10/16/2026
In a new Rutgers Child Care Research Collaborative report, Milagros Nores, Christina Stephens, Allison Friedman-Krauss, Andrea Kent and Karin Garver analyze revenue sources and operating costs for New Jersey child care centers. The findings offer insights into licensed center-based providers in NJ that may be useful for identifying supports and policies to strengthen and improve access to the state’s ECE system:
• Most centers received tuition payments from families (80%), about 2 out of 3 responding centers reported receiving funding from the state’s Child Care Assistance Program (CCAP; 61%), and 18% received state pre-k funding.
• The NJ provider landscape appears largely divided (with some overlap) between those receiving mostly CCAP and a smaller share receiving state pre-K funding. That is, CCAP and state pre-K mostly support different segments of the ECE market, functioning as complementary policy levers.
• Staff salaries represented the largest share of centers’ total operating expenditures, accounting for two-thirds of total expenses (66%).
“It’s critical that we understand the financial structure of child care,” said the report’s lead author Milagros Nores. “We should be reviewing the fiscal state of the child care system regularly to understand how its doing and inform policy decisions accordingly.”
The Rutgers Child Care Research Collaborative is a partnership between NIEER, the Center for Women and Work, and the Heldrich Center for Workforce Development, made possible through funding and support from the New Jersey Department of Children and Families.
Read the new report:
NIEER conducts academic research to inform policy supporting high-quality, early education for all young children.