**Sample Budget Information**

**to support**

**Partnerships among Child Care, Head Start,**

**and Other Early Education Programs**

August 1999

Prepared for the Child Care and Head Start Bureaus

Administration for Children and Families

U.S. Department of Health and Human Services

prepared by

QUILT Project

(Quality in Linking Together: Early Education Partnerships)

For additional information, contact: 1-877-867-8458

or

National Child Care Information Center,1-800-616-2242

Community Development Institute, 1-303-369-8706

Education Development Center, 1-617-618-2347

**Note to the Reader**

The sample budget information provided has been adapted and summarized
courtesy of data furnished by the following three programs: KCMC Child
Development Corporation, Kansas City, Missouri; Snyder, Union, Mifflin
Child Development, Inc., Mifflinburg, Pennsylvania; and Puget Sound
Educational Service District, Burien, Washington. Budget information is
for illustrative purposes only, and it is not intended to reflect a
complete or up-to-date picture of the budget of any of the programs.

**KCMC Child Development Corporation**

**Partnership History**

In 1993, KCMC Child Development Corporation, the Head Start grantee for
three metropolitan counties in the Kansas City, Missouri area, began an
initiative to extend Head Start programming to provide full-day,
year-round services to children whose families were working or who were
in education or job training. The idea was to partner with existing
child care centers to provide comprehensive, quality services to
children regardless of their eligibility for Head Start. The initiative
became known as Full Start--the Head Start Community Partnerships
Program. An independent evaluation of Full Start, conducted in 1997,
found that program quality in child care centers increased, in terms of
outcomes for children and as measured by the Head Start Program
Performance Standards, within one year after the partnership became
operational. Parents needed and used the comprehensive services and
expressed satisfaction with Full Start.[^1]

**Fiscal Strategy**

The Full Start vision was to create a funding partnership that would
lead to a seamless system of services for low-income children in Kansas
City. The initial partners included the Region VII Administration for
Children and Families, the Missouri Department of Social Services, the
City of Kansas City, and the Greater Kansas Community Foundation, since
then other partners and funding sources have joined the effort.

Children from both the Head Start and child care programs receive the
same comprehensive services in one combined classroom in the child care
centers. Head Start purchases slots for an agreed rate from the child
care centers. Child care costs offset by Head Start reimbursement are
available to pay for additional services for non-Head Start children
(these expenses are also subsidized in part by foundation and other
funding sources). Child care centers are reimbursed monthly by Head
Start based upon total attendance of Head Start eligible children. Head
Start arranges start-up funding for supplies and equipment and provides
training and support to child care center staff. Staff salaries and
benefits are upgraded as staff become certified or credentialed.

