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

Once programs have met the state’s quality standards,
they are eligible to apply for a Continuing Quality
Improvement Grant for Staff Retention. These grants are
based on the number of publicly subsidized children
served in the program. Child care centers receive $200
per subsidized child–up to a maximum of $30,000, and
family child care homes receive $200 per subsidized child
— up to a maximum of $1,500. Additionally, all programs
— whether or not they serve subsidized children — are
eligible for a minimum staff–retention grant of $400,
$1,500 or $3,000 depending on their size.
Early Childhood Excellence Center grant funds may be
used for: staff training, a portion of the first year’s
operating costs, personnel costs, supplies, allowable
equipment and minor remodeling. Up to 5 percent of the
grant award amount may be used for administrative costs.
HOW FUNDS DISTRIBUTED
Funds are awarded as grants, directly to the early
childhood programs that are selected by the Office of
Child Care via a Request for Proposals.
Quality Improvement Grant selections are made with
input from the state Department of Workforce
Development and the Wisconsin Early Childhood
Association. Programs that are selected for these grants
also receive targeted technical assistance, which is
provided by a nonprofit organization with whom the state
contracts. All new grantees receive orientation training
and two site visits. More intensive technical assistance
(on issues such as achieving accreditation, creating a
staff development plan, increasing staff compensation
and reducing turnover) is provided to 50 selected centers
in two–year cycles. Additionally, all participating providers
are eligible to attend cluster training, a director’s retreat,
and a director’s caucus.
The Early Childhood Excellence Center program is new.
The first awards were slated to be made in FY2000–01.
POPULATION SERVED
Quality improvement and staff retention funds are
available to nonprofit and proprietary child care programs
that serve families at all income levels. Participating
programs must have been licensed for three years or
more and have no serious licensing violations.
Additionally, the programs must have developed a plan to
meet the state’s quality standards. These standards
include: achieving accreditation, ensuring that all teachers
have at least a Child Development Associate (CDA)
credential, ensuring that the director has at least a B.A. in
early childhood education, having an annual turnover of
no more than 20 percent, having an annual program
evaluation, making funds available for employee benefits
and having a plan for staff compensation.
The new Early Childhood Excellence Initiative is designed
to serve children from low–income communities. At least
60 percent of the families served by these centers will
have incomes at or below 200 percent of the federal
poverty level.
STRATEGIC CONSIDERATIONS
• Wisconsin’s quality improvement initiatives are an
excellent example of how direct and portable aid can
work together to support high–quality early care and
education programs. The quality improvement grants
are direct aid, and all programs are eligible to apply.
These grants may be received in addition to revenues
the program generates through portable aid (e.g., child
care vouchers), parent fees, and other sources. Direct
and portable aid are designed to build on one another
(combining these revenue sources is not seen as
“double dipping”), so that programs have the funds and
financial stability they need to offer high–quality
services.
• The two grant programs described in this profile do not
exist in a vacuum. Wisconsin supports a host of
additional quality improvement initiatives, including a
strong professional development system, an early
childhood practitioner credentialing system,
accreditation promotion, mentor teacher training,
management assistance, on–site technical assistance,
and start–up and expansion grants. The state also
provides statewide support for a child care resource
and referral system.
• A key reason why Wisconsin has been successful in
developing new, innovative approaches to child care
financing is that the Wisconsin child care community
has provided consistent and committed leadership. The
two largest child care resource and referral agencies
and the Wisconsin Early Childhood Association have
provided stable leadership since the early 1970s. Led
by these groups, the Wisconsin Women’s Network
established a Child Care Task Force in the mid–1970s,
and this task force has been able to tap broader
constituencies, such as the Wisconsin Nurses
Association and the National Organization for Women.
Additionally, staff within state government have worked
with the early childhood community for years and are
skilled and committed policy–makers.
OTHER SITES WITH SIMILAR STRATEGIES
A number of states allocate state and/or federal child
care funds to support quality improvement initiatives such
as provider training and technical assistance,
accreditation support, child care resource and referral
services and start–up and expansion funds. Wisconsin is
unique, however, in linking quality improvement grants to
staff recruitment and retention and making these funds
available to child care providers on an ongoing basis.
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