Shared Services in Early Childhood

July 9, 2008 on 12:18 am | In early childhood, shared services | No Comments

A relatively new topic in early childhood is shared services or collective management. The idea behind this concept is for early care and education providers to capitalize on economies of scale by joining forces. There are typically several ways this might happen.

Under a “corportate merger” approach, a number of independent providers actually merge into one corporate entitity that then handles all human resources, purchasing, administrative and financial operations for the collective.

Another approach is for providers to come together as partners in a “program alliance” where an umbrella organization still manages many of the same business functions described above, but the individual providers maintain more programmatic independence.

Still another strategy allows involved providers to select financial, HR and administrative services from a menu of options provided by a third party set up for that purpose.

All of these ideas have been explored by national early childhood experts and are detailed on the local Merage Foundation website. They are worth checking out, particularly for communities and groups of providers who are looking for ways to make the business side of early care and education more efficient.

Child Care Assistance Program

May 26, 2008 on 3:36 am | In Child Care Assistance Program, early childhood | No Comments

Two pieces of legislation adressing the Child Care Assistance Program passed out of the Colorado Legislature during the 2008 session. This is good news for young children in Colorado, as well as for the providers that care for them.

SB08-210, Concerning Colorado Child Care Assitance Program Provider Reimbursement Rates, requires a six month study be conducted to determine how the state and counties might work together to implement the 75th percentile as a floor for the Child Care Assistance Program provider reimbursement rates. In other words, the study will help to figure out how providers participating in the Child Care Assistance Program might earn at least 75% of market rates (or the provider’s rates — whichever is less).

That seems like the least we can do for the dedicated early care and education professionals who take care of some of our most at-risk children. Hopefully, this study will result in real solutions that will raise reimbursement rates for child care professionals across the state — and make them more consistent between counties — so that more providers will participate in caring for children under the program.

Why does this matter? Because when more providers participate in the program, families in this state (no matter what their income level) will have more child care options. And more options means the potential for more high quaility care for our most at-risk children and families. This bill was sent to the Governor on May 15th and is awaiting his signature.

HB 08-1265, Concerning Alignment of the Maximum Eligibility Guidelines for the Colorado Child Care Assistance Program County Option with the Federal Maximum Eligibility Guideline, was signed by Governor Ritter in April. This legislation not only aligns the maximum eligibility rates with those outlined in federal eligibility guidelines, but provides a safety net for families for at least six months should a county decide to reduce its eligibility rates. This is good news for families who rely on the Child Care Assistance Program to work or go to school. And it is good news for their children as well, because their care will be less likely to be disrupted.

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