Draft Day Care Proposal

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Proposed Business Plan for Continued Operation of Little Sprouts Daycare Palouse Childcare Parent and Community Task Force

Brenda Brown & Darin Watkins, School Board Members Jens Hegg, Parent Leader Kim Akin, Budget Merida McClanahan, Non-profit option

Business Plan May 2011 Introduction The special meeting of the Palouse School Board on April 12th, 2011 identified that the current fiscal state of the school run Little Sprouts daycare was unsustainable. The school board empowered a taskforce of two school board members and a parent group to investigate options for maintaining the daycare. Subsequently daycare parents and concerned citizens organized into a parent group to complete the goals of the task force. This group, Palouse Childcare Parent and Community Task Force (Palouse Childcare PACT) is made up of 70 members and has met regularly since the formation of the task force to organize this proposal. This proposal has been reviewed and approved by the members of Palouse Childcare PACT. The following document outlines options for continued operation of the daycare as; a non-profit run childcare center; independently run Public Development Authority; a sole proprietorship; or a school run center with the option of a PDA partnership with the city. The major elements of the business plan, budget, licensing requirements and relationship to the school are very similar for both options. As such, both options are integrated into a single proposal document, with differences identified where they arise. Separate budgets are attached, and timelines are provided, for all options. A third option, which could apply to both plans, is a Public Development Authority (PDA). This would be a partnership between the daycare and government entities such as the city of Palouse, or the school. Context Little Sprouts daycare center provides high-quality, developmentally appropriate childcare for families in Palouse, Garfield and surrounding communities. The center was created in 2003 in partnership with a group of parents. At the time there was no licensed daycare in Palouse as two in-home centers had recently closed. In partnership with the school the modular building was constructed. Parents held fundraisers to pay for the outdoor equipment and volunteered time to build the fence, retaining walls and set up the center for opening. A $25,000 USDA grant was obtained to pay for equipment in the center. One cited reason for the schools involvement in constructing and running the daycare has been the desire to stem enrollment declines do to “choicing” of students to Pullman and track future students into the Palouse K-12 system. Throughout the life of the center there has been anecdotal evidence to suggest that the daycare has allowed students to remain in the district, and in some cases has attracted students to the district. The effect of the centers presence can be seen in the student body. One of this year’s graduating seniors was an enrollee of the daycare. Currently 28 of the pre-school through 5th grade children in Palouse have utilized the center as full time or part time enrollees. While the number of children retained in the district is not easy to quantify the utilization of the center indicates a significant community need.

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The goal of the center has always been to break even, however the center has operated at an ‘acceptable’ level of loss since its creation. From 2005 to 2010 the average annual loss has been $33,354. The school board has considered this to be acceptable given the perceived benefits in stemming enrollment declines and thus maintaining future per-pupil funding in K-12. The building loan used to construct the center is paid off, and the five year probationary period required by the USDA grant has expired, leaving few outstanding financial constraints on the infrastructure for the center. Of course, the goal of maintaining students in the school is not the only benefit to the community. Rural communities struggle with declining populations and a demographic trend toward older residents. By attracting young families a daycare is a way to grow the community at large. It is for this reason that support for the daycare center has come not only from parents but also from the community. Representatives from the City Council have attended our meetings and have been instrumental in the background in providing insight and community perspective. The Palouse Chamber of Commerce donated materials to create window signs in support of the daycare with original artwork provided by community member Sheilagh Hallagan. Little Sprouts Childcare Center is currently licensed for 41 children per the Department of Early Learning website. The center served a total of 32 drop-in, part-time, and full-time children for a total of 25 fte's, or 61% of licensed capacity with an estimated monthly revenue of $16,334.00 from parent fees, based on full-time equivalencies on April 1, 2011. Budgets options were created using the enrollment numbers shown in Table 1, the numbers used were current enrollment numbers on 4-1-11, however, at least 7 children have left the center due to the uncertain future of the center. Table 1

Classroom

Enrollment on 4-1-11

FTE's Enrolled on

4-1-11 Licensed Capacity

Min. Staffing Requirements while children

are in care %

Capacity Rate

Estimated Monthly Income

Infant 3 2.5 3 1 83% $ 900.00 $ 2,250.00 Toddler 4 4 4 1 100% $ 800.00 $ 3,200.00

Preschool 18 12.7 20 2 64% $ 720.00 $ 9,144.00 School-

Age 7 5.8 14 1 41% $ 300.00 $ 1,740.00 Center Totals 32 25 41 61% $16,334.00

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Local Context The Little Sprouts Daycare serves residents of Palouse, Garfield and surrounding towns. For market comparisons, we consider licensed childcare centers in Pullman, although other, less expensive alternatives, such as home daycare, are also available. What we found is that Little Sprouts rates are well within the local context of centers in Pullman Washington. Table 2 Rates Comparison: Pullman

Little Sprouts

Community CCC

Building Blocks

CCC

WSU CCC

Infants $900/$575 N/A $995/$620 $1000/$650 Toddlers $800/$500 $820/$510 $920/$600 $881/$573 Preschool $720/$490 $760/$480 $825/$560 $828/$538 School age After-school $300

Summer $625/$400 After-school $280

Before-school $100 $420 $445

While Little Sprouts has, in the past, allowed hourly care this was excluded from all budgets under consideration in this proposal. All enrollees will be enrolled as full time, part time, or after school. Drop in care may be offered on a “space available” basis and at a part-day or full-day rate. Personnel Staffing levels are set by state law at the following rates: Table 3

