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GBMT-1 · Research record · No. 1

§3 Cost & Financing — Research Pass

childcare/research/ws03-cost.md
This is a working research document from the childcare filing, published as written — including the parts later corrected. It is the underlying record for Whitepaper No. 1, not a summary of it.

Date: 2026-08-03. Normalization-table seed; full model collection pending.

Cost estimates collected (to normalize on the §1 basis)

Estimate Amount Scope Source
BBB childcare + pre-K (CBO, House-passed) $381.5B / 2022–31 (6-yr programs) 0–5, sliding scale to 250% SMI, assumes major state non-participation CBO 57630
Warren-style universal 0–5 plans ≈$600B+ / 10 yr 0–5, free <200% FPL Cornell tip sheet
BPC cost-of-the-gap (inaction benchmark) $216–329B / 10 yr in lost output 4.2M children lacking access BPC
Current family price (demand-side scale) avg $13,128/child/yr — 10% of dual-, 35% of single-income earnings paid arrangements BPC 2025

Observations for the normalization: (1) None of the headline estimates include school-age/summer — every figure above is 0–5, so the §1.4 full-scope cost is strictly higher. (2) The CBO/BBB number is not a universal-coverage cost — it embeds non-participation; a fallback design costs more and covers more. (3) Labor share verified at 50–80% (Anchor 3) means the §4 wage findings dominate any steady-state estimate, supporting H3.1's direction.

Revenue instruments (status)

Georgia lottery earmark added and verified (~30 yrs of operation). Vermont payroll tax, NM permanent fund, Multnomah surtax pending primary-source pass. Recession stress test pending.

Hypothesis calls: H3.1 (compensation dominates) — directionally supported via labor share + wage-floor findings; formal test needs the FTE model. H3.3 (0–12 ≫ 2× pre-K-only) — supported directionally: school-age is 64% of the population and absent from every collected estimate.

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