childcare needs analysis - shire of hepburn
TRANSCRIPT
TRENTHAM EARLY YEARS LEARNING GROUP
CHILDCARE NEEDS ANALYSIS
DRAFT November 2014
PUBLIC PLACE has been engaged by Hepburn Shire Council and the Trentham Early Years Learning Group to undertake an analysis of childcare needs in the Trentham region. This report is an interim draft Following review by all parties, this report will continue to be updated as further data and information is collected and analysed. Issue Date Revision Number Authors Supplied To
October 10, 2014 01 Mark Hands Early Years Working Group and Hepburn Shire Council
November 24, 2014
02 Mark Hands Early Years Working Group and Hepburn Shire Council
TRENTHAM EARLY YEAR LEARNING GROUP
CHILDCARE NEEDS ANALYSIS DRAFT REPORT
INTRODUCTION 1
THE CHILD POPULATION IN TRENTHAM 2
CURRENT EARLY YEARS SERVICES IN TRENTHAM 5
A REVIEW OF GOVERNMENT POLICY ON EARLY YEARS 6
CHILDCARE SERVICE DEMAND ANALYSIS 10
CHILDCARE SERVICE MODEL SCENARIOS 15
RECOMMEDNED SERVICE DELIVERY IN TRENTHAM 20
CONCLUDING REMARKS 22
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INTRODUCTION The Trentham community values the wellbeing of its children and is focussed on ensuring that the care and development of children in the region is a priority and an area of investment. Trentham is a rural township in the hinterland area of the Hepburn Shire and had an “Urban Centre” defined population at the last 2011 Census of 719 people. Population growth, particularly in the cohort of young families has occurred since this time, with various new housing and subdivision developments and evidence of growth indicated by other factors such as birth notices and increasing school enrolments. The need for appropriate childcare services has been highlighted by community as a priority on several specific surveys and in conjunction with related projects on community services and facilities. Delivery of services within the early years sector has changed dramatically in recent years and the need for innovative approaches and opportunities for improved sustainability through integrated service delivery are particularly apparent in rural and regional areas. This project provides more specific analysis of childcare needs in Trentham and surrounding regions, a précis of current services and considers options for further services based on need, sustainability and population growth.
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THE CHILD POPULATION IN TRENTHAM
08/09 09/10 10/11 11/12 12/13
Births 16 14 9 12 17
0 2 4 6 8 10 12 14 16 18
2009-‐10 2010-‐11 2011-‐12 2012-‐13 2013-‐14
New
Enrolments
Year
New Enrolments Trentham MCH!
2009-‐10
2010-‐11
2011-‐12
2012-‐13
2013-‐14
Graph 1: New enrolments- Trentham Maternal and Child Health Service
Maternal and Child Health (MCH) data for the Trentham area indicates that there are 84 children currently enrolled with the service. Enrolments with the MCH have been reasonably static over recent years with a gradual trending increase. In 2009/10 there were 12 new enrolments in the services whilst 2012/2013 saw 17 new enrolments. 2013/14 provided the first decrease in new enrolments within the past five years, with 14 enrolments (see graph right). MCH data also provides a total number of children accessing services in the Trentham area. This figure fluctuates and may vary based upon the need of individual families for support. Over the last five years total numbers of children have fluctuated between a low of 68 (2009/10) and a high of 84 (2013/2014) with a general trend of moderate growth. Birth notices, as recorded by Hepburn Health Services, have followed this trend with 2008/2009 and 2012/2013 having the highest birth rates at 16 and 17 respectively whilst 2010/2011 recorded only 9 births for Trentham. (see table right)
Table 1: Birth data for Trentham (MCH records)
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Trentham Australian Bureau of Statistic Population Data The Australian Bureau of Statistics provides some limited data on population for Trentham. It should be noted that any comparable information between 2006 and 2011 census information covers only the Trentham Urban Centre Locality (UCL), as defined by the ABS. (see map right) The Trentham UCL covers only the urban areas and some areas of recent development but does not cover the wider region surrounding Trentham. The 2011 Census data indicates that the Trentham UCL has a total population of 719 people. Of these, 38 make up the 0-4 year old cohort. The larger SSC area is not easily comparable between 2006 and 2011 given the geographical boundaries shift significantly between census collections.
Map 1: Trentham UCL 2011 as defined by ABS1.
Map 2: Trentham SSC 2011 as defined by ABS1.
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When a larger geographical region is considered such as the ABS defined Trentham State Suburb Classification (SSC), the ABS provides a 2011 population for Trentham of 1,411 people with 78 children making up the 0-4 year old cohort. 1 In considering the growth in population between 2006 and 2011 the Trentham UCL data is comparable between years and would indicate a growth rate of around 2.5 – 2.9 percent per year The table (right) indicates population age changes that provide an interesting picture of a township with an increase in young families as well as an increasingly ageing population. The 0-4 population has grown by 12 children in the five-year period and whilst actual numbers are still relatively low compared to other age cohorts, the growth rate is comparatively high at around 8 percent per year. It should be noted that this measurement of population is only applicable to the urban centre locality and should only be used as a guide to growth in the area, not as an absolute figure applicable to early years services in Trentham.
1 http://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/UCL221072?opendocument&navpos=220 Viewed 23-5-2014
Age ranges 2006 popn.
2011 popn.
Change
0-4 27 39
12
5 - 14 94 82 -‐12
15-19 18 41 23
20-24 9 15 6
25-34 54 41 -‐13
35-44 99 109 10
45-54 86 94 8
55-64 92 121 29
65-74 64 104 40
75-84 54 49 -‐5
85 plus 32 24 -‐8
Table 2: Population for Trentham UCL comparing 2006-2011 figures.
