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

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CHILD CARE MATTERS: A QUALITY<br />

CHILD CARE INITIATIVE OF<br />

SOUTHEASTERN PENNSYLVANIA<br />

(PHILADELPHIA, CHESTER, DELAWARE AND<br />

MONTGOMERY COUNTIES, PENNSYLVANIA)<br />

DESCRIPTION<br />

<strong>Child</strong> <strong>Care</strong> Matters is a privately funded <strong>in</strong>itiative designed<br />

to improve <strong>the</strong> private and public understand<strong>in</strong>g of, and<br />

<strong>in</strong>vestment <strong>in</strong>, quality child care. <strong>Child</strong> <strong>Care</strong> Matters<br />

comb<strong>in</strong>es direct assistance to improve quality at more<br />

than 100 child care homes and centers, with systemic<br />

work to engage bus<strong>in</strong>ess, <strong>in</strong>crease media coverage and<br />

improve public policy and f<strong>in</strong>anc<strong>in</strong>g for child care with<strong>in</strong><br />

state and city government.<br />

WHEN ESTABLISHED<br />

The <strong>in</strong>itial plann<strong>in</strong>g for <strong>Child</strong> <strong>Care</strong> Matters occurred<br />

over a n<strong>in</strong>e–month period start<strong>in</strong>g <strong>in</strong> June 1996 with<br />

f<strong>in</strong>ancial support from <strong>the</strong> William Penn Foundation.<br />

Implementation funds were provided by <strong>the</strong> William Penn<br />

Foundation start<strong>in</strong>g <strong>in</strong> 1997 and are committed through<br />

2003.<br />

ANNUAL AMOUNT<br />

The total project budget is $17.85 million. The William<br />

Penn Foundation has committed $14.1 million and <strong>the</strong><br />

<strong>United</strong> Way of Sou<strong>the</strong>astern Pennsylvania raises $3.75<br />

million <strong>in</strong> match<strong>in</strong>g funds from <strong>in</strong>dividuals and local<br />

philanthropies.<br />

SERVICES FUNDED<br />

<strong>Child</strong> <strong>Care</strong> Matters is a multifaceted <strong>in</strong>itiative, which<br />

simultaneously works to improve program and staff<br />

quality <strong>in</strong> child care homes and centers while seek<strong>in</strong>g<br />

improved public sector decision–mak<strong>in</strong>g and <strong>in</strong>vestment<br />

<strong>in</strong> child care through public policy advocacy. The <strong>in</strong>itiative<br />

<strong>in</strong>cludes communications and bus<strong>in</strong>ess engagement<br />

components to enhance <strong>the</strong> public policy advocacy of<br />

<strong>Child</strong> <strong>Care</strong> Matters. A paid media campaign <strong>in</strong>forms <strong>the</strong><br />

public about <strong>the</strong> benefits of quality child care. The ad<br />

campaign is supplemented with efforts to secure greater<br />

report<strong>in</strong>g on child care <strong>in</strong> <strong>the</strong> local media. The bus<strong>in</strong>ess<br />

engagement component works with area employers to<br />

<strong>in</strong>crease <strong>the</strong>ir understand<strong>in</strong>g of how child care affects<br />

<strong>the</strong>ir bottom l<strong>in</strong>e and aids <strong>the</strong> work force. It educates<br />

bus<strong>in</strong>ess leaders, particularly those who employ<br />

hourly–wage employees, about <strong>the</strong> child care needs of<br />

<strong>the</strong>ir work force, <strong>the</strong> value of <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> child care and<br />

opportunities for jo<strong>in</strong><strong>in</strong>g with <strong>Child</strong> <strong>Care</strong> Matters staff to<br />

work on public policy activities.<br />

Through its service component, <strong>Child</strong> <strong>Care</strong> Matters seeks<br />

to provide a cont<strong>in</strong>uum of support to assist family child<br />

care homes and centers to atta<strong>in</strong> and susta<strong>in</strong> improved<br />

quality. Depend<strong>in</strong>g on location, child care programs may<br />

participate <strong>in</strong> <strong>the</strong> Neighborhood Project or <strong>the</strong> Regional<br />

