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Using cost estimation to inform child care policy - Shared screen with speaker view
Kevin Browne
I do not hear any audio and my speakers are working
Cynthia Rice
Me too.
Cyndi Soter O'Neil
Audio working for me
Bryan Boroughs
I am able to hear
Casey Amayun
Audio is on the lower corner of your screen,
Kevin Browne
Not here. And I ran both the audio tests
Cynthia Rice
the same.
Simon Workman, P5 Fiscal Strategies
In case folks haven’t seen our report, here is the link again: https://www.prenatal5fiscal.org/_files/ugd/8fd549_62d3a75d3ede423abebc6b1841e8c328.pdf
Simon Workman, P5 Fiscal Strategies
Lots of resources on our website: https://www.prenatal5fiscal.org
Jeanna Capito
Feel free to put any questions in the chat…
Kimberly Lucas
I know that many providers work based on in-kind donations of both materials and services (e.g., an FCC trades accounting services for discounted care). How might these types of 'invisible costs' factor in?
Melinda Geiser
Do you have anything written or positions on appropriate subsidy rates for Family Friend and Neighbor care (lic. exempt)?
Louise Stoney
When I run cost models the cost of care for preschoolers (3+ 4 yr olds) is significantly lower if you have NO infant-toddler classrooms — largely because you can spread admin costs across more children. I wonder if we could use cost modeling to justify a higher preschool rate (in addition to a higher infant/toddler rate) for programs that serve children 0-5 than for programs that only offer Prek. (Basically I’m fishing for strategies to prevent programs from closing infant-toddler classrooms when rates go up and public prek expands.)
Jeanna Capito
Through data gathering with providers directly, through surveys, interviews, focus groups, whichever way best meets the needs of providers, we gather cost information on those expenses. Then these are built in to the model. Oftentimes, states and communities will also make a call on the idea that there are certain accepted expenses needed to deliver a program and these need to be ‘baked in’ to the model. To not allow for the idea that the only way to operate is to rely on donations and in kind; not that those things are not wonderful support for the program but it should not be part of keeping the lights on.
The Business & Leadership Institute for Early Learning
Use infants as your pipeline as “the lifetime value of the customer” so the revenue is not based on one year but what does that revenue look like over multiple years and multiple programs.
Jeanna Capito
Yes, Louise! We have worked with places debating those exact type of policy approaches. We want to see birth to five programs thrive, as we know these meet the needs of families with more than one child under 5. Great policy idea.
Louise Stoney
State-level folks I work with are often concerned about accountability. We can run cost models with good wages, but if the child care is paid as a voucher system how can states make sure that providers actually spend the $ to raise teacher wages? I know this isn’t actually a cost modeling question….but it is part of the context of this work and I’m curious how you deal with it.
Melinda Geiser
"Basically I’m fishing for strategies to prevent programs from closing infant-toddler classrooms when rates go up and public prek expands" this is EXTREMELY important in a lot of areas. Here in CA we are standing on the precipice of all our 4 year olds moving into the K-12 system (pk/tk), which could decimate our supply of already-low IT care,
Tiffany Taylor
For infant toddler classrooms, I think the biggest cost is staffing when you have to keep within ratio. For 3-k/pre-k it would be more so in materials and high quality activities and curriculum. Staff would factor in as well because you want to make sure your staff have proper professional development training, whether that looks like a CDA, Degree of higher education or quality training.
Vivian Eto
Re: raising subsidy rates based on true-cost data: are there very many states that have policies allowing for subsidy payment at amounts above providers’ private-pay rates?
Kate Hoffman
If the state is unwilling/unable (at least at first) to take on ownership of the cost estimation model, what are the considerations with having it hosted by a non-profit etc.?
Kimberly Lucas
When it comes to thinking about how to save infant/toddler classrooms: if you design for inclusion of family child care, which is often a mixed age room, then you can figure out how to do this in age separate classrooms.
