HomeMy WebLinkAboutAgenda - 01-28-2010 - 2 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: January 28, 2010
Action Agenda
Item No. oZ
SUBJECT: Staff Review of Universal Pre-Kindergarten Proposal
DEPARTMENT: County Manager's Office PUBLIC HEARING: (YIN) No
ATTACHMENT(S): INFORMATION CONTACT:
1) Child Care Coalition Proposal Frank Clifton, County Manager
2) Staff Review of CCC Proposal Gwen Harvey, Assistant County
3) Child Care System in Orange Manager, 245-2307
County Nancy Coston, Social Services
4) 2006 Child Care Task Force Director, 245-2802
Report
PURPOSE: To receive staff review of a proposal by the Orange County Child Care Coalition
requesting County funding for Universal Pre-kindergarten
BACKGROUND: At the Board of County Commissioners' meeting on June 2, 2009, three
members of the Orange County child care community read prepared statements endorsing a
written proposal by the Orange County Child Care Coalition. The Coalition proposed creation of
an Orange County Universal Pre-Kindergarten Program (OC-UPP) with a goal to ensure 70% of
all four year olds are enrolled in a preschool program in the County meeting the NC Pre-
Kindergarten Program Standards by June 30, 2013. Childcare classroom fees would be partially
or fully paid by OC-UPP funding provided by the County. The Coalition, acknowledging the
County's difficult financial situation, asked the County to create an Early Learning Task Force to
study the proposal and develop a response. The Board unanimously approved a
recommendation by Commissioner Nelson to refer this request and related proposal to County
staff for follow-up.
Following direction by the Board of County Commissioners, staff have met, reviewed, and
discussed the Orange County Child Care Coalition's proposal for County funded universal pre-
kindergarten. Staff finds universal pre-kindergarten while a laudable concept would be a
considerable and costly addition to the already high level of public support for education
available to Orange County children. Technically, the proposal fails to explore methods of
implementation outside of private child care centers or address alternative funding mechanisms
within a challenging economic environment. Staff references the 2006 Orange County Child
Care Task Force Report, which recommended additional subsidy dollars as the highest funding
priority for expanding child care opportunities for eligible families. Staff also reminds the Board
of challenges and conflicts inherent to the dual subsidy system within Orange County and
previous support given Social Services by the Board of County Commissioners and Social
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Services Board to compete within the Smart Start grant allocation process for local
administration of all funds.
FINANCIAL IMPACT: The proposal estimates an investment of County funds in the amount of
$10,800,000 over the first five years and an annual commitment of $4,450,000 in County funds
thereafter. The funding source would be all new County (General Fund) dollars.
RECOMMENDATION(S): The Manager recommends the Board
1) Receive the Staff Review of the Child Care Coalition Proposal
2) Decline creation of an Early Learning Task Force to study the Proposal further in
recognition of competing priorities and current budget constraints
3) Affirm support for reducing duplication of administrative functions and expense for child
care subsidy oversight in Orange County for Smart Start funded services to eligible
families
4) Request school systems input into the issue seeking optimal approaches that broaden the
use of existing resources and programs
5) Provide additional feedback and guidance as may be desired
A-4a c h rfl e-e)t -L 3
Voluntary, Universal Pre-kindergarten in Orange County...An Action Plan
Created by the Orange County Child Care Coalition
Back&Lgun : With greater attention on the achievement gap between majority and minority
children and children of wealth versus children of poverty, attention has been focused on the
research evidence on the effectiveness of high,quality early childhood education as a mechanism
to level the playing field. The Chicago Longitudinal Study found that Chicago children who
attended pre-k were 29% more likely to graduate from high school.and 41% less likely to require
special education services than children who did not have pre-k. A study done by Yale
University Child Study Center, "State Efforts to Evaluate the Effects of Pre-Kindergarten",
found that Michigan 0' graders who had attended pre-k passed the state's literacy and math
assessment tests at higher rates than those who had no pre-k and Maryland fifth graders who
attended pre-k were 44% less likely to have repeated a grade as those who did not attend pre-k.
Authors of a study out of The Bush School of Government and Public Service at Texas A&M
UniversityEl report: "Our analysis of the relative costs and benefits of a high-quality universally-
accessible pre-kindergarten program suggests that even under very conservative assumptions,the
benefits of such a program in Texas greatly outweigh its costs."
A number of states are moving in the direction of universal pre-kindergarten, including Georgia,
Florida and Oklahoma. Oklahoma and Georgia will soon reach more than two-thirds of 4-year-
olds between the state pre-kindergarten program, Head Start and preschool special education.
North Carolina has chosen the targeted approach with More at Four.Voluntary universal pre-
kindergarten shows high participation rates. However,North Carolina has failed to pay the full
cost of a More at Four slot, forcing communities to find matching dollars. When those dollars
are not available,the More at Four slots go unfilled or are given to other communities.
