{"id":445,"date":"2026-05-10T19:32:16","date_gmt":"2026-05-10T19:32:16","guid":{"rendered":"https:\/\/denvermovingchronicle.com\/?p=445"},"modified":"2026-05-10T19:32:16","modified_gmt":"2026-05-10T19:32:16","slug":"colorado-lawmakers-ponder-2-year-delay-for-affordable-childcare-program-boost-3","status":"publish","type":"post","link":"https:\/\/denvermovingchronicle.com\/?p=445","title":{"rendered":"Colorado lawmakers ponder 2-year delay for affordable childcare program boost"},"content":{"rendered":"
\n

This story was produced as part of the Colorado Capitol News Alliance. It first appeared at\u00a0<\/em>coloradosun.com<\/em>.<\/em><\/p>\n

DENVER<\/strong> | Thousands of Colorado\u2019s poorest families in desperate need of childcare could get a boost of state funding to help them afford a spot for their kid through a pair of bills still working their way through the legislature.<\/p>\n

The catch: They would likely have to wait at least two more years for aid.<\/p>\n

On Thursday, state lawmakers in a Senate committee unanimously approved a two-year delay to a law passed in 2024 aimed at making the state\u2019s childcare payment assistance program for low-income families, the Child Care Assistance Program, more affordable. Lawmakers in the House will now have to adopt the Senate\u2019s version.<\/p>\n

<\/div>\n

House Bill 1223 would have capped a CCAP-eligible family\u2019s childcare payment at 7% of their household income starting Aug. 1. It also would have required counties, which administer the CCAP program, to pay childcare providers a weekly rate based on child enrollment, not attendance.<\/p>\n

House Bill 1260 delays those affordability provisions until 2028, saving the state about $11 million.<\/p>\n

Meanwhile, a bipartisan group of Colorado lawmakers has proposed creating a designated state fund for childcare that would help relieve costs for low-income parents. The fund, a first-of-its-kind pot of money for childcare in Colorado, is one potential, long-awaited solution to lift widespread enrollment freezes in CCAP.<\/p>\n

After rigorous debates over how best to fund childcare for poor families, the Senate Finance Committee on Thursday afternoon narrowly approved Senate Bill 180 with a 5-4 vote. Close to 14,000 eligible children can\u2019t access childcare while CCAP enrollment remains paused in more than 25 Colorado counties, as of April 1, according to data from the Colorado Department of Early Childhood.<\/p>\n

\u201cThis is simply unacceptable,\u201d said state Sen. Scott Bright, a Greeley Republican and owner of childcare centers who is sponsoring the bill. \u201cI see this from both sides. I see those families who walk in hoping there\u2019s a CCAP-assisted slot. I see the staff who love these kids and cannot afford to stay in the field, and I see what happens when the system breaks. Parents leave jobs, cut hours, burn through sick time or put off the training and education that would move their family forward. That cost does not just hit the family. It hits the employer. It hits the local economy. It hits every taxpayer in the state.\u201d<\/p>\n

The bill, introduced Monday, would establish an investment performance authority, what Bright describes as a government-run nonprofit with a board that would invest dollars and spend part of the earnings on childcare for low-income families.<\/p>\n

The state fund would be fed by investments from a variety of state enterprises \u2014 businesses set up by the government that charge fees and use them to cover the cost of programs and services. Colorado\u2019s state enterprises include higher education institutions, the 988 Crisis Hotline Enterprise, the Air Quality Enterprise, the Capitol Parking Authority, Colorado Parks and Wildlife, the State Fair Authority, the State Lottery and the Veterans Community Living Centers.<\/p>\n

Enterprises would voluntarily invest money they could afford to temporarily part with into the investment performance authority. The investment performance authority would then use that money to make slightly risky investments with the potential to produce a higher rate of return. The enterprise would get their original dollar amount back plus a share of the interest made on their investment. The rest of that interest would go into the state fund for childcare.<\/p>\n

A board of nine members \u2014 up from seven, following an amendment \u2014 would govern the investment performance authority, including professionals with a background in investments and finances.<\/p>\n

The fund likely would not be able to send money to counties to then pay providers on behalf of low-income families until the 2027-28 fiscal year, according to Bright. The first steps are soliciting investors, accumulating earnings and building up reserves that the investment performance authority can tap into to pay back investors should the market sour, he said.<\/p>\n

Critics of the legislation say lawmakers are rushing the bill in the final weeks of the legislative session and worry that it won\u2019t immediately generate funds for childcare. Some have concerns that the proposal could jeopardize the status of state enterprises and set up costly legal challenges.<\/p>\n

Those in support of the bill counter that it\u2019s an \u201coutside of the box idea,\u201d giving the state a mechanism to ramp up childcare funding that won\u2019t be bound to the rules of the Taxpayer\u2019s Bill of Rights, which limits how much the state government can spend each year on services.<\/p>\n

