3. How were the proposed reimbursement rates developed?

New Mexico uses a cost estimation model to inform the child care assistance rates it pays to providers. The most recent cost estimation model was published in October 2024. It was developed through a survey process, input sessions, and interviews with providers across the state, as well as a review and integration of existing data sources. The model considers different program characteristics, including program size, type, age of child, and quality level to estimate the cost of providing care across different child care settings. Reimbursement rates are set based on this cost estimation model, with the intention that the rates can support stable child care businesses, competitive compensation for educators, and quality learning environments for children.

ECECD updates its cost model every three years to ensure the model reflects the current cost of care, in compliance with federal Child Care and Development Fund requirements. You can review the most recent cost-estimation model here: October 2024 Cost-Estimation Model