The rising childcare costs in Colorado are creating a crisis for families and counties alike, as funding for the Colorado Child Care Assistance Program (CCCAP) falls short. During the Aug. 27 meeting of the San Miguel Board of County Commissioners (BOCC), officials heard urgent updates about local waitlists, program limitations, and the difficult financial realities facing parents, providers, and policymakers.
CCCAP Enrollment Caps and Waitlists
The Colorado Child Care Assistance Program (CCCAP) helps approximately 32,000 children across the state and is supported by 2,462 childcare providers with 500 county employees administering it. However, due to budget constraints, enrollment has been capped in many counties, leaving families without access to much-needed assistance.
In February, San Miguel County voted to create a waitlist for families applying to CCCAP. Under this system, a child can only enroll when another leaves or ages out of the program. Officials explained that this decision was made after exhausting all internal cost-control measures, acknowledging the state was heading toward overspending in childcare.
San Miguel County Human Services Director Linnea Edwards reported that as of late August, 34 children were attending childcare with CCCAP support, while four more were on the waitlist. The seasonal nature of the community in Telluride makes the waitlist flexible, but it still highlights the gap between demand and available funding.
The Larger Financial Picture
Colorado needs an estimated $70 million in additional funding over the next three years to keep pace with childcare demand. The Colorado Department of Early Childhood pointed to unfunded mandates as the root cause of the current fiscal crisis.
Commissioner Anne Brown stressed that the state cannot expect additional funding, as lawmakers recently cut $1.2 billion from the budget during a special session. “There’s no way we can expect new money,” she said, underscoring how spending caps under the Taxpayer’s Bill of Rights (TABOR) further restrict available resources.
Federal and State Budget Pressures
The federal government has also introduced new childcare rules that will significantly increase costs. Providers must now be reimbursed based on enrollment rather than attendance, which San Miguel officials estimate could raise costs per child from $6,000 annually to as much as $16,000.
In addition, Colorado faces about $20.4 million in supplemental costs over the next three years due to these new mandates. Commissioners warned that the combination of reduced state tax revenues and higher federal requirements will likely worsen the financial strain on childcare systems.
Commissioner Galena Gleason highlighted the broader impact on struggling families: “Cuts to Medicaid and SNAP are just going to exacerbate this need moving forward. What will it look like in another year with even more children on the waitlist?”
Impact on Families and Providers
The funding shortfall means many families may pay higher out-of-pocket childcare costs, even if they do not qualify for CCCAP. Strong Start, San Miguel County’s early childhood mill levy, steps in to help families who fall through the cracks. Program coordinator Cathy Barber explained: “We pick up where CCCAP leaves off. We take care of the other 60 families who are still paying 20–30% of their income on childcare but don’t qualify for CCCAP.”
Providers, meanwhile, are caught between rising expenses and reimbursement limitations. With staffing shortages, increased operating costs, and inflation, many childcare centers struggle to stay afloat while still serving families in need.
Commissioners Debate Next Steps
During the Aug. 27 meeting, commissioners acknowledged the difficulty of balancing budget limits with community needs. Commissioner Lance Waring suggested holding the line at 34 children for now, while monitoring how the situation evolves: “There’s no right answer here. We can only commit financially to a year and revisit funding later.”
Commissioner Brown added that childcare is just one of many funding requests the county faces for 2026. Decisions, she said, must be made in the context of the broader budget, not in isolation.
Why Childcare Costs Keep Rising
The escalating childcare costs in Colorado reflect multiple overlapping pressures:
Unfunded mandates from state and federal governments
Increased reimbursement rates required by new federal rules
Reduced state tax revenues due to policy changes and TABOR limits
Higher local expenses, including staffing, operations, and seasonal fluctuations
Together, these challenges create a cycle where families face higher fees, counties face larger deficits, and providers face sustainability struggles.
Looking Ahead
The commissioners chose to delay immediate decisions, opting instead to revisit funding once they have a clearer picture of the county budget, state resources, and federal policies. “Let’s get a better sense of our budget, your numbers, and the governor’s plans, and then revisit this,” Commissioner Brown advised.
While families await answers, the future of childcare funding in Colorado remains uncertain. Without substantial new investment, the gap between rising childcare costs and available assistance is likely to widen, putting further strain on parents, providers, and policymakers.