Understanding
the True Cost of
Care in Detroit
Investing in Early Childhood Today Builds a Stronger
Detroit for Tomorrow.
Every child deserves the opportunity to grow, learn, and thrive. Every family should have access to dependable early childhood services, and every provider needs the resources to deliver
quality care.
Building that System Begins with
Understanding what it Really Costs
The Detroit Comprehensive Fiscal Analysis provides evidence of the resources needed to support a sustainable prenatal-to-five system. By examining current funding, provider operating costs, workforce compensation, and broader system needs, the analysis helps identify the gap between existing investments and the cost of delivering services.
What the Analysis Tells Us
The cost of care exceeds available funding
At basic licensing standards and Bureau of Labor Statistics (BLS) wages, the modeled annual cost of center-based infant care in Detroit is approximately $21,160 per child, compared with a subsidy of $16,731.
That represents a $4,429 funding gap per infant. When the model includes living-wage compensation, the annual cost increases to approximately $35,750 per infant.
The Cost of Center-Based Infant Care, Annually Per Child based on the Comprehensive Fiscal Analysis for Prenatal-to-Five Report.
$21,160
Modeled cost at basic licensing standards and BLS wages
$16,731
Comparable
annual subsidy
$4,429
Annual gap per
subsidized infant
These findings demonstrate why sustainable funding must account for the actual costs of operating programs and supporting the early childhood workforce.
Why This Matters
For Children and Families
A sustainable early childhood system can help families access dependable services that
support children's development and parents' ability to work.
For Providers and Educators
Adequate funding helps providers meet operating expenses, support workforce
compensation, and maintain the capacity to serve families.
For Employers
Reliable child care supports workforce participation and helps
businesses attract and retain employees.
For Policymakers and Funders
The analysis provides a foundation for evaluating funding approaches, reimbursement levels,
and investments in early childhood infrastructure.
From Understanding to Action
Detroit's Comprehensive Fiscal Analysis [link] is not simply a report about costs. It is a resource for informed discussions about the investments needed to build and sustain an early childhood system that works for children, families, providers, and the broader
Detroit community.
Explore the Findings.
Understand the Challenges.
Helps Shape the Conversation.