**Contact Information**

Dwayne Crompton or Verona Hughes

Executive Director Head Start Director

KCMC Child Development Corporation KCMC Child Development Corporation

2104 E. 18th Street 2104 E. 18th Street

Kansas City, MO 64127 Kansas City, MO 64127

\(816\) 474-3751, Ext. 606 (816) 474-3751, Ext. 641

+--------------------+-------+---+-----------------------+-------+---+
| # KCMC Sample      |       |   |                       |       |   |
|  Operating Budget  |       |   |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| #  Expenses        |       |   | #  Income             |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| **Category**       | *     | * | ### Source            | *     | * |
|                    | *\$** | * |                       | *\$** | * |
|                    |       | % |                       |       | % |
|                    |       | * |                       |       | * |
|                    |       | * |                       |       | * |
+--------------------+-------+---+-----------------------+-------+---+
| Personnel          | 22    | 5 | United Way            | 4     | 1 |
|                    | 0,000 | 7 |                       | 3,377 | 1 |
+--------------------+-------+---+-----------------------+-------+---+
| Benefits           | 3     | 1 | Division of Family    | 12    | 3 |
|                    | 6,795 | 0 |                       | 5,675 | 2 |
|                    |       |   | Services              |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Occupancy          | 1     | 5 | City of Kansas City,  | 7     | 1 |
|                    | 8,252 |   | MO                    | 2,494 | 9 |
+--------------------+-------+---+-----------------------+-------+---+
| Management &       | 4     | 1 | Parent Fees           | 1     | 5 |
| general            | 9,479 | 3 |                       | 8,200 |   |
+--------------------+-------+---+-----------------------+-------+---+
| Audit              | 2,100 | 1 | KCMC Head Start       | 12    | 3 |
|                    |       |   |                       | 5,000 | 2 |
+--------------------+-------+---+-----------------------+-------+---+
| Office supplies    | 1,756 | 0 | Other Contributions   | 2,500 | 1 |
+--------------------+-------+---+-----------------------+-------+---+
| Postage            | 69    | 0 | **Total Income**      | *     | * |
|                    |       |   |                       | *387, | * |
|                    |       |   |                       | 246** | 1 |
|                    |       |   |                       |       | 0 |
|                    |       |   |                       |       | 0 |
|                    |       |   |                       |       | * |
|                    |       |   |                       |       | * |
+--------------------+-------+---+-----------------------+-------+---+
| Printing           | 1,465 | 0 | -   The number of     |       |   |
|                    |       |   |     children enrolled |       |   |
|                    |       |   |     in                |       |   |
|                    |       |   |                       |       |   |
|                    |       |   | > KCMC's full-day,    |       |   |
|                    |       |   | > full-year Head      |       |   |
|                    |       |   | > Start               |       |   |
|                    |       |   |                       |       |   |
|                    |       |   | Program is 604        |       |   |
|                    |       |   |                       |       |   |
|                    |       |   | -   The number of     |       |   |
|                    |       |   |     children enrolled |       |   |
|                    |       |   |     in the above      |       |   |
|                    |       |   |     sample center is  |       |   |
|                    |       |   |     50.               |       |   |
|                    |       |   |                       |       |   |
|                    |       |   | -   The cost per      |       |   |
|                    |       |   |     child per year at |       |   |
|                    |       |   |     the above sample  |       |   |
|                    |       |   |     center is         |       |   |
|                    |       |   |     \$7,746.          |       |   |
|                    |       |   |                       |       |   |
|                    |       |   | -   The Division of   |       |   |
|                    |       |   |     Family Services   |       |   |
|                    |       |   |     provides child    |       |   |
|                    |       |   |     care subsidies in |       |   |
|                    |       |   |     the amount of     |       |   |
|                    |       |   |     \$75,675, and     |       |   |
|                    |       |   |     Child and Adult   |       |   |
|                    |       |   |     Care Food Program |       |   |
|                    |       |   |     reimbursement in  |       |   |
|                    |       |   |     the amount of     |       |   |
|                    |       |   |     \$50,000.         |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Staff training     | 3,280 | 1 |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Equipment          | 1,939 | 1 |                       |       |   |
| maintenance        |       |   |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Insurance          | 2,006 | 1 |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Vehicle gas, oil   | 3,430 | 1 |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Vehicle            | 2,146 | 1 |                       |       |   |
| maintenance        |       |   |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Food               | 1     | 5 |                       |       |   |
|                    | 7,992 |   |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Educational        | 6,100 | 2 |                       |       |   |
| supplies &         |       |   |                       |       |   |
|                    |       |   |                       |       |   |
| Equipment          |       |   |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Special events     | 1,162 | 0 |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Exterminator       | 450   | 0 |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Van washing        | 275   | 0 |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Food equipment &   | 775   | 0 |                       |       |   |
|                    |       |   |                       |       |   |
| Supplies           |       |   |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Laundry            | 275   | 0 |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Health services    | 1     | 4 |                       |       |   |
|                    | 5,000 |   |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| Parent involvement | 2,500 | 1 |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+
| **Total Expenses** | *     | * |                       |       |   |
|                    | *387, | * |                       |       |   |
|                    | 246** | 1 |                       |       |   |
|                    |       | 0 |                       |       |   |
|                    |       | 0 |                       |       |   |
|                    |       | * |                       |       |   |
|                    |       | * |                       |       |   |
+--------------------+-------+---+-----------------------+-------+---+

**Snyder, Union, Mifflin Child Development, Inc.**

**Partnership History**

Snyder, Union, Mifflin Child Development, Inc., provides Head Start and
child care services in a predominantly rural area in Pennsylvania. For
several years, the agency has been combining staffing and resources from
Head Start and child care to provide full-day, full-year (252 days) care
to children and families who need extended day services. Previously,
Head Start and child care services were operated separately. Program
coordination activities were undertaken to respond to the needs of
families receiving public assistance, parents in training or school, and
Head Start eligible children in child care classrooms needing
comprehensive Head Start services. Children are in the center classroom
between 6:30 a.m. and 5:30 p.m., with Head Start comprehensive services
funded for a child care center classroom. This model includes 20
children in a class with all 20 being Head Start-child care funded.