Age Group Adult/Child Ratio Group Limit at Little Sprouts Childcare

Infants (6 wks-12 mo.) 1:4 3 per classroom Toddler (12 mo.-29 mo.) 1:7 4 per classroom Preschool (30 mo.-5 yrs) 1:10 20 per classroom Kindergarten/School-Age (5-12 years) 1:12 14 per classroom Each classroom must meet the licensing requirements at all times. Scheduling requirements (breaks, lunches, sick, and annual leave) mean that additional staff members are required to complete ratios. Grants and Startup Resources Grant income is very important to any center’s mission. The USDA Child and Adult Care Food Program (CACFP) funding provides a partial reimbursement for up to three meals served to children each day. These meals are usually breakfast, lunch, and snacks. The reimbursement rate is directly related to the number of low-income families enrolled who qualify for free and/or reduced meals per USDA CACFP guidelines. Over the last 13 months center received $6,910 for an average of $469.00 per month. Eligibility for this program is based on our continuation serving low-income families, and on continued observance of program guidelines. The task force has also identified that under most options there is a need for capital reserves during the transition period for new daycare center. Additionally there is a need for a smaller amount of capital to purchase childcare management software to reduce hours devoted to billing and reporting, and to simplify the billing process using point-of-sale equipment. (See Pro Forma section for details of the benefits of childcare management software)

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Grant opportunities are available for non-profit and for-profit centers, however they are rarely available for operating costs. We have researched possible grant opportunities and charitable sources for operating capital, however we have found no obvious sources of operating reserves for startup money. Thus, we feel that it is necessary that the board address the need for a well planned transition to minimize the need of start-up reserves. This should include careful consideration of transitioning billing to advance payment, and the timing of cash flow to account for payment of salaries. Grant opportunities do exist for material improvements to existing centers. The parent task force believes that pursuing these grants immediately to fund the purchase of a daycare software package is an important step in improving billing and reducing time and expense in administrative duties for the supervisor. To speed the process toward self sufficiency, these grant applications can be pursued and applied for by the parent group on behalf of the school before the transition. The parent task force has initiated contacts with SEL Donations committee and the USDA local Area Director for Rural Development to inquire about charitable donations and rural development grants. We have also looked into funding through the Gates Foundation and county “.09” development funds. Although we are actively pursuing funding, the need to organize the business plan and identify funding sources within the given time frame has been a serious limitation. We have also been in contact with the Small Business Development Center at WSU, which has offered to help with consultations in organization, research into startup funding, strategy, and other matters related to starting a small business as a non-profit. Palouse School Support Currently the Palouse School District has acted as the owner/operator of the Little Sprouts daycare center. However, the center has not produced enough income through parent fees to support itself. In our calculations, each budget assumes that the Palouse School District will continue to provide support for the center by:

• Allowing a nominal $1 per year lease and use of the current facilities and spaces used in the main school building to include the equipment and supplies already located in the childcare facility,

• Use of the preschool room, cafeteria, gym, and library areas, when not in use by the K-12 program • Supporting a combined ECEAP preschool and all day pre-school aged care within the same classroom in

the main school building, and • Snow removal, and utilities to include electric, phone, water, sewer, and garbage, and access to the

broadband internet service. • Maintenance for the building and systems, however general upkeep and repair for damage caused by the

occupant is the responsibility for the leasee. In addition to these assumptions there is one important operational element which must be taken into consideration by the board. It has been brought to our attention that current code requires sprinklers to be installed in any building licensed as a daycare center. Little Sprouts was licensed under past code requirements and did not need to meet this more stringent guideline. Based on conversations between the school administration and the licensing agency, to avoid the need to install sprinklers in the building the center must maintain a “seamless” transition of operation. This will allow the center to operate under the same license and code requirements for which it was originally licensed. The licensing agency has advised the school to contact them as soon as a decision is reached by the board and they will help guide us through the process of a seamless transition to avoid costly building renovations.

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Marketing Plan The marketing plan for Little Sprouts will focus on two main targets:

1. Marketing the Palouse/Garfield communities as well rounded communities with full services including quality childcare and early learning programs.

2. Direct marketing of the center focusing on the low staff to child ratios, after-school and summer programs and early learning programs.

In order to effectively market the center we will create informational flyers or brochures will be provided to the schools to distribute parents, real-estate agents who have properties listed in the area, local churches and social and family service resources in Pullman and Colfax. A website will be created that is inviting and informative and will include cross linking to the schools, area businesses and the Chamber. Under the Non-profit or Public Development Authority (PDA) models, the center would qualify for free radio advertising through Inland Northwest Broadcasting Community Partnership Grants. All models would have the ability to utilize area community calendars for fund raising events and activities. The purpose of marketing the center is to increase enrollment at the daycare, which is predicted to increase future enrollment of school age children at Garfield and Palouse Schools. A new family housing development located on Cove Road in Palouse will likely increase enrollment can be expected at Little Sprouts and within the K-12 program. Many families in Palouse and surrounding towns work at large and small businesses in Pullman, Moscow and surrounding areas. We plan to actively approach businesses in the area to market the existence of Little Sprouts, with an emphasis on the convenience, programming and educational curriculum of the center. Cross marketing with local businesses and the school is a win-win for the community.

Vacancies are highest in the kindergarten and school-age rooms, where our profits are also greatest. Curriculum planning can help increase enrollment in this program by providing a well organized and educational environment for children needing afterschool care. Marketing efforts will be focused on curriculum improvements for this age-group. Looking to the short term needs of the center, Little Sprouts will need to develop a stronger academic support component for the school-age room. These program improvements will need to be heavily marketed immediately as the center will be enrolling children for it's summer program. This effort will be ongoing through each academic year. The center has recently employed a new staff member who is already looking to create an exciting and educational experience for these children. In the summer, enrollment can be a challenge depending on the number of children needing care and the number of care providers. Palouse has a large number of high-school students who "babysit" during the summer months. To increase enrollment at Little Sprouts a focus on providing a fun, but educational curriculum is important. However, there is also a need to continue offering services to parents such as the ability to enroll their children in swimming lessons. Many of our parents work outside of Palouse, having a care provider who can transport their children to these activities is highly desirable. Marketing of summer child care programs will include focus on the centers partnership with the Palouse Library which offers varied age group reading day camps throughout the summer as well as the swimming programs offered by the City of Palouse. These activities are easily accessible by walking the children to each location for specific program opportunities and have a proven track record with the center. Marketing to increase enrollments for summer will emphasize the safety and oversight provided by licensing and certification, the education and experience of our staff, the excellent nutritional program (the day camps do not provide lunch), and the educational and developmentally-appropriate curriculum, including field trips and outdoor activities. Particularly for younger school-agers, the greater oversight and quality of care is a persuasive sales point.