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CURRENT EARLY YEARS SERVICES IN TRENTHAM Current services providing a level of childcare in Trentham are focused on the Family Day Care and full fee paying occasional care models. There are three services currently in operation and they include; Occasional Care Program The Occasional Care program is based at the existing Trentham Kindergarten and the Eureka Community Kindergarten Association delivers the service. It is a full fee service, as occasional care does not currently attract any subsidies. The service currently operates as a four-hour session once per week and is yet to reach a point of subscription to ensure a sustainable operation. The program can take a maximum of 12 children per session and is governed by
the National Quality Framework regulations. At present the service provides for an average of 6 children per session and would need to increase this to 11 or 12 In Venue Family Day Care (IVFDC) This service is based in the primary school and effectively operates as an extended after school program from 3.15 - 6.15 p.m. on Tuesday to Friday. Daylesford Community Childcare Centre (DCCC) manages this program and manages a number of family day care operations across the region. The in venue family day care program is used by working parents only. Two days are full (maximum number of six children) and the other two days are achieving mixed enrolment numbers, often as low as two children.
In Home Family Day Care (IHFDC) There is also an IHFDC operator in Trentham. This business operates Monday and Friday but only from 9 a.m. to 3 p.m. with closure occurring during all school holiday times. The times are generally not suitable for working parents undertaking a standard working day that may include commuting. There are seven children currently utilising this service however, given the young ages of the children in this program, the maximum number of children at any given time is limited to four.
Conclusion Trentham childcare services do not currently provide full time child care services, which may be a key service gap. Current occasional care and FDC programs provide services for approximately 20-25 children.
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OTHER EARLY YEARS SERVICES The consideration of other services that may be utilised by Trentham residents is also important and nearby services in Daylesford, Kyneton and Woodend are all relevant in considering how services may be used and also to consider how far Trentham residents may have to travel to access childcare services. A number of services currently provide services to Trentham residents with Daylesford noting a wait list of 6 additional children from Trentham. Current services are outlined in the table below. Name of Service Address Distance from Trentham Service size and scope Trentham Usage
Goodstart Early Learning 12 Wood Street,
Woodend 24 kilometres, 20 minute drive.
60 children centre aged 6 weeks to 6 years Monday to Friday
Unknown- commercial information Small number of vacancies
Woodend Care For Kids 72 East Street, Woodend 24 kilometres, 20 minute drive
82 children centre aged 6 weeks to 6 years 6.30 a.m. to 6.30 p.m. Monday to Friday
Unknown- commercial information Unknown vacancies
Goodstart Early Learning 30 Mair Street, Kyneton 22 kilometres, 21 minute drive
73 children centre aged 6 weeks to 6 years Monday to Friday
Unknown- commercial information No vacancies
Daylesford Community Child Care Centre
81 West Street, Daylesford
28 kilometres, 25 minute drive
60 children aged 6 weeks to 6 years Monday to Friday
3 children enrolled under 3 years of age booked for 2 days each= 1.2 EFT Wait list has 6 additional children from Trentham.
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A REVIEW OF GOVERNMENT POLICY
Currently, both State and Federal Government are experiencing changes to the support, funding and policy position with regard to early years services. Federal Government is considering how to most efficiently and effectively deliver early years service, and has commissioned a Productivity Commission Inquiry into Childcare and Early Childhood Learning. FIFTEEN HOUR KINDERGARTEN PROGRAM GOVERNMENT FUNDING The Federal Government has recently confirmed the funding of fifteen hours of kindergarten. This provides the option of considering two long days, potentially providing more time for working parents. This would need to be tested with community.
CHILD CARE REBATE AND CHILDCARE BENEFIT SCHEME FOR LONG DAY CARE The Child Care Rebate and Benefit Scheme provides a subsidised child care scheme for parents and providers of long day care. The scheme is currently available for family day care services and long day care services. Long day care services must provide a minimum of 40 hours of long day car per week over a minimum of 5 days to qualify for the scheme. This approach is counterproductive to the delivery of services in rural areas where enrolments may be low and days of use may very and be intermittent. PRODUCTIVITY COMMISSION REPORT The recent Productivity Commission Inquiry into Childcare and Early Childhood
Learning has been released in draft form in July 2014. The Productivity Commission Inquiry is investigating the provision of a "sustainable future for a more flexible, affordable and accessible childcare and early learning market" and is seeking feedback from a range of key stakeholders including early years providers, community agencies, families, government agencies and local governments on a broad range of issues relating to the provision of and access to childcare and early childhood learning. Key issues raised through the productivity commission inquiry include: The potential for the implementation of the ratio change to negatively impact on access to childcare and kindergarten places for families in relation to availability and cost.
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The need for a comprehensive workforce strategy to address the shortage of quality staff. The increased administrative burden on services to comply with the newly introduced National Quality Framework. Opportunities for the Australian Government to further support the childcare sector in implementing quality services for children and ensuring they are able to remain accessible for families. Providing flexibility, equity and choice for parents in accessing childcare services. The draft report highlights the following points regarding access to long day care services (page 42-43 of the draft report): “Current subsidy arrangements make ECEC more affordable for families. However, there are a number of issues with the way Government support is delivered: the existing system is complex and some families have difficulty understanding their entitlements under the Child Care Benefit and the Child Care Rebate.
the design of these measures is resulting in a declining proportion of assistance to lower income families who are least able to afford ECEC services the Jobs, Education and Training Child Care Fee Assistance program and the Special Child Care Benefit program are not well targeted and have attracted families unable to get low cost access to ECEC under other more targeted programs. Draft Recommendation 12.2 The Australian Government should combine the current Child Care Rebate, Child Care Benefit and the Jobs Education and Training Child Care Fee Assistance funding streams to support a single child-based subsidy, to be known as the Early Care and Learning Subsidy (ECLS). ECLS would be available for children attending all mainstream approved ECEC services, whether they are centre-based or home-based. Draft Recommendation 12.4 The Australian Government should fund the Early Care and Learning Subsidy to assist families with the cost
of approved centre-based care and home-based care. The program should: assist with the cost of ECEC services that satisfy requirements of the National Quality Framework provide a means tested subsidy rate between 90 per cent and 30 per cent of the deemed cost of care for hours of care for which the provider charges determine annually the hourly deemed cost of care (initially using a cost model, moving to a benchmark price within three years) that allows for differences in the cost of supply by age of child and type of care support up to 100 hours of care per fortnight for children of families that meet an activity test of 24 hours of work, study or training per fortnight, or are explicitly exempt from the criteria pay the assessed subsidy directly to the service provider of the parents’ choice on receipt of the record of care provided.
