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Transcript of The Massachusetts Early Education and Care and Out-of- School Time Quality Cost Model Anne...
The Massachusetts Early Education and Care and Out-of-School Time Quality Cost Model
Anne MitchellAndrew Brodsky
Presentation to the Massachusetts Department of Early Education and Care
October 16, 2012
Project Goals
Identify child care cost drivers of levels from licensing through QRIS levels
Create interactive model to estimate costs of child care quality in MA
Estimate cost implications of changing reimbursement rates
Identify current and potential financing strategies for child care quality
Cost Methodology
Baseline cost estimates based on cost of licensing
Cost to achieve given distribution of quality based on analysis of cost-related components of QRIS system
If data are available, costs determined separately by region
Excel Model Features
Allows user to change distribution of quality (beginning at licensing)
Allows user to adjust supports for high quality child care (such as grants) and view resulting costs
Allows user to adjust reimbursement rate structure
Excel Model Output
Current and projected enrollment by age and setting
Additional costs based on changes to enrollment and quality distribution, by setting
Additional costs based on changes to reimbursement rates
Cost of quality grants to providers
Factors Affecting Quality
Higher quality ECE costs more than most families can afford
Market-based ECE encourages price competition – low tuition fees – and discourages investments in quality
Considerations for Estimating Costs
Expense drivers: Ratios Group size Staff compensation (salary and benefits)
Revenue drivers: Parent tuition fees/other revenue Revenue collection Enrollment efficiency
Provider perspective: Iron Triangle
Full Enrollment
Full Fee Collection
Revenues Cover Per-Child Cost
Supporting Financial Stability
State can… Set family income eligibility high for entry and
higher for exit Use contracts more than vouchers Set rate ceilings as high as feasible
Providers can… Fill vacancies immediately to keep enrollment as
close to 100% as possible Collect all revenue on time Diversify revenue: Participate in CACFP, PreK &
other revenue sources
DRAFT - 3-27-12
Considerations for Estimating Cost: QRIS
Requirements in licensing rules
QRIS expectations increase by levels
Primarily better qualified staff as quality increases (higher compensation)
More staff time for assessment, family activities and conferences, curriculum planning, staff meetings
One-time costs for equipment
DRAFT - 3-27-12
Massachusetts QRIS SystemCurriculum and Learning
Level 1 (from regs) Level 2 Level 3 level 4Max group & staffInfants: 7 w/2 staffToddlers: 9 w/2 staffPreschoolers: 20 w/2 staffSchool-age: 26 w/2 staff
professional development incurriculum, screening tools, and formative assessment
professional development in the curriculum; using the MA ELGs; documenting children's progress; and working with children from diverse languages and cultures and second language acquisition.
ITERS/ECERS self-assessed score avg 3.0(no item below 3.0)
reliable scores:ITERS/ECERS avg 5.0 (no item below 4.0)CLASS 3+
reliable scores:ITERS/ECERS avg 6.0 (no item below 5.0)CLASS score 6-7
Written child progress report shared with parents: 4 x year for infants/toddlers2 x preschoolers1 x school-agers
Progress reports with parents 3 x year and 4 x year for 0-3 +/or CWD
outside consultants with expertise in children's behavior and mental health to provide support and assistance to staff
Massachusetts QRIS SystemWorkforce qualifications and professional development
Level 1 Level 2 Level 3 level 4Director I: lead teacher qualified plus 2 credits in child care admin and 2 credits in ECE/CDDirector II: same as I plus 2 credits
Administrator has CDA plus training in adult supervision, MA ELGs, Strengthening Families, and MA core competencies
