Reinvent vs Rebuild: Can We Fix Early Child Care in Mass? • Louise Stoney Sharon Easterling Opportunities Exchange • Hosted by Anne Douglass, Ph. D. • UMASS Boston Institute for Early Education, Leadership and Innovation • June 26, 2020 1
Housekeeping • Please enter questions into the Q&A box • We will pause to address comments and questions at several points throughout today’s session • We are recording this session for future use and availability 2
Reimagining Stronger and More Equitable Systems of Early Care and Education Anne Douglass, PhD Executive Director, Professor anne.douglass@umb.edu www.umb.edu/earlyedinstitute
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Entrepreneurial Leadership Programs Leadership and Innovation Network Policy-Relevant Research and Sharing New Knowledge
Ara Mardie Dottie
System Change Mindsets Power dynamics Structures
State System Change ▸ 70,000 educators & administrators ▸ 9000 centers & family child care programs
Louise Stoney, Co-Founder Sharon Easterling, Partner Opportunities Exchange Opportunities Exchange 12
The Challenge • Early Care and Education was broken before COVID19 • The pandemic has made this worse • Can we use this tragedy as an opportunity to re-invent as we re-build? Elevate 19 Summit, June 2019 13
The Missing Link e
What Success Looks Like Child Care Center Child Care Center Personnel Expenses Personnel Expenses 16 Elevate 19 Summit, June 2019
Change Focused on Results The Results The Change • Improved teacher compensation Launched automated Child ∙ ✔ health insurance Care Management System ✔ 401K Plan Joined a Shared Services ✔ Wage increase for classroom ∙ teachers Alliance – to leverage business expertise • Time for director to focus on Made boosting teacher instructional leadership ∙ wages + job-embedded ✔ 17 more hours/week to work with teachers in classrooms coaching a priority 17 Elevate 19 Summit, June 2019
What FCC Success Looks Like Sta StandAlone W/ Business Le W/ Leadership Market price avg monthly tuition (per child) $600 $600 Total capacity of home 12 12 % of market tuition captured 90% 100% Actual monthly tuition charged $450 $600 Iro ron tria triangle Vacancy rate 25% 5% Total potential revenue $61,560 $82,080 % of tuition collected (bad debt) 90% 100% Estimated Annual Revenue $55,404 $82,080 Expenses (staff wages, materials, services, etc.) $31,907 $34,150 Net Revenue to FCC Home Provider $23,497 $47,930
The Foundation: Making ECE Stronger Automation and Business Coaching Administrative Scale De-centralized Services Strategic Cost Modeling + Rate-setting Real-Time Supply and Demand Data 19 Elevate 19 Summit, June 2019
Why Automation + Coaching?
What Works ▪ Site-based coaching + training ▪ Financial + staff support for automated CCMS ▪ Integrate automation with business training and coaching 21 Elevate 19 Summit, June 2019
Benefits of Automation Saves Time: Automating operations greatly reduces the amount of staff time needed Saves Money: Reduced labor translates to cost saving for administrative tasks Increases Revenue: Automated payments Next reduce bad debt, reconciliation of subsidy Webinar will reimbursement, etc. discuss automation Skilled Financial Management: Data in detail! available in electronic format can be analyzed; informs financial decisions
Tax Prep is Key for Family Child Care • Assistance with tax preparation can make a big difference in the bottom line of home-based provider income. • Automation makes record-keeping, and tax prep, much easier. Early Childhood Investigations Webinar presented by Opportunities Exchange | June 2, 2020
Administrative Scale The Network Hub becomes part of the solution. e
Example: Shared Back Office Richmond Area Shared Services Alliance (RASA) Planning and fundraising leadership from Virginia Early Childhood Foundation. Launched e in East Richmond, VA. Expanded into Hampton Roads region of the state. 25
e 26 Policy Approaches for Infant-Toddler Care October 2019
De-centralized Services e Policy Approaches for Infant-Toddler Care October 2019 27
