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New Mexico childcare providers push back on proposed universal childcare wage mandate

Draft rules would require providers to spend 57% of revenue on employee pay

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SANTA FE 鈥 The state of New Mexico is seeking to include wage and reporting requirements with its universal childcare program, though some providers are at odds with the proposed rules.

The potential changes could require childcare providers who opt into the universal childcare model to put 57% of their revenue toward wages for teachers and administrators, a move some business owners say could affect their financial health.

At a public hearing in Santa Fe on Thursday, business owners said this requirement would make it challenging for them to operate as they have been.

Amanda Baca, who is opening a new childcare center in Los Lunas, told the audience that the 57% requirement could make it difficult for her business to remain solvent.

鈥淭his should be one of the most exciting times in my career,鈥 Baca said. 鈥淚nstead, I find myself asking a question I never thought I鈥檇 have to ask: Can I really afford to do this?鈥

Not included in the 57% are additional employees like cooks, janitors or maintenance workers, said Barbara Tedrow, president of the New Mexico Early Childhood Association and owner of A Gold Star Academy childcare centers in Farmington.

鈥淎 one-size-fits-all of just randomly saying 57% doesn鈥檛 work,鈥 Tedrow said. 鈥淲e have such a wide variety of centers, homes, small, large, nonprofit, for-profit.鈥

Tedrow said the association is advocating for a lower minimum of 45% to be paid toward wages.

鈥淭hen you can make sure that we鈥檙e at least meeting a minimum, knowing that some centers are going to be at 57%, some are going to be at 50%, but it doesn鈥檛 mean that we鈥檙e not paying the wages to the teachers,鈥 she said.

The proposed changes are intended to bring the state in compliance with Senate Bill 241, a piece of legislation passed earlier this year that enshrined universal childcare into state law with a set of provisions.

The bill includes certain 鈥渢riggers鈥 in the event of worsening economic conditions, such as allowing copays for higher-income families and instituting childcare waitlists. The legislation also includes the framework for a wage-and-career ladder, funded by a $60 million allocation to the state budget, which dictates that childcare employees be paid in accordance with their experience or education. Under current guidelines, providers that opt into the universal childcare program must agree to pay employees at least $16 an hour.

Since its inception in November, at least 44,000 children have in New Mexico鈥檚 universal childcare program, the first of any state in the nation. The program will cost the state $606 million in fiscal year 2027, according to a state news release.

Providers also spoke out against a new proposed rule that would require providers to submit employee data to a public portal called the Professional Development Information System for the purpose of analyzing pay trends, which would make personal information like employee wages available to the public through an Inspection of Public Records Act request.

Jacob Vigil of child welfare nonprofit New Mexico Voices for Children said that while the organization supported collecting the data, it urged the state Early Childhood Education and Care Department to put privacy safeguards in place, since many childcare workers are undocumented.

鈥淚 think transparency has always been important for accountability with public dollars,鈥 Vigil said.

ECECD officials have said reporting wage information helps the state make data-driven decisions about wage requirements. Olga Grays, a childcare provider in Las Cruces, said pay mandates like the wage-and-career ladder are good for childcare workers.

鈥淚 think that鈥檚 a beautiful thing, because it gives a clear goal,鈥 Grays said of the proposed wage requirements. 鈥淚t makes it more of a profession鈥 have an employee who鈥檚 been with me for over 15 years, and I鈥檝e learned everything from her, and she doesn鈥檛 have an education, but she taught me everything I know.鈥

Grays, a member of the advocacy group OL脡 New Mexico, said she hopes the rollout of the new rules will be clear and easy for the public to understand.

鈥淭he biggest concern is the transparency,鈥 she said.

Grays said the childcare providers in her hometown of Sunland Park, near the Mexico border, many of whom speak only Spanish, had no idea about many of the specifics of the universal childcare program until she told them.

鈥淚 think there was a big disconnect with the information getting all the way to Sunland Park,鈥 she said.

ECECD spokesperson Julia Sclafani said in a statement that the department would take into account all the comments it received at Thursday鈥檚 hearing.

鈥淭he thoughtful participation from providers, advocates and families plays an essential role in shaping policies that support positive outcomes for children, enhance family wellbeing and strengthen New Mexico鈥檚 early childhood system,鈥 Sclafani said. 鈥淓CECD will review all feedback received as part of the department鈥檚 commitment to a transparent and collaborative rulemaking process.鈥

Sclafani said the new rules will be determined in the coming weeks.

Natalie Robbins covers education for the Journal. You can reach her at nrobbins@abqjournal.com.