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Cost Drivers of High-Quality Early Childhood Learning and Development What drives the cost of quality early care and learning services? * * * 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)