The Department of Health and Social Services ( DHSS ) and the Department of Education , in consultation with the Delaware Early Childhood Council , created a cost of quality care estimator tool that enables the state to model the actual costs of providing quality child care . The work on the cost estimator tool was informed by Delaware ' s 2021 Cost of Care Study , the 2021 Market Rate Survey , the child care wage scale work completed in 2022 , and national and local experts , advocates , and early childhood educators .
DHSS provides a description of this work and links to the Center and Family Child Care Cost Estimation Tools on its
website . The website allows users to download the Excel spreadsheet and input information on center or family home “ profiles ” ( such as number of classrooms ) and certain variables and scenarios for that provider ( such as number of children on subsidy , salaries , benefits ). However , the underlying data that drives the model is not visible , and only the owners of the model can update this data . This is because allowing access to the underlying formulas and background data makes it easier for individual user error and / or “ breaking ” formulas in the model , which could result in the model providing incorrect numbers . The tool can and should be updated by the model owners as program requirements change , and as additional workforce data is available , to ensure that the model outputs continue to reflect the true cost of child care .
In New Mexico , recent positive changes in early care and education encouraged state leaders to seek federal approval to pursue alternative methodology for setting child care subsidy rates under the Child Care Development Block Grant ( CCDBG ). System improvements , including launching a state department focused on early care and education , are focused on aligning programming and funding , meeting the needs of children and families , and increasing the capacity of providers to deliver quality services . In March 2020 , the governor and Legislature enacted the Early Childhood Trust Fund , which will fund the work of the new department . New Mexico developed a cost estimation model to inform subsidy rate setting . The alternative methodology approach involves setting rates based on the actual costs experienced by child care providers in their delivery of services : type of care , age of the child , and state licensing and quality regulations . Wages in the model were based on a higher statewide minimum wage as a floor , with Bureau of Labor Statistics salary data for each child care position , and higher wage levels aligned with New Mexico ’ s Quality Rating and Improvement System . With all this cost data informing an alternative methodology , the state has an accurate picture of the cost of child care services and has used this approach to inform subsidy rate setting since 2021 .
At the same time , New Mexico expanded eligibility to up to 400 % of the federal poverty level through June 2023 , making it the first state to offer no-cost care for such a broad range of incomes . Because of this , most families in the state now qualify for the subsidy . The median household income in New Mexico is $ 51,243 , so a family of four earning up to about $ 111,000 would be eligible for free child care under the new program . 43
The New Mexico cost model development process pointed to several key themes :
• Current rates are insufficient at any level of quality for services to children from birth to five years . The quality incentive structure for the state Quality Rating and Improvement System does not keep up with the actual increased costs at higher levels of quality , and current rates are actually a disincentive to
2022 COST OF QUALITY CHILD CARE LEGISLATIVE REPORT 33