Financing Child Care in the United States - Ewing Marion Kauffman ...

FINANCING CHILD CARE IN THE PRIVATE SECTOR EMPLOYERS
that this seed money will attract local public funding to
sustain a program’s ongoing operations, as well as fees
and other sources of revenue.
During Phase II, greater emphasis has been placed on
quality improvement, developing services that meet the
specific needs of working parents such as extended
hours and flexible policies in child care centers. Projects
also have focused on services for school–age children,
such as providing before– and after–school programs
and developing curriculum that meets the needs of
school–age children and youth.
An additional strategy is being used in Phase II of ABC,
called “Championship Models,” which are intended to be
research and development projects that can test
innovative solutions that are national in scope and can be
adapted widely. There are five kinds of ABC
Championship Models being developed, including models
of backup care and programming for middle school youth.
Additionally, ABC has been involved in school–age child
care accreditation, developing family child care training
curricula and director credentialing.
HOW FUNDS DISTRIBUTED
The ABC is managed by WFD Inc., a management
consulting firm in Boston, Massachusetts, that helps
companies redefine the workplace for employees. The
process for developing ABC–funded community–based
strategies begins with an employee demand assessment
focused on employees in a company (or companies) in a
specific geographic area and a supply assessment
focused on the same area. The resulting gap analysis
leads to recommendations for projects and programs to
fill the gap between demand and supply. WFD then
issues an RFP (request for proposals) to potential
community vendors. The RFP is tailored to the selected
approaches and clarifies employee needs that must be
addressed. Proposals that are accepted by ABC clients
are funded through contracts with WFD. Projects also
may be funded through a “special opportunity” — an
existing project or initiative that is aligned with identified
employee needs and in which ABC can become a
funding partner.
POPULATION SERVED
ABC initiatives are targeted specifically at the needs of
their employees in a particular geographic area. Typically,
the needs of ABC employees determine the types of
service improvements, expansions or development that
occur in a community. During Phase I, 45 communities in
25 states and the District of Columbia were involved in
ABC–funded initiatives. In Phase II, 68 communities
have participated in ABC–funded programs.
STRATEGIC CONSIDERATIONS
• Business acts in response to bottom–line business
concerns. The Champion companies, in their 1995
joint statement launching Phase II, said: “We believe
that supporting the diverse dependent care needs of
our employees is critical to our success as it enables
our companies to attract and retain a productive,
competitive, committed and motivated work force.”
ABC funds are business dollars, not charitable dollars,
and must demonstrate a direct link between projects
funded and company productivity.
• The ABC concentrates on expanding and improving
the supply of dependent care. Corporate support for
the ongoing cost of child care for employees is
expressed through company–sponsored dependent
care assistance plans (DCAPs) and the provision of
other services, such as resource and referral programs.
(Bank of America’s DCAP is profiled on page 39.)
• Businesses frequently use partners, such as WFD, to
manage their employee work/life benefits. Both parties
in these partnerships may experience some tension as
they assess need and propose solutions.
• The Champions believe: “By working together, we can
do more to meet the needs of our employees than if
we worked alone.” Significant effort was required to
create and maintain the collaboration among leading
national corporations.
• Community–level models that emulate and link
with ABC are an effective strategy for child care
improvement and expansion in areas with
concentrations of corporations. For example, Houston
has created such a model (Corporate H.A.N.D.S.). In
areas with one major employer a single–company
strategy can be effective.
OTHER SITES WITH SIMILAR STRATEGIES
ABC offers opportunities for local and regional employers
to join the collaboration to work on solutions in their
communities. Another example of a local employer
collaborative, the Austin Area Employer’s Collaborative, is
profiled on page 140.
CONTACT
Wendy Lekan
ABC Project Director
WFD Inc.
928 Commonwealth Avenue
Boston, MA 02215
Phone
(800) 253 5264 or
(617) 264 3300
117