Dear CSU Pueblo and Pueblo Community,

As we shared previously on the CSU Pueblo Early Childhood webpage, the contract with the current childcare provider (ECEMS) is reaching its conclusion on June 30, 2026. This partnership has been in place for many years, with contracts renewed over time without a formal procurement process. I would like to share some additional context regarding the financial commitment the university has made to the childcare facility, which operates as an auxiliary unit of the university. Over the past 10 years, CSU Pueblo has invested hundreds of thousands of dollars in both operating funds and student fees into the childcare operation. During that time, operating expenses have exceeded revenue by more than $830,000, resulting in an average annual loss of over $80,000.

In addition to the significant institutional subsidy, CSU Pueblo Student fees have helped support the facility. In fiscal year 2025, more than $36,000 in student fees were collected to support childcare services, while only six students utilized the center (out of 65 childcare slots). Many students have shared that they have been unable to gain admission to the childcare center due to limited availability. In April 2025, the Student Fee Governing Board (comprised of students) voted to discontinue the childcare fee due to lack of student use. The Student Fee Governing Board determined it was not equitable to charge all students a fee for a service accessed by so few. For CSU Pueblo to continue supporting the childcare facility at the current level and in the absence of the student fee, we would be absorbing over $100,000 per year to sustain the service.

The subsidy provided by CSU Pueblo has enabled the current childcare provider to offer below-market rates to our community members, students and staff. As the university is currently working to close a structural budget deficit exceeding $2 million, we are evaluating every expense with a lens toward what is essential to supporting our core mission. While childcare services are important to the community and support some students and staff, this service is not within our core mission. Each auxiliary unit of the university is expected to be self-sustaining, and the university has undertaken steps to bring all auxiliary services into alignment with our budget realities.

In order to offer fair competition and ensure the best service and price, the university is required to engage in a procurement process for services upon contract renewal. CSU Pueblo initiated a public solicitation process last September to evaluate childcare service providers and establish a new contract through a competitive process. The university has recently undertaken similar solicitations for many of its auxiliary services. The university has entered negotiation with a new childcare provider that was selected through the procurement process. Because the process is not complete, there is limited information we can share regarding that process. The university is evaluating all aspects of the proposal to negotiate the best path forward. Among other things, the future of the childcare service will depend on whether the contract will enable the service to be self-sustaining (without university subsidy or financial loss).

The university leadership has been making difficult decisions regarding the best ways to close the structural deficit. All operations of the university have been under scrutiny, and cuts have been made both in staffing and operations – even those that are closely aligned to our mission. We had initially hoped to resolve the financial issues and award a new childcare contract with little to no interruption in service to families. However, the provider with whom we are negotiating has indicated that facility modifications and licensure approvals would likely be necessary, which would delay the transition by several months. Therefore, we have determined that childcare services must pause beginning July 1, 2026.

Once the facility is vacated, the university will assess the building to determine what modifications might be necessary to continue operating a childcare center in an efficient and sustainable manner. If we are able to move forward with reopening the childcare center, it would not occur before January 1, 2027.

Please know that this was not an easy decision, nor was it made lightly. Several factors contributed to this outcome, but the financial realities we are facing have led us to the conclusion that we can no longer support the center in its current model. The changes we are making reflect a combination of financial realities, transitional considerations, and our responsibility to ensure long-term sustainability in how we serve our campus community.

We understand how deeply this news will be felt by our ECEMS partners, as well as the children and families who rely on the center. Please know that this decision is not a reflection of the care, dedication, and professionalism of the ECEMS team. For more than 30 years, they have provided a nurturing and meaningful environment for children, and we are sincerely grateful for the impact they have made in the lives of so many families.

As we continue to evaluate future options for childcare services on campus, we encourage families to begin exploring alternative childcare arrangements. We also ask our campus community to keep ECEMS staff and families in mind during this time, and to offer support where possible.

Additional information and updates will be made available on the ECEMS webpage as they become available.

We also recognize the longstanding role the current provider has played in serving CSU Pueblo families and the broader Pueblo community for many years. The relationships children and families have built with teachers and center leadership matter, and we understand why this transition is so important to you.

The current childcare partnership has been in place for many years, with contracts renewed over time. As part of responsible financial stewardship and in alignment with procurement requirements, CSU Pueblo initiated a public solicitation process last September to evaluate childcare service providers and establish a new contract through a competitive process.

Currently, there is an intent to award the contract to Learning Care Group, pending final completion of the procurement process.

While we are trying our best to ensure transparency to alleviate any concerns you may have, there are certain legalities that prevent us from sharing every detail at this time since the contract is currently being finalized.