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Pro Forma The documents attached provide a clear summary of current and projected income and expenditures, demonstrating that the center can end each fiscal year with a positive balance. Many of the past business practices can be improved by the implantation of a childcare management program such as ProCare or ChildCare Manager. Both programs offer a complete management system that will track not only income, expenses, and manage client accounting, but also includes tuition express which will allow parents to set up automatic pay, pay online, and/or at the point of sale. Another important feature of these programs includes the ability to automate mandatory reporting to the Department of Early Learning for immunizations, USDA Food Program by providing accurate meal counts for monthly reimbursements, and to the DSHS for families who receive childcare assistance. There are other features of this program to assist the center including third party payer which will allow the center to split tuition expenses to third-party payers such as non-custodial parents or other childcare assistance programs to include military childcare assistance through NACCRR. Many functions currently carried out by hand, including USDA Food Program reporting, DSHS and other agency billings, monthly billing, medical and attendance recordkeeping, and staff scheduling, as well as many routine parent communications. Fewer hourly staff will be needed to carry out these routine duties. These potential efficiencies will position the center to better serve the parent’s, thus increasing satisfaction and retention at the center. We highly recommend the immediate implementation of a childcare management program for all of the following options. The investment will allow the center to efficiently manage income and expenses with a minimum of effort. The technology will offer simplification of billing though point of sale billing and payment, and increase parent awareness with point of sale reporting of their monthly balance. As an investment in the infrastructure of the daycare center there is significant potential to cover the cost of this technology through grants. Operational Models Non-profit The Palouse Childcare Parent and Community Task Force have identified a Non-profit, board managed facility as a viable option for Little Sprouts. The benefits of a incorporating as a Non-profit include the ability to have continued parent and community involvement and oversight of the center. Exemption of property, personal property, real property and lease hold excise taxes. Increase in government funding programs and grants and the ability to create fund raising activities. As a Non-profit the childcare board would have the option to establish a charitable organization that would allow the center to fund scholarships for needy families to help offset their child care expenses. Palouse Childcare PACT will need to create a board of directors, elect officers and appoint an acting agent who must reside in the state. The first action of the board will be to create articles of incorporation under Chapter 24.03 RCW. The articles are filed with the Washington Secretary of State. The filing fees total $80 and generally the state approves the Non-profit within 90 days of filing. The boards agent will file for the centers Federal employer ID number and once the Non-profit is approved the agent will file for income and sales tax exemption status. Under this option there is a need for the services of an attorney, and possibly a financial advisor, to review and make recommendations regarding the articles and bylaws. Currently we are researching the possibility of pro bono legal services. One possible avenue for this type of service which we plan to investigate is programs through University of Idaho College of Law which maintains active pro bono programs to support student requirements. This may also be an opportunity in which the legal connections already in place with the school could be leveraged to help in attaining legal counsel, or as an avenue to pursue pro bono services. Under all models for the center, we will need to file for Federal employer ID number, Washington State business license, Whitman County business license and City license. These actions will need to be in place prior to childcare licensing and necessary facility inspections. These filings generally have a 15 day turn around.

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Timeline:

Step 1: File articles of incorporation $30.00 Federal EIN number Non Profit (can be filed at the same time) Apply for income and sales tax exemption, $150.00 processing fee (Need EIN #) Step 2: Once step one is complete the Master Application can be filled out, reviewed by an attorney, and filed with the State of Washington Step 3: (15 days) City and County Business License applications process Step 4: Finalize lease agreement with the school district Step 5: 60-90 days Apply for childcare license through DEL and pay required fees. Licensing will require site visits by the Department of Early Learning, Fire Marshall, and Health Department. Step 6: Depending on the findings of inspections, correct any issues that might arise. Once the license is approved, the transfer of ownership can take place.

Public Development Authority On Friday, May 13, 2011, we were notified of another possible option for the childcare center. Through the City of Palouse, or in partnership with Palouse School District, a Public Development Authority can be created. Once the authority is created the P.D.A. can then appoint members to a board who would then be responsible for the operation of the center. An example of a P.D.A is the café in Garfield, Washington, where the City of Garfield created a Public Development Authority to manage the café. We need additional time to explore this option. Connie Newman, who currently sits on the City Council, provided the initial information about this option. She has forwarded this information to the Mayor so that additional information can be sought. More information on the creation of Public Development Authorities is available here:

http://www.mrsc.org/subjects/econ/ed-pda.aspx This option has the potential to offer benefits to all stakeholders by creating an umbrella organization to run the daycare. Through a P.D.A. the school can divest it’s financial obligations toward the daycare and stem losses. The city limits its financial liability but helps to maintain an important building block for community development. As well, the daycare can be run without the requirements of paying employee benefits required by the school, allowing for more budget flexibility. Parents can maintain direct input into the operation and oversight of the center through the appointed board. The P.D.A. structure may allow more flexibility in transferring licensure and operations of the

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center and alleviate some of the startup costs associated with transfer to a private or non-profit center, however more investigation is needed. The P.D.A. would also be eligible for more grant opportunities and government funds than would a private center.

Timeline: Because this option was just recently brought to our attention, additional time would be needed to explore the possibility, work with the city to create this authority, and complete required paperwork relating to the creation of a Public Development Authority. Templates exist within the region, and the Garfield city council and attorney have experience in drafting these documents, potentially simplifying and speeding up the process.

For-Profit The taskforce had identified an individual to consider under a for-profit option. After further review, however, the individual had decided not to purse this option, at this time. We are still in communication with this individual and they are invited to all taskforce meetings. It is our hope that this individual will still consider this option, or that another individual can be identified in the future.

Timeline: Timeline for this option is not known at this time. However, you could expect that at least 90 days would be required to complete all of the necessary business and childcare licensing requirements.

Palouse School District Option There is also the option for the Palouse School District to continue operating the center. Under this model a board of directors could be appointed by the school board to oversee the operations of the center. The childcare center would become a self-sustaining unit, however, the cost of supplying benefits to employees would increase expenses. Under this model the following suggestions should be considered. The supervisor is moved to a 1.0 FTE position so they can properly manage the center both on a business and program level. Enrollment is limited to full-time or part-time options. Preschool is contained in one classroom and charged accordingly to the fee schedule for either full-time care or part-time care, this includes those children who are attending for the ECEAP program only.

