Child Care in Crisis: Communities Fight Back with New Funding

Across the United States, families are grappling with a child care crisis that affects everything from workforce participation to economic development. From New York to New Mexico, communities are struggling to balance supply and demand while keeping providers financially viable. Yet amid these challenges, innovative funding solutions are emerging as local governments and voters take matters into their own hands.

The Scope of the Child Care Crisis

The numbers paint a stark picture. In Rome, New York, there are only 1,030 licensed child care slots for 3,681 children under age 10. The shortage is most severe for infants and toddlers, with just 104 slots available for children under two, according to the Child Care Council of Cornell Cooperative Extension of Oneida County.

"Child care isn't just a family issue—it's a community issue," said Richelle Singer, director of the Child Care Council. The shortage impacts not only families but also local businesses, as parents struggle to find reliable care.

The problem extends beyond small communities. In New York State, Governor Kathy Hochul has publicly championed universal child care as one of her top priorities, calling herself a "poster child for the child care crisis." However, advocates question the sincerity of her commitment after she created a mysterious coalition to study universal child care funding—one that appears to have excluded many key stakeholders.

When New York Focus reached out to major labor unions, child care providers, and advocacy organizations, most said they had no knowledge of the coalition's existence or membership, despite the state budget allocating $1 million for its formation. "Has this coalition even met yet? Have we identified who is on it?" asked Assemblymember Sarah Clark, who sponsors child care legislation.

Colorado Communities Take Matters Into Their Own Hands

While some states debate policy at the capitol, Colorado communities are pursuing direct action through ballot measures. This November, eight Colorado communities will ask voters to approve new taxes specifically designed to support child care efforts—a record number for the state.

Five counties—Chaffee, Custer, Eagle, Gilpin, and Hinsdale—are proposing lodging tax increases, taking advantage of a 2025 state law that raised the maximum lodging tax counties can levy from 2% to 6%. These taxes primarily affect out-of-town visitors staying at hotels or short-term rentals, making them politically palatable to local residents.

"We lose good people from our community," said Jake Niece, an Ouray County commissioner speaking in a personal capacity about his county's proposed 6% lodging tax. The shortage of both child care and affordable housing makes it difficult for young families to stay in the county of about 5,000 people.

Groundbreaking Regional Solutions

Perhaps most innovative is a proposed early childhood development special district spanning Pitkin, Garfield, and Eagle counties. If approved, it would be Colorado's first such district—a region with dedicated taxing authority for early childhood initiatives.

The proposed 0.25% sales tax would generate approximately $10 million annually for boosting child care worker wages, providing family tuition subsidies, and awarding facility improvement grants. "It would just be not only a first in the state, but really a first locally as well to have something truly regional," said Maggie Tiscornia, the campaign's outreach director.

Larimer County is pursuing a similar sales tax measure that would generate nearly $29 million annually. Christina Taylor, CEO of the Early Childhood Council of Larimer County, explained that funds would support sliding-scale subsidies available to every family, quarterly wage supplements for workers earning $16 to $19 per hour, and facility upgrades.

New Mexico's Universal Child Care Gamble

While Colorado communities pursue incremental solutions, New Mexico is taking a bolder approach. Governor Michelle Lujan Grisham announced plans to establish universal free child care starting November 1, 2025—a first-in-the-nation initiative expected to save parents $12,000 per child annually.

Yet implementation challenges abound. With only 11 days until the launch date when the announcement was made, many child care centers reported being kept in the dark about operational details.

"I love the whole idea," said Valeria Holloway, owner of Best of the Southwest Daycare in Las Cruces. "We all are in love with it, but we never really had enough staff in that world above us to get our contracts fast or background checks fast. So it's going to be like a hurricane. We're like, OK, we're going to brace for this."

Covenant Schools in Rio Rancho informed parents they were still deciding whether to participate, awaiting official guidelines from the New Mexico Early Childhood Education and Care Department that had not yet been received.

When Corporate Child Care Fails

The private sector isn't always the answer either. Mount Snow ski resort in Vermont announced plans to transition its child care center to an "employee-first" model after years of operating at a financial loss, initially giving community families just six weeks' notice before cutting off access.

The decision would have affected 16 families and an undetermined number of staff members, according to Vail Resorts, which has operated Mount Snow since 2019. Following public outcry and a petition with over 250 signatures, the resort postponed the changes until June 2026—giving families seven additional months but not solving the underlying problem.

Former lead teacher Jenn Wood, who resigned in protest, said the center's operational deficit was known among staff for months but was "exacerbated by mismanagement and overstaffing." She's now helping another affected teacher open an independent child care center to ensure secure employment and alternative options for families.

What Works: Lessons from the Field

Successful child care solutions share common elements. In Montrose, Colorado, which passed a lodging tax increase in 2024, the city is converting an old school district building into a child care center. About $150,000 from the lodging tax will contribute to the $850,000 renovation, with the remainder supporting facility improvements for other local providers.

"Those are big ticket items," said Jace Hochwalt, Montrose's community development director. "I think it certainly helps the bottom line for [child care providers] to just continue to be able to stay in business."

In Rome, New York, local leaders are encouraging new providers through startup grants. Oneida County Executive Anthony Picente announced grants of up to $2,500 for new child care businesses, with the Child Care Council providing guidance on licensing and applications.

The Revenue Question

Lodging taxes offer particular advantages in tourist destinations because they shift costs to visitors while supporting the workforce that powers local economies. Since 2022, Colorado law has allowed lodging tax proceeds to fund housing and child care alongside traditional uses.

While lodging taxes don't typically raise enormous sums, advocates say they can meaningfully address local needs when federal and state funding recedes. In Custer County, Colorado, a proposed lodging tax would generate around $90,000 annually for child care—enough to offer Friday and summer care at facilities currently closed those times, and to train workers to staff those hours.

Looking Ahead

The child care crisis won't be solved overnight, and no single approach works everywhere. Urban areas face different challenges than rural communities; resort towns have distinct needs from manufacturing centers. Yet across these diverse contexts, common themes emerge: inadequate funding, workforce shortages, and families caught in the middle.

What's encouraging is the willingness of communities to experiment with solutions tailored to their circumstances. Whether through lodging taxes in Colorado's mountain towns, universal programs in New Mexico, or startup grants in upstate New York, local leaders are refusing to wait for federal intervention.

As Rebecca Bailin, executive director of New Yorkers United for Child Care, noted about Governor Hochul's pledges: "She's saying really great things. But what we will have to see is what her plan is this upcoming budget cycle." That sentiment applies equally to leaders at every level. Talk is cheap—but quality child care is not, and working families deserve more than empty promises.

The question now is whether voters in communities like those across Colorado will show up to support these innovative funding mechanisms, and whether they'll prove sustainable and replicable. If they do, they may offer a roadmap for communities nationwide struggling with the same crisis.