Transcript Document

Cost Modeling
Results in Washington State
Juliet Morrison
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Context Setting
• Tiered Reimbursement: Washington used the cost model
and data to inform suggested percentages for Tiered
Reimbursement strategy tied to TQRIS, Early Achievers
• Legislative Task Force 5595: In 2012, task force convened to
make recommendations on Tiered Reimbursement and
subsidy system
• Mandatory Subject of Bargaining: Tiered Reimbursement
and any economic incentive tied to TQRIS is subject to
bargaining per the collective bargaining agreement
• Use of Provider Data: Cost model included actual costs of
doing business from both family child care and child care
centers participating at various levels in Early Achievers
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Key Lessons Learned
• Data confirming Iron Triangle: It was surprising to some that
the base rate was sufficient for lower quality programs but
those rated a Level 3-5 were not financially sustainable
• Target Audience: Legislators, Task Force, Family Child Care
Union, Early Learning Providers participating in Early
Achievers
• Use of Data:
– Influenced final task force recommendations
– Used in bargaining to set final rates
– Used to set percentages in Tiered Reimbursement for
Levels 3-5
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Average Home Net Annual Revenue by Level with 8 or 12 children, 100% WCCC revenue, no
private tuition revenue, ages infants through school-age, 85% efficiency
$60,000
$49,470
$50,000
$42,424
$44,005
$43,459
$42,020
$41,872
$40,620
$40,000
FCC Home
$28,960
$30,000
FCC Home w/asst
$20,000 $40,684
$41,755
$42,913
$42,753
$42,901
Minimum Wage (70
hr/wk)
$10,000
Director Mean Wage
$0
Level 1
Level 2
Level 3
Level 4
Level 5
Preschool Teacher Mean
Wage
Average Size Center (72 children), 100% WCCC revenue, no private tuition revenue
Net annual revenue per child by Level, ages infants through school age, 85% efficiency
$1,000
$437
$500
$329
$0
($0)
Regulated/Level 1
Level 2
Level 3
($500)
Level 4
Level 5
($1,000)
($838)
($1,500)
($1,691)
($2,000)