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

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FINANCING CHILD CARE IN THE PRIVATE SECTOR PHILANTHROPY STRATEGIC CONSIDERATIONS • The difficulty of raising $3 million in community funds to match the challenge grant offered by the Marin Community Foundation was underestimated. The task proved difficult and more costly than anticipated. The original estimate of more than a 10 percent return on investment for the CCSF also was overly optimistic. The Marin Education Fund believes these difficulties were due, in part, to the economic climate of California and the county, which worsened dramatically between the late 1980s, when the CCSF was conceived, and the early 1990s, when the fund–raising began. • The original design for CCSP in the late 1980s called for supporting families with incomes between $15,000 and $28,000 at an average 50 percent subsidy over the years until their children reached age 10. At that time, it was estimated that between 600 and 700 Marin families would qualify. By the time CCSP was launched and began making scholarship awards in 1993–94, the estimate of eligible families had soared to more than 4,000, primarily due to economic and demographic changes. Eligibility criteria were redesigned to match the resources available, while remaining true to the original intent of helping families who were ineligible for public subsidies. • The Marin Community Foundation was criticized when the CCSF was announced because the CCSF was promoted as “the answer” — the one best strategy to address child care needs of Marin County families. Previously, the foundation had made grants to many local child care centers. Eventually, the foundation resumed its community–based child care grant–making at an annual level of about $500,000. The focus is on child care improvement and expansion, especially in relation to community development and the economic self–sufficiency of families. • The experience of the CCSF shows that a scholarship fund is insufficient to address the full range of child care issues in a community. Scholarship funds are a valuable and important part of an overall strategy designed to increase public and business concern about child care and increase investment on behalf of lower–income families. Strategies and resources also have to 1) build the capacity of the child care community to function more effectively and expand its services and 2) build the civic constituency to support child care as an integral part of a community’s economic and overall planning. The underlying message is that community health depends on good, affordable child care services. OTHER SITES WITH SIMILAR STRATEGIES Although other community foundations fund child care programs, this level of funding for scholarship assistance is unusual. CONTACT Susan Badger, President Marin Education Fund 1010 B Street, Suite 300 San Rafael, CA 94901 Phone (415) 459 4240 Fax (415) 459 0527 129
FERN WEBSTER PROFESSIONAL DEVELOPMENT FUND (THE KANSAS CITY METROPOLITAN REGION, KANSAS & MISSOURI) DESCRIPTION The Fern Webster Professional Development Fund is part of a series of community partnerships in the Kansas City Metropolitan Region designed to achieve ambitious local goals for improving child care quality (see also the Kansas Accreditation Plan on page 133). The Fern Webster Professional Development Fund responds to a local goal that 90 percent of children cared for outside the home are in a setting in which at least one person has a degree (A.A., B.A., B.S., M.A.) in early childhood education. The Fund has four components: individual scholarships, Higher Education Consortium, Center Director’s Institute and advocacy. WHEN ESTABLISHED The Fern Webster Professional Development Fund was established in 1996. ANNUAL AMOUNT For its first six years of operation, a total of $2 million was committed to the Fund. Eighty–five percent of the money ($1.7 million) is dedicated to individual scholarships. The Fund is financed by private philanthropic contributions made by the Ewing Marion Kauffman Foundation. Additional funding is provided by the Greater Kansas City Association for the Education of Young Children. SERVICES FUNDED Individual scholarships account for 85 percent of the Fund’s expenditures. Tuition support is available for practitioners to pursue classes toward an A.A., B.A., B.S. or M.A. in early childhood education. The Fund is used for tuition and fees for classes that contribute to the completion of a degree in early childhood education. In addition, a small amount of funding supports coursework leading to a Child Development Associate (CDA) credential. The support for a CDA is designed to serve as an entry into the higher education system, and receiving a CDA is not considered a final educational degree. A small amount (1 percent) is also set aside to cover the costs of services needed to take advantage of the scholarship, such as transportation or child care. More than 400 awards were made during the 1996–1999 period, providing 4,500 credit hours. The Higher Education Consortium brings together educators to create a system of formal training and education opportunities through collaboration, access to courses and articulation. The Center Director’s Institute provides training to center directors to increase