1. FY16 CDBG REQUEST FOR PROPOSALS Childcare Scholarship Assistance

2. What is the program? Under the Scholarship Program, the City’s Division of Early Childhood will provide financial assistance to parents located within Lakewood on behalf of 25-35 qualifying children. To be eligible, parents must meet the following qualifications: 1.Family must reside within the City of Lakewood for at least one year 2.Family has a household income that is just above 125% of federal poverty level, and is therefore ineligible to participate in Cuyahoga County’s day care voucher program 3.Family has a household income that is below HUD’s moderate- income guideline 4.Parents must be either working or attending school (high school or beyond)

3. Primary Goals & Objectives To support lower-income Lakewood parents in their effort to maintain stable employment and/or complete their education by subsidizing the cost of childcare. To provide Lakewood children of lower-income parents who are working or completing their education with high quality, developmentally appropriate childcare that improves their literacy skills, preschool readiness and school success.

4. Who do we serve?

5. Why is it needed? Cost of childcare outpaces inflation by 70% Small increases in wages can result in a loss of county benefits Children and childcare centers benefit from high quality, consistent care Parents and the community benefit from stable employment

7. THE IMPACT OF CHILDCARE SCHOLARSHIPS ON AN ANNUAL HOUSEHOLD BUDGET Two Parent, Two Children Household, Both parents employed Father earns $10.15/hour, Mother earns $11. 48/hour Family Pays Total Cost of ChildcareFamily Receives 40% Childcare Scholarship Gross Income$44,990.40Gross Income$44,990.40 Expenses: Childcare for 2 Kids: Infant – $10,927.80 Preschool - $9,334.00 $20,261.80Childcare for 2 Kids: 60% Paid by Parent 40% Paid by CDBG $12,157.08 Food$9,384.00Food$9,384.00 Housing$9,000.00Housing$9,000.00 Transportation$7,440.00Transportation$7,440.00 Total Expenses$46,085.80Total Expenses$37,981.08 Income Vs. Expenses($1095.40)Income Vs. Expenses$7,009.32

8. FY16 Expense Budget Expense CategoryTotal Project (A)CDBG Only (B)CDBG % of Total (B/A) Personnel Salaries 15,60612,992.6483% Fringe Benefits 2,4112,007.3683% Sub-Total $ 18,017$ 15,00083% Overhead & Operations Rent/Lease Insurance Materials & Supplies Professional Services Postage Travel Utilities/Telephone Insurance Equipment Indirect Costs 1 Other: Child Care Scholarships 60,000 100% Other: Sub-Total$ 60,000 100% Total Project Costs$ 78,017$ 75,00096% 1 Indirect costs may not be paid with CDBG funds.