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Draft Recommendation 8.3 The Australian Government should abolish operational requirements that specify minimum or maximum operating weeks or hours for services approved to receive child-based subsidies. Draft Recommendation 8.4 The Australian Government should remove caps on the number of occasional care places. These outcomes will be advantageous toward introducing long day care services in areas where enrolment is low or intermittent between days and the current Child Care Rebate and Child Care Benefit Schemes are not applicable or accessible. The introduction of a broadly accessible, single child based subsidy that does not have requirements regarding minimum or maximum operating weeks or hours of service will be highly beneficial in allowing for a flexible and responsive service that meets community requirements and achieves economic viability. The removal of caps on subsidised occasional care places will also provide
an additional level of flexibility in providing services in low enrolment areas. NATIONAL QUALITY FRAMEWORK AND VICTORIAN EARLY YEARS LEARNING AND DEVELOPMENT FRAMEWORK. These two frameworks were developed by Federal and State Government respectively in order to provide a quality approach to early years development between the ages of 0-5. The aim of the policy was to deliver a standardised approach to early years services that did not set minimum standards but instead set expectations of quality outcomes regarding service delivery. Importantly the frameworks provided a universal quality framework that covered kindergarten and long day care (LDC), effectively blurring the lines between “care” and “education” as concepts within early years development. This approach has also blurred the roles of LDC centre managers and kindergarten cluster managers, with all full time LDC
centres now running kindergarten sessions with qualified teachers and many cluster managers branching into long day care or family day care management. The NQF also sets teacher/carer to child ratios which are as follows: 0-3 years old: 1 educator : 4 children 3-4 years old: 1 educator : 15 children* preschool: 1 educator : 15 children* *Please note that it is expected that the 1:15 ratio will change to 1 : 11 in 2016. CHILDREN’S FACILITIES CAPITAL PROGRAM: DEECD The Victorian Government’s Children’s Facilities Capital Program is designed to support the delivery of high quality early years programs for children and their families. It aims to:
• increase infrastructure capacity to deliver 15 hours of a high quality kindergarten program for all children in the year before school
• improve access to high quality kindergarten education in the same place as long day care and
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other children’s and family services
• improve access to early childhood services by children from vulnerable and/or disadvantaged backgrounds
• establish more services for children and families on or near school sites
• promote integrated, inclusive and collaborative early childhood education and care services that provide high quality programs to meet the needs of young children and their families.
Importantly, the largest pool of funding is available for new, integrated facilities that provide service on, or near school sites. This approach has lead to a number of schools taking on the role of centre manager, managing the kindergarten program and employing staff as well. Some of examples of this include; Black Hill Primary School, Ballarat. An integrated children’s centre was built on this site and the school decided that it would employ staff and manage the program for the kindergarten. The school
initially consulted with the local cluster manger (Eureka Community Kindergarten Association) and refers some issues to them for consideration but generally operates the centre independently. Robinvale Early Learning Centre A consortium of local community groups has been successful in obtaining funding toward a multi million dollar integrated centre based at the Robinvale P-12. At present, the Ballarat Regional YMCA cluster manage the stand alone Robinvale kindergarten however this site will be closed once the new centre is built and negotiations are beginning regarding the delivery of centre management and employment of staff with the Robinvale P-12. EARLY YEARS STRATEGIC PLAN 2014-2020 VICTORIAN GOVERNMENT The recently released Early Years Strategic Plan provides a broad level commitment to a continued emphasis and priority on improving early years development practice throughout Victoria. The Early Years Strategic Plan aims to improve outcomes and better support all Victorian children from pregnancy up to
eight years of age with a focus across three areas: A. Supporting parents and communities to give children a great start B. Early and sustained support for those who need it most C. All children benefiting from high-quality early learning. COMMUNITY SUPPORT PROGRAMME- FEDERAL GOVERNMENT (DEEWR) The Community Support Programme is designed to support childcare services particularly in areas where the private market does not exist or where isolation is a factor. The Sustainability Assistance grant could be particularly relevant to Trentham as it provides a range of additional payments for the delivery of mainstream childcare services with payment dependent on the type of child care service, its size and location.
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OCCASIONAL CARE FUNDING INCREASE The State and Federal government has recently announced a joint funding of further hours of subsidised occasional care. This increases the hours of occasional care available that attracts a subsidy or rebate for parents and allows for:
- more flexibility in how occasional care is provided,
- lower cost occasional care, - Up to 5 hours per day of
subsidised occasional care, and - Up to 15 hours per week of
subsidised occasional care Although this is a welcomed shift in funding and flexibility of service which reduces the cost barrier to accessing occasional child care, it does not provide an option for delivering full days of care or full time long day care. It should also be noted that the subsidy or rebate to parents is minimal, at $2.50 per , per child.
Impacts of current policy for Trentham: - Potential for funding through Children’s Capital Program for
any building works
- Better access to Occasional Care services based on subsidised places , although subsidy is small
- Potential to test a non –sustainable model for long day care through attracting the federally funded Community Support Programme Sustainability Assistance Grant
- Further impacts as other Productivity Commission Report
recommendation are implemented.
