SECTION 3:
Building for the Future
Building for the Future
Appropriate early care environments are foundational to a child’s early learning experiences. Whether children are being cared for at home, at a relative's or friend's home, in a family home business, or an early care center, they need safe, welcoming, and stimulating spaces to learn and grow. Connecticut is planning and preparing for a much more affordable system of care, and with greater affordability will come more demand. Successfully meeting projected demand hinges on preparing for increased capacity and implementing critical quality improvements.
Signs of Progress
EARLY LEARNING POLICIES AND INVESTMENTS
To support families and employers, and stabilize the early care system, Governor Lamont, the Office of Early Childhood, the Connecticut General Assembly, and advocates across the state have been taking steps to advance policies for more accessible, affordable, and high-quality early care options for families.
In just the first year after the Blue Ribbon Panel submitted its report to the Governor, extensive results have been achieved through collective efforts across OEC and the early care sector.
A sampling of progress to date includes:
SYSTEM IMPROVEMENTS
Early Start CT: Launching in July 2025, it will combine 3 existing programs — Child Day Care Contracts, School Readiness Grants, and State Head Start Supplement Grants — into a single new program.
The streamlining of funding should result in less paperwork and more predictable pay schedules for providers. Additionally, it will improve access to high-quality early care and education options for families in areas with limited access to early care programs.
EXPANDING AFFORDABLE ACCESS
Increased Infant and Toddler Care: Increased accessibility by adding 1,290 new spaces, growing the availability of incubator programs, and reviewing Group Home guidelines.
Improving Care 4 Kids: The Office of Early childhood established 1,500 new Care 4 Kids spaces, capped family fees for Care 4 Kids at 7% of household income, and increased the household income limit from 65% to 85% of the state median income.
A STRONG AND STABLE ECE WORKFORCE
Workforce: Funded a $5M center-based workforce pilot for 400 apprentices, along with deploying strategies to increase compensation and increase Care 4 Kids rates to stabilize programs.
Quality: Elevate is Connecticut’s quality improvement system, designed to give providers the tools they need to improve programs, but at their own pace.
FUNDING
Methods of Funding: Completed cost analysis based on actual cost of infant toddler care. In addition, OEC prioritized the allocation of ARPA funding to support facilities grants to high SVI providers - $13M to date, with an additional $10M in new state bonding to continue this work. For long-term funding strategies to support the early learning sector, an Early Childhood Care and Education Fund was established in legislation.
Sol Playschool, Derby, CT
CONNECTICUT LEGISLATION
Expanding Access: During his State of the State address in February 2025, Governor Lamont unveiled plans to offer Universal pre-K, a major step toward meeting the needs of Connecticut’s workforce and families. Lamont underscored that his pre-K plan will save parents thousands of dollars, giving them the freedom to get back to work – “because parents, businesses need you.”
The passage of a State of Connecticut 2026-2028 biennial budget provides a path to a viable and sustainable system of early care. The most notable early childhood policy win was the creation of an Early Childhood Endowment that was seeded with $300 million and will receive all the unappropriated surplus each year going forward. This endowment is a non-lapsing fund that will grow with annual deposits and market returns. The endowment will be managed by an independent board for the purpose of strengthening and growing Connecticut’s Early Start program. It will increase provider payment rates to raise wages for early educators to parity with their public-school counterparts, lower tuition to no more than 7% of household income, eliminate tuition for families below $100,000 in income and expand the system to serve more children.
Additionally, the endowment may be used to fund the staffing, technical assistance and costs associated with $80 million of early childhood facilities bond funding included in the budget. The bond funding will be available for a seven year period to support expansion and renovations of early care programs in high needs areas and child care deserts.
Link to the bill https://www.cga.ct.gov/2025/ACT/PA/PDF/2025PA-00093-R00SB-00001-PA.PDF (Sections 1-15)
This was a “beautiful gift” and a major step toward toward Silvia’s dream of making learning joyful.
