Scale and Sustainability for the ECE Industry:
An Overview of Shared ServicesLouise Stoney, Alliance for Early Childhood Finance
May, 2010
What is Shared Services?• A framework for improving quality and reducing costs by
sharing resources– Helps providers get the benefit of scale where scale
matters, while keeping independence and “personal touch”
• Builds from existing institutions and strengths– Not a “franchise” - looks different in different
communities• Can create benefits for policy-makers and funders
– Better data, fewer errors– Easier to reach a range of providers through one
coordinated entry point
Typical Participant Benefits
Cost savings on products and services• Examples: office supplies, insurance,
classroom suppliesTime savings
• Examples: policies, marketing, hiringQuality enhancements
• Examples: training, shared quality supportsECE community strengthening
• Examples: research & development, networking tools
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ECE is a Small Business Sector
Nationally, the average child care center serves only about 75 children;
ANY DATA on program size in MS??? More than eight out of ten ECE
businesses employ 20 or fewer workers
In many centers a single director has multiple roles
The Many Roles of an ECE Director
Bottom-Line Issues for ECE
Businesses Ensure Full Enrollment – every day, in
every classroom Collect Tuition & Fees – in full and on-
time Fees cover cost or have 3rd party
revenue source to fill the gap
Higher Standards More accountability More complexity – in service delivery and reporting Increased costs
National Context: Focus on Quality,
Accountability, Results
Achieving good results for kids isn’t easy!
Funding and Oversight for ECE: a Hodge-podge of ‘Siloed’ Programs
Head Start
United Way & Private Foundation $
TANF Subsidy
Public PreK
Early Childhood Comprehensive
Services
Nanny Service
FFN Initiative
School-Age Child Care
Silos typically have their own:•Standards
•Data Definitions•Procedures
•Forms•Rate Policies, etc.
And each silo fights for it’s own $$
CCDF Subsidy
Early Intervention
21st Century Schools
Educare
Early Head Start
Accreditation Support
USDA Food Program
A Potential ECE Network
Happy Acres Day Care
Tender Tots Pre-
School
The Newberry
After School
ProgramMary’s Family Child Care Home
Annie’s Nursery School
Green Hills Child Care
Center
NetworkHub
(Shared Staff)
Human Resources including health &
retirement benefits,Unemployment Insurance, etc.
Research & Development:Information Technology,
data collection & analysis, etc.
Classroom Supports: mentor teachers,
classroom assessments, QRIS support, etc.
Administrative Services: payroll, billing, fee
collection, marketing, tax/finance support, etc.
Comprehensive Services: health,
mental health, social services, family
support
Fundraising and Fund Development (from public
and private sources)
Staff Recruitment & Screening, including
substitutes
Bulk Purchase of Goods and Services
The Children’s Home Approach: Many services provided by a single hub
Management/Administration (e.g. team of directors/supervisors)
Fiscal (Billing and Fee Collection) CACFP administration Fundraising Human Resources & Staffing Health/Mental Health/Family Support Food Services Purchasing goods & servicesUnited Way is a key partner in this
Alliance
Philadelphia & Atlanta:A Two-Level Approach
Region-wide services• Delivered, via web portal, to large number of
centers throughout the region• Examples: bulk purchasing, health insurance,
payroll services, marketing templates, credit card payment
In-depth services• Delivered to a pilot group of centers who are ready
for much more intensive interaction• Examples: fiscal management information system,
third-party billing and collections, HR and staffing services
Goizetta (Atlanta) and William Penn (Philadelphia) Foundations
are key partners
Colorado:Operating Foundation with
Linked LLCs Early Learning Ventures (ELV) is a private operating
foundation – established by the David and Laura Merage Foundation that focuses on operational efficiencies in the early care and education industry.
ELV provides tools, I/T systems, venture funding, business planning and technical assistance to regional Alliances.
Each Alliance, structured as an LLC, includes up to 100 providers
• [Add screen shot of CMS here]
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Early Learning Ventures – CMS (Sample Screen)
Shared Services as Economic
Development StrategyShort-Term:
Regional Economies: stronger, more sustainable businesses; better jobs & wages; good ripple effect in local economies. Parent Productivity: stable ECE, available in a variety of settings, to support working families.
Long-Term: Children succeed: high-quality ECE enables positive child outcomes for success in school and life.
For More Information
www.ECESharedResources.com
www.Earlylearningventures.org
www.opportunities-exchange.org
Extra Slides – in case I need them
Annie E. Casey FoundationDavid and Laura Merage FoundationWilliam Penn FoundationMiriam and Peter Haas FundGoizuetta FoundationUnited Way in CO, IA, NH, OH, TN, WA,WK Kellogg FoundationCommunity Development Agencies
….and many other local funders
Growing Philanthropic Engagement