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TRENTHAM CHILDCARE SERVICE DEMAND An analysis of demand for childcare services was undertaken by gathering data on current usage of services outside Trentham along with a measure of potential demand for services if they were provided within Trentham. This was undertaken through discussion with nearby service providers and through a local survey. The recently released childcare needs survey provided a total of 33 responses from across the Trentham community. The 33 surveys received represented responses from families with a total of 26 children aged 0-4 years old and 18 children aged 5-9 years old (see Graph 2) The total responses covering 26 children aged 0-4 years old in the Trentham area represents approximately 33 percent of all 0- 4 year olds for the Trentham State Suburb, based on 2011 ABS data. Responses mainly came from the Trentham township (23) with a further 10 responses coming from a range of smaller surrounding areas. (see Graph 3)
0 5
10 15 20 25 30
0 to 4 5 to 9 10 to 14 Num
ber o
f chi
ldre
n
Age groups
0 to 4
5 to 9
10 to 14
Graph 2: Age groups of children noted in survey responses
0 5
10 15 20 25
Trentham
Lyonville
Blackwood
Little Hampton
Newbury
Tylden
Graph 3: Location of responses
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UTILISATION OF SERVICES OUTSIDE TRENTHAM Key services accessed outside Trentham included occasional care and long day care. Long day care in particular rated most highly with regard to use outside Trentham. Wednesday, Thursday and Friday were the most common days that long day care was used outside of Trentham with a total of 14 effective full time days utilised in this period. (Graph 4) Other childcare options noted in survey responses included the following:
1. Friends and family 2. School Holiday Program in Daylesford 3. Family Day Care (in Trentham) 4. Occasional Care (1 day in Trentham)
Two respondents also indicated that although no services were currently used, services were booked for future use in 2015. “Not yet but will need some soon” “Not yet (our child is only 8 weeks old) but we have enrolled in long day care childcare in Woodend for 2 days per week, commencing in January 2015” There is also additional evidence of usage of other childcare centres outside of Trentham with the Daylesford Community Childcare Centre noting a waiting list of 5 children under 3 years of age wanting 2-3 days of long day care within the Trentham area.
Graph 4: Utilisation of Services Outside Trentham
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CHILD CARE SERVICE DEMAND IN TRENTHAM The use of occasional care and long day care were most commonly reported as services that would be used within Trentham on a regular basis. (see Graph 5) Peak usage days varied between services, however long day care had the highest responses for Wednesday (9 users) and Thursday (10 users) with an average 7.4 EFT across each day and a further seven respondents indicating they would prefer “flexible” days. Occasional care had the overall highest peak with flexible use at 13 responses, reflecting the occasional nature of the service and the desire for flexibility in use by parents. Family Day Care also scored highly in the flexible category again reflecting the occasional and flexible demand for this type of service. There were also seven respondents who indicated they were satisfied with where their child was currently attending and would not change services. Based on these results, there are several broad assumptions that can be used to guide a childcare model analysis for Trentham. These are:
1. Responses and research indicates that there is a need for long day care in Trentham however the
Graph 5: Demand for services in Trentham
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measure of demand is too low to support a full time long day care program as a stand-alone service.
2. There is some known demand, supported by survey responses and current service delivery, for both family day care and occasional care on a flexible, as need basis.
3. A combined service delivery model where all
services are delivered in an integrated manner from a early years hub facility should be considered in order to create economies of staffing and improve the viability of services.
4. Although “flexible” scores highly in three service
areas, it is difficult to measure the frequency of use that this may translate to. Any modelling undertaken will make clear assumptions regarding how “flexible” responses have been defined.
5. Based on these responses and coupled with
evidence of steady, low level growth in the 0-4 year old population, further detailed analysis of viable models has been considered.
Answer options MON TUE WED THUR FRI FLEX TOTAL
Before School Care (7.30-9.00) 2 4 4 4 2 5 21
Occasional Care 3 2 4 1 2 13 25
Family Day Care 4 3 4 4 3 10 28
Long Day Care (7.00-6.00) 5 6 9 10 7 7 44
Content with current service 3 2 1 2 2 0
Table 3: Demand for services in Trentham, highlighting peak demand areas and services.
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ADDITIONAL SERVICES In addition to a measurement of demand, respondents were also asked if there were any other early years services required in Trentham. The following comments were made regarding either additional services or existing services.
1. School Holiday Program (6 responses)
2. After school care that is able to take higher numbers or do not attend Trentham Primary School (4 responses)
3. Kinder gym
4. Just wanted to express interest in occasional care or
potentially regular day care for a day or two a week, starting probably early 2015. I'm putting this in as there's been a bit of a population boom!
5. Our current and closest option would be Woodend for
childcare, but would prefer Trentham.
IN CONCLUSION Delivery of long day childcare services in Trentham is a challenge given the population of 0-4 year olds is slowly and steadily growing but is still quite a small catchment. Trentham is relatively isolated from other long day childcare services, with the closest being Daylesford Community Childcare Centre, Kyneton or Woodend childcare services. These are utilised by several families Current services in Trentham are well utilised however the cost of occasional care and limitation on current family day care hours limits accessibility and does not suit the needs of full time working parents. The next chapter presents several possible scenarios for the delivery of childcare services that provides for a larger number of days of care, based on the proposed utilisation noted from survey results.
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CHILDCARE SERVICE MODEL SCENARIOS TRENTHAM CHILDCARE SCENARIO 1: PROVISION OF LONG DAY CARE ATTRACTING CCB/CCR Undertaking a long day care program that attracts CCB/CCR currently requires a minimum service delivery of five days per week and 40 hours per week. Under this model, long day care would be provided on an assumed Monday to Friday roster from 7.00 a.m to 6.00 p.m. Some of the key features of the model that delivers this level of service include the following;
1. A minimum of two staff at any given time as carers for children. 2. Requirement for providing food for children, necessitating food storage and handling. 3. Minimum opening hours of 40 per week spread over 5 days in order to meet current regulation requirements for CCB/CCR. 4. In this model a range of income has been provided, assuming that “flexible” use as noted in the demand analysis survey could vary
between 0-1 days of use per week. 5. This model also takes into account occasional care with an assumption that any occasional care would be charged at the half day
rate. 6. The model would provide for spaces for after school care. 7. Worker to child ratios are set at 1:4 in Victoria, effectively for all children aged between 0 – 36 months. 8. Fees vary, but the model assumed here provides for the following rates:
a. Full day: $80 b. Half Day: $50 c. After school care: $23
These rates are based on current fees at other smaller, rural centres.