Silvia Arnoso, grant recipient and owner of Sol Playschool
Silvia’s Dream Realized
Silvia Arnoso was a preschool educator in her home country, Uruguay, always dreaming of opening a space to teach and inspire children in her community. As a child, she played “teacher” with neighbors, and by 6th grade, she was volunteering at a local preschool. With a clear vision, she dedicated her life to Early Childhood Education, knowing it was her calling. After arriving in the U.S., Silvia immersed herself in the field. One of her most impactful roles connected families and children with gardens and outdoor activities, using nature as an educational tool. Working with parents and teachers, she saw the power of community engagement in children’s learning. She later joined a Norwalk program with home visits, showing her how education could thrive outside traditional classrooms. Silvia’s passion has always centered on creating nurturing environments where learning is joyful. She envisions a space where play, nature, and education intertwine, helping children build confidence and a love of learning. Her goal is to launch a bilingual Spanish immersion program that welcomes children from all backgrounds, promoting acceptance and understanding. Silvia also seeks strong relationships with parents, recognizing their key role in a child’s education. Receiving the Early Childhood Facilities Construction and Renovation Program grant was a “beautiful gift” and a major step toward her dream. Silvia’s child care facility in Derby will serve 30 children, with 10 slots for infants and toddlers and 20 slots for preschoolers. The funds for the grant were used to add an extension to the back of the house for classrooms, the addition of a reception area, a driveway and parking lot, an outdoor playground focusing on nature, a garden, an alarm system, and heating, among other updates to make the space suitable for children. She is committed to giving children and families the rich, high-quality education they deserve.
Historic Investments in Child Care Facilities
Connecticut has a history of pioneering national models to spur partnerships and investment for facilities construction, improvement, and expansion.
In 1997, legislative leaders in Connecticut enacted an ambitious piece of legislation designed to close the academic achievement gap between low-income children growing up in the state’s urban districts and children in more affluent school systems. They recognized that communities lacked physical space to serve the preschoolers who had not previously been served. The resulting Child Care Facilities Loan Fund (CCFLF) was launched to provide facilities financing to early childhood providers through tax-exempt bond financing and loans administered by the Connecticut Health and Educational Facilities Authority (CHEFA).
Building off this momentum, in 1999, LISC established the Connecticut Children’s Investment Partnership (CIP), a collaboration with CHEFA and the William Caspar Graustein Memorial Fund, and supported by numerous community funders. CIP’s goal was to provide capital and technical assistance to early education programs to improve the quality and capacity of their physical spaces. This partnership yielded 40 investments, totaling just over $2 million in capital deployed (primarily grants and recoverable grants) and leveraging over $54 million in total development costs.
Connecticut cares about quality. An essential piece of research conducted around the importance of well-designed spaces for young children took place in Connecticut at the School for Young Children at the University of Saint Joseph in West Hartford. The groundbreaking research was highlighted in the report, “Child Care Facilities: Quality By Design.” While this report is now 20 years old, the findings and recommendations are still timely for today’s industry, demonstrating that investing in spacious, well-designed facilities that incorporate features that support both child development and staff well-being can significantly and measurably improve child care program quality, staff effectiveness, and child engagement.
Recent Investments in Child Care Facilities
In 2023, the Office of Early Childhood (OEC) chose LISC Connecticut to operate the Childhood Facilities Construction And Renovation Grant Program. Funding for this program was allocated from resources the State received through the American Rescue Plan Act (ARPA). These dollars carried greater flexibility than typical government capital resources and thus allowed for more rapid distribution and fewer requirements for providers.
An Advisory Committee, comprised of early childhood stakeholders representing philanthropy, non-profits, service organizations, family and center providers, OEC representatives, and community members, assisted in the development and vetting of the application processes, the selection criteria and application review, and supported outreach to providers across the state.
The strong technical support offered to providers by LISC, All Our Kin (AOK), CERCLE, the Staffed Family Child Care Network, and Women’s Business Development Council (WBDC) enabled many providers to complete and submit a successful application.
This commitment to broad funding distribution offered additional insights into the supports needed to ensure all providers have an opportunity to benefit from improvements to and investments in Connecticut’s early care system.
