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New Mexico becomes first state to offer universal child care

Posted on 9/15/25 at 9:17 pm
Posted by Powerman
Member since Jan 2004
170751 posts
Posted on 9/15/25 at 9:17 pm
Didn't see a thread on it but understandable that this got overlooked with the CK news this week.

NM to offer universal childcare for all
Posted by the808bass
The Lou
Member since Oct 2012
125621 posts
Posted on 9/15/25 at 9:19 pm to
No. It’s not. Multiple states have tried this and stopped it.

Edit: misread it. Thought it was health care.

This will still have the same fate.
This post was edited on 9/15/25 at 9:20 pm
Posted by Crimson K
Tuscaloosa
Member since Dec 2018
7194 posts
Posted on 9/15/25 at 9:21 pm to
Let them try it, but no bailout when they can’t fund basic services.
Posted by faraway
Member since Nov 2022
3573 posts
Posted on 9/15/25 at 9:22 pm to
quote:

first state to offer universal child care
you mean before school age?
Posted by HailHailtoMichigan!
Mission Viejo, CA
Member since Mar 2012
73224 posts
Posted on 9/15/25 at 9:25 pm to
Instead of creating an expensive new program, why not actually address the underlying cause of why childcare is so expensive?
Posted by prouddawg
Member since Sep 2024
7445 posts
Posted on 9/15/25 at 9:26 pm to
They can have at it - as long as it’s NM state taxpayer money only
Posted by the808bass
The Lou
Member since Oct 2012
125621 posts
Posted on 9/15/25 at 9:27 pm to
Note that this is way more expensive than health insurance for children. The program will be insolvent in three years without drastically increasing the workforce.
Posted by SouthEasternKaiju
SouthEast... you figure it out
Member since Aug 2021
42865 posts
Posted on 9/15/25 at 9:29 pm to
Free to try as long as zero federal funding is used.
Posted by OU Guy
Member since Feb 2022
24848 posts
Posted on 9/15/25 at 9:55 pm to
It will be like most states DMV offices or any Gov run agency. The state will decide everything and it will be a shot show in the end
Posted by LegendInMyMind
Member since Apr 2019
71901 posts
Posted on 9/15/25 at 10:06 pm to
It was posted here last week.

I say it is good. This is what people here are supposed to be for: a state deciding what is best for the education of its children. If you don't like it, don't live in New Mexico. If you live in New Mexico and you don't like it, vote accordingly.
This post was edited on 9/15/25 at 10:07 pm
Posted by SallysHuman
Lady Palmetto Bug
Member since Jan 2025
15024 posts
Posted on 9/15/25 at 10:17 pm to
quote:

Instead of creating an expensive new program, why not actually address the underlying cause of why childcare is so expensive?


Out of curiosity... what IS the underlying cause of expensive childcare?
Posted by SallysHuman
Lady Palmetto Bug
Member since Jan 2025
15024 posts
Posted on 9/15/25 at 10:17 pm to
quote:

you mean before school age?


Amen! Say it again!
Posted by Godfather1
What WAS St George, Louisiana
Member since Oct 2006
87660 posts
Posted on 9/15/25 at 10:24 pm to
And, like anything else government gets its mitts on, it’ll be for shite with massive cost overruns.

But if that’s what the good people of New Mexico want and vote for, more power to them.
This post was edited on 9/15/25 at 10:26 pm
Posted by Powerman
Member since Jan 2004
170751 posts
Posted on 9/15/25 at 10:31 pm to
I think the concept is it might be a draw to get people and businesses to relocate there. I've only been to NM a few times and have no desire to return. But I didn't get to see the nicer ski resort areas.
Posted by the808bass
The Lou
Member since Oct 2012
125621 posts
Posted on 9/16/25 at 12:34 am to
quote:

The state will decide everything and it will be a shot show in the end


My prediction: it will create an increase in child care costs. And when the state stops paying, the inflationary rate will remain.
Posted by L.A.
The Mojave Desert
Member since Aug 2003
65439 posts
Posted on 9/16/25 at 12:40 am to
How will they pay for it? I didn’t see that in the article
Posted by the808bass
The Lou
Member since Oct 2012
125621 posts
Posted on 9/16/25 at 1:04 am to
Oil and gas surplus they set aside. $10B.

There’s 112k kids under 5. If half of them (and 0 kids over 5 get any benefits) at a cost to the government of $8000/child, that will be roughly 5% of the surplus that’s been allocated in year one. Considering they are also allocating millions for worker recruitment and new childcare facilities, I think year 3 might be about right for the program becoming insolvent. Might make it to year 5.

More likely, it’s turns into a sliding scale with the new scale being greatly inflated from the old scale.
Posted by Hester5452007
Member since Sep 2018
227 posts
Posted on 9/16/25 at 1:09 am to
quote:

My prediction: it will create an increase in child care costs. And when the state stops paying, the inflationary rate will remain.


The program has been in place for about 5 years, and with this expansion costs to the state will increase by about 25%. First couple of years it was funded by federal, last few years by their land grant permanent fund.

As of 2024 the going rate that the state pays the childcare centers is $500 full time for school age and $1,075 full time for a toddler.

Not bad...
Posted by the808bass
The Lou
Member since Oct 2012
125621 posts
Posted on 9/16/25 at 1:15 am to
quote:

As of 2024 the going rate that the state pays the childcare centers is $500 full time for school age and $1,075 full time for a toddler.


1) the government is worse than an 8 year old at predicting enrollment in free plans.

2) those rates of reimbursement aren’t sustainable for larger percentages of enrollees in a class. In other words, those paying full price are subsidizing the government rate kids (just like Medicaid).

So this will end up bankrupting childcare centers as their enrollment from the universal students increases as a percentage of their total enrollment.
This post was edited on 9/16/25 at 1:16 am
Posted by Hester5452007
Member since Sep 2018
227 posts
Posted on 9/16/25 at 1:32 am to
quote:

1) the government is worse than an 8 year old at predicting enrollment in free plans.



The program has already been in place since 2022 for up to 400% of the poverty level and they have 27,000 enrollees. By removing the poverty level qualifier they expect to have 39,000 total enrollees and they have drastically reducing birth rates.

quote:

2) those rates of reimbursement aren’t sustainable for larger percentages of enrollees in a class. In other words, those paying full price are subsidizing the government rate kids (just like Medicaid).


They already use a market rate reimbursement system set at the 75th percentile so they are already paying above the average market cost.



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