7 California Preschool Planning Toolkit Budget and Launch Projections - Process
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California Preschool Planning Toolkit
7
Budget and
Launch
Projections
Process
Needs Facilities Systems
Engagement
Program
Finance
by
A Project Funded by the David and Lucile Packard FoundationBudget and Phase-In
OVERVIEW
The goal of this section is to offer a practical method to estimate the local cost of implementing a quality
preschool program accessible to all on a “system-wide” basis, such as within a county, city, or school
district(s).
The approach recommended here involves the use of a model originally developed by the Institute for
Women’s Policy Research (IWPR) and Early Childhood Policy Research (ECPR) for states to estimate
the cost of implementing universal preschool. The American Institutes for Research (AIR) adapted this
model to the development of local cost estimates, as described in the First 5 California Preschool for All
Toolkit and Developing a Local Preschool for All Plan located on the First 5 California website (see links
under Resources).
Although the complete model is composed of two categories, direct service costs and infrastructure
costs, this section focuses on the direct service costs likely to be encountered by preschool
implementers locally. See Section 3 for how to estimate the cost of workforce development and Section 4
for how to assess the cost of facilities.
The model assumes that the majority of direct service costs related to program implementation will be
upgrading the compensation of early education teachers as they obtain educational qualifications similar
to those of elementary school teachers. Given current California policy as of the writing of this Toolkit, the
goal of this section is to help counties budget for improved quality of preschool, moving towards universal
access with an incremental approach. The approach is incremental in two ways: First, the increase in
teacher qualifications and compensation is phased in, because existing teachers cannot be expected to
obtain bachelor’s or associate’s degrees overnight. Second, the approach is incremental because access
to new or upgraded preschool spaces takes place gradually, as resources are available to finance them.
Developing a plan for phasing in preschool is thus an important part of the planning process. Sample
phase-in plans are included in this Toolkit that extend five, eight, and ten years, but individual localities
may use the same approach to cover any time span. Since AB 172 will provide some funds for
expanding preschool in attendance areas for low API schools (deciles 1-3), it is recommended that
counties focus their plans on these areas first.
Before costs can be estimated and a phase-in plan developed, a Needs Assessment (see Section 2)
must be completed. Data from the needs assessment will be used to determine the number of new and
upgraded spaces needed, and the areas with low API schools and a relatively greater need for new
spaces. This data, along with the estimated per child cost of new and upgraded spaces can be used to
create a budget, and ultimately to determine the length of time necessary to phase in access to a quality
preschool program for all four-year-olds (the same model could be used to develop a plan that included
three-year-olds as well). An accurate budget and well-thought-out phase-in plan are critical to the
success of a preschool initiative.
The California Preschool Planning Toolkit: October 2006 1Budget and Phase-In
PRINCIPLES AND GUIDELINES
The principles and criteria below may help shape your program and budget development.
Relevant Preschool California Principles:
Financing Will Support the Cost of Quality Programs
Programs will be sufficiently funded to meet the real cost of a quality early childhood education. This
includes meeting established standards, providing comparable pay and benefits for qualified teachers,
establishing accessible higher education opportunities for the preparation of the workforce, developing
suitable preschool facilities, and engaging in ongoing quality assessments. Financing of preschool
should not detract from funding for infants, toddlers, and school-age children, or from child care subsidies
that help low-income families to work.
SAMPLE APPROACHES
California Approaches:
California has numerous examples of counties that are phasing in quality preschool. Los Angeles County
has developed a five star system quality rating system for preschool programs, with programs with three
to five stars eligible to apply to participate in Los Angeles Universal Preschool (LAUP), with more stars
representing higher quality, especially in teacher qualifications, and qualifying for a higher rate of
reimbursement. A description of the star system is included in the Quality section of this Toolkit, and
reimbursement rates are included in this section.
First 5 Power of Preschool (PoP) demonstration grants also offer three levels of reimbursement—Entry,
Advancing and Full Quality. Tables showing current reimbursement rates from two PoP grant counties,
San Francisco and San Mateo, are also included in this section.
Experiences in Other States:
Participation Rates
In Oklahoma and Georgia, the only two states that have fully implemented voluntary universal preschool,
participation rates are around 70 percent in the publicly funded preschool program and collaborating
Head Start programs. However, the total enrollment of four-year-olds in some kind of formal early
education and care, including private programs unaffiliated with the state preschool program, is estimated
to be higher, and participation also varies by county.
The California Preschool Planning Toolkit: October 2006 2Budget and Phase-In
Expenditures per Child
State expenditures for preschool vary substantially, based on teacher qualifications, teacher
compensation, and program duration. For a rating of states on reimbursement levels, see the State
Preschool Yearbook published by the National Institute for Early Education Research (link included in the
resource list below).
BASIC ISSUES AND INSTRUCTIONS
Below is a brief list of the basic instructions for estimating the cost of preschool in your county:
1. Understand the current budgets of existing publicly-funded preschool providers, such as State
Preschool and Head Start. Create “before” budgets.
2. Determine the teacher qualifications you want.
3. Determine teacher salaries. Counties often use beginning K-12 salaries or average kindergarten
teacher salaries.
4. Set teacher/child ratios.
5. Using the above teacher qualifications, ratios, and salaries, create “after” budgets: the full cost of
a preschool program that meets your PFA standards.
6. For existing public programs who will participate, calculate the difference in cost per child
between the “before” and “after” budgets.
7. Determine the number of children you project will participate in the PFA program in your county.
8. Determine the number of children already served in existing participating programs (from your
needs assessment sheet).
9. Calculate cost of full implementation.
10. Develop a feasible phase-in plan, by gradually ramping up teacher salaries and/or participation
rates.
For more complete instructions, see “How to Estimate a Budget and Phase-In Plan” in the Tools
and Templates section in the materials in this section of the Toolkit.
TOOLS AND TEMPLATES
1. How to Estimate a Budget and Phase-In Plan
OTHER RESOURCES
1. Examples of provider budgets (included)
2. Examples of phase-in plans (included)
3. Examples of tiered reimbursement rates (included)
4. County-specific data on certificated salaries by school district available at
http://www.cde.ca.gov/ds/fd/cs/documents/j90summary0405.doc or interactively at http://www.ed-
The California Preschool Planning Toolkit: October 2006 3Budget and Phase-In
data.k12.ca.us/navigation/fstwopanel.asp?bottom=/fiscal/fundingsummary.asp%3Flevel%3D06%
26fyr%3Dcurrent%26reportnumber%3D4
5. Preschool for All: Step by Step, A Planning Guide and Toolkit, Section 4: Estimating the Local
Cost of Preschool for All; developed by American Institutes for Research for First 5 California;
http://www.ccfc.ca.gov/PDF/SRI/Section4.pdf
6. Developing A Local Preschool for All Plan; developed by American Institutes for Research for
First 5 California; http://www.ccfc.ca.gov/PFA.htm
7. Orchestrating Access to Affordable, High-Quality Early Care and Education for All Young
Children, Human Services Policy Center, University of Washington, 2004;
http://www.hspc.org/publications/pdf/OrchestratingReport.pdf
8. How Much Does Quality Preschool Cost? W. Steven Barnett & Kenneth B. Robin, National
Institute for Early Education Research, 2006, at
http://nieer.org/resources/research/CostOfEffectivePreschool.pdf
9. The 2005 State Preschool Yearbook, the National Institute for Early Education Research.
Rutgers, the State University of New Jersey. http://nieer.org/yearbook/
The California Preschool Planning Toolkit: October 2006 4You can also read