The Childhood Facilities Construction and Renovation Grant Program guidelines included three priorities:
- Increasing infant and toddler capacity
- Increasing pre-school capacity in childcare deserts
- Increasing the quality, health and safety of early care environments
RELEVANT DATA
DISTRIBUTION OF GRANTS
Grants were received from all regions of the state. In addition to the applications from high needs areas, many applications were received from wealthier communities. When sorting the applications, projects from high needs communities, which included increasing infant and toddler capacity, were prioritized.
There were some exceptions to the SVI scale that were made to:
- Reflect the geographic distribution of applications, and finalists reflected areas across the state.
- Include providers located in a lower SVI community but serving many children from a neighboring high SVI community.
- Remedy a severe health and safety issue, or situation stemming from a natural disaster.
Fewer than expected applications were received from the rural areas of the state. Of the rural applications, many projects focused on quality improvements to the facility or the outdoor play space. While this program emphasized increasing infant and toddler capacity, it became clear that providing upgrades to existing facilities is needed to ensure programs remain in business and are relevant in the early care landscape.
of families own
of centers own
ALL FACILITIES GRANT AWARDEES
GRANTEE DEMOGRAPHICS
Ethnicity of Facility Owner/Director
Race of Facility Owner/Director
Grant Awardees by Business Type
Of center providers, 80% operate as a non-profit or a Limited Liability Corporation, with the remaining 20% operating as a sole proprietor, a partnership, or a corporation. In contrast, nearly 60% of family home businesses operate as a LLC, with 40% operating as a sole proprietor.
FACILITY SPACE RENTED OR OWNED
84% of selected family providers own their home/place of business, compared to 55% of center- based facilities. Renting a facility adds challenges to securing grants to improve a property. Challenges include permissions needed from landlords, required long term leases, landlords benefiting from potential increases in property value, tax implications of improvements, and required liens on facilities for projects utilizing public bond funds.
CARE 4 KIDS
94% of licensed grantees were likely to accept Care 4 Kids, with remaining providers indicating they were interested in accepting Care 4 Kids families.
AWARDEE LOCATIONS
Grantees were located in 46 different municipalities across Connecticut. The locations of selected programs generally followed the geographic distribution of the complete pool of applications. Many more urban and urban ring applications were received than applications from rural areas.
Child Care Deserts: Applications & Grantees
A child care desert is defined as any census tract with more than 50 children under age 5 that contains either no child care providers or so few options that there are more than three times as many children as licensed child care slots. Applications to the ARPA Early Learning Facility Fund were assessed based on location and/or serving children from a Medium or High desertification community.
A majority of applications were located in high-need communities, as measured by the OEC Social Vulnerability and Desertification Scale. Several providers were located on the border of a high need’s community or in moderate SVI communities. Each of these providers maintained a strong Care 4 Kids population in their program.
GRANT PRIORITIES
Selected projects included renovations and construction to increase infant & toddler capacity, bringing pre-school slots to childcare deserts, to increase program quality through upgrades, and compliance with health & safety issues within a facility.
Expected Project Outcomes
CENTERS ▸
FAMILY CHILD CARE ▸
When all the projects are completed, the program is projected to increase capacity of early care spaces by 1,667, with the majority being for infants and toddlers.
The potential creation of 1,667 new child care slots is an important step toward meeting growing demand. However, given the challenges addressed earlier in this report related to workforce availability, there is no guarantee they will all be filled. This underscores the need for a multi-faceted and complementary approach to supporting the early care sector.
1,667 Potential New Slots Created
Sol Playschool during construction Derby, CT
“These grant funds and renovations have transformed my child care space into a safer, healthier, and more welcoming environment. It has also allowed me to expand my capacity by giving more families access to a high-quality, home-based early childhood program in my community. Thanks to this funding, I was able to take action on critical improvements that would have otherwise been difficult to afford.”
