Transcript The Many Roles of an ECE Director - Alliance for Early Childhood

Using the Alliance Model in Early
Childhood
Convened by CCRC, Loraine OH
Louise Stoney,
Alliance for Early Childhood Finance
May 13, 2010
High-Quality ECE is Essential
INVENTED
THE NEXT
NEW
THING
COST
BENEFIT
Dollars
DIDN’T
START
SELLING
DRUGS
GOT A
MUCH
BETTER
JOB AND
PAID
MORE
TAXES
DIDN’T
DROP OUT
OF HIGH
SCHOOL
DIDN’T
HAVE TO
REPEAT A
GRADE
DIDN’T
BEAT UP A
BOY
Age
Source: Paul Sheldon, Citicorp. Based on data from ECE model programs like Perry Preschool and Abecedarian
21
National Context:
Focus on Quality, Accountability,
Results
 Higher Standards
 More accountability
 More complexity – in service
delivery and reporting
 Increased costs
Achieving good results for kids isn’t easy!
ECE is Market-Based:
Most Revenue is Tuition & Fees
Consumer tuition is the largest source of revenue, roughly 57%
of total industry receipts
Private sector revenue has increased dramatically but still less
than 4% of total
Private
Sector
Government funding
@ 39% of total, and
is primarily portable
funding (vouchers Families
or tax benefits)
Gov't
Bottom-Line Issues for
ECE Businesses
 Ensure Full Enrollment – every day, in
every classroom
 Collect Tuition & Fees – in full and ontime
 Fees cover cost or have 3rd party
revenue source to fill the gap
The Many Roles of an ECE
Director
The average child care center serves 75 children;
In many centers a single director is responsible for multiple tasks.
Market Challenges
 Lack of effective demand from
consumers for high quality services.
 Insufficient product differentiation makes it difficult
for consumers to obtain information on the quality of
early care and education services.
 Low profitability due to high labor costs, quality
standards, and price-sensitive consumers.
 No economies of scale in an industry composed of
very small businesses.
Shared Services
• Purchasing goods & services
• Food Services (including CACFP admin)
• Quality Support – mentor teachers,
classroom & child assessments, etc.
• Management/Administration (e.g. team of
directors/supervisors)
• Fiscal (Billing and Fee Collection)
• Marketing
• Fundraising
• Human Resources & Staffing
• Health/Mental Health/Family Support
28 Alliances Across the US
(May 2010)
Northwest - 1
Northeast - 8
Seattle
Lowell, MA
Seacoast Region NH
Steuben County NY
Rockland County NY
Philadelphia
Pittsburgh (exploring)
Baltimore (exploring)
Fairfax VA
Southwest - 10
Midwest - 4
San Francisco
(emerging)
Alameda County, CA
(exploring)
Minneapolis
(exploring)
Colorado:
8 Early Learning
Ventures affiliates:
1 exploring
3 emerging
4 existing
Grand Rapids
(exploring)
Southeast – 5
Columbus OH
Lorain OH
(exploring)
Atlanta
New Orleans (emerging)
Chattanooga
Nashville (exploring)
Miami (exploring)
A National Movement:
Growing Engagement from Philanthropy and
Government
Annie E. Casey Foundation
David and Laura Merage Foundation
William Penn Foundation
Miriam and Peter Haas Fund
Goizueta Foundation
United Way
WK Kellogg Foundation
Community Development Agencies
CCDF/TANF/Head Start
….and many other local funders
Getting Started
• Shared Services is a framework that
builds on existing institutions and
strengths
– Not a “franchise” - looks different
in different communities
– Is rooted in shared leadership
• Can include a variety of services an
entry points
-- One size does not have to fit all
One Option:
A Two-Level Approach
Statewide/Regional services
•Delivered, via web portal, to large number of centers and
home-based providers in the state or region
•Examples: bulk purchasing, insurance, HR support,
marketing templates, credit card payment, etc.
In-depth services
•Delivered to a smaller group of centers or homes who are
ready for much more intensive interaction
•Examples: ECE staffing service, invoicing/fiscal
management support, mentor teachers, child
assessments, collaborative approach to data collection or
licensing/QRIS compliance, etc.
