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Understanding the cost of quality child care in New Mexico: A cost estimation model to inform subsidy rate setting


To comply with federal law and to support providers in maintaining financial sustainability amid a changing market, the State of New Mexico and the Early Childhood Education and Care Department (ECECD) engaged external early care and education fiscal consultants, Prenatal to Five Fiscal Strategies, to conduct a robust alternative methodology approach, with both a cost study and the development of a cost-estimation model for New Mexico. ­The cost study and cost-estimation model variables include the level of quality, age of child, type of care setting, and geographic location. ­The external consultants, in partnership with ECECD, conducted deep stakeholder and provider engagement to guide the study, inform assumptions, vet cost data, and review initial results from the cost-study process. More detail on the study approach, including results of the cost-estimation model, stakeholder engagement and input, and the estimated cost of care necessary to support implementation of the health, safety, quality, and staffing requirements, including variations by geographic location, category of provider, and age of child, is found in the Study Methodology and Results sections of this report. (author abstract)

Resource Type:
Reports & Papers
United States
New Mexico

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