Download Cost Drivers of High-Quality Early Childhood

Cost Drivers of High-Quality Early Childhood Learning and Development
What drives the cost of quality early care and learning services?
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Primarily better qualified/more effective teaching staff as quality increases (higher compensation)
More staff time for child assessment, family engagement and conferences, collaborative curriculum planning, reflective supervision,
professional development, etc.
Ratios and group sizes more favorable to babies.
Typical Staff Positions and Compensation in Centers
Director
Typical child care
center
Revenue: CCDF,
CACFP & Private
Tuition Fees
$50,000
Education coordinator
None
Ratios/group sizes
Infants
toddlers
twos
Most common in
state child care
regulations
4:1/8
6:1/12
8:1/16
Early Head
Start
requirements
4:1/8
4:1/8
4:1/8
To compare the costs of the typical child care center and the
EHS center, take a scenario in which each center has 9
classrooms, 3 of each age group. Both have the same
occupancy cost for the 9 classrooms; both have the same
total materials/supplies expense (the EHS center has more
per child because it has fewer children).
EHS Child Development
program
Revenue: Early Head
Start and CACFP
$75,000
$50,000
Teacher
$25,000
$35,000
Assistant teacher
Admin/office assistant
Health consultant
$18,000
$18,000
None
$25,000
$30,000
$45,000
Benefits
Mandatory only
Mandatory plus
$5000/staff
The difference between the two is the ratios and group sizes, which results in fewer children in the EHS center, and the levels of compensation.
The figures below show the annual cost and the cost per child of typical market-based child care compared to the center that meets EHS
requirements.
Comparing Annual Cost per Child
Comparing Annual Total Cost
$25,000
$1,800,000
$1,600,000
$1,400,000
$20,000
$1,200,000
$1,000,000
$15,000
$800,000
$600,000
$10,000
$400,000
$200,000
$5,000
$0
Typical (108 children)
EHS (72 children)
$0
Nonpersonnel
Salary & Benefits
Typical (108 children)
Sources of Revenue
$0
$150,000
$700,000
$550,000
$100,000
Head Start
$450,000
$360,000
CACFP
Tuition
$290,000
Subsidy
Typical (108 children)
EHS (72 children)
EHS (72 children)