Timeline:

1. The district already operates the center so there would no waiting period for license transfer. 2. The school could choose to create a Public Development Authority as explained above, in partnership

with the City of Palouse. 3. The creation of bi-laws and appointment of board members to a board of directors could be set-up and

put in place within 30-60 days. 4. The current supervisor can be listed with the Department of Early Learning as the assistant director, thus

removing the direct oversight from the superintendent to the board of directors. 5. The board of directors would then be responsible to report to the school board at their regularly

scheduled meetings. 6. Under this option, the center becomes a self-sustaining unit and would be responsible to present a

balanced budget to the school board each fiscal year.

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Palouse Childcare PACT Member Commitment Below are the signatures of members who have identified themselves as committed to working to bring to reality the daycare model which is decided upon by the board. Members have identified whether they are willing to be considered for service on an oversight board, or provide material assistance in close communication with this board, to make the daycare plan a reality.

Signature Board Assist

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Little Sprouts Child Care DRAFT COPY Non-Profit or Sole Proprietor Operation

Revenue Sources Budget Month

Parent Fees 217,800.00$ $18,150.00 ** Based on 75% of capacity (No Discounts)

USDA-Food Program 13,002.17$ $1,083.51 ** Based on 75% of capacity (which is an increase in current enrollment)

Grants

Total Sources of Revenue $230,802.17 $19,233.51

ExpendituresWages Supervisor 25,200.00$ $2,100.00 ** Increases supervisor to 1.0 fte Teachers 102,060.00$ $8,505.00 ** Reduced teaching staff by 6 hours that children are in ECEAP Program. Helpers 13,608.00$ $1,134.00 ** Reduced cleaning staff to 0 Cooks 11,340.00$ $945.00 Preschool Teacher "ECEAP" ** This is a school-district positionEmployee Benefits 28,478.93$ $2,373.24 ** Basic employee expenses, director $200. per month towards insurance

Total Wages $180,686.93 $15,057.24

Other Expenses USDA meals/snacks 20,566.00$ $1,713.83 Based on projected enrollment numbers Office Supplies $1,000.00 $83.33 Licenses, accreditation, training, insurance $2,453.00 $204.42 Consumable classroom supplies $2,000.00 $166.67 ** this could be less/more but I don't have any information to base the actual on. Small/Large equipment $1,000.00 $83.33 **Currently there is not replacement budget for equipment Other Taxes $0.00 ** There will be other business taxes depending upon the type of business such as B&O. Repairs/maintenance $500.00 $41.67 ** projected number

Total Other Expenses $27,519.00 $2,293.25

Reserve

Revenue $230,802.17 $19,233.51 Expenditures $208,205.93 $17,350.49

Total Difference $22,596.23 $1,883.02

Licensing Expenses Break Down

Annual 1st Aid CPR 240.00

Licensing 268.00

Insurance 750.00

Fingerprinting 220.00

Required STARS/MERIT Training 10 hrs per employee, 20 hours for new employees

935.00this training is through the online system provided by STARS/MERIT, however attending Early Childhood Education Conferences would be a much better way to receive required training and foster Professional Development of the teachers and staff at the center.

Any balance should be put into reserves for center future expenses

includes 4 staff members if services provided by Gritman Memorial Hospital and received a two year Pediatric CPR & First Aid Certification

this is a yearly fee

Estimated Insurance Rate (still waiting for figures)

This would only be if 4 staff members would need to be finger printed on a yearly basis

Non-Profit or Sole Proprietor ModelEstimated Budget for a

year/month


Food Handlers 40.00

Utilities 2,016.00

Assumptions:Revenue:

The budget does not include the school-age summer program, which will increase the above revenue line.Expenses:Salaries/Wages/Benefits

Other Expenses

includes 4 staff members, not all staff members will need to certify every year. Certification is either a two or three year certification.

based on figures provided by the district

Parent revenue is based on 75% enrollment information.

Drop-in care should not be eliminated as a service, however, it should not be used in figuring the budget.

No second child discount and no staff discount

Revenue from the USDA Program was based projected enrollment and cost per meal reimbursement on the assumption 50% would be free and 50% above scale

Part-time care should be limited, but not eliminated as an option

Additional Revenue not figured into the budget:

Figures are based on the budgeted amounts for wages, salaries, and benefit package only for supervisor.

Assumption that the Supervisor will move to a 1.0 fte position and would assume the responsibility for daily operations including monitoring the budget and finances of the center.

Drop-in care should be either a half-day rate or a full-day rate and limited to a first-come, first-serve, space available basis.

This category includes special art supplies, first aid kit supplies, gloves, and cleaning supplies. It may also be used for replacement of small manipulative. It is my opinion that this is a very fair budget amount for special items used in the classroom.

Includes an estimated cost for copy paper, pens, pencils, and general office suppliesLicensing

Consumable Classroom Supplies

Licensing includes the annual licensing fee and required training for staff through the year. Staff required training is figured on the higher side of requirements. Staff may not require all trainings every year.

Classroom teachers are responsible for cleaning their teaching space including the classroom, and equipment based on licensing regulations.

Supervisor to take on more responsibility for breaks and some lunch coverage

Utilities

Based on figures provided by the district. Does not include phone, internet access, water & sewer, or garbage.

Grants can be utilized to purchase equipment and curriculum supplies. There are very few, if any grants available for operational costs for care.

USDA and Food Program

Office Supplies:

Cost of food was based on the reduced category for the USDA Food Program. The center should be able to provide the children with meals that meet the USDA food program requirements using this cost estimate. At least 60% of the reimbursement rate from USDA should go towards the purchase of food. The center currently provides additional snacks not reimbursed by the USDA Food Program. These extra snacks can be covered by parent donations of approved snack items. Another way to provide additional snacks to hungry children is to use leftovers from other meals as long as these meals are not intentionally increased in order to provide a late afternoon snack.