their ability to effectively manage staff and resources. Advocacy includes the provision of information to the community and state leadership on the importance of highly qualified, well–compensated professionals in the field. HOW FUNDS DISTRIBUTED A committee of community partners, including representatives of philanthropic organizations, businesses and early childhood professionals, makes awards twice a year. Priority is given to providers in the urban core of the Kansas City area and to those working with infants and toddlers. Awards are made for the entirety of the degree or until the end of the current grant period (currently December 2002). Each school directly bills the Fund’s administrator, the Metropolitan Council on Child Care, for the cost of tuition. POPULATION SERVED Scholarship recipients must be at least 18 years old, have a high school diploma or GED, work at least 25 hours each week in a Kansas City area early childhood program and have six months’ experience in the field. STRATEGIC CONSIDERATIONS • The Fern Webster Professional Development Fund is one of a set of coordinated, strategic initiatives in the metropolitan Kansas City area. Kansas City organizations concerned with early childhood education and child care came together to discuss community plans for improving outcomes for young children and the role of quality early child care and education to reach this goal through a planning and implementation effort known as Partners in Quality. The Fern Webster Professional Development Fund was set up to help the community achieve its quality improvement goals, specifically a desire to provide a degreed teacher in 90 percent of the early childhood and child care programs (home– and center–based). • The initial planners of the effort — including early childhood training organizations and individuals, for–profit and nonprofit child care providers, Head Start programs, advocacy organizations for children, institutions of higher education, United Way and local philanthropies — assessed existing approaches to improved teacher training and credentialing. For example, they explored bringing the T.E.A.C.H. scholarship program to the region, but ultimately decided that they needed to develop a local model. • A key difference between Fern Webster’s approach and that taken by similar initiatives such as T.E.A.C.H. is that Fern Webster focuses solely on increasing 130
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FINANCING CHILD CARE IN THE UNITED
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FINANCING CHILD CARE IN THE UNITED
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ABOUT THE GRANTEE PHILADELPHIA CITI
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:02 ALLOCATING PUBLIC REVENUES 54 O
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HOW TO USE THIS CATALOG This catalo
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This revised, expanded edition of F
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DIFFERENT EXPECTATIONS The expectat
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03 LONG-TERM THINKING Successful st
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LEVERAGING Matching and leveraging
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TAXES Income taxes are the major so
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EMPLOYER INCOME TAXES Twenty-five s
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LOCAL PROPERTY TAXES CHILDREN’S S
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GENERATING PUBLIC REVENUE LOCAL PRO
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GENERATING PUBLIC REVENUE SALES AND
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TAX CREDITS, DEDUCTIONS AND EXEMPTI
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GENERATING PUBLIC REVENUE TAX CREDI
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GENERATING PUBLIC REVENUE FEES OTHE
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GENERATING PUBLIC REVENUE FEES •
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GENERATING PUBLIC REVENUE LOTTERIES
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GENERATING PUBLIC REVENUE LOTTERIES
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SOCIAL AND HUMAN SERVICES A number
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EDUCATION Education is a powerful r
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SOCIAL AND HUMAN SERVICES RHODE ISL
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ALLOCATING PUBLIC REVENUES SOCIAL A
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HEALTH EARLY CHILDHOOD EDUCATION LI
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ALLOCATING PUBLIC REVENUES HEALTH P
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Page 122 and 123: EMPLOYERS Employers increasingly re
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Page 185 and 186: WHAT YOU OWN Property taxes on real
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Child Care Scholarship Fund of the
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lotteries and gaming, 14 Neighborho
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Area, Kansas and Missouri), 133—1
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income tax provisions for child car
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