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At present, based on various financial modelling scenarios, a loss of approximately $135 - $1,100 per week would be expected utilising this approach. This range is based on the level of “flexible” responses regarding days of use and assumes that all responses that confirmed a particular day will utilise the service. The two outcomes are summarised below based on “flexible” responses being defined as one day per week for each survey response in BUDGET A and “flexible” responses being defined as no usage in BUDGET B. It is expected that actual outcomes would fall somewhere between these two extremes. (see Appendix 1 for detailed budgets)
BUDGET A: EACH FLEXIBLE RESPONSE EQUATES TO 1 EFT DAY PER WEEK. Full Day: 44 per week Half Day: 25 per week After School Care: 34 per week Fundraising: $25 per week TOTAL INCOME: $ 5,577 per week EXPENSES: Staff: $ 4,248 per week On-costs $ 498 per week Operations: $ 637 per week Administration: $ 327 per week TOTAL EXPENSES: $ 5,710 per week Net Result: -$ 133 per week
BUDGET B: EACH FLEXIBLE RESPONSE IS REMOVED. Full Day: 37 per week Half Day: 12 per week After School Care: 29 per week Fundraising: $25 per week TOTAL INCOME: $4,252 per week EXPENSES: Staff: $ 3,885 per week On-costs $ 498 per week Operations: $ 617 per week Administration: $ 327 per week TOTAL EXPENSES: $ 5,560 per week Net Result: -$ 1,097 per week
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Based on these findings, it could be expected that any long day care service would need to be further subsidised in order to be sustainable. Two key options for further financial support exist and are further explored below.
Combined kindergarten service with long day care services. Where a kindergarten service is provided in a profitable manner, it is possible to consider merging services and budgets to provide an integrated service, preferably from a single site (an early years hub). Given the relatively high numbers of kindergarten participants and the stable and growing number of 0-4 year olds in Trentham, the kindergarten service could provide a funding source to ensure that an overall 0-4 year old early years service is provided for the Trentham community. It should be noted that the current Trentham kindergarten service has lost an average $10,000 per annum over the last two years and is not a profit-generating program. The kindergarten currently has 17 children enrolled in the four-year-old program and 6 children in the pre kinder program with no children on waiting lists. This is not necessarily an accurate indication of demand given there is an unknown level of parents potentially utilising a kinder program in long day care services with wrap around care.
Additional funding through the Community Support Programme Sustainability Assistance Grant (Federal Government). The Community Support Program provides support to childcare services in the following ways: Establishment and Sustainability Assistance to ‘mainstream’ services i.e., mainly those services that are approved to administer Child Care Benefit on behalf of families. There is a range of payments for mainstream services that are dependent on the type of child care service, its size and location. Assessment of eligibility is complex and undertaken using ABS data, Socio-Economic Indexes For Areas (SEIFA) ratings and the Accessibility/Remoteness Index of Australia. Trentham may be applicable for this grant under these conditions, however it would be necessary to be assessed as part of an application process. Sustainability Assistance funding is calculated by adding together the total hours of care reported on every child’s attendance report submitted to the Program during the relevant quarter. This is the total session hours for each day of care submitted on each child’s weekly attendance report, irrespective of a child’s enrolment type. Long Day Care Exceptional Circumstances Grant Subject to available funding, individual one-off discretionary grants of up to $500 000 (excl. GST) may be available to assist services experiencing ‘exceptional circumstances’, such as market failure or documented unmet demand, which may result in no formal child care being available.
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Sustainability and Assistance grants can provide a range of amounts but confirmed examples of programs that do exist, provide funding subsidy of up to approximately $1,000 per week. If we assume a range of losses between $130 to $1,100 per week, based on scenario A and B proposed on page 16, the Sustainability and Assistance Grant will provide an effective subsidy to reduce or eliminate this loss. This level of subsidy could provide a break even long day care service for Trentham, based on survey results and a combined service providing long day care, half day care and kindergarten. It should also be noted that changes recommended in the Productivity Commission Report: Inquiry into Childcare and Early Childhood Learning may change a number of the current funding arrangements in addition to current childcare policy and regulations regarding the delivery of early childhood learning services.
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TRENTHAM CHILDCARE SCENARIO 2- IN VENUE FAMILY DAY CARE Family Day Care is a flexible childcare option designed by government to meet gaps where the current long day care model is not viable given the requirement to provide a minimum 5 days and 40 hours per week to attract the CCB/CCR funding. Carers are generally expected to provide Family Day Care in their own homes. In Venue Family Day Care (IVFDC) is permissible where a home is not suitable or not able to be modified to meet expected standard such as stairs, safety glass, fenced areas etc. An IVFDC program could be delivered as a limited childcare model with potential use of the Trentham Uniting Church facility. Key issues to resolve in order to undertake this include:
• Developing carers with minimum Cert III training in early childhood development. • Providing a coordinating body for a Trentham FDC program- must be a licensed LDC provider. • The limitation of only one FDC operator delivering the service under any one roof line. • The limitation on ratios of 1 Carer : 4 Children, effectively limiting the service to four children on any given day. • Coordinating a timetable of FDC staff that could cover full days. Effectively this would require similar numbers of staff to the
LDC program, with two carers per day, splitting the 7.30-6.00 p.m. shift. • Managing risk regarding one FDC worker being responsible for children.
This approach provides a level of flexibility with regard to days of provision but would limit numbers to four children, at any given time based on the current carer : child ratios. Attracting, training and retaining staff would also be an issue for the delivery of this model.
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TRENTHAM CHILDCARE SCENARIO 3- COMBINED KINDERGARTEN AND LONG DAY CARE ON SELECTED DAYS In some limited cases, the merging of a kindergarten and long day care service has proved successful for smaller communities where numbers of families utilising both services are low. This model has provided options for smaller communities to test childcare services on selected days that were most useful to the majority of potential users. The features of this model include:
• The need for collaboration between educators and carer staff, where roles may overlap. • Ensuring that enough workers are available to meet minimum ratio standards for all age groups as group sizes change. • Some understanding of community willingness to pay, given higher fees, as this model will not attract CCB/CCR subsidies. • The merging of kindergarten and long day care, with long day care effectively being provided in a combined space with kindergarten. • The use of separate rooms for kindergarten and LDC would still require the presence of a minimum of two carers for the LDC room. • The model relies on low enrolments in both kindergarten and long day care to produce any costs savings.
High enrolments in a kindergarten program may negate any cost saving impact of this model, given the ratio of educator to children may trigger additional staff requirements. Minimum staff numbers of two and ratios of 1:4 must still be maintained for long day care and this means that staff can have limited capacity to be “shared” between services, depending on numbers and the complexity of ensuring staff ratios can be both a resource drain and risk management issue. This may not be as relevant for Trentham given the higher levels of attendance in kindergarten at present.