-Torrington Provider and Grant Recipient
THE NATIONAL CHILDREN’S FACILITIES NETWORK REPORT
The National Children’s Facilities Network (NCFN) recent report Improving Child Care Facilities with Federal Relief Funding highlights lessons learned from the implementation of ARPA and recommendations that address key trends and promising practices, in the effort to enhance child care facilities through technical assistance and financial resources. Recommendations include:
- Creating a dedicated and ongoing facilities funding mechanism
- Providing comprehensive technical assistance
- Considering all aspects of expertise needed to support successful facilities projects
- Specifying eligibility and incentivizing child care facilities development initiatives across agencies
WRCC, Windham, CT
Lessons Learned
Working closely with applicants and grantees over the past year and a half has afforded LISC unique insights in the opportunities and challenges within Connecticut’s existing ECE infrastructure. The program received applications from over 730 providers and funded 125 projects. This offered unprecedented insights into the needs of providers both as it relates to expansion opportunities and existing facility needs. Demand for grants significantly exceeded anticipated response and far outpaced available resources. Grant applications were received from all corners of the state and all types of providers.
SUPPORTING A MIXED DELIVERY SYSTEM
ACCESS AND OPPORTUNITY
Connecticut supports a mixed delivery system of early childhood education, which gives parents the ability to choose the type, size, and location of care, and options that best suit the needs of their children. In keeping with the mixed delivery model, grant funding was structured to be accessible to a wide range of licensed early care programs, as well as to providers in the process of establishing a new licensed program.
A $3 million set-aside established for family and group home providers allowed access to grants up to $75,000. Larger center-based providers were able to access up to $500,000, from a $9 million allocation, for their renovation and construction projects. A $1 million reserve fund was held back to ensure that cost overruns and unexpected project expenses could be covered.
However, it is not enough to give providers access to grant funds. The successful completion of a project hinged on building trusting relationships with the applicants and grantees and providing targeted technical assistance. It was clear throughout the grant cycle that family home providers and center-based providers each had a different, yet overlapping, set of technical assistance needs. Types of critical TA include how to write a project grant application, business development, bookkeeping, project management, construction guidance, and permitting processes.
AFFORDABILITY
A successful project is also dependent on the newly created slots being filled and paid for. Additional slots require additional staffing, which is only possible if there is sufficient revenue to cover the additional costs. This in turn relies heavily on a parent’s ability to pay the high cost of early care. In lower-income communities, parents are often reliant on subsidies, such as Care 4 Kids or Early Start slots, to be able to afford early care, but subsidies are not a guarantee.
If capacity is being expanded in an area that cannot support market rate care, spaces can go unfilled even if there is great need. In recent years, Infant and Toddler Expansion contracts, awarded through the Office of Early Childhood, were extremely helpful to many providers who had spaces to fill, and helpful to parents who could enroll their children because of the subsidized slots.
QUALITY IMPROVEMENTS AND HEALTH AND SAFETY CONSIDERATIONS
Initially it was intended that grant resources be dedicated solely to projects which would result in new slots and expanded capacity. While expansion was a hallmark of the program, it quickly became apparent that there was a dire need for resources to improve spaces in ways that helped to preserve slots in areas of high need. The needs of aging early care facilities should be considered in future facility funding efforts. Connecticut has some of the oldest building stock in the country; providers who have been a mainstay in communities often do not have the necessary funding to pay for basic maintenance, let alone needed renovations and upgrades. Yet, renovations and upgrades to existing early care facilities are necessary for programs to attract families and to remain as healthy and safe places where children can thrive.
PROJECT MANAGEMENT
PLANNING AND PREDEVELOPMENT FUNDING
Renovation and new construction projects take considerable time and effort; planning a project alone can take 6 months or longer. Submitting municipal permitting paperwork, making requested changes, and waiting for approvals can take an additional 6 months. Allowing for the time to plan, and funding directed to planning and predevelopment expenses, gives providers the ability to develop a thoughtful and practical project, and confidently move into the development stages. Providing targeted project planning technical assistance with initial small planning /predevelopment grants can support the costs associated with project readiness, including environmental studies, architectural costs, space assessments, and permitting. When a provider has a well thought out plan, and can successfully navigate the permitting and predevelopment process, it can ensure a smoother and more efficient renovation or construction process, resulting in less anxiety for providers.
MUNICIPAL PLANNING AND ZONING REQUIREMENTS
The complexity of local zoning and building codes requires time to navigate. Connecticut building and zoning regulations are standardized through state, however, each of the 169 municipalities can implement local regulations as well. It often takes many months for a project to be approved by various departments and receive permits. Only then can construction begin. Subsequently, many projects were stopped midway through with additional required revisions, sometimes onerous, to their construction plan. This added many new and unplanned expenses.
