Colorado Lawmakers Tout 'Game Changer' Bill To Dramatically Lower Child Care Waitlist

DENVER (CBS4)- The shortage of child care options for parents is growing worse but a bill at the state Capitol could help thousands of Colorado families. Analysis by The Bipartisan Policy Center found up to 90,000 kids in Colorado are on waitlists for child care.

State Representatives Kevin Van Winkle and Dylan Roberts have a bill that they argue could significantly reduce that number by making a simple change in the tax code. It would make non-profit child care centers exempt from property taxes regardless of whether the child care owner rents or owns the facility's building. Right now, only non-profit child cares where providers the property get the tax break.

When Katie McDonald opened Meadows Early Learning Center in Parker 6 years ago, she obtained non-profit status. She thought it would mean lower taxes that would allow for higher wages.

"We wanted to make sure that the money was actually paying teachers a living wage, to take care of our teachers because if we take care of our teachers then they take care of our children," said McDonald.

McDonald later learned that she wasn't eligible for the biggest tax break because she rented rather than owned the building where the facility was located, "When we got the letter back stating because we only owned the business and we didn't own the property, we wouldn't qualify for the property tax rebate, it didn't make sense to stay as a nonprofit."

It doesn't make sense to Roberts and Van Winkle either. Their bill would exempt buildings rented by nonprofit child care providers from an estimated $2.1 million in property taxes.

"And that means more employees they can hire, more space they can open up and it could be a real game-changer for a lot of these child care centers or incentive for new ones open up," says Roberts.

The bill would require the state to backfill about $870,000 of the money for local governments so schools wouldn't be impacted.

McDonald says she pays $80,000 a year in property taxes as part of her rent, "Every single one of my teachers would be able to get a $2/hour raise."

Or, she says, she could hire two more teachers to help with a waitlist that's now into September of 2023.

The Bipartisan Policy Center says half of Colorado now qualifies as a child care desert, meaning there is only one child care slot for three to four children.

"If we can save them even a little money, it will make a big difference for a lot of families," says Van Winkle.

The bill has bipartisan sponsors in the House and Senate and it passed its first committee 11-1.