**Fiscal Strategy**

Head Start funds support morning center services (1/2 day); child care
subsidies and parent fees support afternoon center services (1/2 day).
Additionally, Head Start pays for one family support assistant and all
support and comprehensive services (consistent with Head Start Program
Performance Standards), as well as for release time to enable staff to
participate in training. The following reflects average child cost per
year for a class of 20 Head Start children who receive full-day,
full-year services, with an indication of the Head Start and child care
share of the costs:

Head Start Cost/Child/Year \$5,890

Child Care Cost/Child/Year \$2,530

Food Program Reimbursement/Child/Year \$574

**Total Projected Cost/Child/Year \$8,994**

The agency has a sophisticated budgeting and cost allocation model which
includes cost allocating center/classroom staff according to job
responsibilities and work hours each day. For funding and cost
allocation purposes, there is considered to be a "Head Start" and a
"child care" half of each day (although this does not interfere with
children receiving developmentally appropriate services throughout the
day). Although the agency utilizes this model to manage multiple funding
resources (e.g., Head Start, child care subsidies, parent fees) for
services provided by a single agency, agency leadership has indicated
that the fiscal model will work with two separate agencies providing
coordinated services through a partnership agreement.

**Contact Information**

Sharon Koppel

Executive Director

Snyder, Union, Mifflin Child Development, Inc.

14 South 11^th^ Street

Mifflinburg, PA 17844

\(570\) 966-2845

  ------------------------------------ ------------- --------- ------------- ------------
  **Snyder, Union, Mifflin Child                                             
  Development, Inc., Head Start-Child                                        
  Care Budget**                                                              

  **Category**                         **Total \$**  **Total   **Head Start  **Child Care
                                                     %**       \$**[^2]      \$**

  Personnel                            96,499        54        70,624        25,875

  Benefits                             19,343        11        12,958        6,385

  Occupancy                            10,500        6         5,250         5,250

  Administrative costs @ 16.4%         18,999        11        13,708        5,291

  Supplies (Program, Medical/Dental)   2,340         1         1,220         1,120

  Other Contractual                    3,618         2         3,618         

  Medical/Dental Exams & Follow-up     2,000         1         2,000         

  Staff Travel-center sites            1,040         1         1,040         

  Phone-center sites                   600                     300           300

  Printing/Publications                75                      50            25

  Staff training (Employee             2,500         1         1,250         1,250
  development)                                                               

  Insurance                            420                     210           210

  Transportation-field trips           1,470         1         735           735

  Transportation-children of families  2,646         1         2,646         
  periodically non-working                                                   

  Parent Activity fund                 300                     200           100

  Food                                 17,500        10        13,475        4,025

  **Total Costs**                      **179,850**   **100**   **129,284**   **50,566**
  ------------------------------------ ------------- --------- ------------- ------------

**Puget Sound Educational Service District**

**Partnership History**

Puget Sound Educational Service District (PSESD), located in Seattle,
Washington, provides a broad range of Head Start services, including
full-day services in center-based and family child care settings. PSESD
has pioneered full-day, full-year Head Start, in partnership with
independent child care programs, since 1987, with the support of Region
X Administration for Children and Families, the Washington Department of
Social and Health Services, and other state and local partners. Over 300
children will receive PSESD's extended day, year round services in 1999.
Eligible 3- and 4-year old children are enrolled in both Head Start and
independent child care programs. The child's family must be eligible for
Head Start and also must be able to provide financial support for child
care (e.g., through generating a subsidy, parent co-pays, and/or other
financial assistance). Child care licensing standards and Head Start
Program Performance Standards are met throughout the day. In most cases,
Head Start enrolled children are in classrooms with non-Head Start
children.

