Preschool Expansion Done Right

At Issue

By Althea D. Ford, NJBIA Vice President of Government Affairs On Mar 28, 2025

Investment in early childhood education is an economic imperative, allowing working parents and caregivers to engage the workforce knowing that their children are in safe educational environments.  

In his final budget address, Gov. Phil Murphy signaled his support for preschool expansion initiatives and, to date, almost $1 billion has been invested in childcare under his administration. Yet the current program compromises the entire care and education system, leaving working parents to pay more for services, or worse, unable to find available slots. How? 

New Jersey’s existing infrastructure of childcare providers, licensed by the Department of Children and Families (NJDCF), come in a variety of sizes, from home-based providers to franchised operators with multiple locations. 

Together, these job creators (also read: miracle workers) deliver critical care services for families not just during traditional work hours, but during extended hours (prior to 8 a.m. and after 3 p.m.), overnight, weekends, during spring/winter breaks, and over the summer. Many providers also offer before and after school services and summer care options for older youth.  

The licensed childcare provider’s business model relies on the enrollment of 3- and 4-year-olds, which have a smaller teacher-student ratio, to supplement the higher cost of caring for infants and toddlers who require a larger teacher-student ratio. High quality teaching and support staff are vital to the industry and come at a cost, as minimum wage, for all its benefits, has created an adverse incentive for the childcare workforce, who may leave the industry for other minimum wage positions.  

“Preschool expansion,” as it is currently being implemented, is a duplicative childcare infrastructure for 3- and 4-year-olds within the public school system. As older children are drawn out of the licensed childcare setting, providers are left to make tough decisions to either increase tuition for the younger children left behind or reduce the number of infant and toddler seats to contain costs. 

To ensure financial investment in preschool expansion actually increases seats for infants, toddlers, and pre-K children and promotes affordable and available care for all youth, the state must invest in ways that keep the doors of licensed providers open.  

By aligning the current program’s facility space requirements with current NJDCF licensing requirements, the state can efficiently invest in the existing network of licensed providers who have served families long before the state entered the preschool business. These providers are vital to ensuring working families have the variety of care options they need. Don’t put them out of business. 

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