Head Start has long served as an intervention strategy for very poor low income 3 and 4 year old
children. However,the income cut off is so low,many low income families in Orange County
are not eligible. More at Four income eligibility is higher,but funds for child care for infants and
toddlers have been diverted to pay for the match for More at Four. And sufficient match dollars
are not available to reach every eligible child. The National Institute for Early Education
Research (NIEER) reports that middle income families are often the least likely to have their
children access high quality early childhood settings. They often are not eligible for help
through Head Start, More at Four or child care scholarship programs, often relegating their
children to less than quality preschool education. High income families can afford high quality
part-day preschools. Very low income ncome families can receive help paying for it through targeted
programs like Head Start and More at Four. Voluntary, universal pre-k would insure that all
children in Orange County would have at least one year of high quality preschool education
before school entry.
Rationale: Orange County has been a leader in education since the inception of the first state
university system, The County is known for having the best schools in the state, with the highest
proportion of teachers who have National Board.Certification. In addition, Orange County has
some of the very best child care settings in the state and some of the highest quality child care
available. Orange County can again become anational leader by investing in its children
through a voluntary, universal art at pre-kinderen program. By partnering with high quality child
care programs in the community to serve as qualified pre-kindergarten sites, children.and
families can receive a high quality early education at community sites at a lower overall cost.
High quality pre-kindergarten classrooms in child care settings can achieve the outcome of
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children coming to school.ready for success using the physical and administrative infrastructure
available in the child care community. Orange County has already taken the lead.in providing
Early Head Start and More at Four services in child care classrooms that meet the higher
standards. It is time for the next step. The North Carolina Pre-kindergarten. Program Standards
have recently been developed and, when instituted, will offer child care programs the
opportunity to demonstrate that their four-year-old classrooms meet the highest educational
standards. These standards mirror those found in More at Four classrooms with certified
teachers, approved curriculum, child assessments and high quality classroom environments.
They also mirror the standards found in the research evidence on what components produce
positive educational and social outcomes for children.
North Carolina's rated license system for child care has set 5 stars as a benchmark for quality.
However, standards for the five stars are not good enough.,because the floor in North Carolina
has historically been so low. In fact a number of states have North Carolina's five-star education
and staff/child ratio standards as their floor not their zenith. In addition, fewer and fewer
programs in Orange County meet NAEYC accreditation standards, which are the nation's most
rigorous program standards. Yet the evidence is clear. Investing in high quality early childhood
education has a significant return in immediate savings in costs for remedial and special
education and in long term savings resulting from better educational and social outcomes.
This proposal seeks to raise the quality of preschool education for all of Orange County's four
year old children and to increase their access to this education.. With the increasing number of
children who live in our community with English as their second language, the need for a high
quality pre-kindergarten experience is even more critical. Early education is a public good equal
to that of K-12 education and needs an equivalent investment of county funds to support its
improvement and expansion. And with this investment Orange County is again taking a
leadership role in education in the state and nation.
Project Goal: The goal of the Orange County Universal Pre-kindergarten Program(OC-UPP) is
to ensure that 70% (950)of all four year olds are enrolled in a preschool program in.the county
meeting the NC Pre-kindergarten Program Standards by June 30, 2013.
Project Design and Implementation:
OC-UPP will be phased in over a five year period,beginning in August 2008. Participation is
voluntary. Classrooms who meet the North Carolina Pre-kindergarten Program Standards would
be eligible to have the fees for the school-day, school-year pre-kindergarten program partially or
fully paid by OC-UPP program funds. Only children who are scheduled to enter kindergarten in
the following year and who live in Orange County would be eligible to participate. Eligible
classrooms would receive $8,000 per child for the school year. Families who need before and
after pre-k child care and summer care would be responsible for either paying for this service or
seeking scholarship assistance through DSS or. CCSA. Families making less than $30, 850
(<50% county median family income)would pay nothing for the program.. Families making
between.$30,850 and $46,275 (between 50% and 75%of county median income) would pay
$2000 for the school year,and families making at or over$46,275 (35% of county median
income) would pay $4000 for the school year. The balance of the funding for each child would
be paid by OC-UPP.
Currently, 117 four year olds are enrolled in More at Four classrooms in Head.Start sites, where
federal Head Start funds match More at Four funds. No fees are charged to parents in these sites
for the school day. Another 44 four year olds attend More at Four classrooms in 3 child care
programs in Orange County. Therefore, 161 four year olds are currently enrolled in sites that
already meet the NC Pre-kindergarten Program Standards. About another 50-60 four year olds
are enrolled in the Chapel Hill Carrboro City Schools Head Start sites that are not More at Four
children but are in classrooms that meet the More at Four Standards. Beginning in 2008-09 and.
continuing for 5 years, new classrooms that meet the NC Pre-kindergarten Program Standards
would be identified to provide spaces for 175 eligible each year for five years, gradually
increasing the enrollment to reach 775 children per year.