Kimberly Lucas
HUGE +1 to selling the value of the full range of services--our preK folx need good I/T folx and vice versa. We know this already from how ECE relates to K-12. When both are good, children thrive. So models need to be 0-5 holistic and also encompass transition to K-12.
Simon Workman, P5 Fiscal Strategies
@Vivian - that is a concern in many states, that the subsidy rate could increase to a point where some providers are not able to access it because their tuition rate is lower. This is why we encourage states to embark on a comprehensive fiscal analysis to identify these type of barriers and work to address them - often it requires both a change to policies allowing providers to access the full subsidy as well as an increase in eligibility so more families are covered.
Louise Stoney
I *thought* that the new CCDF rules were clear that states CAN pay subsidy tuition that is higher than a providers published rate.
Jeanna Capito
Kimberly, I really appreciate the idea of FCC settings as the models/leaders of how to do mixed age well and sustain that. Another manner in which to be co-creating with providers and the child care industry.
Jeanna Capito
Yes, definitely, Louise, but individual states have established regulations that they cannot pay any subsidy rate higher than the tuition rates. In these instances, states need to explore changing this in state reg, as it is not a requirement of the federal funding source.
Jan Gilpin
With regard to turning to blending or braiding funds as a way to boost revenue, some of the challenges include duplication of required paperwork, extra administrative costs and concerns about "double dipping." But until there is a new infusion of available funding, multiple funding streams may be the only way to bring a program closer to the cost of care. So in the meantime, perhaps there can be intentional strategies to have the funds work more seamlessly, such as allowing flexibilities for eligibility limits or requirements that recognize a variety of quality markers. Can the cost models factor in the impact of using a variety of different funds? Is there a way to factor in potential flexibilities?
The Business & Leadership Institute for Early Learning
Will the power point be made available
September Jarrett
I've seen these LA numbers multiple times, but they still floor me!
Carol Hartman
The Provider Cost of Quality Calculator is a free tool that users model the cost of child care in centers or family child care homes. The link is: https://childcareta.acf.hhs.gov/pcqc
The Business & Leadership Institute for Early Learning
Do these figures include performance funding; accreditation et as part of their revenues?
Simon Workman, P5 Fiscal Strategies
To see more background in the LA numbers, check out the full report here: https://www.first5la.org/uploads/files/a-comprehensive-fiscal-analysis-of-the-los-angeles-county-early-care-and-education-system_870.pdf
Hailey Gibbs
This website has great visuals/toggles to manipulate the model and see relative cost of care given changes to these different considerations (I think from Simon's earlier work): https://costofchildcare.org/index.html
Casey Amayun
The slides and recording of today's webinar will be on the P5 Fiscal Strategies website later this week. www.prenatal5fiscal.org
Louise Stoney
I love the idea that Jenna and Simon are suggesting — that we view a cost model as a dynamic TOOL to explore a range of changes and options. It can also be a tool for providers. For example, at OppEx we think it is important for providers to understand what % of their budget is actually admin costs …and to explore in a dynamic way how they can restructure staff to raise teacher wages. Example: Small sites that maximize automation and work strategically often find they do not need an assistant director and can either shrink admin staff and/or shift roles/responsibilities/resources to not only boost teacher wages but pay teachers for more time off-the-floor, or engage them in sharing some admin tasks as emerging leaders.
Jan Gilpin
Thanks for addressing so many important factors that go into this work. It's such a comprehensive and thoughtful approach.
Mary Beth Testa
Thank you Jeanna and Simon!
Alisa Smith
Thank you!
Hailey Gibbs
Thank you!
Carlos Duque
Thank you, Jeanna and Simon! 🙂
Annie Schaeffing
Thanks so much!
Carol Hartman
Thank you!
Tiffany Ferrette
thank you!!
Victoria Andriessen
Thank you!
Kimberly Kofron
Thank you!!
Kimberly Early
Thank you!
Katie Albitz
thank you!
Louise Stoney
Great Job!!
Tiffany Taylor
thank you
Adele Robinson
Thank you - good luck everyone!
Makia Thomas
Thank you!