Quality Initiative.<br />

The Neighborhood Project works <strong>in</strong>tensively with family<br />

child care homes and centers <strong>in</strong> two low–<strong>in</strong>come<br />

neighborhoods <strong>in</strong> Philadelphia, provid<strong>in</strong>g <strong>the</strong>m with<br />

private subsidies to enroll low–<strong>in</strong>come children, T.E.A.C.H.<br />

scholarships for <strong>the</strong>ir staff, start–up funds for family child<br />

care, and <strong>the</strong> funds, technical assistance and professional<br />

support from experienced field staff to develop and<br />

implement a quality improvement plan result<strong>in</strong>g <strong>in</strong><br />

accreditation. In <strong>the</strong>se neighborhoods, up to $60,000 for<br />

equipment and facilities improvement is made available<br />

to child care centers, and up to $5,000 is made available<br />

to family child care homes. In <strong>the</strong> first three years of <strong>the</strong><br />

project, two centers, and six family child care providers<br />

atta<strong>in</strong>ed accreditation.<br />

At <strong>the</strong> outset of <strong>Child</strong> <strong>Care</strong> Matters, a private subsidy<br />

program was created as part of <strong>the</strong> Neighborhood<br />

Project. This helped low–<strong>in</strong>come work<strong>in</strong>g parents on <strong>the</strong><br />

wait<strong>in</strong>g list for <strong>the</strong> state's subsidized child care program<br />

enroll <strong>in</strong> programs participat<strong>in</strong>g <strong>in</strong> <strong>Child</strong> <strong>Care</strong> Matters. As<br />

of 2000, <strong>the</strong> private subsidy was be<strong>in</strong>g phased out, s<strong>in</strong>ce<br />

<strong>the</strong> <strong>Child</strong> <strong>Care</strong> Matters advocacy efforts to <strong>in</strong>crease<br />

public sector fund<strong>in</strong>g and <strong>in</strong>come limits for subsidized<br />

child care were successful.<br />

Family child care has been a significant po<strong>in</strong>t of focus<br />

for <strong>the</strong> Neighborhood Project. A service cont<strong>in</strong>uum was<br />

designed to <strong>in</strong>crease <strong>the</strong> supply of family child care<br />

homes by 45 <strong>in</strong> <strong>the</strong> Neighborhood Project areas.<br />

Unlicensed, <strong>in</strong>formal and sometimes illegal home–based<br />

providers are helped to meet state and local regulatory<br />

requirements. Field–based staff provide technical<br />

assistance, and up to $1,000 <strong>in</strong> start–up funds.<br />

The Regional Quality Initiative is available on an open,<br />

competitive basis to family child care homes and centers<br />

throughout <strong>the</strong> Sou<strong>the</strong>astern Pennsylvania region,<br />

provid<strong>in</strong>g 175 T.E.A.C.H. scholarships and quarterly bonus<br />

payments to 40 accredited providers that enroll children<br />

from Pennsylvania’s subsidized child care program, <strong>Child</strong><br />

<strong>Care</strong> Works.<br />

The central mission of <strong>Child</strong> <strong>Care</strong> Matters is to improve<br />

state and local public policy for child care. In its first three<br />

years, <strong>Child</strong> <strong>Care</strong> Matters was able to br<strong>in</strong>g toge<strong>the</strong>r an<br />

often disparate child care community to def<strong>in</strong>e and realize<br />

local and state objectives for child care public policy.<br />

Successes <strong>in</strong> quality improvement <strong>in</strong>clude <strong>the</strong> state's<br />

<strong>in</strong>itial <strong>in</strong>vestment <strong>in</strong> <strong>the</strong> T.E.A.C.H. educational scholarship<br />

program ($500,000 <strong>in</strong> FY1999 and FY2000 and $1.5<br />

million for FY2001); an allocation of <strong>the</strong> state's<br />

competitive quality improvement grant funds to be used<br />

<strong>in</strong> support of accreditation; and establishment of a $2<br />

million statewide Health and Safety Enhancement<br />

program. <strong>Child</strong> <strong>Care</strong> Matters also focused its attention on<br />

<strong>the</strong> fund<strong>in</strong>g and design of <strong>the</strong> subsidized child care<br />

program, <strong>Child</strong> <strong>Care</strong> Works, and helped to lead a<br />

successful statewide coalition effort to improve fund<strong>in</strong>g<br />

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