Childcare aid crisis prompts look at riskier funding option
Controversial proposal would permit new investments by state businesses
Childcare assistance in Colorado could get a funding boost under a contentious proposal to allow state-run businesses to put money in riskier investments with higher potential returns.
Lawmakers are trying to find money for Colorado’s struggling Child Care Assistance Program, or CCAP, which has had to freeze enrollment in many counties, leaving thousands of primarily lower-income families without childcare.
The proposal would allow businesses owned and operated by the state — funded mostly by fees rather than taxes — to invest some of their money into portfolios that provide higher returns but come with more risk. The money earned from those investments would be directed toward CCAP. Currently, funds are kept in safer, lower-yield investments overseen by the state Treasury.
The proposal wouldn’t be an immediate fix. Money wouldn’t flow for at least two years while the investment fund builds up a reserve. And some critics have raised concerns that the plan might violate state laws that prohibit investing public money in corporate stocks, which means it could spark lawsuits if it’s passed.
Need to Know
🔫 The Trump administration sued the city of Denver over its ban on assault weapons. The lawsuit filed on Tuesday claims the city’s prohibition on large-capacity firearms violates the Second Amendment. Denver officials said they stand by the law and believe it will hold up in court. (Denverite, read the lawsuit) On Monday, Gov. Jared Polis signed a state law banning 3D printing of guns and gun parts. (Denver Post, read the law)
🧑🌾 Farmworkers in Colorado will have to work eight more hours a week before they get overtime pay under a law signed Monday by Gov. Jared Polis. A Colorado law passed in 2021 set the state’s overtime threshold at 48 hours for most agricultural workers and 56 hours for “highly seasonal” employees who may take time off between seasons. Now, all farmworkers must work at least 56 per week to earn overtime. (Denver Post, March 25 newsletter, read the law)
🏘️ State lawmakers ditched two proposals to increase housing density after facing opposition from local officials and neighborhood groups in various cities. The abandoned bills would have allowed residential property owners to split their lots in two and build homes on lots as small as 2,000 square feet. Proponents argued the bills would help lower housing costs, but opponents said they would take away localities’ ability to decide their own housing policies. (Colorado Sun, April 21 newsletter, read the lot-splitting bill, read the lot size bill)
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Something Good
🚭 I really enjoyed this story from CPR about students and educators leading efforts to reduce vaping among young people in Colorado. The campaigns are funded by millions of dollars from the vape-maker Juul, which paid to settle a lawsuit by Colorado and other states over allegations the company illegally marketed to kids. As someone who started using tobacco as a teen and went through the difficult process of quitting as an adult, I can attest to the importance of these kinds of prevention campaigns.