Child Care Services Association, through its technical assistance department, would help child
care programs create pre-kindergarten classrooms that meet the state standards. All new
classrooms that have met the standards by July I of each year would be put in a lottery to
provide the additional 175 new slots needed. During the first year Orange County funds would
be used to pay the match for the existing 44 More at Four slots in child.care settings and to add
56 new MAF slots in child care programs that meet the North Carolina Pre-kindergarten Program
Standards. In subsequent years new classrooms would be randomly selected from the pool until
175 slots have been filled. Selection of classrooms would be proportional to the geographic
distribution of children in the county. Once a classroom is funded, Orange County families in
those classrooms and sites are eligible to participate if they individually meet the eligibility
criteria and the site maintains the North Carolina Pre-kindergarten Program Standards. The
Office of School Readiness and the Division of Child Development will monitor those
classrooms for compliance with the standards. If additional federal or state dollars become
available as match funding, county costs could be reduced. Funding would be recurring.
Because of the voluntary nature of this program, it is expected that 30% of 4 year olds will not
attend,because their parents will want them to either attend private part-day preschools or to
remain at home.
Cost:
FY 2009: $400,000 to provide the match to fund 100 MAF slots in 5 star classrooms
meeting the NC Pre-kindergarten Program.and MAF standards.
FY 2010: $800,000 to provide the match for 100 MAF slot-, in 5 star classrooms and to fund
75 additional slots in child care classrooms meeting the NC Pre-kindergarten
Program Standards.
FY 2011: $1,850,000 to fund the 175 slots funded in FY 2010 and an additional 175 new
slots in child care classrooms meeting the NC Pre-kindergarten Program
Standards.
FY 2012: $3,300,000 to fund the 350 slots funded in FY 2011 and an additional 175 new
slots in child care classrooms meeting the NC Pre-kindergarten Program
Standards.
FY 2013: $4,450,000 to fund the 600 slots funded in FY 2012 and an additional 175 new
slots in child care classrooms meeting the NC Pre-kindergarten.Program
Standards.
�1tt ich oew)+ s
Staff Review of Universal Pre-Kindergarten Proposal
At the Board of County Commissioners' Meeting on June 2, 2009, three members of the
Orange County child care community read prepared statements endorsing a written
proposal by the Orange County Child Care Coalition. The Coalition proposed county
funded universal pre-kindergarten, phased in over five years with a total estimated cost of
$10,800,000 and a recurring annual cost of $4,450,000 thereafter. The Coalition,
acknowledging the county's difficult financial situation, asked that the county create an
Early Learning Task Force to study the proposal and develop a report. The Board
unanimously approved a recommendation by Commissioner Nelson to refer this request
and related proposal to staff for follow-up.
Following direction by the Board of County Commissioners, staff have met, reviewed,
and discussed the Orange County Child Care Coalition's proposal for county funded
universal pre-kindergarten. Although the issues and arguments presented in the
referenced proposal are compelling, given the current demand on Orange County's
finances, the ongoing investment in both school systems, and the current duplication and
inefficiencies in child care subsidy funding for many of the same families that this
program would target, staff recommends against funding the proposal at this time.
As written the proposal would require a significant financial commitment from the
county for both start-up and ongoing support. As previously mentioned, full
implementation of the proposal would require an annual commitment of more than
$4,000,000 based on funding 775 slots for Orange County four-year-olds. The actual
costs could be significantly higher if more children participated, or if a higher number of
low-income children participated. The proposal requires no parent in Orange County to
pay more than 50% of the cost of care regardless of income. This $4,000,000+ annual
commitment is all new county money and would cost more than $.03 on the annual tax
rate.
The Child Care Coalition's proposal recommends that private child care centers be used
as classroom sites for universal pre-kindergarten, and that the program be managed by
Child Care Services Association, a local nonprofit organization. If the county decided to
fund universal pre-kindergarten, more exploration should be done on other options for
implementation. The proposal also references universal preschool systems in other
states. Many of these states utilize the local school systems in addition to private schools,
private child care centers and faith-based child care centers to facilitate their preschool
programs, relying on current infrastructures there, and making after school care and
multi-child pickup easier on parents. The significant investment that the county already
makes in both the Orange County and Chapel Hill Carrboro City School Systems would
imply that they would be a good vehicle through which to manage such a program should
the Board of County Commissioners decide to implement it. If county dollars are to be
used to fund universal pre-kindergarten, the money should stay within the county to
control. A collaboration of the two school systems and the Department of Social
Services, which is the county's child care agency, would be one possible alternative.
