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Financing Child Care in the United States: an Illustrative Catalog of Current Strategies

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Financing Child Care in the United States: an Illustrative Catalog of Current Strategies DOCUMENT RESUME ED 413 988 PS 025 550 AUTHOR Mitchell, Anne; Stoney, Louise; Dichter, Harriet TITLE Financing Child Care in the United States: An Illustrative Catalog of Current Strategies. INSTITUTION Ewing Marion Kauffman Foundation, Kansas City, MO.; Pew Charitable Trusts, Philadelphia, PA. PUB DATE 1997-00-00 NOTE 152p. PUB TYPE Reference Materials Directories/Catalogs (132) -- Reports Descriptive (141) EDRS PRICE MF01/PC07 Plus Postage. DESCRIPTORS Block Grants; Children; *Day Care; *Day Care Centers; Early Childhood Education; Employer Supported Day Care; Federal Aid; *Financial Support; Grants; Income; *Private Financial Support; Program Descriptions; Public Policy; *Public Support; Tax Allocation; Tax Credits; Tax Deductions IDENTIFIERS *Child Care Costs ABSTRACT This catalog provides information on innovative financing strategies, primarily state and community strategies, being used successfully to fund child care in the United States. Five sections of the manual are devoted to profiles of programs using the following categories of strategies: (1) generating new public revenue for child care, including tax strategies, tax credits, deductions, and exemptions, and fees and lotteries; (2) allocating existing public general revenue for child care;(3) financing child care in the private sector, such as employer- and union-supported care and community child care initiatives;(4) financing child care through public-private partnerships; and (5) financing child care facilities, including using grants, bonds, and loans. The catalog's introduction describes characteristics of successful financing strategies for raising money for child care. Each profile describes a specific financing strategy, when it was initiated, the amount of funding it generates, how funds are distributed, what services are funded, and who is eligible for them. Additional locations using similar financing strategies are listed with contact information. Also in each profile are opinions and analysis of the pros and cons of each strategy plus lessons learned from the participants' perspective. Historical, political, and economic factor contributing to the success of an approach are included. Four appendices describe revenue-generation methods, outline tax strategies and governmental powers, and list key national organizations in child care and family support, and members of the National Children's Facilities Network. Contains 58 references. (KB) *** ************** ********************* ********** ***** ** ***** ****** ****** ******** Reproductions supplied by EDRS are the best that can be made from the original document. ****** ***** ************************************************* ****** ***** ****** *** U a ULVAI-11 MtN I OF EDUCATION Office of Educational Research and Improvement EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) This document has been reproduced as received from the person or organization onginating it 0 Minor changes have been made to improve reproduction quality Points of view or opinions stated in this document do not necessarily represent official OERI position or policy O0 FINANCING CHILD CARE IN THE UNITEDSTATES An Illustrative Catalog of Current Strategies I I MI I1 h .1.1 1 Va. 'I. PERMISSION TO REPRODUCE AND DISSEMINATE THIS MATERIAL HAS BEEN GRANTED BY P\W MAC\142- TO THE EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) The Ewing Marion Kauffman Foundation The Pew Charitable Trusts FINANCING CHILD CARE IN THEUNITED STATES Au Illustrative CatalogofCHrrelit Strategies by Anne Mitchell, Louise Stoney and Harriet Dichter for The Ewing Marion Kauffman Foundation and The Pew Charitable Trusts 3 Anne Mitchell is the founder of EarlyChildhood Policy Research, an independent consulting firm specializing in evaluation research, policy analysis andplanning on child care/early education for government, foundations and national nonprofit organizations. Previously, she wasassociate dean of the Research Division at Bank Street College of Education in New York City. In 1981, shefounded Bank Street's graduate program in Early Childhood Leadership, drawing on her previous experience directingchild care centers in Massachusetts and Vermont. She received her B.S. degree in astronomy fromWellesley College and her M.S. degree in educational leadership from Bank Street College of Education. Mitchell may bereached at Early Childhood Policy Research, HCR #1, Box 77, Honey Hollow Road, Climax, NY 12042. Phone:(518) 966-4585; Fax: (518) 966-5503; E-mail: [email protected]. Louise Stoney is an early childhood policy specialist and founderof Stoney Associates, a research and consulting firm specializing in early childhood policy