Suggestions:

Center should purchase and use a child care management program to monitor income and expenses. This would be a shadow bookkeeping system used by the manager to monitor the daily operations, budget, and client billing. The system can generate profit and loss statements and current budget information so a comparison can be made to the district bookkeeping system.

A child care management system would be used to bill and track monthly tuition, 3rd party payer accounts, and expenses related to the daily operation of the center.

A child care management system would allow the center to track and remain in compliance with immunization requirements, DSHS attendance, and USDA Food Program reimbursements reporting.

A child care management system would also have the capabilities of utilizing tuition express. Tuition Express can be set up to automatically withdraw tuition balances from client's checking, savings, or credit card. It also allows for point of sale card swipe for acceptance of tuition payments at the center and an online payment option.

Small/Large equipment

Repairs/maintenance:

A reserve account should be established to purchase new and/or replace equipment at the center. Other ways to replace these items would be to apply for small grants or through a parent PTO fundraising activity

Regular building maintenance should be covered by the district. However, repairs due to use by the center should be covered by the center budget. At the time of the creation of this budget there were no numbers available to determine an average maintenance and repair amount for the budgeting process.

Purchase and use of a Child Care Management System

Reorganize the preschool program so that all children remain in one classroom in the school building all day. This would allow for the creation of 7 additional toddlers in the lower building and potentially increase revenue for the center. It would also provide a better early educational learning experience for the preschool children. The preschool program would include children from ages 3-5years of age. Staffing would consist of child care teachers during non ECEAP hours. By combining the child care and preschool program parents can be charged one fee instead of two. Charges would be either the regular preschool rate for children only attending the ECEAP program, half-day rate for any child enrolled in the childcare program for less than 5 hours per day, and the full-time rate for any child enrolled in the child care program for more than 5 hours per day.

In addition to a PTO organization can be formed for parents to raise funds for activities and needs of the center. An Executive Child Care Board, consisting parent representatives, community members, and members in the childcare field, should be formed in order to oversee the program in it's entirety.


Revenue Budget Information based on FTE's:** Based on FTE's only and assumes that the preschool program will be in the classroom at the school and additional spaces will be available for the toddler group.** Does not include summer program for school-age children. This may or may not increase revenue. The school-age summer program should charge the same tuition fee as the preschool program.

Enrollment 100% 95% 90% 85% 80% 75%Infants 3 900.00$ 2,700.00$ 2,250.00$ 1,800.00$ 900.00$ 450.00$ -$ ** All but infants were figured using a percentage. Toddlers 10 800.00$ 8,000.00$ 7,600.00$ 7,200.00$ 6,800.00$ 4,000.00$ 6,000.00$ Preschool 20 720.00$ 14,400.00$ 13,680.00$ 12,960.00$ 12,240.00$ 7,200.00$ 10,800.00$ School-Age 6 300.00$ 1,800.00$ 1,710.00$ 1,620.00$ 1,530.00$ 900.00$ 1,350.00$

26,900.00$ 25,240.00$ 23,580.00$ 21,470.00$ 12,550.00$ 18,150.00$ Per Year 322,800.00$ 302,880.00$ 282,960.00$ 257,640.00$ 150,600.00$ 217,800.00$

Staffing RequirementsInfants 1:04 1Toddlers 1:07 1 (Supervisor and rovers would need to be added to cover toddlers if you enroll more than 7 toddlers)Preschool 1:10 2 ** During NON-ECEAP HoursSchool-Age 1:15 1

Staffing WagesHrs Per

day FTE = 8 Term Aver Mo Wag Rate of Pay Yearly total

Payroll Expenses and

BenefitsTotal Payroll

Expense InsuranceSupervisor 8 1 12 2,100.00$ 12.50$ 25,200.00$ 6,611.28$ 31,811.28$ Infants 12 1.500 12 2,268.00$ 9.00$ 27,216.00$ 4,685.93$ 31,901.93$ Toddlers 12 1.500 12 2,268.00$ 9.00$ 27,216.00$ 4,685.93$ 31,901.93$ Preschool 18 2.250 12 3,402.00$ 9.00$ 40,824.00$ 7,028.89$ 47,852.89$ School-Age 3 0.375 12 567.00$ 9.00$ 6,804.00$ 1,171.48$ 7,975.48$ Rover/Sub 6 0.750 12 1,134.00$ 9.00$ 13,608.00$ 2,342.96$ 15,950.96$ Cleaning Staff 0 0.000 12 -$ 9.00$ -$ -$ -$ Cook 5 0.625 12 945.00$ 9.00$ 11,340.00$ 1,952.47$ 13,292.47$

152,208.00$ 28,478.93$ 180,686.93$ -$

Budgeted Revenue

Little Sprouts Child Care DRAFT COPY District continued operation of center.

Revenue Sources Budget Month

Parent Fees 212,589.00$ $17,715.75** Based on enrollment from April 1, 2011. Comparable to 75% of capacity (see Budgeted Revenue Tab)

USDA-Food Program 12,332.58$ $1,027.72 Based .25 Free, .25 reduced, .5 over income using 4-1-11 enrollment numbers Other Grants ** Are there other grants that the school currently receives?

Total Sources of Revenue $224,921.58 $18,743.47

ExpendituresWages Supervisor 30,414.00$ $2,534.50 ** Increases supervisor to 1.0 fte Teachers 100,502.64$ $8,375.22 Helpers 4,369.68$ $364.14 Cooks 13,109.04$ $1,092.42 Preschool Teacher "ECEAP" -$ $0.00 ** This is a school-district positionEmployee Benefits 48,005.41$ $4,000.45 ** Based on current calculations provided by the district

Total Wages $196,400.77 $16,366.73

Other Expenses USDA meals/snacks 17,558.84$ $1,463.24 Office Supplies $1,000.00 $83.33 Licenses, accreditation, training, insurance $2,118.00 $176.50 ** Over budgeted training expenses Consumable classroom supplies $2,000.00 $166.67 ** this could be less/more but I don't have any information to base the actual on. Small/Large equipment $1,000.00 $83.33 ** reserve created to cover the cost of equipment Utilities $2,016.00 $168.00 ** based on school numbers Repairs/maintenance $500.00 $41.67 ** for daycare related repairs