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The proposal cites the need for universal pre-kindergarten based on achievement gaps
between majority and minority children and children of wealth verses children of
poverty. There is no doubt that these achievement gaps exist and that better education for
all children is one of the solutions to the problem. In Orange County many of the low-
income three and four year olds are already in quality child care settings due to federal,
state, and county dollars for subsidy. Unfortunately, there is not enough money to fund
all of the eligible children, forcing many families to wait for a year or more to access this
subsidized child care. If the county wanted to funnel more money into child care, it could
expand its current role to manage additional programs.
The county currently administers more than $4,000,000 annually in federal funds for
child care subsidy. Child Care Services Association administers more than $1,000,000 in
state funding through Smart Start for a similar program. The two programs have
overlapping costs for administration, maintain separate waiting lists for services and have
different eligibility criteria creating inefficiencies. In a failed 2008 bid to administer
Smart Start subsidy, the county identified $200,000 of potential cost savings for merging
the programs. This use of public resources should be addressed before any additional
money is funneled into a private child care system.
In summary, staff finds the ideas and arguments behind universal pre-kindergarten to be
very persuasive. There is clearly an identified need for high quality early education to
complement the high quality K-12 education available in Orange County. However,
since this would all be new money, the high costs make this proposal problematic in the
current environment. If the Board of County Commissioners is interested in pursuing
universal pre-kindergarten at a future date, work should be done with the school systems
to calculate costs of a school-based model, and all options for implementation should be
explored. County agencies involved in child care, including the school systems and the
Department of Social Services, should be viewed as critical to any determinations about
how to funnel additional money into child care. Heretofore mentioned, there are
opportunities to increase the efficiency of existing money in subsidized child care
through Smart Start that should be pursued before any additional funds are given to
private groups or agencies. County staff should be very involved in any endeavor that
involves this level of commitment of county funds. County resources, including staff, are
currently stretched to the limit making it difficult to recommend the implementation of
another task force at this time. This item could be referred to the Social Services Board
for further exploration, however, the state is currently doing an analysis of Smart Start
and More at Four, two state-funded school readiness programs, and the county may want
to wait on the outcome of that research before spending more time on the issue.
� achmei'l� 3
s
Child Care in Orange County
Oranze County Child Care Resources
In Orange County there are 81 licensed centers and 30 licensed homes,providing care for over
1,000 children. Roughly 80%are enrolled in child care centers, and 20%are enrolled in family
child care homes.
Of the 110 total licensed programs in Orange County, 79%of them are 3,4,or 5 star rated. Of the
total, 55%are four or five star rated. These numbers accentuate the high quality of care found in
Orange County's child care centers.
Quality child care is very expensive to provide.In a good program there are low child to staff
ratios.The environment is clean safe and stimulating,with many fun,child-oriented and age-
appropriate toys and activities,and lots of space for children to move around.This can add up to
high costs. Families can spend over$1,000 a month per child for full-time day care. In our
society,most of the responsibility of paying for child care falls on parents. Orange County has the
highest rates for child care of any county in the state. Many families cannot afford the cost of
care on their own.
Federal,State and County Subsidy Resources
Because of the high costs,many working families have difficulty affording quality day care for
their children.A parent making less than a prescribed income, and meeting certain eligibility
criteria may be eligible for help to pay part of their child care costs. North Carolina's Division of
Child Development uses a combination of state and federal funds to provide subsidized child care
services to eligible families through a locally administered state-supervised voucher system.
Annually,each county receives a combination of state and federal funding from the Division of
Child Development for subsidized child care services. The amount of funding allocated to each
county is determined by legislation. This enables increased access to child care for low income
families.
Orange County is one of only a few counties in the state that has a dual subsidy system. Both
Child Care Services Association and the Orange County Department of Social Services handle
childcare subsidy. The funding sources for the programs differ,as does eligibility criteria and
waiting list priorities. The Orange County Department of Social Services provides the majority
of all child care subsidies in Orange County. These funds are federal, state and county.
Department of Social Services Subsidy
If a family meets the eligibility criteria for the Department of Social Services,the state of North
Carolina pays a portion of the cost of child care. Parents are free to choose a child care
arrangement that best fits their needs as long as the provider chosen participates in the Subsidized
Child Care Program. The amount the state pays for child care depends on the family's situational
criteria,the family's income,and the cost of the child care provided. Most families must qualify
based on need and income, and are required to pay a percentage of child care costs based on their
countable monthly income. The percentage depends on the number of people in the family,but
ranges from 8 to 10 percent of income. There is one fee for families receiving subsidized child
day care,regardless of the number of children in care. A family may receive child care assistance
for one or more of the following reasons if they are income eligible:
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• They are working;
• They are in school or in a job training program;
• Their child is receiving child protective services;
• Their child needs care to support child welfare services or because the family is experiencing
a crisis;or
• The child has developmental delays.
Waiting Lists and Priority Applicants
If the county department of social services or other local purchasing agency does not have enough
funding to serve all families who apply for subsidized child care,the agency may establish
priorities for services. For example, an agency may choose to give priority to working parent(s)
or to families who need child care to support child protective services.
