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Sample Budget Information to support Partnerships among Child Care, Head Start, and Other Early Education Programs

August 1999

Prepared for the Child Care and Head Start Bureaus
Administration for Children and Families
U.S. Department of Health and Human Services
prepared by QUILT Project (Quality in Linking Together: Early Education Partnerships)

For additional information, contact: 1-877-867-8458
or
National Child Care Information Center, 1-800-616-2242
Community Development Institute, 1-303-369-8706
Education Development Center, 1-617-618-2347

Note to the Reader

The sample budget information provided has been adapted and summarized courtesy of data furnished by the following three programs: KCMC Child Development Corporation, Kansas City, Missouri; Snyder, Union, Mifflin Child Development, Inc., Mifflinburg, Pennsylvania; and Puget Sound Educational Service District, Burien, Washington. Budget information is for illustrative purposes only, and it is not intended to reflect a complete or up-to-date picture of the budget of any of the programs.

KCMC Child Development Corporation

Partnership History

In 1993, KCMC Child Development Corporation, the Head Start grantee for three metropolitan counties in the Kansas City, Missouri area, began an initiative to extend Head Start programming to provide full-day, year-round services to children whose families were working or who were in education or job training. The idea was to partner with existing child care centers to provide comprehensive, quality services to children regardless of their eligibility for Head Start. The initiative became known as Full Start-the Head Start Community Partnerships Program. An independent evaluation of Full Start, conducted in 1997, found that program quality in child care centers increased, in terms of outcomes for children and as measured by the Head Start Program Performance Standards, within one year after the partnership became operational. Parents needed and used the comprehensive services and expressed satisfaction with Full Start.

Fiscal Strategy

The Full Start vision was to create a funding partnership that would lead to a seamless system of services for low-income children in Kansas City. The initial partners included the Region VII Administration for Children and Families, the Missouri Department of Social Services, the City of Kansas City, and the Greater Kansas Community Foundation, since then other partners and funding sources have joined the effort.

Children from both the Head Start and child care programs receive the same comprehensive services in one combined classroom in the child care centers. Head Start purchases slots for an agreed rate from the child care centers. Child care costs offset by Head Start reimbursement are available to pay for additional services for non-Head Start children (these expenses are also subsidized in part by foundation and other funding sources). Child care centers are reimbursed monthly by Head Start based upon total attendance of Head Start eligible children. Head Start arranges start-up funding for supplies and equipment and provides training and support to child care center staff. Staff salaries and benefits are upgraded as staff become certified or credentialed.

Contact Information

Dwayne Crompton or Verona Hughes
Executive Director/Head Start Director
KCMC Child Development Corporation
2104 E. 18th Street
Kansas City, MO 64127
(816) 474-3751, Ext. 606
(816) 474-3751, Ext. 641

KCMC Sample Operating Budget
Expenses			Income
Category	$	%	Source	$	%
Personnel	220,000	57	United Way	43,377	11
Benefits	36,795	10	Division of Family Services	125,675	32
Occupancy	18,252	5	City of Kansas City, MO	72,494	19
Management & general	49,479	13	Parent Fees	18,200	5
Audit	2,100	1	KCMC Head Start	125,000	32
Office supplies	1,756	0	Other Contributions	2,500	1
Postage	69	0	Total Income	387,246	100
Printing	1,465	0	The number of children enrolled in KCMC's full-day, full year Head Start Program is 604 The number of children enrolled in the above sample center is 50. The cost per child per year at the above sample center is $7,746. The Division of Family Services provides child care subsidies in the amount of $75,675, and Child and Adult Care Food Program reimbursement in the amount of $50,000.
Staff training	3,280	1
Equipment maintenance	1,939	1
Insurance	2,006	1
Vehicle gas, oil	3,430	1
Vehicle maintenance	2,146	1
Food	17,992	5
Educational supplies & Equipment	6,100	2
Special events	1,162	0
Exterminator	450	0
Van washing	275	0
Food equipment & Supplies	775	0
Laundry	275	0
Health services	15,000	4
Parent involvement	2,500	1
Total Expenses	387,246	100

Snyder, Union, Mifflin Child Development, Inc.

Partnership History

Snyder, Union, Mifflin Child Development, Inc., provides Head Start and child care services in a predominantly rural area in Pennsylvania. For several years, the agency has been combining staffing and resources from Head Start and child care to provide full-day, full-year (252 days) care to children and families who need extended day services. Previously, Head Start and child care services were operated separately. Program coordination activities were undertaken to respond to the needs of families receiving public assistance, parents in training or school, and Head Start eligible children in child care classrooms needing comprehensive Head Start services. Children are in the center classroom between 6:30 a.m. and 5:30 p.m., with Head Start comprehensive services funded for a child care center classroom. This model includes 20 children in a class with all 20 being Head Start-child care funded.

Fiscal Strategy

Head Start funds support morning center services (1/2 day); child care subsidies and parent fees support afternoon center services (1/2 day). Additionally, Head Start pays for one family support assistant and all support and comprehensive services (consistent with Head Start Program Performance Standards), as well as for release time to enable staff to participate in training. The following reflects average child cost per year for a class of 20 Head Start children who receive full-day, full-year services, with an indication of the Head Start and child care share of the costs:

Head Start Cost/Child/Year	$5,890
Child Care Cost/Child/Year	$2,530
Food Program Reimbursement/Child/Year	$574
Total Projected Cost/Child/Year	$8,994

The agency has a sophisticated budgeting and cost allocation model which includes cost allocating center/classroom staff according to job responsibilities and work hours each day. For funding and cost allocation purposes, there is considered to be a "Head Start" and a "child care" half of each day (although this does not interfere with children receiving developmentally appropriate services throughout the day). Although the agency utilizes this model to manage multiple funding resources (e.g., Head Start, child care subsidies, parent fees) for services provided by a single agency, agency leadership has indicated that the fiscal model will work with two separate agencies providing coordinated services through a partnership agreement.

