Ece compensation policy options for louisiana
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ECE Compensation & Policy Options for Louisiana. Presentation by Louise Stoney, Alliance for Early Childhood Finance to Louisiana Children’s Cabinet Advisory Board November 21, 2013 Baton Rouge, Louisiana. What is the most important indicator of a high-quality early learning program?.

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ECE Compensation & Policy Options for Louisiana

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Ece compensation policy options for louisiana

ECE Compensation & Policy Options for Louisiana

Presentation byLouise Stoney, Alliance for Early Childhood Finance

to

Louisiana Children’s Cabinet Advisory Board

November 21, 2013

Baton Rouge, Louisiana


What is the most important indicator of a high quality early learning program

What is the most important indicator of a high-quality early learning program?

The TEACHERS who interact with children every day!

  • Highly skilled teachers and age-appropriate curricula

  • A language-rich environment

  • Warm, responsive interactions between staff and children

  • Small class sizes and high adult-to-child ratios


High turnover poor quality

High Turnover = Poor Quality

In Louisiana the median child care center turnover rate is 33% for lead teachers and 50% for assistant teachers

  • Centers with high turnover have lower levels of quality, less favorable teacher-child interactions.

  • Children in programs with high teacher turnover often have lower levels of language, cognitive and social development


School readiness tax credits

School Readiness Tax Credits

An innovative approach that makes a real difference…


Impact of srtc

Impact of SRTC

Participation in LA Career Lattice has more than tripled since the SRTC was implemented.


But the wage gap is still large especially when benefits are included

But the wage gap is still large, especially when benefits are included…


W hen benefits are included filling the wage gap feels impossible

When benefits are included, filling the wage gap feels impossible


What to do

What to do?

Meaningful steps toward narrowing the wage gap can be made if Louisiana is willing to:

  • craft a multi-faceted strategy to increase revenues and enrollment in market-based ECE; and,

  • strategically link dollars to quality standards.


The iron triangle of ece finance

The Iron Triangle of ECE Finance

  • Ensure full enrollment – every day, in every classroom

  • Collect tuition and fees – in full and on-time

  • Revenue covers per-child cost (tuition, fees + 3rd party funding)


Ece compensation policy options for louisiana

  • “Iron Triangle” Approach: 95% enrollment, 2% uncollectible debts

  • Very difficult to achieve with high subsidy co-pays, low absence policy & no targeting

  • Very difficult to achieve in smaller centers


The iron triangle of ece finance1

The Iron Triangle of ECE Finance

  • Ensure full enrollment – every day, in every classroom


Enrollment affects cost of care

Enrollment Affects Cost of Care


The iron triangle of ece finance2

The Iron Triangle of ECE Finance

  • Collect tuition and fees – in full and on-time


Family co payments m ust be affordable

Family Co-Payments Must be Affordable


Affordable co payments based on of family income

Affordable Co-Payments: Based on % of Family Income


The iron triangle of ece finance3

The Iron Triangle of ECE Finance

  • Revenue covers per-child cost (tuition, fees + 3rd party funding)


Ece compensation policy options for louisiana

  • Base case shows net revenue before provider SRTC

    • Typical centers lose money

    • Higher levels of quality have worse financials

  • Adding SRTC helps improve the picture


Ece compensation policy options for louisiana

  • “Iron Triangle” Approach: 95% enrollment, 2% uncollectible debts

  • Very difficult to achieve with high subsidy co-pays, low absence policy & no targeting

  • Very difficult to achieve in smaller centers


Ece compensation policy options for louisiana

Shared Service Alliances

(local or regional)

  • Administrative services – data on cost per child, strong fiscal management/oversight

  • Fund development – collaborative fundraising for shared costs

  • Staffing – shared staff across sites (admin back office, floaters, curriculum/PD support, shared director in small sites, etc.)


Recommendations

Recommendations

  • Increase the Value of School Readiness Tax Credits for Teachers and Directors

  • Revise CCAP policy to:

    • Raise rate ceiling

    • Lower parent fees (base on % of income vs price of care)

    • Base reimbursement on enrollment vs attendance (which is current policy in public schools & Head Start)

    • Consider child development needs when determining eligibility


Recommendations1

Recommendations

  • Focus CCAP dollars on high-quality ECE programs

    • Require minimum star-rating to participate and gradually raise the floor

  • Acknowledge that full enrollment is a financing strategy

    • Establish contracts for high-quality providers

    • Require Pilots to fill existing high-quality slots before opening new ones

  • Promote Shared Service Alliances


Trade offs

Trade-Offs

  • Progress will not be easy, and it will require some tough trade-offs

  • In order to boost quality you will most likely need to reduce the number of children you serve

  • In order to raise wages and keep high-quality programs full you will need to ‘shrink’ the number of programs that receive subsidy dollars

  • These trade-offs are worth it; they are the price of progress


For further information

For Further Information

www.opportunities-exchange.org

www.earlychildhoodfinance.org


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