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JUNE 7, 2016 Leveraging Funding Sources Panel
J U N E 7 , 2 0 1 6
Leveraging Funding Sources
Panel
LEVERAGING AND BRAIDING FUNDING SOURCES • Amanda Lopez, Transform Consulting Group • Kathryn Raasch, Principal, Wayne Township
Preschool • Kay S. Gordon, State Director, Transition
Resources Corporation (Early Head Start-Child Care Partnership grantee)
• Cynthia Smith, Prevention Manger, Indiana Department of Child Services
• Kimberly Schroeder, Program Officer, Dekko Foundation
• Heidi Schlueter, Indiana Director, First Children's Finance
Amanda Lopez
2014 - ELAC Funding Streams workgroup sought to answer “How much funding is
available in Indiana to support early learning?”
Types of Funding
Funding Sources: • Federal funding • State funding • Local funding • Philanthropic and • Private funding
Categories
Categorized by: • Age group (0-3 and 3-4) and • How funding may be used to further the
goals of accessibility, affordability and/or quality
• Definitions of funding
Total Funding
Federal 29%
State 6%
Local 0.3% Philanthropy
3%
Private 62%
Indiana Early Learning Funding Sources
$1.4 B
Funding Sources
How many sources?
• 14 Federal funding sources • 8 State funding sources • 1 Local funding source • Numerous Philanthropic funding sources • Majority of families (with young children)
• Now that we know WHAT is available? • Question is, HOW much is needed to
accomplish ______ goals? • How can we LEVERAGE these funding
sources?
Blending and Braiding at the Policy Level
At the policy (federal/state/local) level, blending and braiding are strategies to: • Integrate and/or • Align separate categorical funding sources Example: If we want to provide full-day care (“accessibility”) for low-income working families, blend federal Head Start funding with part-day CCDF voucher or part-day OMY prek. Definitions from The Ounce of Prevention “Blending and Braiding Early Childhood Program Funding Streams Toolkit”
Blending and Braiding at the Program Level
At the program level, blending and braiding are strategies to: • Support the total cost of services to
individual children to accomplish ___ goal. • Revenues may need to be allocated and
expenditures tracked by categorical funding source.
Example: Private funder provides grant to a provider to expand capacity to serve more children (“quality). Provider increases direct services because of higher capacity.
ELAC
ELAC Funding Streams Workgroup Next Steps: 1. Release an updated Funding Memo on
Preschool. 2. Understand the cost of scaling preschool. 3. Make recommendations to improve.
effectiveness and efficiencies. 4. Provide support (i.e., toolkit) for local
providers.
Other Examples
Today, share more examples/ resources for: • Local public pre-school • Early head start – child care • Child abuse prevention • Philanthropic • Resources/ support for child care
programs
Wayne Township Preschool
• Program enrollment 378 • Evaluations in progress 26 • Child care 105 11 ½ hours offered
• Special Education 58% • Conferences completed for 2014-15 397 • Pre-Kindergarten 15 • Minority 62% • Non- English speakers 33% 10 languages • District Free and Reduced rate 88% 19 sections of Developmental preschool 13 sections of Community preschool
Getting to WTP • Fee based- 25% • Special Education- 58% • CCDF- 5% • On My Way Pre-K/Indy Preschool- 14%
Families in Poverty
• 127% poverty rate family of 4 • $2500.00 per month gross • Food Stamps don't include- paper products - Kleenex, toilet paper, napkins, paper towels personal products - laundry detergent, dish soap, soap, toothpaste, over the counter meds, feminine hygiene, vitamins, cleaning products alcohol, cigarette
Children of Poverty • By age 2 poor children are already behind
their peers in listening, counting and other essential literacy skills
• By age 3 a child’s vocabulary can predict their third grade reading achievement
• By age 5 a typical middle-class child will recognize 22 letters compared to only 9 for a child of poverty
• 61% of low income children have no books in the home
Source: Campaign for Grade-Level Reading website
Partnerships
• Indianapolis Children’s Choir • United Way of Central Indiana • Marian, Purdue, Butler Universities • Ben Davis Christian Church • PNC
Kay Gordon
• Early Head Star t- Child Care Partnership grant
Transition Resources Corporation Empowering Individuals and Improving Communities
Early Head Start-Child Care Partnerships (EHSCCP)
• Part of President Obama’s Early Learning Initiative • Created to increase the supply of high-quality early learning opportunities and better align the continuum of care and development leading to preschool for infants and toddlers living in low-income working families • EHSCCP combines the strengths of child care and EHS programs through layering of funding to provide comprehensive services and high-quality early learning opportunities for infants, toddlers and parents in low-income working families
Transition Resources Corporation Empowering Individuals and Improving Communities
EHSCCP Goals --
• Access to full day, full year high quality care and early education for infants and toddlers in low-income families
• Continuous comprehensive services, including education, health, mental health, nutrition, family engagement, and services to children with disabilities
• An aligned system of professional development that will ensure a stronger infant and toddler workforce
• Integrating Head Start Program Performance Standards with state and local regulations that support quality
• Braiding EHS funding with Child Care subsidy and quality funds to support a more dependable source of program income
Transition Resources Corporation Empowering Individuals and Improving Communities
Benefits to Our Communities-- • 114 infants and toddlers receiving comprehensive services, health and
developmental screenings and enhanced curriculum offered through EHS
• $2.8 million into our communities over an 18-month period • Parents and families are receiving family engagement, family support,
referrals and linkages to other social and health services • Children are benefiting from smaller class sizes • Child care partner employees are receiving additional professional
development and increased wages • Child care partners sites have benefited from over $200,000 in facilities
improvements • Child care partners have received new classroom supplies and
equipment including curriculum, furniture, washers, dryers, toys, books, blocks, strollers, bottles, diapers, computers, printers, etc.