In Orange County,when insufficient funds are available to meet demand, a waiting list is
implemented by the Department of Social Services. As funds become available,names are taken
from the top of the waiting list for services. The following policy outlines the priority for
payment when a waiting list is in place.
The following children or cases will receive services and will not be subject to the waiting list:
• Child Protective Services
• Foster Care
• Work First/Employment Services Participants
• Teen Parents
• Families residing in a homeless shelter
• Existing/Active clients pursuing job search activities that exceed 60 days
The following children or cases will receive services in this order and based on their date of
application with each category:
• Full-time employment
• Part-time employment
• Seeking employment for a maximum of six months
• Education or training leading to employment
• Children needing care for developmental needs
Waiting List numbers periodically experience large fluctuations. The Division Of Child
Development requires that people on the waiting list be surveyed at least every six months to
determine if they are still in need of child care subsidy. People who fail to respond to the survey,
or are no longer eligible for subsidy are deleted from the list. Historically there is a poor response
to waiting list surveys.
Families Currently Receiving Subsidies and Currently on the Waiting List
In December of 2009,the Orange County Department of Social Services was serving over 700
children through the Child Care Subsidy Program.
Although many families are receiving help to pay child care costs,there are currently 250
children eligible for Department of Social Services(DSS)subsidy that are unserved and waiting.
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While the Orange County Department of Social Services does everything possible to provide all
needy families with child care subsidy,the available resources are rarely sufficient to meet these
needs. The goal is to eliminate waiting lists and serve every client immediately. Unfortunately,
this is not the reality. Families are often forced to wait for subsidy funds to become available,
sometimes up to six months or more.
Prepared by OC Social Services Staff
December 2009
A-Ifiachmenfi 4
ORANGE COUNTY, NC
ORANGE COUNTY
CHILD CARE TASK
FORCE
CHILD CARE IN ORANGE COUNTY
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ORANGE COUNTY
CHILD CARE TASK FORCE
BACKGROUND
On November 29,2005,a special briefing for Orange County employers on the impact of child care
on today's workforce was sponsored by the Orange County Board of Commissioners and other local
organizations. The purpose of this briefing was to begin a community discussion about the current
child care resources and the needs of children in our community. The briefing included information
about the economic impact of child care on businesses and some of the options currently available to
employers. Commissioners Foushee and Carey attended the briefing. At the end of the meeting,
Commissioner Foushee recommended that the Board of Commissioners appoint a task force with
broad representation including employers and charge the group with raising community awareness,
encouraging greater financial participation by the private,business and public sectors in providing
child care resources,and championing workplace support for children and families.
During the BOCC annual retreat and work sessions,the Commissioners further discussed
establishing a Task Force to study the various issues related to child care. The Commissioners
indicated their interest and support for this concept and provided additional input about the purpose
of the task force.
Based on this information,the Commissioners established the Orange County Child Care Task
Force. The following is the charge given to this task force.
• To create community awareness of and support for the benefits of early childhood education
• To increase private,business and public financial contributions for child care subsidies or
scholarships
• To improve workplace support for children and families
The Task Force members include individuals representing university,business,child care providers,
schools,non-profit,and local government interests.Attachment A is a list of those organizations and
persons serving on the task force.
INTRODUCTION
This report provides a broad picture of the significant contribution that child care subsidies make to
working families receiving them,to the children who benefit directly from the care,and to the
economic well-being of the county as a whole. It also contains discussion of the issues examined,
documents that describe the current resources and current needs for child care subsidies,and a
description of the considerable economic advantage for both families and businesses that child care
subsidies provide. Finally,this report provides recommendations for the BOCC on continuing to
lead the way in providing affordable child care for Orange County residents.
WHY IS CHILD CARE NECESSARY?
Child care is an important and necessary part of the lives of most working families in Orange County.
Parents or guardians may utilize child care for a variety of reasons.The parent(s)may work full or
part-time,attend school,have an illness necessitating child supervision,or require a break from the
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demands of child care. Without available child care,a parent/guardian may be in danger of losing a
job or forced to leave a child in less than ideal conditions. For the majority of families there are
relatively few options for safe and secure child care. Families may utilize relatives,babysitters,and
neighbors,but most tend to seek more permanent solutions in the form of licensed child care homes
or centers.
COSTS OF PRIVATE CARE
There are several types of licensed child care available;the type of care appropriate for one family
may not be the best for another. A child care home is licensed to care for five or fewer preschool
age children,and an additional three school age children. Licensing as a center is required when six
or more children are cared for in a residence or when three or more children are in care in a building
other than a residence. Additionally,many schools,both public and private,offer before and after
school care.
In order to increase the quality of child care in North Carolina,in September 2000,the Division of
Child Development issued star rated licenses to all eligible Child Care Centers and Family Child Care
Homes.'The star rated license is a voluntary licensing system where a child care program can earn
points in two different areas:
■ Program Standards
■ Staff Education
Programs that are meeting higher standards can receive recognition for their efforts,and families can
use this information to search for a child care program.