Total Other Expenses $26,192.84 $2,182.74

Reserve

Revenue $224,921.58 $18,743.47 Expenditures $222,593.61 $18,549.47

Total Difference $2,327.97 $194.00

Licensing Expenses Break Down

Annual 1st Aid CPR 360.00

Licensing 268.00

Insurance 0.00

Fingerprinting 495.00

Any balance should be put into reserves for center future expenses

includes 6 staff members if services provided by Gritman Memorial Hospital and received a two year Pediatric CPR & First Aid Certification

this is a yearly fee

currently covered by the districts insurance policy at no charge

this would only be if ALL staff members would need to be finger printed on a yearly basis

School-Run Childcare ModelEstimated Budget

for a year/month


Required STARS/MERIT Training 10 hrs per employee, 20 hours for new employees

935.00

Food Handlers 60.00

Utilities 2,016.00

Assumptions:Revenue:

The budget does not include the school-age summer program, which should increase the above revenue line.Expenses:Salaries/Wages/Benefits

Other Expenses

this training is through the online system provided by STARS/MERIT, however attending Early Childhood Education Conferences would be a much better way to receive required training and foster Professional Development of the teachers and staff at the center.

includes staff members, but not all staff members will need to certify every year. Certification is either a two or three year certification.

based on figures provided by the district

Parent revenue is based on 4-1-11 enrollment information. However, this figure is comparable to a budget based on 75% of full-time fte's

Drop-in care should not be eliminated as a service, however, it should not be used in figuring the budget.

This budget includes an estimated amount for the 10% second child discount, and employee discount for care

Revenue from the USDA Program is based on current enrollment numbers if all children's meals were provided by the daycare

Part-time care should be limited, but not eliminated as an option

Additional Revenue not figured into the budget:

Figures are based on the current wages, salaries, and benefit packages with the exception of the supervisor.

Assumption that the Supervisor will move to a 1.0 fte position and would assume the responsibility for daily operations including monitoring the budget and finances of the center.

Drop-in care should be either a half-day rate or a full-day rate and limited to a first-come, first-serve, space available basis.

Includes an estimated cost for copy paper, pens, pencils, and general office suppliesLicensing

Classroom teachers are responsible for cleaning their teaching space including the classroom, and equipment based on licensing regulations.

Supervisor to take on more responsibility for breaks and some lunch coverage

Grants can be utilized to purchase equipment and curriculum supplies. There are very few, if any grants available for operational costs for care.

USDA and Food Program

Office Supplies:

Cost of food was based on the reduced category for the USDA Food Program. The center should be able to provide the children with meals that meet the USDA food program requirements using this cost estimate. At least 60% of the reimbursement rate from USDA should go towards the purchase of food. The center currently provides additional snacks not reimbursed by the USDA Food Program. These extra snacks can be covered by parent donations of approved snack items. Another way to provide additional snacks to hungry children is to use leftovers from other meals as long as these meals are not intentionally increased in order to provide a late afternoon snack.


Suggestions:

Center should purchase and use a child care management program to monitor income and expenses. This would be a shadow bookkeeping system used by the manager to monitor the daily operations, budget, and client billing. The system can generate profit and loss statements and current budget information so a comparison can be made to the district bookkeeping system.

A child care management system would be used to bill and track monthly tuition, 3rd party payer accounts, and expenses related to the daily operation of the center.

A child care management system would allow the center to track and remain in compliance with immunization requirements, DSHS attendance, and USDA Food Program reimbursements reporting.

A child care management system would also have the capabilities of utilizing tuition express. Tuition Express can be set up to automatically withdraw tuition balances from client's checking, savings, or credit card. It also allows for point of sale card swipe for acceptance of tuition payments at the center and online bill pay.

Small/Large equipment

This category includes special art supplies, first aid kit supplies, gloves, and cleaning supplies. It may also be used for replacement of small manipulative. It is my opinion that this is a very fair budget amount for special items used in the classroom.

Consumable Classroom Supplies

Licensing includes the annual licensing fee and required training for staff through the year. Staff required training is figured on the higher side of requirements. Staff may not require all trainings every year.

Repairs/maintenance:

A reserve account should be established to purchase new and/or replace equipment at the center. Other ways to replace these items would be to apply for small grants or through a parent PTO fundraising activity

Regular building maintenance should be covered by the district. However, repairs due to use by the center should be covered by the center budget. At the time of the creation of this budget there were no numbers available to determine an average maintenance and repair amount for the budgeting process.

Utilities

Based on figures provided by the district. Does not include phone, internet access, water & sewer, or garbage.

Purchase and use of a Child Care Management System

Reorganize the preschool program so that all children remain in one classroom in the school building all day. This would allow for the creation of 7 additional toddlers in the lower building and potentially increase revenue for the center. It would also provide a better early educational learning experience for the preschool children. The preschool program would include children from ages 3-5years of age. Staffing would consist of child care teachers during non ECEAP hours. By combining the child care and preschool program parents can be charged one fee instead of two. Charges would be either the regular preschool rate for children only attending the ECEAP program, half-day rate for any child enrolled in the childcare program for less than 5 hours per day, and the full-time rate for any child enrolled in the child care program for more than 5 hours per day.

In addition to a PTO organization, a Child Care Board, consisting parent representatives, community members, and members in the childcare field should be formed to oversee the business of the childcare.

Little Sprouts Childcare DRAFT COPY District continued operation of center.