**Fiscal Strategy**

The child care center brings full-day child care funding to the
partnership by accessing subsidies, parent fees, and private funding).
Head Start funds go to centers to 1) hire family support staff, 2)
provide additional teaching staff, allowing time for curriculum
planning, home visits, and training, 3) to enhance the center's pay
scale so that Head Start qualified teachers can be hired and retained,
and 4) to purchase additional supplies and equipment. PSESD also assigns
coordinators to provide training, technical assistance and support to
the child care/Head Start staff.

PSESD's fiscal strategy has been described as a child and family
development "cake." The first layer of the cake, paid for primarily by
child care subsidies, assures compliance with licensing standards for
the care and safety of the child for the entire day. The second layer,
funded by Head Start, adds the necessary resources for a quality
comprehensive child and family program, also covering the entire day.
Thus, the entire day is child care, and the entire day is Head Start,
with Head Start "wrapped-in" to child care. Each of the primary funding
sources pays what they customarily pay for services, and receives
value-added from the addition of the services financed by the other
funding source. This program model, in which Head Start dollars finance
supplementary comprehensive services, rather than covering 100% of the
cost of a specific portion of the child's day, was approved in a written
agreement in 1997 between state child care and preschool administrators
and Region X ACF. The cost per child per year averages \$7,525 for Head
Start and \$4,732 for child care (subsidies, parent fees, and
donations).

