Uncertainty lingers as state launches universal child care
Photographs by Minesh Bacrania
New Mexico is preparing to roll out a universal child care program that will eliminate income caps and copayments for families statewide. Starting November 1, every child from birth through age 5 will be eligible for early education and care. For families, the promise is financial relief, but for providers, the shift presents serious operational challenges and uncertainty — especially in Los Alamos.
The initiative is the culmination of years of policy work that began in 2019 when Gov. Michelle Lujan Grisham and the New Mexico legislature created the Early Childhood Education and Care Department. Officially launched in July 2020, the ECECD became a cabinet-level agency designed to consolidate scattered programs that supported things like early intervention, nutrition, and preschool education into one department serving the state’s youngest children.
In 2022, 70% of New Mexico voters approved a constitutional amendment that set the stage for the current expansion. The amendment reinvested 1.25% of the state’s Land Grant Permanent Fund — profits from successful oil and gas endeavors — toward education, with 60% earmarked for early childhood programs and 40% for public schools.
More recently, on September 8, Gov. Lujan Grisham and the ECECD announced that New Mexico would “guarantee no-cost universal child care” beginning November 1. This announcement came as a surprise to both families and providers statewide, with no public records indicating that ECECD gave formal advance notice to providers before making this announcement.
April Wade, director of Little Forest Playschool, told Boomtown that the rollout blindsided providers.
“The announcement created tension between parents and their providers. We had no opportunity to inform parents or work together to understand what this meant for both sides,” Wade said. “One of my biggest concerns now is the relationships between providers and families, and between providers and the state. Those relationships have been deeply affected by the way this was rolled out.”
What’s changing for Los Alamos families?
Until now, New Mexico’s child care assistance program was limited to families earning up to 400% of the federal poverty level — about $128,600 per year for a family of four — and most still had to pay income-based copayments. Starting November 1, those income limits and copays will be eliminated. The change is meant to remove barriers that have kept many families, particularly in rural areas with limited options, from accessing care.
Providers in Los Alamos operate in one of New Mexico’s highest-cost counties. According to the Economic Research Institute, the cost of living here is about 8% higher than the state average, and RentCafe data show housing costs alone running more than 20% above the state average. This drives up the operational costs for child care centers on everything from staff salaries to food deliveries and janitorial services, making it more expensive to run a child-care program in Los Alamos County than the rest of the state.
While the ECECD has promised to raise reimbursement rates under universal child care, the state’s payment model still doesn’t differentiate enough for high-cost areas. For instance, in Los Alamos, a licensed center can receive the same rate for a full-time infant as a center in a much less expensive county. Because of this gap, some Los Alamos centers treat subsidized seats as a form of charity, where the center eats the cost of tuition to open the door for a family in financial need. In practice, this means centers cross-subsidize state-paid spots with revenue from private-pay families or from grants and fundraising, which isn’t a universal program.
Adding to the problem are reimbursement delays. Providers report that state payments can lag from several days to more than five weeks. Beginning November 1, when all families shift to state-paid tuition, providers lose the buffer of collecting monthly fees up front from parents.
Another layer of financial pressure comes from the role of FOCUS — the state’s quality rating system for child care providers. Right now, reimbursement levels depend on a mix of factors including program size, ages of children served, and the provider’s FOUCS star rating. A higher FOCUS star rating means higher reimbursement rates. For example, a licensed center with a five-star rating is reimbursed $1,925 per month for one full-time infant, whereas a center with only two stars gets about $1,150 per month for the same child.
Los Alamos County currently has twelve registered providers, according to the ECECD Child Care Finder. Most of these providers hold a two-star rating, with only one earning a five-star rating. Moving up in the FOCUS system is resource-intensive and historically limited to a one star-level increase every twelve to twenty-four months. Many providers worry that without more streamlined support to climb the FOCUS scale, they’ll remain stuck at lower reimbursement levels even as universal child care drives up demand.
Wade asked for providers to try to take heart.
“Once you understand what the program is asking, you can match up what you’re already doing to their requirements. Providers might be surprised to find they’re probably not far off. It isn’t always a big, grand thing ... sometimes it’s as simple as a flyer or an email,” Wade said. “The consultants are there to help you through the process. The support is there, and I’m happy to offer my knowledge and experience to any provider who needs it — just reach out.”
What this means for Los Alamos families
The universal child care initiative is set to take effect in a few short weeks, but because rulemaking under the New Mexico Administrative Code is still ongoing, details about the actual implementation for providers is unclear, leaving families both hopeful and frustrated.
During a town hall with the ECECD on September 19, Secretary Elizabeth Groginsky emphasized that participation in the universal child care program is not mandatory for providers. The state cannot force businesses and nonprofits to participate, and how providers choose to implement this program is entirely up to them. Providers can offer a limited number of spots that are paid for by this program, or opt out altogether.
For now, Los Alamos families can only wait for communication from their providers about what this program looks like for their centers.
“I’d tell families to hang in there,” Wade said. “Be an advocate for your provider, not against them. It’s easier to work through these hurdles when we’re all on the same team. Providers were caught off guard just like you were, and we’re running the numbers and doing our due diligence.”
For Los Alamos, the promise offered by universal child care is clear: more families being able to access early learning without cost as a barrier. The challenge will be whether local providers can participate in the program in the first place.
Get involved
The ECECD has scheduled a public hearing on October 9 as part of the rulemaking process. Until then, families and providers are waiting to see whether the rollout will bring stability to providers and confirm the hope Los Alamos families have in universal child care in this county.
The public rule hearing is scheduled from 9 am to 11:30 am on October 9 for proposed rule amendments to NMAC 8.9.3, 8.9.4, and 8.9.5. The hearing will be held in Santa Fe, inside Apodaca Hall of the PERA Building, located at 1120 Paseo de Peralta. It can also be viewed virtually on Zoom, and Spanish interpretation will be available.