Enrollment as of 4-1-11, however the center has lost at least 7 children due to the current situation

Infants Mon

day

Tues

day

Wed

nesd

ay

Thu

rsda

y

Frid

ay anything over 5 hours per day, or 50% enrollment

Anything under 5 hours

per day, or 50%

enrollment

900.00$ 575.00$ Deacon 1 1 1 1 1 100% 900.00$ Eston 1 1 1 1 1 100% 900.00$ Kellen 0.5 1 1 50% 575.00$

Totals 1,800.00$ 575.00$ 2,375.00$ AM 2 2 3 3 3PM 2 2 3 3 3

Toddlers Mon

day

Tues

day

Wed

nesd

ay

Thu

rsda

y

Frid



per day, or 50%

enrollment 800.00$ 500.00$

Brody 1 1 1 1 1 100% 800.00$ Macey 1 1 1 1 1 100% 800.00$ Bella 1 1 1 1 1 100% 800.00$ Isaac 1 1 1 1 1 100% 800.00$

4 4 4 4 4 3,200.00$ 3,200.00$

Pre-School Mon

day

Tues

day

Wed

nesd

ay

Thu

rsda

y

Frid



per day, or 50%

enrollment 720.00$ 490.00$

Blake 1.00 1.00 1.00 1.00 1.00 5.00 100% 720.00$ Calvin 1.00 1.00 1.00 1.00 1.00 5.00 100% 720.00$ JR 1.00 1.00 1.00 1.00 1.00 5.00 100% 720.00$ Katie 1.00 1.00 1.00 1.00 1.00 5.00 100% 720.00$ River 1.00 1.00 1.00 1.00 1.00 5.00 100% 720.00$

Max 1.00 1.00 1.00 3.00 60% 720.00$ Conner 1.00 1.00 1.00 3.00 60% 720.00$ Isaac 1.00 1.00 1.00 3.00 60% 720.00$ Lola 1.00 1.00 1.00 3.00 60% 720.00$

Current Revenue


Rowan* 1.00 1.00 1.00 3.00 60% 720.00$

Brendan (after 11:00 am) 0.75 0.75 0.75 0.75 1.00 4.00 80% 720.00$ Keiran* (after 11:00 am) 0.75 0.75 0.75 0.75 1.00 4.00 80% 720.00$ Hailey (after 11:00 am) 0.75 0.75 0.75 2.25 45% 490.00$ Xander * (after 11:00 am) 0.75 0.75 0.75 1.00 3.25 65% 720.00$

Macey* (after 11:00 am) 0.75 0.75 1.50 30% 490.00$

Lyman ~ (PM Only) 0.50 0.50 0.50 0.50 1.00 3.00 60% 720.00$ Preston ~ (PM Only) 0.50 0.50 0.50 0.50 1.00 3.00 60% 720.00$ Naomie ~ (PM Only) 0.50 0.50 0.50 1.00 2.50 50% 490.00$

10,800.00$ 1,470.00$ 12,270.00$ Totals: AM 6.00 7.00 8.00 9.00 16.00 PM 11.00 13.00 16.00 17.00 16.00

Coberly ? ? ? ? ? ?Danny! Drop In 0%

School-Age Mon

day

Tues

day

Wed

nesd

ay

Thu

rsda

y

Frid



per day, or 50%

enrollment School Year

Rate

625.00$ 400.00$ 300.00$ Garrick 1 1 1 1 1 300.00$ Berlyn 1 1 1 1 1 300.00$ Alexa 1 1 1 1 1 300.00$ Christian 1 1 1 1 1 300.00$ Spencer 1 1 1 1 1 300.00$ Isaac 1Joshua ~ 0.75 0.75 0.75 0.75 625.00$ Garfield Kindergartener

625.00$ -$ 1,500.00$ -$ 2,125.00$

Credit Debit BalancesTotal Revenue As Currently Enrolled 19,970.00$ 19,970.00$ Staff Child Care **** Estimated amount only 1,800.00$ 18,170.00$ 10% Discount for second child **** Estmated amount based on 1/4 of the fees receiving a 10% discount 454.25$ 17,715.75$


Staffing WagesHrs Per

day FTE = 8 TermAver Mo

Wag Rate of

Pay Yearly totalPayroll expenses

estimates Insurance Supervisor 8 1 12 2534.5 30,414.00$ 5,014.76$ 1,797.60$ Infants 6 0.75 12 1092.4 8.67 13,109.04$ 2,266.07$ 1,797.60$ Toddler/Rover 7 0.875 12 1274.5 8.67 15,293.88$ 2,643.75$ 7,201.32$ Infants/Preschool "center" 8 1 12 1456.6 8.67 17,478.72$ 3,021.43$ 1,797.60$ Toddlers 8 1 12 1456.6 8.67 17,478.72$ 3,021.43$ 10,001.88$ Preschool "center" 7 0.875 12 1274.5 8.67 15,293.88$ 2,643.75$ Preschool 6 0.75 12 1092.4 8.67 13,109.04$ 2,266.07$ School-Age 4 0.5 12 728.28 8.67 8,739.36$ 1,510.72$ Cook 1/Rover 3 0.375 12 546.21 8.67 6,554.52$ 1,133.04$ Cook 2 3 0.375 12 546.21 8.67 6,554.52$ 1,133.04$ Cleaning Staff 2 0.25 12 364.14 8.67 4,369.68$ 755.36$

0 12 0 8.67 -$ -$

Total Wages 62 148,395.36$ 25,409.41$ 22,596.00$ Total # of days per month 252Average # of days per month 21 48,005.41$

Based on current staffing positions and levelsAssumes that the supervisor will move to a 1.0 fte andadditional responsbilities will be assignedAssumes that the cleaning staff will no longer be needed as teachers will be responsible for cleaning their classrooms and toys per licensing requirements

Staffing

Little Sprouts Childcare DRAFT COPY General USDA food budget for centerused under all operational models

Monday Tuesday Wednedsay Thursday Friday Totals

BreakfastInfants 0 0 0 0 0 0Toddlers 5 5 5 5 5 5 Cost ReimbursementPreschool 10 10 10 10 10 10School Age 0 0 0 0 0 75 1.18$ 88.50$ 56.50$

LunchInfants 0 0 0 0 0 0Toddlers 7.5 7 7 7 7 7Preschool 15 15 15 15 15 15School Age 0 0 0 0 0 110 2.32$ 255.20$ 128.33$ Cash in Lieu 110 22.28$

PM SnackInfants 0 0 0 0 0 0Toddlers 7.5 7 7 7 7 7Preschool 15 15 15 15 15 15School Age 6 6 6 6 6 6 140 0.37$ 51.80$ 42.93$

Cost ReimbursementWeekly budget 395.50$ 250.04$

3/1/11 734.63 Yearly food budget estimate 20,566.00$ 13,002.17$ 2/1/11 554.22 Monthly food budget average 1,713.83$ 1,083.51$ 1/1/11 561.13

