Public investment

This Colorado ski town had an early childhood education crisis. Here’s what local leaders did about it.

PHOTO: Ann Schimke

Greta Shackelford moved to Breckenridge 13 years ago on a whim. She was young and single at the time — a Virginia native enjoying life in a Colorado ski town.

Today, Shackelford is married with two young children and heads a local child care center called Little Red Schoolhouse. She’s also one beneficiary of Breckenridge’s decision a decade ago to pump hundreds of thousands of dollars annually into the town’s child care industry.

Back in 2007, she got a substantial raise when town officials boosted salaries for local child care teachers by 30 percent and today, she and her husband, a general contractor, get help covering preschool costs for their 3-year-old son and 4-year-old daughter. In addition, because the town helped pay off some centers’ mortgages, there’s a financial cushion in case the boiler breaks or the roof leaks at Little Red Schoolhouse.

The effort in Breckenridge is among a growing number of initiatives across the state that use public money — usually gleaned from local property tax or sales tax — to improve child care and preschool options. Beyond helping prepare young children for school, these initiatives can be a vital cog in the local economy, keeping parents in the workforce and businesses adequately staffed.

And more could be coming soon. Leaders in San Miguel County, where Telluride is the county seat, are gearing up for a November ballot initiative that would help expand child care facilities and boost teacher pay. In Estes Park, advocates are just beginning a process to determine the town’s child care needs and explore funding options.

“It’s because some child care deserts are seemingly insurmountable and entrenched that local leaders in early childhood are looking at all possibilities,” said Liz Houston, executive director of the Early Childhood Council Leadership Alliance.

Experts say local efforts can be a heavy lift for community leaders charged with galvanizing support for tax hikes or other publicly funded proposals. But when successful, they provide much-needed stability to an industry plagued by low pay, high turnover, a shortage of slots and wide variations in quality.

Leaders in Breckenridge say child care is just as critical as plowing snow.

“Just like we need to plow our roads so people can get to our ski area, … this is just as important,” said Jennifer McAtamney, the town’s child care program administrator. “If we lose our workforce, it’s a huge problem.”

Some early childhood leaders hope these locally-funded projects can serve as a stepping stone to more ambitious statewide efforts in the future. (The state already runs programs that provide half-day preschool to at-risk children and child care subsidies for low-income families, but demand far outstrips supply.)

“Support for early childhood education is probably going to be built community by community by community until there is enough of a groundswell for it to be something that is statewide or nationwide,” said Jennifer Landrum, president and CEO of the Denver Preschool Program.

Like in Breckenridge, government funded early childhood initiatives have existed for years in Denver, Aspen, Boulder County and Summit County. A couple others — in Dolores and Elbert counties — have launched more recently, according to a list maintained by the business group Executives Partnering to Invest in Children, or EPIC.

One of the factors that unites communities that have taken on locally funded early childhood initiatives is a sense that things were at or near a crisis point. In Colorado’s resort towns, where many describe the cost of housing and other basics as astronomical, this is especially true.

Early childhood advocates in these communities can rattle off numbers that illustrate just how hard it is to find quality child care: waitlists that run into the hundreds, towns with few or no licensed slots for babies, centers that can’t find child care workers to staff their classrooms.

Shackelford, the director of Little Red Schoolhouse in Breckenridge, said the town’s effort, which includes another cash infusion to boost salaries in 2018, has reduced employee churn. Her own experience is a case in point.

Without the town’s financial help — with both child care and housing — “we would never have been able to afford to stay in Breckenridge,” she said. “It makes it, not cheap, but manageable.”

Gloria Higgins, president of EPIC, expects the number of municipalities that take on locally funded early childhood efforts to go up over the next decade.

By then, she said, “those communities in the most distress will probably have something and those are the mountain resort communities … They’re going to lead.”

But she also expects cities like Pueblo and some in the Denver suburbs to hop on board, too.

Higgins is an enthusiastic evangelist for such efforts. They fit well with Colorado’s local control ethos and can be tailored to each community’s needs. Still, she cautions those interested that it takes about four years of planning to get the job done.

