Politics & Government
New Research Shows High Costs, Limited Funding Led To Decline In Early Education Programs In NH
Research shows operating a program with separate classrooms for infants, toddlers, 3-year-olds, and 4-year-olds costs about $1.1M to $1.8M.
Slim profit margins, high operating costs, low staff compensation, and limited government funding led to a 11% net loss in licensed child care programs in New Hampshire between 2017 and 2025, according to new research from the UNH Carsey School of Public Policy.
A new primer, released Thursday, reports that the disparity between tuition prices parents can afford and the high costs of operating a child care program are challenges that cause programs to be “economically strained and financially complex.”
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Research shows that operating a program with separate classrooms for infants, toddlers, 3-year-olds, and 4-year-olds costs between $1.1 million and $1.8 million a year, depending on whether educators are being paid a living wage and if they have benefits. Providers try to offer benefits without increasing tuition prices, because if staff stay, program capacity can increase and revenue can improve.
Tuition is the primary revenue source for early education programs, with staff wages and benefits the main expenses. To meet the true cost of care, research shows tuition for center-based infant care would have to rise between $5,000 and $17,000 a year, something most Granite State parents cannot afford. In 2024, tuition averaged $16,000 a year for infants.
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While funding sources like the Child Care Development Fund and programs like the New Hampshire Child Care Scholarship help diversify revenue, they are not sufficient on their own. The Carsey School found that more attention toward alternative funding streams, such as partnering with the private sector and engaging with non-early education stakeholders, can lead to “a sustainable statewide ECE system.”
The New Hampshire Bulletin, the Granite State's newest independent, nonprofit news organization, delivers accountability reporting on New Hampshire politics and policies. The New Hampshire Bulletin is part of States Newsroom, a national 501(c)(3) nonprofit supported by grants and a coalition of donors and readers.