Contact Information

Sharon Koppel
Executive Director
Snyder, Union, Mifflin Child Development, Inc.
14 South 11^th Street
Mifflinburg, PA 17844
(570) 966-2845

Snyder, Union, Mifflin Child Development, Inc., Head Start-Child Care Budget
Category	Total $	Total %	Head Start $	Child Care $
Personnel	96,499	54	70,624	25,875
Benefits	19,343	11	12,958	6,385
Occupancy	10,500	6	5,250	5,250
Administrative costs @ 16.4%	18,999	11	13,708	5,291
Supplies (Program, Medical/Dental)	2,340	1	1,220	1,120
Other Contractual	3,618	2	3,618
Medical/Dental Exams & Follow-up	2,000	1	2,000
Staff Travel-center sites	1,040	1	1,040
Phone-center sites	600		300	300
Printing/Publications	75		50	25
Staff training (Employee development)	2,500	1	1,250	1,250
Insurance	420		210	210
Transportation-field trips	1,470	1	735	735
Transportation-children of families periodically non-working	2,646	1	2,646
Parent Activity fund	300		200	100
Food	17,500	10	13,475	4,025
Total Costs	179,850	100	129,284	50,566

Puget Sound Educational Service District

Partnership History

Puget Sound Educational Service District (PSESD), located in Seattle, Washington, provides a broad range of Head Start services, including full-day services in center-based and family child care settings. PSESD has pioneered full-day, full-year Head Start, in partnership with independent child care programs, since 1987, with the support of Region X Administration for Children and Families, the Washington Department of Social and Health Services, and other state and local partners. Over 300 children will receive PSESD's extended day, year round services in 1999. Eligible 3- and 4-year old children are enrolled in both Head Start and independent child care programs. The child's family must be eligible for Head Start and also must be able to provide financial support for child care (e.g., through generating a subsidy, parent co-pays, and/or other financial assistance). Child care licensing standards and Head Start Program Performance Standards are met throughout the day. In most cases, Head Start enrolled children are in classrooms with non-Head Start children.

Fiscal Strategy

The child care center brings full-day child care funding to the partnership by accessing subsidies, parent fees, and private funding. Head Start funds go to centers to 1) hire family support staff, 2) provide additional teaching staff, allowing time for curriculum planning, home visits, and training, 3) to enhance the center's pay scale so that Head Start qualified teachers can be hired and retained, and 4) to purchase additional supplies and equipment. PSESD also assigns coordinators to provide training, technical assistance and support to the child care/Head Start staff.

PSESD's fiscal strategy has been described as a child and family development "cake." The first layer of the cake, paid for primarily by child care subsidies, assures compliance with licensing standards for the care and safety of the child for the entire day. The second layer, funded by Head Start, adds the necessary resources for a quality comprehensive child and family program, also covering the entire day. Thus, the entire day is child care, and the entire day is Head Start, with Head Start "wrapped-in" to child care. Each of the primary funding sources pays what they customarily pay for services, and receives value-added from the addition of the services financed by the other funding source. This program model, in which Head Start dollars finance supplementary comprehensive services, rather than covering 100% of the cost of a specific portion of the child's day, was approved in a written agreement in 1997 between state child care and preschool administrators and Region X ACF. The cost per child per year averages $7,525 for Head Start and $4,732 for child care (subsidies, parent fees, and donations).

Contact Information

John Bancroft
Executive Director, Head Start
Puget Sound Educational Service District
400 SW 152^nd Street
Seattle, WA 98166-2209
(206) 439-6922
e-mail: jbancroft@psesd.wednet.edu

Puget Sound Educational Service District Head Start Budget
Community Child Care Center Budget (2 classes, 36 children-18 are Head Start enrolled)			Note: This budget reflects Head Start expenses reimbursed to the child care center. Additional Head Start funds are spent by the grantee for staff training and support, other comprehensive services (e.g., health, mental health, disabilities, literacy, and employment/training programs).
Category	Head Start funding pays for	Child Care funding generated by Head Start children pays for	Total Center Budget for 18 Head Start children	Child Care funding generated by non-Head Start children pays for	Total Budget for 2 classrooms (child care + Head Start funds)	Total %
Personnel	69,804	59,751	129,555	59,751	189,306	72
Benefits	17,172	14,938	32,110	14,938	47,048	18
Supplies	2,302	2,302	4,604	2,302	6,906	2
Adult meals	1,200		1,200		1,200	1
Facility rental		5,000	5,000	5,000	10,000	4
Utilities		1,200	1,200	1,200	2,400	1
Insurance		1,000	1,000	1,000	2,000	1
Copying	162		162		162
Parent support	900		900		900
Parent activities	560		560		560
Telephone		600	600	600	1,200	1
Field trips		400	400	400	800
Staff mileage	756		756		756
Total Cost	92,856	85,191	178,047	85,190	263,238	100

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