**Contact Information**

John Bancroft

Executive Director, Head Start

Puget Sound Educational Service District

400 SW 152^nd^ Street

Seattle, WA 98166-2209

\(206\) 439-6922; e-mail: jbancroft@psesd.wednet.edu

+-----------+------+--------+--------+-------------+-----------+-----+
| **Puget   |      |        |        |             |           |     |
| Sound     |      |        |        |             |           |     |
| Ed        |      |        |        |             |           |     |
| ucational |      |        |        |             |           |     |
| Service   |      |        |        |             |           |     |
| District  |      |        |        |             |           |     |
| Head      |      |        |        |             |           |     |
| Start     |      |        |        |             |           |     |
| Budget**  |      |        |        |             |           |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| **        |      |        | *      |             |           |     |
| Community |      |        | *Note: |             |           |     |
| Child     |      |        | This   |             |           |     |
| Care      |      |        | budget |             |           |     |
| Center    |      |        | re     |             |           |     |
| Bud       |      |        | flects |             |           |     |
| get**[^3] |      |        | Head   |             |           |     |
|           |      |        | Start  |             |           |     |
| **(2      |      |        | ex     |             |           |     |
| classes,  |      |        | penses |             |           |     |
| 36        |      |        | reim   |             |           |     |
| chi       |      |        | bursed |             |           |     |
| ldren--18 |      |        | to the |             |           |     |
| are Head  |      |        | child  |             |           |     |
| Start     |      |        | care   |             |           |     |
| en        |      |        | c      |             |           |     |
| rolled)** |      |        | enter. |             |           |     |
|           |      |        | Addi   |             |           |     |
|           |      |        | tional |             |           |     |
|           |      |        | Head   |             |           |     |
|           |      |        | Start  |             |           |     |
|           |      |        | funds  |             |           |     |
|           |      |        | are    |             |           |     |
|           |      |        | spent  |             |           |     |
|           |      |        | by the |             |           |     |
|           |      |        | g      |             |           |     |
|           |      |        | rantee |             |           |     |
|           |      |        | for    |             |           |     |
|           |      |        | staff  |             |           |     |
|           |      |        | tr     |             |           |     |
|           |      |        | aining |             |           |     |
|           |      |        | and    |             |           |     |
|           |      |        | su     |             |           |     |
|           |      |        | pport, |             |           |     |
|           |      |        | other  |             |           |     |
|           |      |        | c      |             |           |     |
|           |      |        | ompreh |             |           |     |
|           |      |        | ensive |             |           |     |
|           |      |        | se     |             |           |     |
|           |      |        | rvices |             |           |     |
|           |      |        | (e.g., |             |           |     |
|           |      |        | h      |             |           |     |
|           |      |        | ealth, |             |           |     |
|           |      |        | mental |             |           |     |
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|           |      |        | isabil |             |           |     |
|           |      |        | ities, |             |           |     |
|           |      |        | lit    |             |           |     |
|           |      |        | eracy, |             |           |     |
|           |      |        | and    |             |           |     |
|           |      |        | e      |             |           |     |
|           |      |        | mploym |             |           |     |
|           |      |        | ent/tr |             |           |     |
|           |      |        | aining |             |           |     |
|           |      |        | progra |             |           |     |
|           |      |        | ms).** |             |           |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| **C       | **   | *      | *      | **Child     | **Total   | **T |
| ategory** | Head | *Child | *Total | Care        | Budget    | ota |
|           | S    | Care   | Center | funding     | for**     | l** |
|           | tart | f      | Budget | generated   |           |     |
|           | fun  | unding | for 18 | by non-Head | **2       | **  |
|           | ding | gen    | Head   | Start**     | c         | %** |
|           | pays | erated | Start  |             | lassrooms |     |
|           | f    | by     | chil   | **children  | (child    |     |
|           | or** | Head   | dren** | pays for**  | care +    |     |
|           | [^4] | Start  |        |             | Head      |     |
|           |      | ch     |        |             | Start     |     |
|           |      | ildren |        |             | funds)**  |     |
|           |      | pays   |        |             |           |     |
|           |      | for**  |        |             |           |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| Personnel | 69   | 59,751 | 1      | 59,751      | 189,306   | 72  |
|           | ,804 |        | 29,555 |             |           |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| Benefits  | 17   | 14,938 | 32,110 | 14,938      | 47,048    | 18  |
|           | ,172 |        |        |             |           |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| Supplies  | 2    | 2,302  | 4,604  | 2,302       | 6,906     | 2   |
|           | ,302 |        |        |             |           |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| Adult     | 1    |        | 1,200  |             | 1,200     | 1   |
| meals     | ,200 |        |        |             |           |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| Facility  |      | 5,000  | 5,000  | 5,000       | 10,000    | 4   |
| rental    |      |        |        |             |           |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| Utilities |      | 1,200  | 1,200  | 1,200       | 2,400     | 1   |
+-----------+------+--------+--------+-------------+-----------+-----+
| Insurance |      | 1,000  | 1,000  | 1,000       | 2,000     | 1   |
+-----------+------+--------+--------+-------------+-----------+-----+
| Copying   | 162  |        | 162    |             | 162       |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| Parent    | 900  |        | 900    |             | 900       |     |
| support   |      |        |        |             |           |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| Parent    | 560  |        | 560    |             | 560       |     |
| a         |      |        |        |             |           |     |
| ctivities |      |        |        |             |           |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| Telephone |      | 600    | 600    | 600         | 1,200     | 1   |
+-----------+------+--------+--------+-------------+-----------+-----+
| Field     |      | 400    | 400    | 400         | 800       |     |
| trips     |      |        |        |             |           |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| Staff     | 756  |        | 756    |             | 756       |     |
| mileage   |      |        |        |             |           |     |
+-----------+------+--------+--------+-------------+-----------+-----+
| **Total   | **   | **85   | **178  | **85,190**  | **        | *   |
| Cost**    | 92,8 | ,191** | ,047** |             | 263,238** | *10 |
|           | 56** |        |        |             |           | 0** |
+-----------+------+--------+--------+-------------+-----------+-----+

[^1]:
    > ^?^Bond, Terry, *Evaluation of the Full Start Program*, Ewing
    > Marion Kauffman Foundation and the Families and Work Institute,
    > Kansas City, Missouri, 1997.

[^2]:
    > ^?^Includes \$11,480 Child and Adult Care Food Program revenues;
    > actual federal Head Start funds = \$117,804.

[^3]:
    > ^?^The center participates in the Child and Adult Care Food
    > Program, which pays for child nutrition costs.

[^4]:
    > ^?^Breakdown of Head Start personnel/salary and fringe benefits:
    > Family Advocate (6 hours a day, 100% paid by Head Start),
    > \$25,313; Assistant Teacher (5 hours a day, 100% paid by Head
    > Start), \$18,480; Salary Enhancements for child care center
    > teaching staff, \$40,995; Substitutes, \$2,188. Total personnel +
    > benefits = \$86,976.