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The Massachusetts Child Care Quality Cost Model. Presentation to the Massachusetts Department of Early Education and Care September 28, 2012. Anne Mitchell. Andrew Brodsky. Project Goals. Identify child care cost drivers of levels from licensing through QRIS levels - PowerPoint PPT Presentation
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The Massachusetts Child Care Quality Cost Model
Anne MitchellAndrew Brodsky
Presentation to the Massachusetts Department of Early Education and Care
September 28, 2012
Project Goals
Identify child care cost drivers of levels from licensing through QRIS levels
Create interactive model to estimate costs of child care quality in MA
Estimate cost implications of changing reimbursement rates
Identify current and potential financing strategies for child care quality
Cost Methodology
Baseline cost estimates based on cost of licensing
Cost to achieve given distribution of quality based on analysis of cost-related components of QRIS system
If data are available, costs determined separately by region
Excel Model Features
Allows user to change distribution of quality (beginning at licensing)
Allows user to adjust supports for high quality child care (such as grants) and view resulting costs
Allows user to adjust reimbursement rate structure
Excel Model Output
Current and projected enrollment by age and setting
Additional costs based on changes to enrollment and quality distribution, by setting
Additional costs based on changes to reimbursement rates
Cost of quality grants to providers
Factors Affecting Quality
Higher quality ECE costs more than most families can afford
Market-based ECE encourages price competition – low tuition fees – and discourages investments in quality
Considerations for Estimating Costs
Expense drivers: Ratios Group size Staff compensation (salary and benefits)
Revenue drivers: Parent tuition fees/other revenue Revenue collection Enrollment efficiency
Provider perspective: Iron Triangle
Full Enrollment
Full Fee Collection
Revenues Cover Per-Child Cost
Supporting Financial Stability
State can… Set family income eligibility high for entry and
higher for exit Use contracts more than vouchers Set rate ceilings as high as feasible
Providers can… Fill vacancies immediately to keep enrollment as
close to 100% as possible Collect all revenue on time Diversify revenue: Participate in CACFP, PreK &
other revenue sources
DRAFT - 3-27-12
Considerations for Estimating Cost: QRIS
Requirements in licensing rules
QRIS expectations increase by levels
Primarily better qualified staff as quality increases (higher compensation)
More staff time for assessment, family activities and conferences, curriculum planning, staff meetings
One-time costs for equipment
DRAFT - 3-27-12
Massachusetts QRIS SystemCurriculum and Learning
Level 1 (from regs) Level 2 Level 3 level 4Max group & staffInfants: 7 w/2 staffToddlers: 9 w/2 staffPreschoolers: 20 w/2 staffSchool-age: 26 w/2 staff
professional development incurriculum, screening tools, and formative assessment
professional development in the curriculum; using the MA ELGs; documenting children's progress; and working with children from diverse languages and cultures and second language acquisition.
ITERS/ECERS self-assessed score avg 3.0(no item below 3.0)
reliable scores:ITERS/ECERS avg 5.0 (no item below 4.0)CLASS 3+
reliable scores:ITERS/ECERS avg 6.0 (no item below 5.0)CLASS score 6-7
Written child progress report shared with parents: 4 x year for infants/toddlers2 x preschoolers1 x school-agers
Progress reports with parents 3 x year and 4 x year for 0-3 +/or CWD
outside consultants with expertise in children's behavior and mental health to provide support and assistance to staff
Massachusetts QRIS SystemWorkforce qualifications and professional development
Level 1 Level 2 Level 3 level 4Director I: lead teacher qualified plus 2 credits in child care admin and 2 credits in ECE/CDDirector II: same as I plus 2 credits
Administrator has CDA plus training in adult supervision, MA ELGs, Strengthening Families, and MA core competencies
Administrator has BA (or progress toward achieving it) with 24 credits ECE and 9 credits admin/mgt
Plus 5 years’ experience
Lead teacher: age 21, high school plus 12 credits ECE/CD or high school plus CDA (specific to 0-3 or preschool)Teacher: age 21 or high school diploma/GED plus two-year high school vocational program in early childhood education or CDATeacher assistant: age16 or high school diploma
All staff min high school plus all educators min 3 credits in ECE
50% of classrooms have educator with BA or higher
75% have BA or higher
100% BA or higher and all have 30 credits ECE
20 hrs PD annually (FT staff)
All staff have IPDP
Example Provider-Level Output (NOT Mass.)Center: 106 children, infants, toddlers and preschoolers
QUALITY Net Income as
% of ExpenseAnnual
Gap/ChildRegulated $828,943 Expense
$847,626 Revenue$18,683 Net Income 2% $176
Star 2 $846,319 Expense$847,626 Revenue
$1,307 Net Income 0% $12
Star 3 $890,845 Expense$855,825 Revenue($35,020) Net Income -4% ($330)
Star 4 $946,116 Expense$873,394 Revenue($72,722) Net Income -8% ($686)
Star 5 $1,014,520 Expense$882,765 Revenue
($131,756) Net Income -13% ($1,243)
Quantify the Gap in $
Quantify the Gap as %
Massachusetts Cost of Quality Survey (2012)
Used in the model
Data confirms BLS wages, cost of training and continuing professional development
Data informed non-personnel costs Materials and equipment Child screening and assessment