1. Early Learning Scholarships: Determining School District Costs education.state.mn.us 1 Minnesota Department of Education Office of Early Learning

2. State Early Learning Scholarships Purpose: “…to increase access to high-quality early childhood programs for children ages three to five.” –Minnesota Statutes, 124D.165, Subdivision 1 education.state.mn.us 2

3. Early Learning Scholarships Eligible children can access Early Learning Scholarships in one of two ways: Pathway I: Awarded to eligible children through regional Scholarship Administrator (amount is based on provider’s Parent Aware quality rating*) : education.state.mn.us 3 Pathway II: Early Learning Scholarships awarded to children through designated four-star Parent Aware rated provider of their choice. } } Up to $5,000 per year (3 & 4 star-rated providers) Up to $4,000 per year (1 & 2 star-rated providers) *Providers with a signed participation agreement may also receive up to $3,000 per year per child. 1 2

4. education.state.mn.us 4 For more information, go to www.parentawareratings.orgwww.parentawareratings.org Parent Aware

5. education.state.mn.us 5 Pathway I Eligible Counties

6. education.state.mn.us 6 Pathway II Eligible District Areas

7. Use of Scholarships Scholarships are administered locally, and are for a 12-month period. Funds can be used to serve additional children, increase a child’s duration in program, enhance services, support continuity of services and cover parent co-pays and fees, including transportation. Layering of funds with other existing resources is encouraged to increase access & services for children with high needs. education.state.mn.us 7

8. Regional Scholarship Administrators coordinate scholarships in each of the thirteen Governor’s Economic Development Regions. Programs are reimbursed for expenditures –Invoices are submitted to your Regional Scholarship Administrator –Invoices should be submitted monthly Implementation education.state.mn.us 8

9. Programs have two options when considering the amount to charge per scholarship student: 1.Advertised* (subsidized) tuition amount 2.Actual cost If choosing option 1, you would charge the amount that a full-paying family would pay. –e.g. If your preschool tuition is $100 per month for a full-paying family, then you would invoice $100 per month for the child receiving an early learning scholarship. Note that option 1 is only covering tuition costs. Determining Costs education.state.mn.us 9

10. For most school district programs, option 2 is the best choice because it allows you to be reimbursed for the actual costs associated with providing your program/services. The challenging part for school district programs is that a per child rate usually has not been calculated. –This contrasts with Head Start, whose rates are established federally. Determining Costs, cont. education.state.mn.us 10

11. If you choose option 2, we recommend first determining the overall cost/expenses of your program and services. You may want to ask: If your preschool program had to operate self-sufficiently, how much would it cost? –Teacher, assistant teachers, substitutes, administration, etc. –Also factor in costs that may be currently covered by the district, like custodial, utilities, transportation, interpreter services, school nurse services, technology support, etc. Determining Costs, cont. education.state.mn.us 11

12. Using 2012-13 financial data, Central School District determined the cost of providing their preschool program was $400,000. Last year they served 125 children, so they estimated their per child rate to be $3,200 ($400,000/125). –The finance director stresses that this is just an estimate. Due to fixed costs involved, she points out that the district costs would have been near $400,000 whether they served more or less than 125 children. –Their preschool program runs for 10 months, so they decide to invoice $320.00 each month for each child receiving a Pathway II scholarship. Determining Costs – example 1 education.state.mn.us 12

13. The Jefferson School District also determined their cost to be $400,000. However, they provide different program options. Their director rightfully points out that their five day preschool would be more expensive than their three day option. –The finance director decides to estimate a per child rate for both program options. The five day option represents 62.5%* of the costs while the three day option represents 37.5%. –They calculate that their five day option costs $4,000 per child while their three day option costs $2,400. –Each month, over a 10 month period, they will invoice for either $400 or $240 per child. Determining Costs – example 2 education.state.mn.us 13

14. Tool to Help Estimate Actual Cost education.state.mn.us 14

15. You should determine per child rates for your various types of programs (e.g. Family Literacy, School Readiness, District Preschool, Summer Kindergarten Prep, etc). If you provide different delivery options in your program, you should also calculate these rates (e.g. one day versus five day) Services offered/available in your program may be calculated as part of the program type total. Program Types, Options & Services education.state.mn.us 15

16. We also provide different support services in our preschool, like home visits, interpreters and transportation. Do we include these costs separately? –These costs should be figured into your total program cost. In our example, these costs would be part of Central School District’s $400,000 in total expenditures. Questions education.state.mn.us 16

17. We included some program enhancements in our Pathway II application. How do we invoice for these? –Enhancements should be calculated as a part of your total program cost. –In our example, using 2012-13 data, Central School District determined their per child rate was $3,200.  In 2012-13 they were unable to provide transportation so they included these costs into their Pathway II application.  For 2013-14, they estimated their total program cost to be $440,000. [$408,000 ($400,000 plus a 2% cost increase) plus $32,000 (adding transportation services)]  $440,000 divided by 125 = $3520 per child rate for 2013-14 Questions education.state.mn.us 17

18. Programs receiving Early Learning Scholarships are reimbursed for their expenses. Programs will need to submit an invoice to their Regional Scholarship Administrator. –You are encouraged to do this monthly. –Totals should be based on a percentage of your per child rate, determined by length of services provided.  Per child rate in Central Preschool is $3520. Billy is awarded a Pathway II scholarship by the program. Program type lasts 10 months. Program invoices $352 each month for Billy. Reimbursement education.state.mn.us 18

19. We expanded our program by adding a new classroom. Our Pathway II application included costs associated with furnishing a new classroom. Do we invoice for this total since we are being reimbursed? –No. Your supplies, materials and equipment should be calculated as a part of your total program expenses. Reimbursement Questions education.state.mn.us 19

20. Invoice education.state.mn.us 20

21. Finance Code: 337 Early Learning Scholarships – Pathway II Restricted grid published in 2014 UFARS manual Allowable expenditures very similar to School Readiness District Reporting - Pathway II Expenditures education.state.mn.us 21

22. Finance Code: 338 Early Learning Scholarships – Pathway I Restricted grid published in 2014 UFARS manual Allowable expenditures very similar to School Readiness District Reporting - Pathway I Expenditures education.state.mn.us 22

23. The scholarship limit is $5,000 per child (for Three or Four Star Parent Aware rated programs) Different program types and options will probably result in different per child rates. Program support services can be incorporated or calculated as a part of the program cost. Reminders education.state.mn.us 23

24. MDE Website http://education.state.mn.us/MDE/JustParent/EarlyLearn KReadi/051922http://education.state.mn.us/MDE/JustParent/EarlyLearn KReadi/051922 Parent Aware http://parentawareratings.org/ Early Childhood Administration wiki http://ecadmin.wikidot.com (Early Learning Scholarships page)http://ecadmin.wikidot.com Resources education.state.mn.us 24

25. education.state.mn.us Mike Brown mike.p.brown@state.mn.us 651-582-8224 Questions / Concerns?