The increased focus on quality has led costs to rise sharply in the last fifteen years. In 1991,the
average cost for a child to attend private day care was$239. In 2001,monthly child care costs for an
infant,the most expensive children to care for,was in the neighborhood of$700. Today,parents can
pay over$1100/month for an infant to receive full-time day care. Care for preschool and school-age
(part-time)children is less,although it is important to note that in Orange County the monthly cost
of child care for all age groups,on average,ranges from$800 to$1,100.
These costs put private care out of the reach of most low-and middle-income families.
FEDERAL, STATE AND COUNTY SUBSIDY RESOURCES
The subsidy programs,offered by all North Carolina counties and financed with public money,are
the only hope that low-income families have of securing this quality,costly care. Parents making less
than a prescribed income,currently based on 75%of state median income for most funds,and
meeting certain eligibility criteria may be eligible for help to pay part of their child care costs. The
amount of funding allocated to each county in North Carolina is determined by legislation and is
directly affected by the amount of funding in the federal budget. In Orange County the majority of
this funding is administered by the Department of Social Services. Child Care Services Association
administers 1.8 million dollars for scholarships with funding from Smart Start,UNC,United Way
and other funding sources.
If a family meets the eligibility criteria for the Orange County Department of Social Services,a
portion of the cost of child care will be paid for them.Parents are free to choose a child care
arrangement that best fits their needs as long as the provider chosen participates in the Subsidized
Child Care Program. The amount the state pays for child care depends on the family's situational
criteria,the family's income,and the cost of the child care provided. (See Attachment B for state
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market rates paid by Orange County). Most families must qualify based on need and income,and are
required to pay a percentage of child care costs based on their countable monthly income. The
percentage depends on the number of people in the family,but ranges from 8 to 10 percent of
income.
As mentioned above,additional sources of subsidy come from specialized funding that may target
specific groups. Examples of this type of funding are Smart Start,More at Four,the UNC
Chancellor's Fund,and the additional funding allocated by the Board of County Commissioners in
the Orange County budget.
WAITING LISTS
In recent years,the costs of and need for care have become so high that the demand for the subsidy
system has far outweighed the supply. In Orange County,when insufficient funds are available to
meet demand,waiting lists are implemented.
There have been long child care subsidy waiting lists for the last few years,with Fiscal Year 2005-
2006 proving to be the worst. Not a single child was taken off of the waiting list at Social Services
between March 2005 and June 30,2006,so that some families had been waiting over a year to receive
subsidy. While funding to Social Services has increased the last few years,the increase was not
enough to cover all the families requiring subsidy when rising costs are taken into account. The state
budget crisis has also affected funds available through Smart Start,causing them to either hold steady
or decline in recent years. At the same time,child care providers in Orange County worked very
hard to improve their quality by sending more of the staff to school,hiring better educated staff,
improving their child-to-staff ratios and earning higher star ratings. To support these changes in
quality,they needed to increase their tuition rates for care. Higher tuition rates mean higher payment
rates for child care subsidy. Higher costs per child per month without a commensurate increase in
funds available has meant that fewer children can be served and waiting lists have increased. It also
means that fewer parents are able to afford the costs of care on their own.
The parent(s)in the majority of families both receiving subsidy and waiting are employed. The
income generated by these working parents is simply not enough to be able to meet all the family's
basic needs and afford child care. (See Attachment C for a list of the top employers of parents who
are waiting for or currently receive Child Care Subsidy through the Orange County Department of
Social Services.)
Child care subsidy waiting lists remain a critical issue for Orange County. Additional funds for fiscal
year 2006-2007 were allocated by the state and the Board of County Commissioners in Orange
County so that families who have been waiting the longest are now receiving subsidy. While Orange
County is currently serving roughly 600 children in the subsidy program,there are still over 150
children in Orange County who are eligible for subsidy assistance,but are not receiving it due to lack
of funds. These children and their families are waiting.
DISCUSSION
ISSUES
Because of the various backgrounds and interests of the Task Force Members,subcommittees were
created to allow participants to identify issues and attempt to solve problems specifically relevant to
their pursuits. The consumer subcommittee consisted of county-wide focus groups offered on two
separate evenings during the week,one in Hillsborough and one in Chapel Hill.The child care
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provider subcommittee consisted of a discussion held at the Child Care Providers Association June
Meeting. The business subcommittee met on three occasions at the Chapel Hill-Carrboro Chamber
of Commerce. The committee consisted of large and small employers from the northern and
southern portions of the county. For a list of all employer participants,please see Attachment D.
The following is a list of issues identified by the various subcommittees.
• The number one issue related to subsidy is the lack of sufficient funding so as to assure that
all eligible families can receive needed service in a timely manner.