\u201cWe live within a balanced budget and we live within the TABOR cap for that balanced budget,\u201d Bright told The Colorado Sun. \u201cEnterprises exist outside of TABOR and outside of the general fund, and so what we\u2019re doing here is we\u2019re taking money outside of the general fund, outside of TABOR, investing it, getting a little more return, keeping it outside of TABOR and getting it to counties and low-income families.\u201d<\/p>\n

The proposed fund sends a signal that childcare is becoming a higher state priority, Mathangi Subramanian, director of early childhood policy for the nonprofit Colorado Children\u2019s Campaign, told The Sun. The Colorado Children\u2019s Campaign is a proponent of the bill.<\/p>\n

State childcare funds are also becoming more critical after the federal government previously withheld federal CCAP funds, Subramanian said, getting Colorado \u201cout from under the question of will our money be frozen suddenly?\u201d<\/p>\n

\u201cIt shows that our state believes childcare is infrastructure and that it\u2019s a public good,\u201d she said, \u201cso politically and symbolically it\u2019s a huge step forward to show that Colorado cares about families, cares about parents and cares about kids.\u201d<\/p>\n

All those who offered testimony during Thursday\u2019s Senate Finance Committee meeting expressed strong support for the bill\u2019s goal of directing more money to low-income families to help them secure childcare. But several people who testified also raised serious concerns about using a special purpose authority to generate childcare funds.<\/p>\n

Colorado State Treasurer Dave Young questions the legality of the bill, telling the Senate Finance Committee it would \u201cenact a blatant violation of the Colorado Constitution and create a serious risk to public funds.\u201d<\/p>\n

Young, who said this is the first bill he has opposed as treasurer, said his job is to manage taxpayer money \u201ctransparently\u201d and weigh investment returns against risk. He believes the legislation would form an \u201cuntested, ill-defined\u201d investment performance authority that would not be subject to \u201cstandard procurement practices\u201d and that would invest public money into \u201cvolatile, high-risk instruments,\u201d such as private equity and real estate investment trusts. That is prohibited by the state constitution, Young said.<\/p>\n

\u201cThis is the recipe for a costly and most likely successful legal challenge,\u201d he said.<\/p>\n

Andrea Kuwik, director of policy and research at the Bell Policy Center, cited concerns about state enterprises potentially losing their status and violating the state constitution for diverting part of the interest from their investment to childcare.<\/p>\n

\u201cThose enterprises must be used for the purposes that then exist through statute and if they are then used for another purpose (than what) was initially intended for, then that creates the potential that you\u2019re using it for another general purpose,\u201d she said.<\/p>\n

Mark Ferrandino, Gov. Jared Polis\u2019 budget director, shrugged off that concern. Ferrandino said Polis supports the legislation.<\/p>\n

\u201cIt\u2019s important that the enterprises are as a separate entity making that decision, is this the right thing in their own interest to do?\u201d he said. \u201cIf they decide that, they\u2019re doing that as a governing body or an individual who has the responsibility of that business to make that decision and they are doing that and taking that return that they would get. Any excess return is not owed to them and thus does not jeopardize the enterprise status.\u201d<\/p>\n

Some members of the Senate Finance Committee and those testifying say they are also worried that the bill sponsors are being hasty in trying to pass legislation before the session ends while introducing too much risk with their approach.<\/p>\n

\u201cWe all understand the need,\u201d said state Sen. Chris Kolker, a Centennial Democrat, who voted against the legislation. \u201cWe understand the importance of the need, and I think we all here agree with that. It\u2019s how do we go about funding that need? Can we do it legally without putting at risk other assets that are also funding other needs? And so a vote against this bill \u2026 is not a vote against your need. It\u2019s a vote against how we\u2019re doing it and what risk we\u2019re taking to do it.\u201d<\/p>\n

State Sen. Janice Marchman, a Loveland Democrat and bill sponsor, acknowledged the risk, adding that she believes it\u2019s worth taking.<\/p>\n

\u201cI do respect that people are concerned about the riskiness of this,\u201d said Marchman, also a member of the Senate Finance Committee. \u201cI also want to respect the fact that sometimes we have to take risks to be able to get what we need.\u201d<\/p>\n

Senate Bill 180 next heads to the Senate Appropriations Committee.<\/p>\n

This story was made available via the Colorado News Collaborative. Learn more at https:\/\/www.google.com\/url?q=https:\/\/colabnews.co&source=gmail-imap&ust=1778526590000000&usg=AOvVaw0Kk9xt0hfnOa2Df6DkWssD<\/em>\n<\/p>\n

Read more FRIDAY NEWS IN A RUSH: Top headlines in today\u2019s NewsMinute video<\/a><\/p>\n<\/p>\n<\/p>\n<\/p>\n<\/p>\n<\/p>\n<\/p>\n<\/p>\n<\/p>\n

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Read more Colorado Dems propose bill to counter mandated road-funding ballot initiative<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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