches to strengthening the early childhood workforce

In a field marked by low pay and tough working conditions, recruiting and retaining qualified teachers is a chronic problem. The candidates had ideas about how to bulk up the workforce.

Sias advocated for a residency program to help turn out new early childhood teachers, similar to what he’s previously proposed to help address the K-12 teacher shortage. He said such programs are data-driven, helping retain teachers for longer periods and improving student results.

He also floated the idea of recruiting midlife career-changers to early childhood work — “folks north of 50” — and hinted that they would work in the low-paid field.

“Is that an opportunity to tap into … folks who would like to fill those spots who maybe don’t have the same set of issues that millennials do in terms of how long they want to stay and how long they need to be committed, and frankly how much they need to be paid?”

While some middle-aged people do enter the field, mediocre pay, a maze of state regulations, and the growing push to boost providers’ education levels could make it a tough sell.

Polis talked about creating partnerships with colleges to beef up the credentials of people who currently work in the early childhood field.

He said it’s important to “bridge the skills gap” for those whose hearts are already in the work. He didn’t address how he could dramatically expand preschool and kindergarten simply by focusing on the existing workforce, where turnover can be as high as 40 percent annually.

Neither candidate talked about how he would boost compensation for early childhood workers, whose median pay in Colorado is $12.32 an hour, Jaeger said.

Both candidates agree that Colorado can do much better by its youngest residents

When asked how Colorado is doing overall in supporting young children and their families, both candidates agreed that the state has a long way to go.

Sias emphasized that low-income children continue to be left out. Polis talked about the lack of uniform access to full-day kindergarten.

Both candidates expressed interest in working with bipartisan coalitions on solutions.

“There’s so many people in our state who want to do right by their kids,” said Polis. “It’s really going to take folks from across the spectrum coming together.”

Sias, who argued for a combination of business-minded acumen and public money for early childhood, asked the audience to partner with lawmakers in finding what programs work.

He said he and Stapleton are “more than willing to work across the aisle with folks that we like and respect, and have knowledge in this area.”

Threes please

As 4-year-old preschool programs become the norm, Denver looks to reach 3-year-olds next

PHOTO: Ann Schimke | Chalkbeat

The Denver Preschool Program, most well-known for providing millions of dollars to help the families of 4-year-olds pay for preschool, is expanding its scope.

Starting this month, the nonprofit will put a share of its funding from a citywide sales tax toward improving preschool classrooms for 3-year-olds — something it has long done in 4-year-old classrooms. Those improvements could take the form of teacher training or coaching, teacher scholarships for educational programs, or new blocks and playground equipment.

The $700,000 initiative pales in comparison to the $15 million that the Denver Preschool Program will spend on tuition assistance for the city’s 4-year-olds this year. Still, it’s another sign of growing recognition that investments in younger children help amplify the benefits of widespread and politically popular 4-year-old prekindergarten programs.

The push to serve more 3-year-olds can be seen around the state and nation. Colorado’s two largest school districts — Denver and Jeffco — both plan to add new preschool seats for 3-year-olds if tax measures for education pass in November.

Last year, New York City school leaders began phasing in free universal preschool for the city’s 3-year-olds, an expansion of the city’s ambitious Pre-K for All program, which served about 70,000 4-year-olds in 2017-18. In 2008, Washington, D.C., passed a major preschool overhaul law, which helped make it one of the few places in the country where a large majority of 3-year-olds attend free preschool.

Jennifer Landrum, president and CEO of the Denver Preschool Program, said when city voters first passed a sales tax in 2006 to fund the program, the ballot language specifically earmarked the proceeds for 4-year-olds. But in 2014, when voters approved a 10-year extension of the sales tax, they also OK’d language that allowed spending on 3-year-olds.

The expanded age range fit with the shifting national policy conversation at the time, which increasingly emphasized the importance of starting with children younger than 4, said Landrum.

Research shows that early childhood programs can produce huge long-term gains for children, particularly those from low-income families. But there’s a caveat: The programs must be high-quality.

That’s part of the reason the Denver Preschool Program will focus its new 3-year-old funding on boosting quality.

“It’s such a logical next step when you can see the gains 4-year-olds can make in that one year of high-quality preschool,” said Landrum. “It just makes sense.”

The improvement efforts will focus on the preschool classrooms of about 3,400 Denver 3-year-olds.

Unlike the city’s 4-year-olds, those 3-year-olds will not get tuition help from the Denver Preschool Program. There’s not enough money for that, said Landrum.

In Colorado, a fraction of 3-year-olds attend publicly funded preschool through Head Start or the Colorado Preschool Program, a statewide program that pays for preschool for young children with certain risk factors. Some 3-year-olds also qualify for free preschool because they have disabilities.

Denver district officials say they hope to add 500 new preschool seats for 3-year-olds if the statewide ballot measure, Amendment 73, passes in November. Right now, there are long waitlists for that age group.

In Jeffco, which serves 3- and 4-year-olds together in the same classrooms, expansion plans also hinge on the outcome of November’s election. A proposed district bond measure would help renovate 70 classrooms for the preschool set, for a total of about 1,100 additional seats. Currently, the district serves about 3,500 preschoolers — about half of them 3-year olds.

And if Amendment 73 or the district’s mill levy override  — or both — pass, district officials say it would allow them to convert more half-day preschool slots to full-day slots, hike teacher pay, and improve the qualifications of early childhood staff.