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In a groundbreaking move, New Mexico is solidifying its commitment to universal child care by embedding it into state law. This initiative, championed by Democratic Governor Michelle Lujan Grisham, positions New Mexico as the inaugural state to provide comprehensive child care coverage for families regardless of income. This legislative achievement is a testament to the governor’s dedication to supporting working families.
Across the United States, parents face the daunting challenge of exorbitant daycare costs, which often force them to stay home and forgo employment. In response, policymakers from major cities like New York and San Francisco are striving to broaden access to affordable and subsidized child care, recognizing the significant political implications and potential financial hurdles, including budget fluctuations and fraud risks.
Various states have adopted different strategies to address this issue. California, for instance, has eliminated copayments for certain families, while Washington and Oregon have implemented caps on child care expenses. Vermont has introduced a payroll tax on employers to fund child care subsidies, demonstrating diverse approaches to tackling this national concern.
New Mexico’s ambitious child care initiative is primarily funded by the state’s lucrative oil and gas industry, which includes revenue from a recently established $10 billion trust fund dedicated to early childhood education. This approach represents a careful balancing act for Governor Lujan Grisham, who initially aimed to curtail the industry’s influence.
Governor Lujan Grisham expressed optimism about the program’s potential to inspire other states. “I think you’re going to see more states look for ways to do it,” the governor remarked on Thursday. “It’s really a workforce engine, while paying real respect to the affordability crisis that families have.” Her words highlight the dual benefits of this initiative: empowering the workforce and alleviating financial burdens on families.
Lujan Grisham wraps up her tenure next year, and state lawmakers wary of unchecked spending opted during the legislative session that ended Thursday to take a cautious approach. They’re leaving the door open to copayments if public finances deteriorate. That’s a compromise Lujan Grisham had to make.
Putting up guardrails
As much as $700 million more will be funneled over the next five years to New Mexico’s child care assistance program, state officials said. Copayments are unlikely and would require 90-days notice to families.
Decisions on possible cost-sharing will be tied to new annual reporting requirements. The early education agency has new authority to monitor how much child care providers pay employees, manage debt and structure their businesses.
State Sen. George Muñoz, cosponsor of the bill, said the Legislature seized an opportunity to put guardrails in place.
“We didn’t want to end up like Minnesota, where all of the sudden there was rampant fraud,” he said, referring to allegations by U.S. prosecutors that billions in federal funds were stolen from Minnesota-run programs for children with autism, addiction services and more.
Taking the weight off families
Families stand to benefit enormously, Muñoz said, explaining free care will put money back in their pockets.
Marianna Eanone of Las Cruces said her income combined with her husband’s Army salary was just above the previous cutoff for child care assistance. They used to pay $1,000 a month to send their 3-year-old to a licensed home daycare provider, along with afterschool care for their kindergartener.
“It’s been a weight off to not have to worry about that,” said Eanone, who works for a program that connects families with child development services.
There’s now wiggle room to afford things like occasional takeout from local restaurants, martial arts classes for her 6-year-old, bigger payments toward student loan debt and savings for the future, she said.
And those benefits resonate with voters.
“They are sending a really strong signal about the importance of child care to the well-being of the families in the state, the well being of the economy, of businesses,” said Karen Schulman, senior director of child care policy for the National Women’s Law Center.
New Mexico gradually raised income limits on assistance for child care — until stepping into universal care on Nov. 1, making 25,000 more children eligible. It saves families on average $14,000 a year per child.
Prioritizing vulnerable children
The New Mexico legislation allows the state to create a waitlist when demand for assistance outpaces available slots. It’s an effort to prioritize access for children in vulnerable circumstances — ranging from extreme poverty to disabilities and those at risk of developmental delays.
It’s also a response to concerns that the rapid expansion of child care subsidies to all income brackets may squeeze out slots for low-income families. Attendance from low-income families declined as assistance expanded to higher income brackets, according to a review by legislative analysts.
Elizabeth Groginsky, secretary of New Mexico’s early childhood education department, said lawmakers also left financial breathing room for recently adopted incentives to improve child care quality, raise base wages and expand operating hours through enhanced rates paid by the state.
Still, child care slots remain in short supply across wide swaths of New Mexico, even as the state extends assistance beyond working parents to grandparent guardians, foster parents and people experiencing homelessness.
Legislators have sent a separate bill to the governor to scale up more home-based daycare and child care centers in residential areas by overriding some local zoning and permitting requirements, including homeowner association restrictions on child care.
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AP reporter Moriah Balingit contributed from Washington.