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LONG DAY CARE FACILITY DEVELOPMENT In the event long day care services are provided in Trentham, a compliant facility would be required and does not currently exist. Many options exist with regard to the development of childcare facilities however it is important to consider a budget managed approach to Trentham in order to present an achievable outcome. A recent trend in the development of cost effective childcare and kindergarten development includes the installation of prefabricated buildings that are architecturally designed, constructed in a factory in an “assembly line” fashion and then transported to a site and connected to services. This approach reduces costs significantly and there are some options available in Victoria at this time. A recent example of the development of a prefabricated early years facility can be found at the City of Ballarat where two separate kindergartens have been developed for installation at Miners Rest and Midlands. These centres each provide two 33 place rooms are valued at $700,000 each (installed and operational) and are manufactured by ARKit. The buildings are architecturally designed and construction managed to a high quality. Further details are provided over the page, courtesy of the City of Ballarat and ARKit.
An ARKit facility being installed in prefab blocks, and fully established.
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ARKit Childcare Centre: Miners Rest Ballarat. Approximately 280 square metres, the facility is built to provide two 33 kindergarten rooms as well as providing space that can be utilised for community playgroups. The facility development has a cost of $700,000 installed and is made of a range of renewable timbers and steel with interior finishes in hard-wearing laminates and similar materials. The City of Ballarat utilised this approach after calling for architectural design that resulted in cost estimates well over $1 million. Council then undertook a design and construct process with the expectation that a prefabrication approach would provide the most appropriate budget driven outcome. The City of Ballarat has a very similar facility being provided for Midlands with the floor layout and finishes varying slightly.
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RECOMMENDED SERVICE DELIVERY IN TRENTHAM The recommended approach to provision of childcare services in Trentham is to consider a long day care service that attracts the Child Care Benefit and either meets the criteria for the Community Support Programme Sustainability Grant and/or combines budgets and operations with the current kindergarten, after school care and occasional care services. This approach will improve viability in the short to medium term as population and demand increases. This approach is described in more detail in Scenario 1, on pages 15-18 of this report. Recent changes to government policy that provide more flexibility in occasional care do not materially impact upon the need for long day care in Trentham. Extended occasional care hours that attract CCB may provide an interim measure but will not meet the needs of or be as cost effective for those parents seeking several days of long day care. Childcare service providers may need to be engaged in any further planning of services given the need to develop more detailed business plans and ensure a level of comfort for any licensed provider to be able to provide a viable and sustainable business. Although survey results and current usage of other services indicate a level of usage that presents an argument for the delivery of a childcare service, the commitment of an actual provider to a model with a moderate level of risk is still a challenge. Also crucial to this approach would be the development of a facility from which to provide services. The preferred approach to any facility development would be to undertake further facility planning that considers the connection
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of kindergarten with child care and other services such as maternal and child health services and other sessional early years therapists or allied services (such as speech therapy). In summary, the key findings for childcare services in Trentham are as follows:
1. Survey data indicates that a long day care service that runs 5 days a week for a minimum 40 hours per week would be, at best, a break even operation if the federal government Community Support Programme Sustainability Grant is available to support the service.
2. Demographic and MCH data provides some indication that there is some low level growth in the number of children (and families) moving into Trentham and surrounding areas. This may be an indicator of a slowly growing market for childcare services over time.
3. The development of an integrated service model, combining
kindergarten, long day care and occasional care (or half day care) may deliver further synergies and savings to any proposed operation. However this type of service would require the development of a childcare facility with connections to the kindergarten, which would involve an initial significant investment estimated in the order of $550-700,000.
4. Combining current kindergarten services with childcare services may
provide some staffing synergies however the merging of childcare and kindergarten budgets does not produce any cross subsidy opportunities as the kindergarten service delivers an annual loss and the theoretical budgets proposed for childcare also deliver a loss.
NEXT STEPS:
1. It is recommended that this work be discussed with potential service providers to ascertain levels of interest in delivering a service and what requirements may need to be in place in order for a childcare service to be delivered.
2. Further work should be undertaken to inspect the current kindergarten building and site overall to ascertain current building condition and possible layout, considering both attached and detached childcare facility development/extension options. It is expected that providing child care capacity for approximately 22 children initially would be appropriate, with capacity to expand over time.
3. It is recommended that, in parallel with this, further
planning be undertaken to consider the development of an appropriate early years centre for Trentham that considers a prefabricated model option to deliver childcare. A first step would be a process of developing a basic floor plan or set of space and child capacity parameters that can be used by potential suppliers/builders to provide estimates. A quantity survey may also be required at this stage.
4. Consideration should then be given to a funding model that
provides opportunities for leveraging from various levels of government, with an achievable budget being the key criteria in the decision making process.
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CONCLUDING REMARKS
Based on demographic research and current survey data, a case for the delivery of childcare services in Trentham has been presented. Currently, given low responses for the take up of long day care positions, the case made does not present a compelling economic argument and is not without risk for any service delivery organisation. Importantly, the service has been modelled on delivering full time care throughout the working week. This would present the opportunity for some Trentham residents who currently use other long day care services to utilise services closer to home. Other advantages to this approach include:
- the service would attract the child care rebate which would reduce costs to parents and provide a more accessible service, - the service would present an opportunity to apply for the current Community Support Programme Sustainability Grant, providing a
significant contribution to ensure any service is at least a breakeven approach, and - the service could combine with other current early years learning and development programs to create a range of choices currently
unavailable in Trentham. The development an early years centre either as a new development or an extension of existing facilities (connected or located adjacent to the existing kindergarten) is also required, given the lack of an actual building from which to deliver childcare and the potential synergies that could be produced through the integrating of a range of early years care within one building or closely linked area.
