Challenges Facing Early Childhood Providers in Denver: An Analysis
Prepared for the Denver Office of Children’s Affairs in 2020
This report, prepared for the Denver Office of Children’s Affairs, examines the underlying causes of Denver’s growing “childcare deserts” and identifies strategies to strengthen the financial sustainability of early childhood education (ECE) providers. Drawing on a literature review, interviews with national experts, case studies from peer cities, and direct interviews with 12 Denver providers, the analysis highlights the structural challenges that limit access to affordable, high‑quality childcare - particularly in low‑income neighborhoods. As the report notes, “the demand for quality ECE providers far outstrips the available supply,” especially in communities where families face affordability barriers and providers struggle to remain financially viable.
The study identifies several key pressures on Denver’s ECE system, including low teacher pay, high staff turnover, rising minimum wage requirements, limited access to health insurance, and the high cost of providing infant and toddler care. Providers also cited administrative burdens, facility costs, and insufficient subsidy reimbursement rates as major obstacles. To address these challenges, the report explores promising practices from cities such as Seattle and San Francisco, ranging from shared services models to capital improvement funds, substitute teacher pools, and targeted subsidies that prioritize continuity of care.
Using the federal Provider Cost of Quality Calculator, the report also estimates the revenue gaps faced by Denver’s center‑based providers. Even under conservative assumptions, both sample providers analyzed showed significant shortfalls between actual revenues and the costs required to deliver quality care. As the report concludes, “the threat to such financial viability is serious,” and meaningful policy action will be required to stabilize providers, expand childcare availability, and ensure that Denver families, particularly those in underserved neighborhoods, can access high‑quality early learning opportunities.