Micro-Center Strategy MICRO-CENTER NETWORK HUB MICRO-CENTER HOST • Hires + supervises teachers • Helps families with enrollment, • Free or low-cost space subsidy paperwork, parent • Helps with renovation, equipment, engagement, needed supports furnishing, janitorial • Manages fiscal + reporting • Collaborates with Hub re licensing, management for all sites, insurance + local codes including fee collection • Markets services to employees • Ensures all sites are high-quality. GOVERNMENT Waivers to test alternative approaches to licensing and staffing; support for electronic billing and automated records. e
Court Colorado South Child Chelton Care Example: 6wks – 6 yrs Patrick Multi-Site Center Henry Historic Day (half-day 3- Nursery Antlers Leading Change 5 yrs) 2.5 – 13 yrs Trailblazer 18 mo – 6 (half day 3- yrs 5 yrs) • Marketing Early • Enrollment Sand Creek Connections • Elementary Billing/accounts receivable Preschool • Accounts payable Learning Classroom + • Fiscal oversight/tracking trends SACC Centers 3-12 yrs • Payroll Central • USDA Food Program Early • Office Human Resources Connections Elaine’s LLC • FCC Fundraising and development • Maintenance • Pedagogical Leadership Support Annie’s • Family Engagement Andy’s FCC PROPOSED • FCC Community Engagement Micro Center at Public • Behavioral Health School • Health Services PROPOSED • Curriculum Coordinators PROPOSED Suzi’s Micro Center PROPOSED Micro at Public Micro Center FCC Center at at Public School Public School School e 29
Strategic Cost Modeling + Rate-setting Rates based on market prices often exacerbate inequity – age of child, location, quality level. e Elevate 19 Summit, June 2019 30
MA Data: Market Price Inequity HIGHER QUALITY--REGION 6 MINIMUM LICENSING--REGION 6 SINGLE MOM + CHILD @$30K SINGLE MOM + CHILD @$30K State Share Parent subsidy co-payment Cost Gap State Share Parent subsidy co-payment Cost Gap Market Cost* per Child Cost* per Price $23,490 $19,860 Child $30,636 $1,320 Market $10,079 Price $23,490 Market Price Cost* per Child Cost* per Child $18,270 $1,320 Market $10,716 $16,296 Price $1,320 $18,270 $18,638 $4,562 $1,320 $19,237 $10,414 $10,414 I NFA NT/ TODDLE R 3 & 4 Y R OLDS I NFANT/ TODDLER 3 & 4 YR OLDS *Cost per child from Center for American Progress https://costofchildcare.org/ 31
MA Data: Market Price Inequity MIN LICENSING - WEST REGION 1 HIGHER QUALITY - WEST REGION 1 SINGLE MOM +CHILD @$30K SINGLE MOM + CHILD @$30K State Share Parent subsidy co-payment Cost Gap State Share Parent subsidy co-payment Cost Gap Cost* per Child Cost* per Child $30,636 $19,860 Market Price $4,552 $16,704 Market Price $14,869 $12,259 $1,320 Market Cost* per Child Price Cost* per Child $10,716 $16,704 $16,296 Market Price $1,320 $1,320 $12,259 $5,621 $13,988 $1,320 $14,447 $9,355 $9,355 I NFANT/ TODDLER 3 & 4 YR OLDS I NFA NT/ TODDLE R 3 & 4 Y R OLDS *Cost per child from Center for American Progress https://costofchildcare.org/ 32
But…Sustainability is More Than Higher Rates The Iron Triangle of ECE Finance Without full enrollment + full fee collection, higher rates won’t help. e
Real-Time Supply and Demand Data is Crucial Tracking demand + supply with precision efficiency will be essential to recovery. e Elevate 19 Summit, June 2019 34
Why Real-Time Data Matters (Colorado Example) Aggregate enrollment among all 300+ providers using Alliance CORE software REAL data to show dramatic drop in enrollment across ALL sites Elevate 19 Summit, June 2019 35
Real Time Data: TX Example (reports available weekly) Provider Status # % Application by Industry # % Open, providing care 706 64% Healthcare 587 34% Not operating 400 36% Local State Govt. 122 7% Unknown 0 0% Restaurant, Grocery, Food 198 11% Total 1,106 First Responder 75 4% Gas Station 20 1% Childcare worker 237 14% Open providers # % Mail Delivery 65 4% Center providers 334 47% Military 17 1% Family home providers 372 53% Maintenance 2 0% Willing to extend hours 82 12% Finance 79 5% Construction 16 1% Available Slots sites slots Transportation 43 2% Infant 289 1,382 Warehouse 68 4% Toddler 367 2,309 Leasing Agent 11 1% 3-5 years old 373 3,112 Other 202 12% School-aged 306 2,825 Total 9,628 School- Total Data by City Sites Infant Toddler 3-5 Yrs aged Vacancies ALEDO 1 8 2 10 25 45 Eligible applications ARLINGTON 101 327 536 744 586 2,193 % pending placement 2% AZLE 4 8 41 46 80 175 % enrolled 86% BEDFORD 15 55 82 123 113 373 e Total 88% BENBROOK 3 4 7 9 10 30 Elevate 19 Summit, June 2019 36
Real-Time Supply & Demand: (Nashville Example) e 37
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