12/1/10 532.24 Free Reduced Above Scale11/1/10 571.2 Breakfast 1.48$ 1.18 0.26 0.75$ 10/1/10 769.09 Lunch/Dinner 2.72$ 2.32 0.26 1.17$ 9/1/10 400.17 Snacks 0.74$ 0.37 0.06 0.31$ 8/1/10 425.78 Cash in Lieu 0.2025 0.20257/1/10 420.726/1/10 275.915/1/10 327.264/1/10 227.963/1/10 290.7

6091.01 468.54$

Aver

age

reim

burs

emen

t for

USD

A

USDA Food Program Reimbursement Amount for the Free category

USDA Food Program

Little Sprouts Childcare DRAFT COPY General USDA food budget for center used under all operational models

Breakfast Serving Size TD Serving Size PS Serving Size SAMin. Amounts to be served

Food Components/number of children Ages 1-2 7 Ages 3-5 15 Ages 6-121 01 milk 1/2 cup 0.5 3.5 3/4 cup 0.75 11.25 1 cup 1 0 15 Cups 0.92 Gallons1 fruit/vegetable 1/4 cup 0.25 1.75 1/2 cup 0.5 7.5 1/2 cup 0.5 0 9 Cups1 grains/bread3

bread or 1/2 slice 0.5 3.5 1/2 slice 0.5 7.5 1 slice 1 0 11 Slices cornbread or biscuit or roll or muffin or 1/2 serving 0.5 3.5 1/2 serving 0.5 7.5 1 serving 1 0 11 Servings cold dry cereal or 1/4 cup 0.25 1.75 1/3 cup 0.33 4.95 3/4 cup 0.75 0 7 Cups hot cooked cereal or 1/4 cup 0.25 1.75 1/4 cup 0.25 3.75 1/2 cup 0.5 0 6 Cups pasta or noodles or grains 1/4 cup 0.25 1.75 1/4 cup 0.25 3.75 1/2 cup 0.5 0 6 Cups

LunchFood Components Ages 1-2 7 Ages 3-5 15 Ages 6-121 01 milk 1/2 cup 0.5 3.5 3/4 cup 0.75 11.25 1 cup 1 0 15 Cups 0.92 Gallons

2 fruits/vegetables 1/4 cup 0.25 1.75 1/2 cup 0.5 7.5 3/4 cup 0.75 0 9 Cups 4.63 Total/ 1/2 fruit, 1/2 veggies1 grains/bread3

bread or 1/2 slice 0.5 3.5 1/2 slice 0.5 7.5 1 slice 1 0 11 Slices 0.69 Loaves of bread cornbread or biscuit or roll or muffin or 1/2 serving 0.5 3.5 1/2 serving 0.5 7.5 1 serving 1 0 11 Servings ** servings per box cold dry cereal or 1/4 cup 0.25 1.75 1/3 cup 0.33 4.95 3/4 cup 0.75 0 7 Cups hot cooked cereal or 1/4 cup 0.25 1.75 1/4 cup 0.25 3.75 1/2 cup 0.5 0 6 Cups pasta or noodles or grains 1/4 cup 0.25 1.75 1/4 cup 0.25 3.75 1/2 cup 0.5 0 6 Cups1 meat/meat alternate meat or poultry or fish4 or 1 ounce 1 7 1 1/2 ounces 1.5 22.5 2 ounces 2 0 30 Oz 1.84 Pounds alternate protein product or 1 ounce 1 7 1 1/2 ounces 1.5 22.5 2 ounces 2 0 30 Oz 1.84 Pounds cheese or 1 ounce 1 7 1 1/2 ounces 1.5 22.5 2 ounces 2 0 30 Oz 1.84 Pounds egg or 1/2 egg 0.5 3.5 3/4 egg 0.75 11.25 1 egg 1 0 15 Eggs cooked dry beans or peas or 1/4 cup 0.25 1.75 3/8 cup 0.375 5.625 1/2 cup 0.5 0 7 Cups yogurt6 4 ounces 4 28 6 ounces 6 90 8 ounces 8 0 118 Oz 14.75 Cups

SnackFood Components Ages 1-2 7 Ages 3-5 15 Ages 6-121 51 milk 1/2 cup 0.5 3.5 1/2 cup 0.5 7.5 1 cup 1 5 16 Cups 1.00 Gallons1 fruit/vegetable 1/2 cup 0.5 3.5 1/2 cup 0.5 7.5 3/4 cup 0.75 3.75 15 Cups1 grains/bread3

bread or 1/2 slice 0.5 3.5 1/2 slice 0.5 7.5 1 slice 1 5 16 Slices cornbread or biscuit or roll or muffin or 1/2 serving 0.5 3.5 1/2 serving 0.5 7.5 1 serving 1 5 16 Serving cold dry cereal or 1/4 cup 0.25 1.75 1/3 cup 0.33 4.95 3/4 cup 0.75 3.75 10 Cups hot cooked cereal or 1/4 cup 0.25 1.75 1/4 cup 0.25 3.75 1/2 cup 0.5 2.5 8 Cups pasta or noodles or grains 1/4 cup 0.25 1.75 1/4 cup 0.25 3.75 1/2 cup 0.5 2.5 8 Cups1 meat/meat alternate meat or poultry or fish4 or 1/2 ounce 0.5 3.5 1/2 ounce 0.5 7.5 1 ounce 1 5 16 Oz alternate protein product or 1/2 ounce 0.5 3.5 1/2 ounce 0.5 7.5 1 ounce 1 5 16 Oz cheese or 1/2 ounce 0.5 3.5 1/2 ounce 0.5 7.5 1 ounce 1 5 16 Oz egg5 or 1/2 egg 0.5 3.5 1/2 egg 0.5 7.5 1/2 egg 0.5 2.5 14 Eggs cooked dry beans or peas or 1/8 cup 0.125 0.875 1/8 cup 0.125 1.875 1/4 cup 0.25 1.25 4 Cups yogurt6 2 ounces 2 14 2 ounces 2 30 4 ounces 4 20 64 Oz

Food Amounts

Documents

Draft Day Care Proposal