“It’s a big deal to get the taxpayer to say yes,” she said.

While voters are often called on to approve dedicated sales tax or property tax hikes, some communities have earmarked public money for early childhood in other ways.

In Breckenridge, for example, the town council initially allocated money for its early childhood program from the general fund, a move that didn’t require voter approval. Six years in, the town did ask voters for a property tax increase to support the program, but the measure failed.

The council subsequently decided to continue funding the effort as before.

In Elbert County, a partnership between early childhood leaders and county human services officials led to a special grant program that pays for preschool scholarships for low-income children stuck on the waitlist for state-funded slots.

Cathryn Reiber, coordinator of the Elbert County Early Childhood Council, said that in an ultra-conservative community where new tax increases would never pass, the county partnership has been a great solution.

Landrum, who heads the Denver Preschool Program, said it’s also important to win backing from the business community. After two defeats at the ballot box in the early 2000s, business leaders helped shape and endorse sales tax measures to fund the program in 2006 and in 2014.

In addition to providing preschool tuition assistance for the city’s 4-year-olds, the Denver Preschool Program provides training, coaching and materials for child care providers.

In some communities, funding for early childhood services is one piece of a broader package. In 2010 when the Great Recession was in full swing, Boulder County officials asked voters to approve a five-year property tax hike billed as a temporary safety net measure that would help families afford food, shelter and child care.

Voters said yes, and when officials came back to them in 2014 for a similar 15-year measure, they said yes again. The second time around, the campaign was called “Neighbors Helping Neighbors,” drawing on the community camaraderie that developed after the 2013 floods, said Bobbie Watson, executive director of the Early Childhood Council of Boulder County.

“You have to frame it so your community will bite,” she said.

year in review

Early childhood discipline, child care deserts and funding challenges in the spotlight during 2017

Malanna Newell is a toddler teacher at the Mile High Early Learning center in Denver's Westwood neighborhood. She started as a teaching assistant before taking Mile High's Child Development Associate training last fall.

Amid national debate on the disproportionate number of suspensions and expulsions given out to young boys and children of color, Colorado lawmakers and educators grappled with the best approach to discipline in 2017.

The year kicked off with a bill in the legislature to curb suspensions for early elementary and preschool students — a shift that would have put Colorado on the forefront of school discipline reform, some observers said. Although the bill had a broad array of backers, a Republican-controlled Senate committee killed the proposal after last-minute opposition from a group of rural school district leaders. Some of those leaders said suspensions weren’t a “rural problem,” but a Chalkbeat analysis found otherwise.  

Despite the defeat, advocates of the bill expect a renewed push for the measure during the 2018 legislative session.

In the meantime, Colorado’s two largest school districts — Denver and Jeffco — spearheaded changes to reduce the number of suspension handed out to young children. In June, Denver’s school board instituted a policy limiting the suspension of preschool through third grade students, though some educators worried they weren’t being given enough support to handle kids who misbehave.

In Jeffco, after Chalkbeat wrote about the district’s high rate of early elementary suspensions, administrators commissioned a report on the issue with recommendations to increase the use of restorative justice practices and other alternatives to suspension.  

Also in 2017, local early childhood leaders launched or expanded efforts to address key problems in the field — including teacher recruitment and retention and kids’ sometimes rocky transition to kindergarten.

At the same time, some early childhood advocates were forced to reckon with the perennial lack of funding that plagues the industry and constricts families’ choices. One of Denver’s most well-known child care providers, Clayton Early Learning, closed one of its two facilities last summer — a move observers said spotlights the high cost of quality child care.

But there were also bright spots in the funding landscape — some growing out of local efforts in Colorado’s rural towns and resort communities. A preschool in Holyoke found a way to give staff members generous raises and a growing number of cities and towns are getting new dollars for early childhood programs through sales or property taxes.