Administrator has BA (or progress toward achieving it) with 24 credits ECE and 9 credits admin/mgt
Plus 5 years’ experience
Lead teacher: age 21, high school plus 12 credits ECE/CD or high school plus CDA (specific to 0-3 or preschool)Teacher: age 21 or high school diploma/GED plus two-year high school vocational program in early childhood education or CDATeacher assistant: age16 or high school diploma
All staff min high school plus all educators min 3 credits in ECE
50% of classrooms have educator with BA or higher
75% have BA or higher
100% BA or higher and all have 30 credits ECE
20 hrs PD annually (FT staff)
All staff have IPDP
Massachusetts Cost of Quality Survey (2012)
Used in the model
Data confirms BLS wages, cost of training and continuing professional development
Data informed non-personnel costs Materials and equipment Child screening and assessment
14
The Massachusetts Early Education and Care and Out-of-School Time Quality Cost Model – Screen Shots
Massachusetts QRIS Cost Model CENTERS
Items in yellow shaded cells ONLY may be changed to model different scenarios Please change only yellow cellsRatios in Just FYI:
SIZE # Children/Age Age Groups # of Classrooms Group Size MA regs NAEYC (max)7 Infants-15 months 1 7 1:3 2:89 Toddlers (15-33) 1 9 1:5 2:10
20 Threes 1 20 1:10 2:1820 Fours 1 20 1:10 2:2026 Fives & SA 1 26 1:1382 5
TOTAL Children TOTAL Classrooms
INCOME MIX of CHILDREN70% 185% FPL&above15% <185% FPL15% <130% FPL
TypicalEFFICIENCY Enrollment as % of total capacity 85.0% 85%
Bad Debts as % of tuition 3.0% 3%
QUALITY By age cohort Across all ages Net Annual P/L with mix of child ages Net as % Net as $$/childLevel 1 Cost per hour Overall Cost/hour
Infants $7.26 $3.78 $620,249 ExpenseOnes $6.40 $721,701 RevenueTwos $5.93 $101,452 Profit/(Loss) Rev less Exp 16.4% $1,237
Threes $3.34Fours $3.34Fives $2.88
Level 2Infants $8.10 $4.18 $685,598 Expense
Ones $7.13 $721,701 RevenueTwos $6.60 $36,103 Profit/(Loss) Rev less Exp 5.3% $440
Threes $3.68Fours $3.68Fives $3.16
Level 3Infants $9.38 $4.88 $800,652 Expense
Ones $8.37 $781,303 RevenueTwos $7.73 ($19,349) Profit/(Loss) Rev less Exp -2.4% $236
Threes $4.35Fours $4.35Fives $3.64
Level 4Infants $10.02 $5.35 $877,415 Expense
Ones $9.18 $852,363 RevenueTwos $8.47 ($25,052) Profit/(Loss) Rev less Exp -2.9% $306
Threes $4.77Fours $4.77Fives $4.16
Scenario 1: BLUE line on graphScenario 1. Center: 5 classrooms (infants, toddlers, threes, fours and fives/school-age)
Quality Net Annual P/L
Net as % of Expenses
Net as $$/child
Level 1 $620,249 Expense$721,701 Revenue$101,452 Profit/(Loss) Rev less Exp 16.4% $1,237
Level 2 $685,598 Expense$721,701 Revenue
$36,103 Profit/(Loss) Rev less Exp 5.3% $440
Level 3 $800,652 Expense$781,303 Revenue($19,349) Profit/(Loss) Rev less Exp -2.4% $236
Level 4 $877,415 Expense$852,363 Revenue($25,052) Profit/(Loss) Rev less Exp -2.9% $306
Scenario 2: RED line on graph
Scenario 2. 5 classrooms (toddlers, threes, 2 fours and fives/school-age)
Quality Net Annual P/L
Net as % of Expenses
Net as $$/child
Level 1 $639,632 Expense$813,329 Revenue$173,697 Profit/(Loss) Rev less Exp 27.2% $1,828
Level 2 $704,981 Expense$813,329 Revenue$108,348 Profit/(Loss) Rev less Exp 15.4% $1,141
Level 3 $820,230 Expense$891,989 Revenue
$71,758 Profit/(Loss) Rev less Exp 8.7% $755
Level 4 $896,993 Expense$973,836 Revenue
$76,843 Profit/(Loss) Rev less Exp 8.6% $809
Scenario 3: GREEN line on graphScenario 3. Preschool & Fives/SA only (106 children)
Quality Net Annual P/L
Net as % of Expenses
Net as $$/child
Level 1 $656,033 Expense$888,706 Revenue$232,673 Profit/(Loss) Rev less Exp 35.5% $2,195
Level 2 $721,382 Expense$888,706 Revenue$167,325 Profit/(Loss) Rev less Exp 23.2% $1,579
Level 3 $836,796 Expense$985,502 Revenue$148,706 Profit/(Loss) Rev less Exp 17.8% $1,403
Level 4 $913,559 Expense$1,076,136 Revenue
$162,577 Profit/(Loss) Rev less Exp 17.8% $1,534