While it is understandable that plans often need revisions due to unexpected circumstances discovered during construction, the nature of the revision requests often could have been identified in an earlier stage of the reviews. Besides the additional cost of new requirements, the time spent in resubmitting plans caused setbacks to projects with a firm grant timeline.
Many grant participants seeking municipal permits would be asked to modify one or two items on the plans, architects would submit the new drawings, and then be given new criteria for something different, which could have been cited earlier. This type of scenario happened multiple times. Additionally, there were permitted construction projects that were stopped in the middle of construction process to add a new and expensive requirement. Examples include adding fire alarms connected to the municipal fire department, sprinkler systems, additional parking, fenced trash collection pads, moving septic systems, and assorted expensive local code compliance requirements, not noted in the original permitting process.
One provider was dismissed by the municipal building department because they did not believe she was a child care provider. After many attempts, including submitting her license, her OEC licensing specialist stepped in and informed the municipal the provider was a legitimate, OEC-licensed business. She was then finally able to apply for the necessary permits.
A center-based provider was renovating a small building to serve over 32 infants and toddlers in a high need area. Drawings were approved, permits in place, and work began. With the first inspection came the news that they needed to comply with updated municipal compliance codes, as they were making major changes to the building. This included a new duct system with different insulation, 4 new exterior doors, electrical meter work and building rewiring, and upgraded insulation. This totaled $85,000 in unforeseen expenses.
DAVIS BACON REQUIREMENTS
This particular ARPA funded grant was structured to identify grantees as “beneficiaries”. As a beneficiary, there is not a Davis Bacon Requirement (prevailing wages). While it is reasonable to consider prevailing wage requirements for larger projects, the steps needed to hire a contractor, including the RFQ or RFP process, are onerous for many small programs and family home providers, most with smaller sized projects. Our neighbors, Massachusetts and Rhode Island, do not have Davis Bacon requirements for state dollars, so therefore prevailing wage requirements are only triggered if braiding with federal funds.
TECHNICAL ASSISTANCE
BUSINESS AND FINANCIAL PLANNING SUPPORT
Providers often need business coaching to review and update financial statements, utilize business accounting systems, and conduct expansion planning from a financial perspective, which can increase project viability. Technical assistance offered through the grant program included project planning, developing income projections, and considering long-term financial viability. Providers also need assistance in understanding tax liability for accepting grant funds and how to most effectively file their taxes to maximize eligible credits and deductions as a small business owner.
New Heights Early Child Care Program, Windham Regional Community Council
CONSTRUCTION AND PROJECT PLANNING SUPPORT
Developing new facilities and modernizing existing facilities - large or small - takes time and money. Not all the money comes into play at the construction phase; there are many expenses that must be incurred during the planning phase, including architectural, legal, engineering, and environmental studies. Few, if any, small providers have the resources to support this lengthy planning process, and most do not have the expertise to navigate the myriad of steps and requirements. This creates fundamental challenges before projects even get off the ground. While the grantees did well navigating their construction and renovation projects, some of the challenges they faced required the expertise of those in the construction field.
The ARPA funding used for this program needed to be disbursed on a tight timetable, and did not allow for an extended planning period. Additionally, many providers had not previously managed commercial construction projects, and it became clear that a pre-planning phase would have been valuable for many of the finalists. Instituting a well-resourced, planning/predevelopment phase would provide added assurances that a project is feasible and has reached shovel-ready status before a construction grant is awarded. Selected applicants would receive financial capability support, and technical assistance centering around planning and implementing construction projects. The added supports and project oversight provides assurances that projects will be thoughtfully planned in ways that result in successful outcomes for children, families, and communities.
“Supporting family child care providers in accessing facilities grants goes far beyond what many realize. Yes, they need business training and support, but beyond that, they require guidance at every step - understanding applications and requirements, grant writing support, financial assistance, help navigating construction and permits, as well as countless other layers of the process. A key aspect of this work is having staff available who specialize in family child care, professionals who understand the unique challenges of this field and are equipped to guide providers through the complex journey of securing and utilizing a facilities grant. To truly invest in family child care through grants, we must also invest in the technical assistance and training necessary to make that investment successful. Without this comprehensive approach, we risk setting providers up for failure or marginalizing family child care altogether.”
