WHY FINANCE REFORM

Innovations in the area of sustainable financing models are needed to increase access to and participation in high quality early childhood education experiences all children and families have access to high quality ECE to succeed in school and life.  Every child matters.

The early care and education industry faces serious market challenges everyday. 
  • Lack of effective demand from consumers for high quality services.
  • Insufficient product differentiation makes it difficult for consumers to obtain information on the quality of early care and education services.
  • Low profitability due to high labor expenses required by high staff/child ratios.
  • No economies of scale (and limited staff capacity) in an industry composed of very small businesses.  85% of ECE businesses have less than 20 employees.
Market-based interventions are needed to ensure that all children and families have access to high quality ECE to succeed in school and life.  Every child matters.
  • Early Learning Ventures Alliances are an effective market-based solution.  Alliances reinforce quality standards, promote administrative efficiencies and make access easier for consumers, professionals and funders. Shared Service Alliances can include programs in many settings—community and faith-based organizations, schools, homes, workplaces.
Solutions

Early Learning Ventures is partnering with Voices for Utah Children to develop a sustainable financing mechanism to support expansion of universal access to high quality ECE experiences.  Using a sustainable financing mechanism can be one component of an overall financing strategy for investments in high quality early education. This financing model will effectively shift resources from remediation to prevention and sustainably scale high quality preschool programs for at-risk children. However, it will not completely eliminate the need for continued state and federal financial commitment for early education for at-risk children.

 The Human Capital Brain Trust Work Group is convening in Colorado on a quarterly basis to work through the development of the mechanism and implementation in Colorado and Utah.  To learn more about this exciting work contact Lindsay Dolce, Policy and Finance Reform Project Manager at ldolce@earlylearningventures.org or Janis Dubno, Senior Policy Analyst, Early Childhood, at janis@utahchildren.org.

Click here to view A Sustainable Financing Model.

Click here to view the Sustainable Financing Model Presentation from the National Business Leaders Summit 2011.