Some providers taking time to decide whether to opt in to universal child care program

SANTA FE — Two weeks after New Mexico launched a universal child care initiative, some preschools and other child care providers are still hesitant about opting in to the program.

As of this week, 33 providers around the state had decided not to opt into the higher reimbursement rates provided under new rules established by the state Early Childhood Education and Care Department, according to figures provided by the agency.

A total of 259 providers have opted in to the higher reimbursement rates, which require child care centers to be open for at least 10 hours a day and pay their employees above a set minimum wage.

However, the number of providers who have not opted in could actually be higher than 33, state officials said, as preschools and child care centers are not required to provide notice if they do not plan to opt in.

Meanwhile, ECECD said more than 3,000 child care applications were received by the agency during the first week of November, and about 72% of those applications were determined to be eligible.

The agency also said it has received 113 applications from individuals around the state seeking to become home-based providers. While many of those applications are still being vetted, the department has so far certified 26 to begin providing care.

Those figures are on top of licensed home day cares and child care centers already in operation around the state.

Universal child care initiative rollout

Gov. Michelle Lujan Grisham announced in September that New Mexico would become the first state to provide no-cost child care to all families statewide, regardless of their income level, starting Nov. 1.

Previously, the state offered state-subsidized child care assistance to working families making less than 400% of the federal poverty level, or $128,600 per year for a family of four.

The announcement has drawn largely positive national attention — including a recent reference on “Saturday Night Live” — but mixed reactions in New Mexico.

Some providers expressed concerns about the initial proposed rules governing the program, which were modified before being adopted last month. Those changes included reducing minimum salary levels that early childhood centers would have to pay their entry-level staffers — from $18 per hour to $16 per hour — in order to qualify for a higher reimbursement rate.

In addition, some legislators have criticized the governor for launching the initiative while the Early Childhood Education and Care Department is seeking a $156 million funding bump — a more than 50% increase — to help pay for it.

Providers weighing costs and benefits

Barbara Tedrow, the owner of a preschool and child care center in Farmington, said she has decided to hold off on opting in for now, due in part to uncertainty about long-term funding from the Legislature.

“I have to make sure my business is viable all the way around,” Tedrow told the Journal.

She also said child care centers that have relied on private payments from families might still be crunching the numbers about switching over to a state reimbursement system.

“It’s really hard when these are private businesses and everyone has different expenses,” said Tedrow, who is also the policy chairwoman of the New Mexico Early Childhood Association.

After officially launching the universal child care initiative, top ECECD officials have been traveling around the state this week to meet with providers and encourage participation, an agency spokeswoman said.

The department said it’s received “strong interest” in the initiative, but also acknowledged some child care center owners may take their time in deciding whether to opt in, as the agency did not impose a deadline on providers for making up their minds.

“The enhanced rate is designed to reward providers who step up for families and their workforce — by offering care that meets the needs of working parents and by paying early childhood professionals in line with the value of their work,” said department spokeswoman Julia Sclafani.

“Many programs are actively working toward the enhanced rate requirements, and that transition will look different for each child care business,” she added.

Preschools and day cares already participating in the state’s child care assistance program automatically began receiving larger state-paid reimbursements on Nov. 1, regardless of whether or not they decide to opt in to the even higher enhanced rates.