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

LOTTERIES AND GAMING
EARLY CHILDHOOD DEVELOPMENT,
EDUCATION AND CARE FUND
(MISSOURI)
DESCRIPTION
The Early Childhood Development, Education and Care
(ECDEC) Fund supports start–up, expansion, operation
and improvement of preschool programs; certificates for
low–income families (defined as below 185 percent of
the federal poverty income guidelines) to purchase early
childhood development, care and education; increased
rates of child care subsidy reimbursement for accredited
programs; and certificates for early childhood education
for low–income families with children under age 3
who care for their children at home. The ECDEC Fund
receives funding from the Gaming Commission Fund,
which is the repository for state revenues from gambling
fees.
WHEN ESTABLISHED
Legislation was passed in 1998 establishing the ECDEC
Fund for FY1999. The first appropriation was authorized
in May 1999. The first programs began operating in the
1999–00 school year.
ANNUAL AMOUNT
For FY1999–00, the ECDEC Fund appropriation is
approximately $21 million. The annual total in the ECDEC
Fund is defined as 100 percent of the “remaining net
proceeds” of the Gaming Commission Fund, determined
after supporting several veterans’ and national guard
programs (approximately $9 million). In any given year,
the ECDEC Fund is subject to appropriation. Funds are
administered by the Department of Elementary and
Secondary Education (DESE) and the Department of
Social Services (DSS). The statutory allocation of these
funds is as follows:
• 60 percent for a competitive grant program to support
early childhood development, education and care
programs;
• 48 percent is appropriated to DESE;
• 12 percent is appropriated to DSS;
• 30 percent to DSS;
• 10 percent for certificates for low–income families
to purchase early childhood development, education
and care;
• 10 percent for subsidy rate increases for accredited
centers and homes;
• 10 percent for certificates for low–income families
with children under age 3 whose parents stay at
home with the children to purchase early childhood
education; and
• 10 percent undesignated and jointly administered
by DESE and DSS, which may be used for an
evaluation, which is required by statute.
SERVICES FUNDED
The ECDEC Fund expands access and improves the
quality of services. Programs funded through DSS are
required to meet state child care licensing requirements
within one year of receiving funds. Programs funded
through DESE must commit to becoming state–licensed
within one year of receiving a grant and to becoming
accredited within three years. In addition to Missouri’s
own early childhood accreditation, accreditation systems
of five national organizations are accepted by DSS:
National Association for the Education of Young Children
(NAEYC), National Association for Family Child Care,
Council on Accreditation of Services for Children and
Families, National Early Childhood Program Accreditation
and National School Age Care Alliance. Only Missouri
accreditation and NAEYC accreditation are accepted by
DESE. The legislation requires DESE and DSS to
conduct a four–year evaluation study with program and
comparison groups to determine program impact and
report the results to the legislature in 2002.
HOW FUNDS DISTRIBUTED
The competitive preschool program funds (the first 60
percent) are distributed through grants, with DESE and
DSS holding separate competitions. Preference is given
for new programs, programs targeted to areas of the
state with high need, programs for children with special
needs, programs that offer non–traditional hours and/or
those which serve high concentrations of low–income
families. The legislation requires that community input into
applications for funding must be documented and that
public school programs must establish a parent advisory
committee.
For FY1999–00, the DESE preschool program funds
were distributed through a two–phase competitive grant:
the first round was limited to public school districts; the
second round was open to all providers of early education
for 3– and 4–year–olds. A portion of the DSS
competitive preschool funds for FY1999–00 was used
for a grants program to create community partnerships
between Early Head Start grantees and family child care
homes and centers. These grants will improve the quality
of services in these sites and offer certificates to parents
to purchase care in them.
The DSS funds are distributed through the same
mechanism as other child care subsidies and certificates.
The subsidy rate increase for accredited programs is
20 percent above a program’s current rate. The six
accreditation systems noted above are accepted. The
10 percent allocated to certificates for low–income
families with children under 3 whose parents are at
home was to be a competitive grant program to
communities, beginning in 2000.
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