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APPENDIX ONE: BUDGET ANALYSIS DETAILS
Trentham Childcare Model LDC Scenario-‐ Conservative
INCOME STREAMS Notes:INCOME Long Day Care Monday Tuesday Wednesday Thursday Friday Flexible Weekly Total
Daily Fee $80 per day 80.00$ 80.00$ 80.00$ 80.00$ 80.00$ 80.00$ Assumes all "flexible" responses do NOT use facility at any point but does assume all other repsonses use facility as surveyed.Number of Children Per Day 5 6 9 10 7 37 Total full days bookedSUB-‐TOTAL $400 $480 $720 $800 $560 $0 2,960$
Long Day Care (HALF Day / Absentee/Occasional) Monday Tuesday Wednesday Thursday Friday Flexible Weekly Total
Daily Fee $50 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ Assumes all "flexible" responses do NOT use facility at any point but does assume all other repsonses use facility as surveyed.Number of Children Per Day 3 2 4 1 2 12 These are total half days booked and would also be viewed as an occasional care option. Assumes a 4-‐5 hour booking.SUB-‐TOTAL $150 $100 $200 $50 $100 $0 600$
After School Care Monday Tuesday Wednesday Thursday Friday Flexible Weekly Total
Daily Fee $23 23.00$ 23.00$ 23.00$ 23.00$ 23.00$ 23.00$
Number of Children 6 6 6 6 5 29 Total after school care responsesSUB-‐TOTAL $138 $138 $138 $138 $115 $0 667$
Other Monday Tuesday Wednesday Thursday Friday Weekly Total
Fundraising 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ 25 Basic community fundraising option providing an additional $1300 per yearSustainability Assistance Grant 0 0 0 0 0 0
SUB-‐TOTAL $5 $5 $5 $5 $5 25$
TOTAL WEEKLY INCOME $693 $723 $1,063 $993 $780 $4,252
EXPENDITUREExpenditure -‐ Admin Weekly Total Annual All of these figures are related to administering the service and are provided in both weekly and annual amounts.Management Fees 192$ 10,000 Assumes an annual management fee of $10000 from service providerIT Support/Maintenance 19$ 1,000
Licence Fees/Subscriptions 29$ 1,500
Marketing 19$ 1,000
Office Supplies 19$ 1,000
Postage 10$ 500
Printing/Photocopier 19$ 1,000
Telephone 19$ 1,000
SUB-‐TOTAL 327$
Operations Weekly Total Annual All of these figures are to actually provide the childcare service EXCEPT staff which is covered in the next set of figures.Consumables (program materials) 77$ 4,000 Paper, paint, books, toys etc.Insurance 96$ 5,000
Building / Maintenance 19$ 1,000
Cleaning (supplies / contractor) 10$ 500
Gardenening 15$ 800
Equipment Purchase (Assets) 58$ 3,000 New chairs etc.Food/Grocery 96$ 5,000 Food for childrenElectricity 77$ 4,000
Depreciation -‐$ 0
Water Utility 15$ 800
Health & Safety 19$ 1,000
Bad Debts 38$ 2,000
Contingency Funding 96$ 5,000 Additional funds for covering any further unforseen consumption due to breakage, spoilage etc.Hygiene Services 19$ 1,000
Lease -‐$ 0
SUB-‐TOTAL 0 0 0 0 0 637$
Staff Monday Tuesday Wednesday Thursday Friday Weekly costs Annual costs
Cook ($20.34 per hour) Nil hours per week 0 0 0 0 0 0 0 No cook required as makes assumption that pre-‐packaged foods would generally be usedSenior Childcare worker $23.13 x (7.30-‐3.30) 176 176 176 176 176 879 45,705 Award rates appliedSenior Childcare Worker $23.13 x (1-‐6) 116 116 116 116 116 578 30,069 Award rates applied
Second Childcare Worker $20.31 x (7.30 -‐ 3.30) 154 154 154 154 154 772 40,133 Award rates appliedSecond Childcare Worker $20.31 x (1-‐6) 102 102 102 102 102 508 26,403 Award rates appliedAdmin Facilitator $37 x 8 hours per week 296 15,392 Partial cost applied to business allocated from a central management systemCert 3 10 hours per week part time ($15.00 per hour) 30 30 30 30 30 150 7,800
Casual 15 hours per week @ $26 3 3 3 3 3 390$ 20,280
Sick leave($21.74) 225 hrs annually 94$ 4,891 5 staff multiplied by 6 sick days multiplied by 7.5 hours eachAnnual leave ($21.74) 429 hrs annually 179$ 9,326 5 staff replaced for 2 weeks as centre is closed for 2 weeksStaff meetings 38$ 2,000 Provides a small amount to allow for attendance at staff meetingsSUB-‐TOTAL WAGES 580 580 580 580 580 3,885$ 201,998
Staffing ON COSTS Monday Tuesday Wednesday Thursday Friday Total Weekly Cost Relates to standard on costs for all permanent FT and PT staffLSL 13 13 13 13 13 63 Total wages for operations staff from above plus superannuation amount from line below multiplied by 2 percentSuperannuation 55 55 55 55 55 276 Total wages multiplied by 9.5 percentWorkcover 10 10 10 10 10 48 Total wages multiplied by 1.5 percentAnnual leave loading 2 2 2 2 2 12 Total wages multiplied by 5 percent and divided by 12 (to provide an amount for 4 weeks holiday)Uniforms 3 3 3 3 3 15 Direct amount providedStaff Training & recruitment 17 17 17 17 17 87 Total wages multiplied by 3 percentTotal Oncosts 100$ 100$ 100$ 100$ 100$ 501
TOTAL EXPENSES 5,349 Weekly total of admin, operations, staff and staff on-‐costs
NET RESULT
Total Income 4,252
Total Expenditure 5,349
NET INCOME (LOSS) $0 $0 $0 $0 $0 -‐1,097 Total weekly profit or loss
Percentages used in formulaLong Service Leave 2.0% Calculation = (Total Wages for full time and part time staff directly related to this operation + Superannuation) * LSL %
Superannuation 9.50% Calculation = Total Salary & Wages * Superannuation %
