Scale and Sustainability for the ECE Industry: An Overview of Shared Services Louise Stoney, Alliance for Early Childh

1. Scale and Sustainability for the ECE Industry: An Overview of Shared Services Louise Stoney, Alliance for Early Childhood Finance May, 2010

2. 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

3. Typical Participant Benefits Cost savings on products and services • Examples: office supplies, insurance, classroom supplies Time savings • Examples: policies, marketing, hiring Quality enhancements • Examples: training, shared quality supports ECE community strengthening • Examples: research & development, networking tools

4. 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

5. The Many Roles of an ECE Director

6. 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

7. 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!

8. Funding and Oversight for ECE: a Hodge-podge of ‘Siloed’ Programs Early Head Start 21st Century Schools Early Childhood Comprehensive Services Head Start Educare School-Age Child Care United Way & Private Foundation $ • Silos typically have their own: • Standards • Data Definitions • Procedures • Forms • Rate Policies, etc. • And each silo fights • for it’s own $$ Early Intervention Public PreK FFN Initiative CCDF Subsidy TANF Subsidy Nanny Service Accreditation Support USDA Food Program

9. A Potential ECE Network Administrative Services: payroll, billing, fee collection, marketing, tax/finance support, etc. Research & Development: Information Technology, data collection & analysis, etc. Happy Acres Day Care Green Hills Child Care Center Tender Tots Pre-School Human Resources including health & retirement benefits, Unemployment Insurance, etc. Bulk Purchase of Goods and Services Network Hub (Shared Staff) Comprehensive Services: health, mental health, social services, family support The Newberry After School Program Annie’s Nursery School Staff Recruitment & Screening, including substitutes Mary’s Family Child Care Home Classroom Supports: mentor teachers, classroom assessments, QRIS support, etc. Fundraising and Fund Development (from public and private sources)

10. 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 & services • United Way is a key partner in this Alliance

11. 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

13. 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

14. Early Learning Ventures – CMS (Sample Screen) • [Add screen shot of CMS here]

15. Shared Services as Economic Development Strategy • Short-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.

16. For More Information www.ECESharedResources.com www.Earlylearningventures.org www.opportunities-exchange.org

17. Extra Slides – in case I need them

18. Growing Philanthropic Engagement • 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