FCSE 3120 Lecture Notes - Lecture 16: Temporary Assistance For Needy Families, Child Care, Early Head Start
1 May 2018
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Department
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Professor
Your Program’s Finances
Introduction
• Early childhood programs are expensive to run and for families to pay.
• 2010 costs of infant care ranged from $ 4,650 (Mississippi) to $ 18,200 (D.C.)
o At $34.00 a day for infants/toddlers on campus costs $ 8398.00
o Enrollment fee of $24.00 (trying to go up to $50.00)
• Child care cost are more than 10% of 40 states median income.
o Families are stretched to the limit
o Housing costs of $700.00 per month = $8400 to give a perspective
o Now think of family who as two children in a child care program
o The book says it is more expensive than in-state 4-year college tuition – pretty
close
• Many centers, particularly those serving low-income families, find it difficult to cover the
full costs of providing quality services with just proceeds from tuition that their families
that can pay.
• Therefore, the federal government provides monies in the form of Child Care and
Development Fund (CCDFP)
o Subsidies (TANF) – Temporary Assistance for Needy Families
o Block grants
• Scope and the quality of services are related to the financial status of a program
• Weekly or even daily monitoring of income and expenses can be used to strategically
plan for fiscal success
• Not-for-profit are responsible to their funding agencies, for profit are accountable to
owners/stockholders
• All programs are accountable to the IRS (Internal Revenue Service)
Costs of Early Childhood Programs
• High quality programs are labor intensive
• Most programs (except funded with public monies) are primarily financed by working
parents and maybe supplemented by public and private contributions
• Estimating Program Cost - Variations
o Type of program
o Level of training
o Size of staff
• Delivery system (center; faith bases; licensed)
o Needs of children enrolled
o Offering different/new services
• Baseline tuition rates are usually based on a 3-year full-time to start
o Preschool - $22.00 per day
• Usually younger children tuition is more
o Infant/Toddler - $34.00 per day
o Twos - $26.00
• Older children are less
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