Two cost of care efforts, one important conversation

Child reading book

Behind every child care program are costs families may never see: wages to retain qualified staff, licensing requirements, facility upkeep, supplies, and the administrative work that keeps care available. When payments and reimbursement rates fall short of those costs, providers feel the strain, and so do the families who depend on them.

Understanding that gap is why Child Action’s Sacramento County Cost Modeling Project matters. By bringing local cost data and provider experiences together, we can build a clearer picture of what it takes to sustain care and strengthen advocacy for funding and reimbursement rates that reflect those costs.

Local Providers Are Helping Build the Picture

Our provider survey is now complete, with 99 providers, including family child care providers, Family, Friend and Neighbor caregivers, and child care centers, sharing information about their costs and experiences.

This November, provider focus groups will build on those responses through conversations about financial decisions, staffing needs, and the challenges of sustaining care. The survey helps identify patterns; focus groups help explain the everyday realities behind the numbers. Together, these insights will help us shape our local efforts around the needs of Sacramento County’s child care community.

A Statewide Effort Is Moving Forward Too

At the same time, the California Department of Social Services (CDSS) is updating its statewide Alternative Methodology Cost Study. During its November 2 webinar, CDSS shared that NORC is finalizing the survey language this month, with provider outreach tentatively anticipated for January 2027. Providers who participate will receive a stipend.

Learn more about the statewide study.

Turning Provider Experiences Into Useful Data

Our county project focuses on local costs and provider experiences, while the statewide study uses its own model and assumptions to estimate costs across California. Both can help inform conversations about child care funding and policy.

The statewide study itself does not set reimbursement rates. Child Action will continue our county work and consider how the state’s methods and findings may inform our local analysis as they become available.

Thank you to every provider who has shared their time and expertise. Your experiences help make the costs of care visible and give us stronger data to advocate for the resources providers and families need. We’ll keep our community updated as both efforts move forward.

Learn more about Child Action’s Cost Modeling Project.