Presentation on theme: "Using the Alliance Model in Early Childhood Convened by CCRC, Loraine OH Louise Stoney, Alliance for Early Childhood Finance May 13, 2010."— Presentation transcript:
Using the Alliance Model in Early Childhood Convened by CCRC, Loraine OH Louise Stoney, Alliance for Early Childhood Finance May 13, 2010
High-Quality ECE is Essential Source: Paul Sheldon, Citicorp. Based on data from ECE model programs like Perry Preschool and Abecedarian DIDN’T BEAT UP A BOY DIDN’T HAVE TO REPEAT A GRADE DIDN’T DROP OUT OF HIGH SCHOOL DIDN’T START SELLING DRUGS GOT A MUCH BETTER JOB AND PAID MORE TAXES INVENTED THE NEXT NEW THING BENEFIT Dollars COST Age 21
Higher Standards More accountability More complexity – in service delivery and reporting Increased costs National Context: Focus on Quality, Accountability, Results Achieving good results for kids isn’t easy!
ECE is Market-Based: Most Revenue is Tuition & Fees Consumer tuition is the largest source of revenue, roughly 57% of total industry receipts Private sector revenue has increased dramatically but still less than 4% of total Government 39% of total, and is primarily portable funding (vouchers or tax benefits)
Bottom-Line Issues for ECE Businesses Ensure Full Enrollment – every day, in every classroom Collect Tuition & Fees – in full and on- time Fees cover cost or have 3 rd party revenue source to fill the gap
The Many Roles of an ECE Director The average child care center serves 75 children; In many centers a single director is responsible for multiple tasks.
Market Challenges Lack of effective demand from consumers for high quality services. Insufficient product differentiation makes it difficult for consumers to obtain information on the quality of early care and education services. Low profitability due to high labor costs, quality standards, and price-sensitive consumers. No economies of scale in an industry composed of very small businesses.
Shared Services Purchasing goods & services Food Services (including CACFP admin) Quality Support – mentor teachers, classroom & child assessments, etc. Management/Administration (e.g. team of directors/supervisors) Fiscal (Billing and Fee Collection) Marketing Fundraising Human Resources & Staffing Health/Mental Health/Family Support
28 Alliances Across the US (May 2010) Northwest - 1 Seattle Midwest - 4 Minneapolis (exploring) Grand Rapids (exploring) Columbus OH Lorain OH (exploring) Northeast - 8 Lowell, MA Seacoast Region NH Steuben County NY Rockland County NY Philadelphia Pittsburgh (exploring) Baltimore (exploring) Fairfax VA Southwest - 10 San Francisco (emerging) Alameda County, CA (exploring) Colorado: 8 Early Learning Ventures affiliates: 1 exploring 3 emerging 4 existing Southeast – 5 Atlanta New Orleans (emerging) Chattanooga Nashville (exploring) Miami (exploring)
Annie E. Casey Foundation David and Laura Merage Foundation William Penn Foundation Miriam and Peter Haas Fund Goizueta Foundation United Way WK Kellogg Foundation Community Development Agencies CCDF/TANF/Head Start ….and many other local funders A National Movement: Growing Engagement from Philanthropy and Government
Getting Started Shared Services is a framework that builds on existing institutions and strengths –Not a “franchise” - looks different in different communities –Is rooted in shared leadership Can include a variety of services an entry points -- One size does not have to fit all
One Option: A Two-Level Approach Statewide/Regional services Delivered, via web portal, to large number of centers and home-based providers in the state or region Examples: bulk purchasing, insurance, HR support, marketing templates, credit card payment, etc. In-depth services Delivered to a smaller group of centers or homes who are ready for much more intensive interaction Examples: ECE staffing service, invoicing/fiscal management support, mentor teachers, child assessments, collaborative approach to data collection or licensing/QRIS compliance, etc.
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Shared Services In-Depth Examples: The Children’s Home in Chattanooga, TN Sound Child Care Solutions in Seattle, WA Infant-Toddler Family Day Care in Fairfax, VA
A Potential ECE Network Happy Acres Day Care Tender Tots Pre- School The Newberry After School Program Mary’s Family Child Care Home Annie’s Nursery School Green Hills Child Care Center Network Hub (Shared Staff) Human Resources including health & retirement benefits, Unemployment Insurance, etc. Research & Development: Information Technology, data collection & analysis, etc. Classroom Supports: mentor teachers, classroom assessments, QRIS support, etc. Administrative Services: payroll, billing, fee collection, marketing, tax/finance support, etc. Comprehensive Services: health, mental health, social services, family support Fundraising and Fund Development (from public and private sources) Staff Recruitment & Screening, including substitutes Bulk Purchase of Goods and Services
A Potential ECE Network work The Newberry After School Program Mary’s Family Child Care Home Annie’s Nursery School Research & Development Payroll, billing, fee collection, etc. Shared Staff: health, MH, SS, family support, etc. Pre-K Class at Lakewood Elementary Employee Benefits Wage Subsidies / Employment Tax Credits Staff Recruitment & Screening Network Hub QRIS Support Green Hills Child Care Center Happy Acres Day Care Tender Tots Pre-School Briarwood CCR&R
Reinventing the Industry: New Approaches to Staffing & Budgeting A Shared Service approach offers the opportunity to re-think staffing and supervision, job descriptions, roles, responsibilities, etc. In ECE, staffing patterns have a profound impact on the budget.
Budget for Small Center: 20 Full-Time Children Before AllianceAfter Alliance Teaching Staff$92,000 Admin Staff$45,000$11,000 Food & Supplies$13,500$12,000 Acct / Leg / Insurance$3,500$0 Other Operations$5,000$4,000 Prof. Development$2,000$0 Totals$161,000$119,000 Expenses Revenues Revenues for this center increased by $20,000 in the first year, due to improved fiscal management and full enrollment. A total of $62,000 is now available to support shared administration and/or to invest in quality improvements in the center. Reduced site expenses due to shared services: $42,000
Staffing Changes in Small Center: 20 Full-Time Children Before Alliance Full-Time Director Two Lead Teachers Four Assistant Teachers (Some Part-Time) After Alliance Part-Time Director* (On-Site 25% of Time) One Supervising Teacher One Lead Teacher Four Assistant Teachers (Some Part-Time) *Director spends remaining 75% of time at central office, on administrative tasks supporting ALL sites in the Alliance, including this one.
Budget for Larger Alliance Center: 65 Full-Time Children Before AllianceAfter Alliance Teaching Staff$450,000 Admin Staff$150,000$54,000 Food & Supplies$40,000$37,000 Acct / Leg / Insurance$15,000$0 Other Operations$50,000$48,000 Prof. Development$4,000$2,000 Totals$709,000$591,000 Expenses Revenues Revenues for this center increased by $35,000 in the first year, due to improved fiscal management, quality and full enrollment. A total of $153,000 is now available to support shared administration and/or to invest in quality improvements in the center. Reduced site expenses due to shared services: $118,000
Staffing Changes in Larger Center: 65 Full-Time Children Before Alliance Full-Time Director Full-Time Asst. Director Full-Time Secretary Four Lead Teachers 12 Asst. Teachers (Including Part-Time) After Alliance Full-Time Site Director Full-Time Secretary Four Lead Teachers 12 Assistant Teachers (Including Part-Time)
Long-Term Results from Shared Services Stronger Team of Professionals Better Cash Flow & Fiscal Stability ✚ Higher Quality Early Learning Program Children Ready for School