• Waiting for subsidy is a hardship on families trying to work.
• For parents with no child care and no way to afford the high costs,high quality is not as
important as a safe place for the child(ren) that allows the parent to gain or maintain
employment.
• Costs for child care are too high.
• Families need support from employers.
• Even a small amount of financial assistance would make a difference between working and
losing a job.
• Orange County Government should explore the possibility of a county-run center for
county employees and/or residents.
• Providers are paid rates for subsidy that are lower than what private paying parents are being
charged.
• Continuity of care for children should be a priority.
• Employers are interested in child care so that they can have dependable employees who
attend work regularly and who can focus on their jobs.
• There are many employers who are willing to support employees'child care needs,and who
may be able to provide on-site child care or other support.
• All government employers in Orange County should provide some type of support for child
care subsidies and be models for other employers.
• There are various models for employers to provide support for employees'child care needs
including sponsorships,onsite child care centers and flexible spending programs.
• Some of the eligibility requirements of the subsidy program may actually penalize employees
if they take advantage of employer financial incentives.
• Families whose income falls outside of the guidelines for scholarships or subsidies also have
financial issues in attaining quality child care.
• Government should explore ways to incent private enterprise to aid employees with child
care.
While participants did not agree on all issues,the one common thread through all discussions was the
need for additional money for child care subsidies.
SOLUTIONS
Based on discussions and feedback from the subcommittees outline above as well as on the charge
given to the committee,the Task Force focused efforts on exploring possibilities for increasing
private,business and public financial and in-kind contributions and support for child care.
The Task Force worked with local businesses and local business leaders to determine what kinds of
information employers would find helpful when attempting to assist employees with their child care
needs. The three main ideas that the business community expressed interest in were exploring
different benefit models that might be tailored to suite individual business needs,investing in
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scholarship and/or funding models that would allow businesses to contribute to existing subsidy
programs for the benefit of their own employees or for the benefit of all,and building or
contributing to the building of on-site centers designed to serve the needs of the business's
employees.
BENEFIT MODELS
There are several benefit models that employers can utilize to pay or help employees pay for child
care expenses. Some,like the"cafeteria plans"are utilized more often by smaller businesses or as a
portion of the benefit package at a larger employer. Standard benefit packages are more widely used
and are found at most larger businesses.
Internal Revenue Code Section 125 describes an arrangement by which an employer establishes a
plan so employees may choose to reduce pay before taxes (pre-tax contributions),thereby avoiding
tax on those dollars used to purchase benefits.The amount set aside is exempt from federal and state
income taxes and FICA(Social Security) and Medicare taxes for the employee,and it is exempt from
the Social Security and Medicare payroll tax match for the employer.
Benefits that may be included in a Section 125 Plan include medical,dental,vision,group-term life,
disability,and dependent care assistance. In Code Section 125,the IRS refers to these types of plans
as "cafeteria plans."The term"cafeteria plan"is used by the IRS to describe any arrangement in
which a participant has a choice between cash(taxable) and benefits(pre-tax).
The most common types of Section 125 Plans are explained below:
Insurance Premium Conversion.for payment by the employee of a portion of the cost for qualified
insurance benefits,such as health,disability,or dental.
Flex Plan or Flexible Benefit Plan:Premium Conversion with Reimbursement Accounts(Medical,
Dependent Care,Adoption Assistance).
Full-Flex Plan or Cafeteria Plan:a wide choice of benefits,usually with employer credits that the
employee may allocate toward the cost of one or more benefits (including cash).
In addition to these"cafeteria"style plans,employers may opt to provide child care costs as a direct
benefit in a standard plan,similar to health,dental and life insurance plans offered by many large
employers. In these cases,employees without children would get none of the benefit,much like an
employee who does not use the employer health plan.
SCHOLARSHIP AND OTHER FUNDING MODELS
For businesses that are not able to adjust their benefit plans,scholarship and other funding models
are another option for assisting employees with child care needs.
Voucher Model.-Employers contract with child care providers or child care centers in the community
for services for their employees.Parents are given vouchers for all or part of their child care costs
and the child care programs redeem the vouchers for payment through the employer.
ReimburrementModel.-Employees choose the child care arrangement best suited to their needs (child
care center,family child care home,after-school program)and then receive a reimbursement from
the company for some portion of the costs.
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Purchase of Space:The employer arranges to"own"a specified number of spaces in a local child care
program.Parent fees may cover most or all of the cost of any spaces used,but the company typically
covers all or a portion of the cost of the unused spaces so that the program can afford to keep the
spaces open for the company.
Consortium Modek A number of employers come together on an industrial or geographic basis and
pool resources to conduct joint child care projects.Consortium members generally share start-up
costs and in return receive priority enrollment for their employees'children.
