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Early childhood budget spotlight: CCAP shortfalls, universal preschool growth and cost questions
Summary
Joint Budget Committee members flagged shortages in the Colorado Child Care Assistance Program (CCAP) and asked Department of Early Childhood officials about universal preschool costs and provider capacity as voters— Prop EE and the governor's requests expand preschool funding.
The Joint Budget Committee, appearing before the Joint Health Committee, identified the Colorado Child Care Assistance Program (CCAP) and the newly expanded Colorado Universal Preschool (UPK) as budget risk points for early childhood policy.
Senator Kirk Meyers (JBC) and Representative Saroda walked the committee through the Department of Early Childhood (CDEC) request and departmental briefings. The JBC emphasized that the general‑fund operating shortfall will constrain the JBC—s ability to add money; members urged local legislators to raise priorities early in the JBC process.
CCAP shortfalls and county freezes: JBC staff and presenters raised specific concern that CCAP is underfunded in some counties and that several large counties have frozen new CCAP enrollments or placed children on wait lists. The governor submitted a January 2 budget amendment that included $10,000,000 toward CCAP, but JBC members and staff warned that informal estimates of the shortfall range much higher — testimony during the hearing suggested potential shortfalls in the tens of millions of dollars, perhaps up to $70,000,000, depending on county needs and new federal rules.
Why it matters: CCAP covers child care subsidies that many families use to return to work; when counties freeze enrollments it reduces parents— ability to work and disproportionately affects lower‑income households. The Department of Human Services and Department of Early Childhood linked the CCAP constraint to wider workforce and human services outcomes.
Universal Preschool progress and cost questions: The Department of Early Childhood said the UPK program grew quickly in its first year after Proposition EE and House Bill implementation. CDEC reported that in year one UPK served 43,479 children (about 68.7% of the estimated eligible four‑year‑old population) and that nearly half of enrolled children were low‑income. The department said it is continuing to expand provider participation and supports, and is starting a multi‑year independent evaluation.
But JBC and committee members pressed the agency about program cost and sustainability: the UPK program includes both a general‑fund component and cash funds drawn from voter‑approved revenue streams (Prop EE), and UPK—s initial design envisioned 10 hours of publicly funded preschool in statute but many providers operate at higher hours. Presenters said the department pays full‑day equivalent rates in some provider circumstances and that the program was designed with mixed delivery, but committee members asked how to preserve CCAP access while continuing UPK expansion.
Department response and next steps: CDEC leaders said they are working to: (a) target CCAP questions to JBC analysts and county partners; (b) provide technical help to districts and providers for UPK contracting and operations; and (c) proceed with the independent UPK evaluation to inform longer‑term decisions about hours, provider payment and quality standards. They requested the committee and JBC to consider how one‑time ARPA and other federal funds were used and what ongoing state revenue will be needed to sustain those investments.
Ending: The department urged legislators to engage early with JBC staff and CDEC analysts about program tradeoffs. JBC staff reminded members that CCAP is governed by evolving federal rules and county administrative capacity; both issues will be subject to further questions and possible supplemental or long‑bill adjustments.