-Torrington Provider and Grant Recipient
FUNDING CONSIDERATIONS
COST OF PROJECTS
Regardless of setting, child care space has many custom requirements that come at a price. Decades of project financing data have shown that regardless of geography, it is fair to estimate that child care center space will cost approximately 20% more than standard commercial construction estimates. Factors that contribute to these increased costs include: minimum square footage per child, fenced outdoor play areas, appropriate lighting, bathrooms suitable for young children, and HVAC systems appropriate for New England weather conditions.
Connecticut, like much of the Northeast, is currently experiencing higher than normal real estate costs and high construction costs which amplify the challenge. Many of the selected projects had unexpected circumstances causing cost overruns. Discovering lead or asbestos during construction, major flooding incidents, and mold, are some examples of how projects have been stopped midway through construction to mitigate health and safety issues. Having a reserve fund is critical for project success. Additionally, working in partnership with other agencies gives access to other funding dollars, targeted at specific areas of need. Developing additional partnerships with state agencies, intermediaries, municipalities, and philanthropic organizations will add to a menu of supportive funding options when such emergencies arise.
ACCESS TO FUNDING
Traditionally, funding opportunities are available for those who have the resources and knowledge to secure loans, can access other sources of capital, and who understand how to write a strong loan or grant application. Many early care providers do not have this skill set and are at a disadvantage when applying for funding opportunities.
ARPA funding was designed to be accessible and flexible, providing opportunity to many providers who otherwise might not have been able to participate in the facilities program. For future funding opportunities, to provide fair access to capital, flexible grant funding needs to be available to meet the needs of the early care community.
For example, bond funding comes with multiple restrictions; property liens may exclude many smaller center-based and family home programs, especially those renting space. Funds used for smaller renovation projects, up to $500,000, could potentially include lien waivers. Neighboring states, such as Rhode Island and Massachusetts, use long term leases for larger projects, requiring the space be used for childcare, rather than impose liens. In Massachusetts, grants up to $500,000 require 5-year leases.
GRANTS VS. LOANS
Loans and grants are both useful vehicles for implementing facility projects. However, loans can put an added burden on under-resourced owner/operators, and limit renovation or expansion opportunity. Loans create a debt obligation for the borrower and qualifications often depend on factors like creditworthiness and the ability to repay. Alternatively, grant funds are awarded without repayment obligations and are typically based on eligibility criteria like financial need or projected impact on the communities served. While loans provide a valuable financial tool, grant funds offer awardees greater operational flexibility and eliminate the burden of repayment.
BENEFICIARY STATUS FOR GRANTEES
As a beneficiary, grantees can receive funding based on an obligation to pay in coordination with a scope of work and payment plan. Without this designation, providers can only be reimbursed for the expenses. For providers with limited access to capital, reimbursement requirements, often for large contractor payments, are onerous.
MECHANISM TO ENSURE TIMELY RELEASE OF FUNDING
An ongoing grant program needs the staffing and operational ability to transition through grant cycles, uninterrupted. Releasing authorized bond funding, on a pre-determined timetable, allows for a seamless, continual grant program. This will ensure that as the facility fund program is established with the necessary systems, protocols, and staffing, it will have the stability to continue without disruptions to the managing organization, applicants, and grantees.
New Heights Early Child Care Program, Windham Regional Community Council
Building for the Future
When providers cannot grow their businesses or maintain facilities through capital improvements, there is an inherent cost to the system as a whole: to the families unable to find care so they can work; to the children in programs that may have exceptional staffing, but less than optimal learning environments; to the communities that are in need of available child care; and to the employers trying to hire applicants who can afford the child care necessary to work.
To bridge the current supply gap and prepare for future early care participation increases, the physical infrastructure supporting the system of care must be considered. Connecticut needs to begin building for the future by investing in the renovation and expansion of existing facilities, as well as the construction of new early childhood facilities.
