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Colorado's bold tax-funded plan to fix childcare shortages and high costs

A 0.25% sales tax could transform childcare in Colorado—lowering costs, boosting wages, and adding capacity. Will this model inspire other states struggling with shortages?

The image shows a bar chart depicting the state and local spending on education. The chart is...
The image shows a bar chart depicting the state and local spending on education. The chart is composed of several bars of varying heights, each representing a different state, with the height of each bar indicating the amount of money spent on each state. The text on the chart provides further information about the data being presented.

Colorado's bold tax-funded plan to fix childcare shortages and high costs

Larimer County has launched a voter-approved plan to tackle childcare shortages and soaring costs in Colorado. The initiative, funded by a new sales tax, will inject millions into early years services each year. Local leaders have described the move as a major step forward for families and providers alike.

The scheme follows the passing of Measure 1B, which introduces a 0.25% sales tax to raise around £28 million annually by 2027. While exact numbers of benefiting facilities remain unclear, the funds will target four key areas: cutting childcare expenses, widening access, supporting staff wages, and growing provider capacity.

An agreement has now been signed with Northern Colorado Kids Thrive to oversee the programme and manage the tax revenue. Christina Taylor, the organisation's CEO, confirmed her team is ready to collaborate with the county on rolling out the new services. County Commissioner Jody Shadduck McNally praised the deal as a landmark achievement for the community.

The long-term goal is to ease pressure on working parents while strengthening local childcare providers in Colorado. Plans include expanding classroom space and stabilising the early years workforce to create sustainable solutions.

The tax-funded initiative will channel millions into childcare each year, with Northern Colorado Kids Thrive leading its delivery. Families could see lower costs, more available places, and better-supported staff as the programme develops. The county expects the changes to take full effect by 2027.

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