Childcare Landscape Study - Flipbook - Page 91
Davidson County Child Care Landscape Study Results
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child care services cost-prohibitive to most families.10 Further, market prices (i.e., tuition
prices) from the annual market rate survey are used to set the reimbursement rates for child
care certificates (i.e., subsidies), reinforcing the gap between the resources providers have
and the true cost of high-quality child care.
Cost Estimation Models Calculate the True Cost of High-Quality Child Care
A high-quality child care cost estimation model (cost estimation model) is an alternative
cost estimation framework that overcomes the limitations of market rate surveys. Rather
than relying on the constrained amount that families can pay, this model estimates costs
from the providers’ perspective.
Cost estimation models account for all expenses involved in delivering high-quality child
care, including educator wages that reflect a living wage and fair benefits, facility
expenses, and learning materials, to generate a comprehensive estimate of the total cost to
sustain a high-quality child care program with a stable workforce.11
To estimate the cost of providing high-quality child care in the region, the Policy Impact
Center developed a child care cost estimation model for greater Davidson County. The
Policy Impact Center convened with local child care community partners and experts
(Child Care Workgroup) to tailor the cost estimation model to the local realities of greater
Davidson County.
The cost estimation model captures the full range of day-to-day resources needed to operate
safe, responsive, and enriching child care programs in the region. The cost estimation
model relies on local, state, and national cost data, including data from the Davidson
County Child Care Provider Experience Survey (Child Care Provider Survey), an original
survey developed and fielded by the Policy Impact Center in Summer 2025 (N=275,
including 246 centers and 29 homes; 47% response rate).c
The cost estimation model estimates costs, including educator wages, specific to the cost of
living in the greater Davidson County area, which has a relatively high cost of living
compared to other areas in the state. Therefore, cost estimation models designed for most
other areas in Tennessee would likely generate lower cost estimates for the true cost of
high-quality child care.
c The Policy Impact Center cost estimation model is built on the framework developed by other models, such as Prenatal to
Five Fiscal Strategies, and informed by the Administration for Children & Families’ Office of Child Care, as detailed in
our online Methods Appendix.
Prenatal-to-3 Policy Impact Center 2026
www.pn3policy.org