To check out the website, go to
www.ecesharedresources.org
Click Membership on the top bar
Sign up for a temporary passcode
Shared Services In-Depth
Examples:
 The Children’s Home in Chattanooga, TN
 Sound Child Care Solutions in Seattle, WA
 Infant-Toddler Family Day Care in Fairfax, VA
A Potential ECE Network
Research & Development:
Information Technology,
data collection & analysis, etc.
Bulk Purchase of
Goods and
Services
Comprehensive
Services: health,
mental health, social
services, family
support
Green
Hills
Child
Care
Center
Happy
Acres
Day
Care
Tender
Tots PreSchool
Network
Hub
(Shared Staff)
Annie’s
Nursery
School
Classroom Supports:
mentor teachers,
classroom assessments,
QRIS support, etc.
Administrative Services:
payroll, billing, fee
collection, marketing,
tax/finance support, etc.
Mary’s
Family
Child
Care
Home
The
Newberry
After
School
Program
Human Resources
including health &
retirement benefits,
Unemployment
Insurance, etc.
Staff Recruitment &
Screening,
including
substitutes
Fundraising and Fund
Development (from public
and private sources)
A Potential ECE Network
Happy Acres Day Care
work
Payroll, billing, fee
collection, etc.
Green Hills Child
Care Center
Research &
Development
Network
Hub
Tender Tots Pre-School
Shared Staff:
health, MH, SS,
family support, etc.
Employee Benefits
Pre-K Class at
Lakewood
Elementary
Wage Subsidies /
Employment Tax
Credits
Staff Recruitment &
Screening
Briarwood CCR&R
QRIS Support
Annie’s Nursery
School
The Newberry
After School
Program
Mary’s Family
Child Care
Home
Reinventing the Industry:
New Approaches to Staffing & Budgeting
A Shared Service approach offers the
opportunity to re-think staffing and
supervision, job descriptions, roles,
responsibilities, etc.
In ECE, staffing patterns
have a profound impact
on the budget.
Budget for Small Center:
20 Full-Time Children
Expenses
Revenues
Before Alliance
After Alliance
Teaching Staff
$92,000
$92,000
Admin Staff
$45,000
$11,000
Food & Supplies
$13,500
$12,000
Acct / Leg / Insurance
$3,500
$0
Other Operations
$5,000
$4,000
Prof. Development
$2,000
$0
$161,000
$119,000
Totals
Reduced site expenses due to
shared services: $42,000
Revenues for this center
increased by $20,000 in the
first year, due to improved
fiscal management and full
enrollment.
A total of $62,000 is now
available to support
shared administration
and/or to invest in quality
improvements in the
center.
Staffing Changes in Small
Center: 20 Full-Time Children
Before Alliance
After Alliance
Full-Time Director
Part-Time Director*
(On-Site 25% of Time)
Two Lead Teachers
Four Assistant Teachers
(Some Part-Time)
One Supervising Teacher
One Lead Teacher
Four Assistant Teachers
(Some Part-Time)
*Director spends remaining 75% of time at central office, on administrative
tasks supporting ALL sites in the Alliance, including this one.
Budget for Larger Alliance
Center: 65 Full-Time Children
Expenses
Revenues
Before Alliance
After Alliance
Teaching Staff
$450,000
$450,000
Admin Staff
$150,000
$54,000
Food & Supplies
$40,000
$37,000
Acct / Leg / Insurance
$15,000
$0
Other Operations
$50,000
$48,000
Prof. Development
$4,000
$2,000
$709,000
$591,000
Totals
Reduced site expenses due to
shared services: $118,000
Revenues for this center
increased by $35,000 in the
first year, due to improved
fiscal management, quality
and full enrollment.
A total of $153,000 is
now available to
support shared
administration and/or
to invest in quality
improvements in the
center.
Staffing Changes in Larger
Center: 65 Full-Time Children
Before Alliance
Full-Time Director
After Alliance
Full-Time Asst. Director
Full-Time Site Director
Full-Time Secretary
Full-Time Secretary
Four Lead Teachers
Four Lead Teachers
12 Asst. Teachers
(Including Part-Time)
12 Assistant Teachers
(Including Part-Time)
Long-Term Results from
Shared Services
Stronger Team of Professionals

Better Cash Flow & Fiscal Stability
✚
Higher Quality Early Learning Program

Children Ready for School