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

T.E.A.C.H. scholarship program and is working toward an
associate’s or bachelor’s degree in early childhood
education or child development. A program with 100–179
children must have at least two participating teachers or
directors. A program with more than 180 children must
have at least three teachers or directors on scholarship.
Additionally, programs must: 1) provide information about
their program’s wages, benefits and turnover at the
beginning and end of the first year of the program, 2)
provide information about staff access to health
insurance coverage and 3) agree to complete an annual
evaluation survey about the program
STRATEGIC CONSIDERATIONS
• The provision of funds to help pay the costs of health
insurance was strategically linked to efforts to improve
the education and retention of the child care work
force. Because of limited funding, dollars were
specifically earmarked as part of an incentive structure
to encourage child care programs to support the
continuing professional development of their staff.
• A second strategic decision was made to require staff
with dependent children to show proof of health
insurance coverage for those children or apply to
Health Choice (North Carolina’s health insurance
program for children). By recognizing that child care
teachers are often low–income women with children,
this effort has the secondary benefit of facilitating
access to health insurance for the children of child
care workers.
• To maintain its status as a nonprofit entity, Blue Cross/
Blue Shield must demonstrate that it makes insurance
available to low–income families. In some states, this
obligation may provide an opportunity to facilities to
access health insurance for child care providers.
OTHER SITES WITH SIMILAR STRATEGIES
Rhode Island provides subsidized health insurance for
some child care programs, and is profiled on page 76.
CONTACT
Susan Russell, Director
Child Care Services Association
P.O. Box 901
Chapel Hill, NC 27514
Phone (919) 967 3272
Fax (919) 967 7683
E–mail suer@ipass.net
CONNECTICUT SCHOOL
READINESS INITIATIVE
(CONNECTICUT)
DESCRIPTION
The Connecticut School Readiness Initiative provides
children from low–income families with access to
high–quality early learning experiences by combining the
strengths and resources of the public and private child
care and school systems. Funds are made available to
School Readiness Councils in communities with large
numbers of low–income children. The councils assess
community needs, identify gaps, and allocate funds. The
councils are required to ensure that full–day early
childhood care and education services are available
year–round. Additionally, funds are made available on a
statewide basis to help build or renovate child care
facilities and train new early childhood teachers.
WHEN ESTABLISHED
The school readiness legislation passed in June 1997.
ANNUAL AMOUNT
Funds for this initiative come from several sources,
including the State Department of Education, the
Department of Social Services (including federal Child
Care and Development funds and transfers from the
Temporary Assistance for Needy Families fund) and
through tax–exempt bond financing. (See page 72 for
a more detailed description of Connecticut’s capital
financing strategy.) Yearly allocations are detailed below:
In FY1997–98, $32.6 million was allocated for the entire
initiative. Approximately $18.7 million was used for school
readiness slot expansion, and $8.7 was used to expand
capacity of state–contracted child care centers for
children from birth to age 8. The remaining funds
supported: quality enhancement grants ($2 million); early
childhood program accreditation ($600,000); training,
education and career development ($2.26 million);
provider criminal background checks ($100,000), and
program evaluation ($100,000).
In FY1998–9, $54.8 million was allocated for the entire
initiative. Funding for school readiness slot expansion was
increased to $37.3 million; funding for the statewide
components was not increased. Additionally, debt service
for Connecticut Health and Educational Facilities
Authority (CHEFA) tax–exempt bond financing was
increased to $2.5 million.
In FY1999–2000 $60 million was allocated for the
entire initiative. Funding for school readiness slot
expansion was increased to $39 million, $960,000 in
funding was provided for a new child care training
academy, and the regional accreditation project received
an increase in funding to $715,000.
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