based in Albany, N.Y.Stoney has worked in public policy for over 15 years, including positions as a staff member in the NewYork State legislature, policy director for an early childhood advocacy organization and instructor for the Center for Womenin Government at the State University of New York at Albany. She consults with state and local govemment,the federal Child Care Bureau, national policy organizations, child advocacy groups and foundations. Stoney is atStoney Associates, 10 Tillinghaut Avenue, Albany, NY 12204. Phone: (518) 463-3677; Fax: (518)463-3677; E-mail: lsroney95 @aol.com. Harriet Dichter is the policy director for Philadelphia Citizens forChildren and Youth. Formerly a program officer for The Pew Charitable Trusts, she worked closely on issues of child carepolicy and financing. She previously directed the Maternal and Child Health Office of thePhiladelphia Department of Public Health, co-directed the City of Philadelphia's strategic planning for its EmpowermentZone, and worked as an attorney with a practice focusing on health and human service issues. Herundergraduate degree is from Yale University and her law degree is from the University of Pennsylvania LawSchool. Dichter may be reached at Philadelphia Citizens for Children and Youth, 7 Benjamin Franklin Parkway, 6th Floor,Philadelphia, PA 19103. Phone: (215) 563-5848; Fax (215)563-9442; E-mail: [email protected]. Copyright 1997 © The Ewing Marion Kauffman Foundation and The PewCharitable Trusts. All rights reserved. A limited royalty-free license to reproduce and distribute copies of this work is hereby granted only to personswho: (1) do not directly or indirectly charge or receive any consideration of any kind for such reproduction ordistribution; (2) ensure that all reproductions contain this copyright notice in its entirety; and (3) assume all risks associated withtheir use of the work. No license or right is granted to use any trademark or service mark on or in the work, or to make anychanges, amendments or other derivations of the work without the express written permission of the owners of the work. 4 ii AUTHORS' ACKNOWLEDGMENT The Pew Charitable Trusts and The Ewing National Association of Child Advocates; Fred Buse, Marion Kauffman Foundation offered us an Schwartz, Heslin, Pilarski and Associates; Scott opportunity to explore an area of child care Groginsky, National Conference of State Legislatures; policy that has been of enduring interest. Harriet John Kyle, National League of Cities; Linda McCart, Dichter, former program officer with the Trusts and Office of Governor George Voinovich; and Jan Stokley, currently with Philadelphia Citizens for Children and National Economic Development and Law Center. Youth, moved from sponsor to author during the Kathleen Noonan clarified important tax concepts course of this project. We are grateful to Stacie Goffin, and assisted with fact-checking many of the profiles. senior program officer, the Kauffman Foundation The individuals listed as contacts for each of the and Linda J. Rich, program associate, the Trusts, profiles generously answered questions, provided for this unparalleled learning experience. new leads, shared documents, checked facts and Invaluable assistance and guidance was provided offered wise counsel; without them, the profiles by Gina Adams, Children's Defense Fund; Eve Brooks, could not have been completed. 5 How TO USE THIS CATALOG This catalog was developed to share informa- Profile Description tion on innovative financing strategies that Each profile describes a specific financing strategy, are successfully funding child care in the when it was initiated, the amount of funding it United States. The purpose of the catalog is to pro- generates, how funds are distributed, what services vide a better understanding of what can be done are funded and who is eligible for them. Additional and to encourage development of other successful places using similar financing strategies are listed strategies to finance child care. with contacts so that readers may follow up for more information. The "Strategic Considerations" Locating Information section in each profile includes opinion and analysis Several approaches are possible: of the pros and cons of each strategy plus the lessons Review the table of contents, which categorizes learned from the perspective of the participants. the profiles by the type of financing method. Also, historical, political and economic factors that Read the introductory section preceding each contributed to the success of a particular approach cluster of profiles, which describes the financing are included under this heading. method and summarizes the strategies profiled. Use the index, organized by state/city, program name and financing strategy, for reference. iv CONTENTS How to Use This Catalog iv Introduction 1 Generating New Public Revenue 7 Tax Strategies 7 Local Property
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