EXPANSION COST ANALYSIS: A GENERATIONAL INVESTMENT
High-quality early learning environments require smart, strategic investments. LISC Connecticut will provide an analysis of construction and renovation project costs from the facilities grant program upon its completion in July 2025 and will make available in an online version of this report. Based on recent new construction and major renovation projects in Massachusetts and Rhode Island:
- Average Per Square Foot Construction Costs (excluding site acquisition): $555.50 per square foot
- Average Number of Square Feet Created Per Child: 120 built square feet per child. This brings the average cost of creating a new child care slot to $66,660; however, this is not a one-time cost for one group of children. These are long-term capital assets, serving thousands of children over their lifespans. And public dollars aren’t the only source of capital. Across these recent projects, state grant funds have covered only about 26% of total development costs.
The rest comes from:
- Private fundraising and philanthropy
- Loans and debt financing
- Federal tax credit programs
- Other government sources
- Organizational savings
PUBLIC DOLLARS UNLOCK AND LEVERAGE OTHER INVESTMENTS
RECENT EXAMPLES
- Lynn, MA: Gut renovation of an existing building, with installation of entirely new building systems, elevators, reconfiguring layout. 15 classrooms for 270 preschoolers in three story building, plus developing basement level as commercial kitchens and offices. ∘ Direct Construction Costs: $15,671,127 ∘ State grant:$1,000,000 ∘ Other sources: Balance raised and borrowed by the non-profit ∘ Cost per square foot: $490 ∘ Cost per slot: $58,041
- New Bedford, MA: New construction of two-story building and playground, four preschool classrooms upstairs, two toddler and two infant classrooms downstairs, with full commercial kitchen and gross motor. Total enrollment will be 135 projected slots. ∘ Direct Construction Costs:$8,557,644 ∘ State grant:$1,000,000 ∘ Other sources: Balance raised and borrowed by the non-profit ∘ Cost per square foot: $503 ∘ Cost per slot: $63,389
- Newport, RI: An 8,000 SF classroom-only addition to existing structure for 94 additional children. ∘ Total Development Costs: $5,142,787 ∘ State grant:$3,780,000 ∘ Other sources: Private donations ∘ Cost per square foot: $643 ∘ Cost per slot: $54,711
- Providence, RI: A 29,000 SF addition on existing school campus for 94 additional early childhood slots and auxiliary family and educational services. ∘ Total Development Costs: $17,000,000 ∘ State grant: $2,062,869 ∘ Other sources: New Markets Tax Credits, EPA Grant, donations/building reserves ∘ Cost per square foot: $586 ∘ Cost per slot: $180,851 (half of this building is used for auxiliary services so true per child costs closer to $90,000)
NOT ALL INVESTMENTS ARE LARGE
While major renovations and new builds are vital, smaller-scale projects can unlock additional capacity quickly and cost-effectively.
- Westerly, RI: A renovation to reconfigure existing interior space added 4 infant slots. ∘ State grant:$75,000 ∘ Cost per square foot: $100 ∘ Cost per slot: $9,375
- Cumberland, RI: Used underutilized space to add 2 classrooms (36 children) with a dividing partition, plumbing, and furniture. ∘ State grant:$225,000 ∘ Cost per square foot: ~$180 ∘ Estimated cost per slot: $6,250
These small upgrades stretch dollars and meet demand where space already exists.
A TIERED INVESTMENT STRATEGY
To build a strong, responsive child care infrastructure, a flexible, tiered approach to public investment is essential, including:
- Large-scale construction/renovation for significant expansion
- Mid-sized upgrades like new classrooms or improved layouts
- Smaller-scale investments for bathrooms, kitchens, furniture, and compliance upgrades
Different projects serve different needs—but all contribute to system-wide stability and growth.
Calculator to estimate projected costs.
Click the this link to download the Microsoft Excel document (in the upper right corner) to your desktop.
The National Child Care Facility Cost Estimator encompasses a supply building cost formula and tool that calculates estimated total projected costs for construction or renovation of center-based child care facilities (including hard, soft, and contingency). The tool accounts for national cost variations for a child care center’s geographic location, type, and size. This project is part of the National Children’s Facilities Network’s ongoing commitment to support financial and technical assistance intermediaries dedicated to helping early care and education providers develop high-quality physical learning environments and sustainable business models.