In Denver, several efforts — using a combination of public and private funds — aim to improve child care options in the city’s Elyria-Swansea neighborhood, which is designated a “child care desert.”

At the state level, officials promoted recently-created financial incentives for child care centers with top quality ratings, though some providers say earning those ratings is too much work.

Looking ahead to 2018, early childhood advocates hope to renew a tax credit that helps child care providers make ends meet. Plus, winners of a new early childhood innovation competition will get financial help to scale up their ideas.

Giving Quest

Advocates push to extend tax credit to encourage donations to cash-strapped child care providers

PHOTO: Porter-Leath

A wide-ranging coalition that includes early childhood, education and business groups is galvanizing support for a bill to extend a state tax credit that incentivizes donations to Colorado child care providers.

Advocates say the Child Care Contribution Tax Credit, which will be up for reauthorization during the 2018 legislative session, represents a key tool for supporting an expensive but perpetually underfunded sector.

“It’s the child care provider’s lifeline to additional funding,” said Gloria Higgins, president of the business group Executives Partnering to Invest in Children, or EPIC.

It’s a public-private partnership of sorts — with the state rewarding private citizens and businesses with lower tax bills when they support early childhood education.

During fiscal year 2016, Colorado taxpayers made about $52 million in donations that qualified for the tax credit, according to data from the Colorado Department of Revenue. Donations can cover costs such as child care scholarships, teacher salaries and building improvements.

“If parents had to pay $50 million more for child care, I don’t know what they would do,” Higgins said.

The tax credit, which first took effect in 1999 and has been reauthorized once, allows donors to claim an income tax credit worth up to 50 percent of their contribution. In other words, a donation of $200 to a qualifying child care provider would yield a state tax credit of $100 for the donor.

Donations to a variety of organizations — including child care centers, programs offering before- and after-school care, residential treatment centers and homeless youth shelters — are eligible for the credit.

The tax credit was suspended for a couple years during the Great Recession because slow-growing state revenue triggered a special provision in the law. The credit was restored in phases starting in 2013 and will expire in 2019 if it’s not reauthorized.

Given the state’s historically bipartisan support for the tax credit, advocates are hoping for a smooth passage.

“The reason why some people like tax credits … really comes from the fact that you’re just declining revenue,” said Bill Jaeger, vice president of early childhood initiatives at the Colorado Children’s Campaign. “You’re not necessarily building new government programs.”

And for taxpayers who make the donations, the philosophy is about “letting people keep more of money they’ve earned,” he said.

Currently, there is no organized opposition to renewing the tax credit for another 10 years.

Still, advocates know there are many demands for state dollars.

“We, in early childhood, are truly competing … with potholes or K-12 education,” Higgins said. “We just want to hold onto what we have.”

Colorado is one of only a handful of states that offer tax credits to individuals or businesses that donate to child care providers or related programs, according to the National Conference of State Legislatures. Oregon, Mississippi, Louisiana and Pennsylvania all have some version of a contribution credit, though generally the parameters are more restrictive than in Colorado.

Tami Havener, who leads a nonprofit that offers full-day preschool and a host of other early childhood services in Steamboat Springs, believes the tax credit encourages supporters to donate more than they otherwise would.

“I think it definitely makes a difference in them deciding how much they can give,” she said. “It allows them to be more generous.”

The Family Development Center where Havener is executive director raises about $110,000 a year — in amounts ranging from $25 to $30,000. The money helps pay for need-based scholarships, teacher training and extra staff so that student-teacher ratios stay low.

The preschool enrolls 80 students, about one-third of whom come from low-income families.

Havener said she’s gotten more savvy in recent years about advertising and explaining the credit to donors because she realized that some didn’t understand the financial benefits.

Now, in addition to helping specific child care providers, some groups envision the credit as a way to get communities to collaborate on larger child care initiatives. The idea is to use the credit as a rallying point for donors interested in pooling their resources for big projects — say, building a child care facility in a neighborhood without one.

“This is no silver bullet by any stretch,” Jaeger said. “It’s a tool in the toolbox.”