Partnerships, Alliances, and Coordination Techniques

Financing

February 2008

Facilitated By:The National Child Care Information and Technical Assistance Center (NCCIC)

NCCIC Is a Service of the Child Care Bureau

Presenter

Today’s Agenda

Session Objectives

Participants will be able to…

1. Understand basic steps to planning financing strategies for partnerships

2. Identify and analyze present funding opportunities

3. Understand and apply successful financing strategies

PACT

• PACT is an initiative of NCCIC, a service of the Child Care Bureau, U.S. Department of Health and Human Services

• PACT gives State, Territory, and Tribal policymakers—particularly Child Care and Development Fund Administrators and their partners—the resources they need to build more comprehensive and collaborative early care and school-age programs for serving children and families

PACT Materials

• PACT Collaborative Leadership Strategies: A Guide for Child Care Administrators and Their Partners

• Web-based guide contains an introduction and six training modules:– Fundamentals of Collaborative Leadership– Creating, Implementing, and Sustaining Partnerships– Communication Strategies– Management Strategies for Successful Partnerships– Financing – Building Capacity to Evaluate Partnership Initiatives

1. Understand Basic Steps to Planning Financing Strategies

• Determine the goals

• Define what needs financing

• Define benchmarks and measurements

• Determine the cost

Getting Started: Determine the Goal

• Seek commitment from stakeholders

• Identify common interest

• Define problem

• Agree on purpose

• Set vision/goals

Sample Vision Statements

• All family, friend, and neighbor caregivers will have the tools and supports they need to provide high-quality child care and to provide the development opportunities children need to succeed in school and life.

Low-income working families will have access to high-quality infant and toddler child care.

Define What Needs Financing

• Use Goals/Vision

• Agree on the “what”

Define Benchmarks and Measurements

• Identify indicators or performance measures

• Create strategies to address indicators

• Regularly monitor efforts

Sample Benchmarks

• Shorter-term benchmarks– Provide 120 hours of training to family, friend, and

neighbor caregivers in county– Provide books and resources to support training of

family, friend, and neighbor caregivers in training• Longer-term benchmarks

– 40 percent of family, friend, and neighbor caregivers will start training within the year

– All families in county will have access to trained family, friend, and neighbor caregivers

Determine the Cost

• Cost Projection

• Budget Models

• Cost Allocation

Cost Projections

Create a cost model

–Identify the cost factors

»Salaries, supplies

–Identify the cost influences

»Duration

–Baseline estimates

Budget Model

Is based on a program model• Pre-K contracting with child care• Head Start partner with child care subsidy

Indicates various programs contribution and variables

• Framework for fiscal budgeting

Cost Allocation

– Is an organized way to identify the cost shared across organizations, grants, or contracts

– Shows prorated cost across several programs

– Provides a mechanism for equitable distribution of shared cost

2. Identify and Analyze Present Funding

• Identify existing funding and regulations

• Analyze present spending

• Identify gaps and unnecessary or duplicative spending

• Use existing data or gather data

• Identify experts on funding streams

2. Identify and Analyze Present Funding

• What categories of spending/funding will be included in the analysis? Who will decide?

• Who are the experts on the budget/fund source?

• Under whose authority is the budget being considered?

• What is the funding source?

• What is the timeframe for the fund source?

• Are there specific outcome measures associated with fund source?

• Is the fund source an appropriate use for the project?

• Are there duplications?• What is the current spending

level?• Are there opportunities to

maximize or leverage funds?

QUESTIONS TO CONSIDER:

Analyze Present Funding, Example 1

Johnson, K. (2006). Developing fiscal analyses and children’s budgets to support ECCS and children. p. 3. Retrieved February 8, 2008, from www.nccp.org/publications/pdf/text_677.pdf.

Analyze Present Funding, Example 2

Johnson, K. (2006). Developing fiscal analyses and children’s budgets to support ECCS and children. p. 3. Retrieved February 8, 2008, from www.nccp.org/publications/pdf/text_677.pdf. .

Analyze Present Funding, Example 3a

Johnson, K. (2006). Developing fiscal analyses and children’s budgets to support ECCS and children. p. 3. Retrieved February 8, 2008, from www.nccp.org/publications/pdf/text_677.pdf.

Analyze Present Funding, Example 3b

Johnson, K. (2006). Developing fiscal analyses and children’s budgets to support ECCS and children. p. 4. Retrieved February 8, 2008, from www.nccp.org/publications/pdf/text_677.pdf..

Consider All Possible Funding Streams

• Federal Funding

• State Funding and Investments

• Local Government Funding and Investments

• Public–Private Partnerships Funding

Federal Funding Streams

• 21st CCC• CACFP • CCDF • Child and Dependent

Care Tax credit • CHIP• Early Reading First • Even Start • Head Start

• Early Head Start • IDEA Part C and Part B • OJJDP • SSBG • TANF • Title I • WIC • Workforce

Development

State Funding Streams

• State child care tax credits

• State Department of Education

• State early childhood education investments

• State-funded prekindergarten

• State juvenile justice program

• State match to the CCDF

• State Workforce Development Boards

• TANF Transfers

• TANF Direct

Local Funding Streams

Examples• Local tax for early childhood education• United Way• City and County general revenues• Foundation Affinity Groups

Public-Private Partnerships

–Employers

–Private philanthropy

–State incentives for local partnerships

3. Become Familiar With Successful Financing Strategies

– Make better use of existing resources– Maximize public revenue/federal revenue– Generate or create new revenue– Allocate public revenue in new ways– Expand private sector finance– Enlist Public Private partnerships– Build new partnerships– Create more flexibility in existing funding

streams

Review Successful Finance Strategies and Models

• Higher Education model– Financial aid need analysis– Financial aid packaging and administration– Use of diverse forms of financial aid– Use of diverse sources of revenue– Approaches to institutional support and

pricing

• Housing model– Low income housing tax credit– Home mortgage tax deduction

Planning Assistance/Resources

Additional Resources• The Alliance for Early Childhood Finance• BUILD Initiative• Linking Economic Development and Child Care• Policy Matters• Smart Start’s National Technical Assistance Center• Strengthening Families

Projects with Federal Funding• Afterschool Investment Project• NCCIC, PACT• State ECCES Grants

State Models

• Louisiana – Created a children’s budget to support ECE Priority Areas

• Kansas – Used Economic Impact Study to support finance strategy for early childhood education

Local Models

• Seattle, Washington – Used several approaches to fund increase in quality and quantity early learning activities

• Aspen, Colorado – Used a taxing strategy to provide increased funding for child care

Finalize the Deal -Create Your Own Strategy

– Agree on approach

– Make clear in writing the approach and commitment from partners

– Create infrastructure

– Plan for maintaining strategy and sustaining effort

– Plan for evaluation of strategy

Review

Closing

• Personal reflections

• Personal learning plan

• Quality improvement

• Session evaluation

Reflections

• I learned …

• I relearned …

• I will apply …

• I would like to know more about …

• I am surprised by …

Thank you!

Facilitated by the National Child Care Information and Technical Assistance Center

10530 Rosehaven Street, Suite 400 ● Fairfax, VA 22030Phone: 800-616-2242 ● Fax: 800-716-2242 ● TTY: 800-516-2242

Email: info@nccic.org ● Web: http://nccic.acf.hhs.gov

PACT is an initiative of NCCIC, a service of the Child Care Bureau