Staff Training and Recruitment 3% Calculation = Total Salary & Wages*Staff T&R
Workcover 1.5% Calculation = (Total Salary & Wages + Superannuation) * workcover %
Management Fee 7.50%
Support Services Fee 6.50%
Trentham Childcare Model LDC Scenario-‐ Optimistic
INCOME STREAMS Notes:INCOME Long Day Care Monday Tuesday Wednesday Thursday Friday Flexible Weekly Total
Daily Fee $80 per day 80.00 80.00 80.00 80.00 80.00 80.00 Assumes all "flexible" responses DO use facility at an average one day per week.Number of Children Per Day 5 6 9 10 7 7 44 Total full days bookedSUB-‐TOTAL $400 $480 $720 $800 $560 $560 3,520$
Long Day Care (HALF Day / Absentee/Occasional) Monday Tuesday Wednesday Thursday Friday Flexible Weekly Total
Daily Fee $50 50 50 50 50 50 50 Assumes all "flexible" responses DO use facility at an average half day per week.Number of Children Per Day 3 2 4 1 2 13 25 These are total half days booked and would also be viewed as an occasional care option. Assumes a 4-‐5 hour booking.SUB-‐TOTAL $150 $100 $200 $50 $100 $650 1,250$
After School Care Monday Tuesday Wednesday Thursday Friday Flexible Weekly Total
Daily Fee $23 23 23 23 23 23 23
Number of Children 6 6 6 6 5 5 34 Total after school care responsesSUB-‐TOTAL $138 $138 $138 $138 $115 $115 782$
Other Monday Tuesday Wednesday Thursday Friday Weekly Total
Fundraising 5 5 5 5 5 25 Basic community fundraising option providing an additional $1300 per yearSustainability Assistance Grant 0 0 0 0 0 0
SUB-‐TOTAL $5 $5 $5 $5 $5 25$
TOTAL WEEKLY INCOME $693 $723 $1,063 $993 $780 $5,577
EXPENDITUREExpenditure -‐ Admin Weekly Total Annual All of these figures are related to administering the service and are provided in both weekly and annual amounts.Management Fees 192$ 10,000 Assumes an annual management fee of $10000 from service providerIT Support/Maintenance 19$ 1,000
Licence Fees/Subscriptions 29$ 1,500
Marketing 19$ 1,000
Office Supplies 19$ 1,000
Postage 10$ 500
Printing/Photocopier 19$ 1,000
Telephone 19$ 1,000
SUB-‐TOTAL 327$
Operations Weekly Total Annual All of these figures are to actually provide the childcare service EXCEPT staff which is covered in the next set of figures.Consumables (program materials) 77$ 4,000 Paper, paint, books, toys etc.Insurance 96$ 5,000
Building / Maintenance 19$ 1,000
Cleaning (supplies / contractor) 10$ 500
Gardenening 15$ 800
Equipment Purchase (Assets) 58$ 3,000 New chairs etc.Food/Grocery 96$ 5,000 Food for childrenElectricity 77$ 4,000
Depreciation -‐$ 0
Water Utility 15$ 800
Health & Safety 19$ 1,000
Bad Debts 38$ 2,000
Contingency Funding 96$ 5,000 Additional funds for covering any further unforseen consumption due to breakage, spoilage etc.Hygiene Services 19$ 1,000
Lease -‐$ 0
SUB-‐TOTAL 0 0 0 0 0 637$
Staff Monday Tuesday Wednesday Thursday Friday Weekly costs Annual costs
Cook ($20.34 per hour) Nil hours per week 0 0 0 0 0 0 0 No cook required as makes assumption that pre-‐packaged foods would generally be usedSenior Childcare worker $23.13 x (7.30-‐3.30) 176 176 176 176 176 879 45,705 Award rates appliedSenior Childcare Worker $23.13 x (1-‐6) 116 116 116 116 116 578 30,069 Award rates appliedSecond Childcare Worker $20.31 x (7.30 -‐ 3.30) 154 154 154 154 154 772 40,133 Award rates appliedSecond Childcare Worker $20.31 x (1-‐6) 102 102 102 102 102 508 26,403 Award rates appliedAdmin Facilitator: 8 hours per week 296 15,392 Partial cost applied to business allocated from a central management systemCert 3 10 hours per week 25 25 25 25 25 123 6,413
Casual 30 hours per week @ $26 5 6 7 7 5 780$ 40,560
Sick leave($21.74) 225 hrs annually 94$ 4,891 5 staff multiplied by 6 sick days multiplied by 7.5 hours eachAnnual leave ($21.74) 429 hrs annually 179$ 9,326 5 staff replaced for 2 weeks as centre is closed for 2 weeksStaff meetings 38$ 2,000 Provides a small amount to allow for attendance at staff meetingsSUB-‐TOTAL WAGES 577 578 579 579 577 4,248$ 220,892
Staffing ON COSTS Monday Tuesday Wednesday Thursday Friday Total Weekly Cost Relates to standard on costs for all permanent FT and PT staffLSL 13 13 13 13 13 63 Total wages for operations staff from above plus superannuation amount from line below multiplied by 2 percentSuperannuation 55 55 55 55 55 275 Total wages multiplied by 9.5 percentWorkcover 9 9 10 10 9 47 Total wages multiplied by 1.5 percentAnnual leave loading 2 2 2 2 2 12 Total wages multiplied by 5 percent and divided by 12 (to provide an amount for 4 weeks holiday)Uniforms 3 3 3 3 3 15 Direct amount providedStaff Training & recruitment 17 17 17 17 17 87 Total wages multiplied by 3 percentTotal Oncosts 100$ 100$ 100$ 100$ 100$ 498
TOTAL EXPENSES 5,710 Weekly total of admin, operations, staff and staff on-‐costs
NET RESULT
Total Income 5,577
Total Expenditure 5,710
NET INCOME (LOSS) $0 $0 $0 $0 $0 -‐133 Total weekly profit or loss
Percentages used in formulaLong Service Leave 2.0% Calculation = (Total Salary & Wages + Superannuation) * LSL %
Superannuation 9.50% Calculation = Total Salary & Wages * Superannuation %
Staff Training and Recruitment 3% Calculation = Total Salary & Wages*Staff T&R
Workcover 1.5% Calculation = (Total Salary & Wages + Superannuation) * workcover %
Management Fee 7.50%
Support Services Fee 6.50%