Transition Resources Corporation Empowering Individuals and Improving Communities
Challenges--
• Creating partner staff buy-in and an understanding of the importance of the additional requirements of Head Start
• Layering of funds • Maintaining qualified employees • Training time
Transition Resources Corporation Empowering Individuals and Improving Communities
Lessons Learned-- • Pioneering effort to bring child care and EHS programs
together. Mutually beneficial partnerships took much longer than anticipated to establish and maintain
• Strong agreements with clearly outlined roles and
responsibilities are important • The 18-month start-up period was critical • In some instances, there was a need for more organizational
and capacity-building activities with partners than anticipated • The need for facility improvements was great but important
Blended and braided funding for child abuse prevention and family based
services
• Cynthia Smith, Prevention Manager • [email protected]
DCS Prevention programs
• Healthy Families Indiana including the Maternal Infant Early Childhood Home Visiting
• Community Partners for Child Safety • Youth Service Bureaus and Safe Place through
the Indiana Youth Service Association • Prevent Child Abuse Indiana • Institute for Strengthening Families held twice a
year • Children’s Mental Health Initiative
Strengths
• Blending funding helps reduce the impact if one funding stream decreases or ends and can help leverage small amounts of funding for larger impact.
• Braided funding allows for different eligibility requirements which allow more families to be served.
• Economic impact on the local communities through staff hiring and education/employment of caregivers.
Challenges
• Blending and braiding funding can create program and fiscal challenges to monitor.
• Staff time and expertise to manage the multiple funding streams.
• Braided funding requires strong partnerships to be effective and work well together.
• Strong monitoring system(s) for service and funding allocations.
Best Practice Suggestions • Develop strong partnerships with state and local
funding sources and communicate frequently. • Learn the rules, regulations, policies of the
multiple existing funding streams and align those in the programs at the local level for continuous services.
• Be mindful of the programmatic requirements of evidence based programs in addition to the funding requirements.
• Work together on needs assessments in local communities.
Kimberly Schroeder
• Opportunities for private funders to partner with the public sector to blend / braid funding
Heidi Schlueter
• Resources and support for providers
Helping to Grow and Sustain Indiana’s Supply of Quality Child Care
© FirstChildrensFinance org
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What We Do • First Children’s Finance helps children,
families and communities thrive by increasing the availability of quality child care and early education.
• We focus on “the business side” of child care: – Providing business development assistance to
quality child care businesses serving low- and moderate-income families, and
– Building partnerships that connect these vital businesses with the resources of the public and private sectors. ©
FirstChildrensFinance.org 36
Why it Matters • Access to quality child care and early
education is vital to individual productivity and regional economic growth. – Working parents cannot access and maintain
productive employment today without affordable, quality care and education for their children.
– Tomorrow’s workforce will not be prepared to succeed in the global economy unless as children they receive quality care and education today.
– The return on investment in quality care and education today shows reduced long-term costs to the public and private sectors.
© FirstChildrensFinance.org
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Programs & Services •Since 1991, First Children’s Finance has offered: • Specialized child care business trainings • Consulting and technical assistance • Business leadership cohorts
• Consulting • Training • Private sector engagement
• Community consultation • Loans
Capacity Growth Cohort Program
• A Focus on Capacity, Quality and Sustainability – In 2015, First Children’s Finance launched our first
Capacity Growth Cohort in Indiana in partnership with Early Learning Indiana & Partnerships for Early Learners.
– 6 participating child care programs include 3 schools, 2 ministries and 1 center across the state.
– Participants implement business planning and master financial projections; which will help increase their sustainability as they increase their quality and capacity.
– Special events engage community business leaders as well as early care and education leaders as volunteer advisors.
Indiana Capacity Growth Program
Braiding Funding Success • Braiding funding is necessary to grow capacity
that will serve all children in Indiana. However in our experience, it also raises difficult questions such as: – How do child care communities develop a model
that encompasses braided funding streams and also provides continuity of care?
– How do we plan for various restrictions on funds and important cash flow considerations?
– How do we blend programs that are currently experiencing different levels of viability?
© FirstChildrensFinance.org
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Braided Funding Success • A Business and Community Approach
– Conduct realistic and thorough financial modeling – Invest in building sound business practices – Convene stakeholders – Study your market and community assessment – Understand of risks and restrictions – Do not underestimate the importance of marketing
and public relations – Have a viral vision
© FirstChildrensFinance.org
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Thank You!
Heidi Schlueter MA Education/ BA Economics First Children’s Finance Regional Director Indiana & Iowa [email protected]
Kimberly Schroeder, Program Officer, Dekko Foundation
LEVERAGING AND BRAIDING FUNDING SOURCES • Amanda Lopez, Transform Consulting Group • Kathryn Raasch, Principal, Wayne Township
Preschool • Kay S. Gordon, State Director, Transition
Resources Corporation (Early Head Start-Child Care Partnership grantee)
• Cynthia Smith, Prevention Manger, Indiana Department of Child Services
• Kimberly Schroeder, Program Officer, Dekko Foundation
• Heidi Schlueter, Indiana Director, First Children's Finance
