Childcare Landscape Study - Flipbook - Page 101
Davidson County Child Care Landscape Study Results
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Step 2: Identify Costs
We then identified each of the costs associated with providing high-quality center-based
child care, and assigned a cost value based on the example center’s size and children served.
Costs associated with providing high-quality child care include staffing expenses; costs
associated with owning or renting and maintaining a facility; business operation expenses;
and food and snacks for the children. Table 6 outlines the major expenditure categories.
Table 6: Cost Estimation Model Cost Input Categories
Share of Monthly
Expenditures
Category
Description
Staffing
Expenses
Costs of providing all staff a living wage (classroom educators,
leadership, and support staff), including basing classroom educator
wages on their level of education and experience using a wage
scale. Staffing levels ensure adequate educator-to-child ratios
83%
Food and
Kitchen Supplies
Costs to provide meals and snacks, including the cost of food, food
preparation, kitchen supplies
8%
Facility and
Business
Expenses
Costs associated with maintaining the physical child care site,
including rent or mortgage, property taxes, utilities, maintenance,
and operational costs including internet, phone service, office
supplies, insurance, and legal expenses
8%
Educational and
Other Supplies
Costs related to educational supplies (e.g. toys, activities,
curriculum) and child assessment tools
1%
Source: 2025 Davidson County Child Care Cost Estimation Model. The Prenatal-to-3 Policy Impact Center, 2025. Note: A
detailed list of all Cost Estimation Model Inputs can be found in the online Methods Appendix. The 5% operating reserve is
not included in this distribution of monthly expenditures.
Staffing expenses account for most of a child care center’s monthly costs. To identify
staffing expenses for the cost estimation model, we first determined the wages staff will
earn, then estimated the total staffing cost for the example center by adding all educator,
leadership, and support staff wages.
The Child Care Workgroup prioritized ensuring adequate wages and benefits for full-time
educators, administrative staff, and support staff. Supporting staff fairly is critical to
reducing workforce instability, retaining skilled educators, and ensuring high-quality care.
Guided by this input, three key considerations informed the cost estimation model's wage
and benefit assumptions:
o The model incorporates a wage scale for educators that increases pay based on
educational attainment and years of experience, to reflect the value of professional
growth and retention.
o The wage scale ensures a living wage for a single adult with no children, as defined by
the ALICE Household Survival Budget for Davidson County.21
o The model provides access to workplace benefits such as health insurance and
retirement benefits.
Prenatal-to-3 Policy Impact Center 2026
www.pn3policy.org