Sometimes a specific number of slots are set aside for each company. Operating costs,however,are
usually funded through a combination of parent fees and contributions from the employers.Member
corporations may choose to subsidize their employees'fees through a voucher or reimbursement
program(see first option).
On-Site or Off-Site Center An on-site or off-site center sponsored by an employer at the work site or at
another location.The center can be operated by the employer or by a nonprofit or for-profit child
care provider.Employers usually pay all start-up costs;any operating losses that occur in the early
stages of the center before it is fully enrolled;and some portion of the ongoing operational expenses.
Parent fees cover the balance of the center's operating expenses.
CURRENT PRACTICES
There are currently several Orange County employers that have established child care support for
their employees and/or are doing innovative things to provide additional money for child care in the
county.
Subsidy Reimbursement:
Employers can pay back in to the subsidy system for subsidy dollars used by their employees.
Orange County Government currently participates is this program and is helping to free up
subsidy dollars for other families.
On-Site Cbild Care:
Employers run centers on-site for their employees,often at a reduced rate.
Carol Woods has an on-site five star center that is run by the YMCA. The center accepts age eligible
children of employees and is subsidized at a rate of$225/month for Carol Woods'employees. There
is no cost for children of YMCA employees to attend the center. The Center is also open to non-
Carol Woods affiliated children between the ages of three and five at a regular rate.
UNC and UNC Health operate Victory Village,a child care center that serves students and
employees of the university and the hospital. This particular center does not subsidize employees
and students because of the scholarship program offered by UNC.
SAS,Inc. a Cary-based corporation partnered with Bright Horizons to run its two on-site child care
centers,and two near-site centers. The day-to-day operations are managed by Bright Horizons,a
child care center. SAS subsidizes the cost of child care in the centers for its employees, so that they
play a flat rate of$300 a month.
Also partnering with Bright Horizons in the State of North Carolina are GlaxoSmithKline,Blue
Cross/Blue Shield,IBM,Duke University,and Wachovia.
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Scholarship Funds/Matching Funds:
Employers set up scholarship funds so that their employees get help to pay for child care. This is
similar to the government run subsidy program,but the funds are private,and are earmarked for the
employees of a specific business. These programs can be managed by the same groups that manage
regular subsidy funds;Orange County Social Services and Child Care Services Association. The
amount of money committed by the employer may also be matched by Orange County under the
Department of Social Services scholarship plan.
UNC works with Child Care Services Association to fund scholarships for students and university
employees. Students give to their own scholarship fund via activity fees, and the university donates
money to directly subsidize eligible employees.
Direct Donations.
Direct donations can be made to subsidy programs to help alleviate the waiting by all families. This
method is used more often by public entities.
The Town of Chapel Hill donates $10,000 annually to Child Care Services Association to support
child care in Orange County.
The Town of Carrboro donates $5,000 annually to Child Care Services Association to support child
care in Orange County.
Underwriting.
Costs of starting up or running a child care program can be underwritten by donating space,utilities,
etc.to help lower costs of care.
Orange County currently donates space utilized by several child care centers in the county,including
Cedar Grove Day Care Center and Community School for People Under 6.
Benefit Options:
Many employers in Orange County, including Orange County Government, offer flexible spending
accounts and/or other benefit plans to their employees that aid families in meeting their child care
needs.
POSSIBLE STRATEGIES
Based on the information above provided to the Task Force, the following possible strategies were
identified.
1. Seek additional funds for subsidy including requests to government entities and private
funding organizations.
2. Develop partnerships with employers to create additional opportunities to maximize
resources. This may include sponsorships,matching funds,benefit packages,direct
contributions for subsidies or direct provision of child care.
3. Identify alternative incentives available for employers to provide to their employees that will
not adversely impact any subsidy payments. Provide information to all employers on
subsidy rules and these alternatives.
4. Continue to explore other child care models that may work for local employers.
5. Initiate a marketing campaign to inform employers of the role that child care plays in their
workplace and educate employers regarding options to assist their employees in securing
affordable,quality care.
6. Plan for child care sites at new large developments.
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7. Explore the possibility of child care sites at public schools,and plan for these sites when
building new schools.
8. Explore expediting processes,tax incentives,and/or no interest loans for new child care
programs trying to open up.
RECOMMENDATIONS
Based on the subcommittee reports and the initial charge of the Task Force,the group compiled the
following list of recommendations to the Board of County Commissioners.
1. Establish a baseline for subsidy programs so that performance can be measured. Include
total subsidy dollars,average length of time on wait list before receiving assistance,and total
number of unique finders.
2. Continue to seek additional support for child care subsidies from all county employers.
3. Request that the local chambers of commerce continue work with local businesses and
county agencies to educate and include more employers in creative problem solving
regarding child care.
4. Explore financial and nonfinancial incentives,including but not limited to tax breaks,special
recognition,etc.,for employers who assist employees with child care needs.
5. Request that county staff work with schools,developers,UNC,Twin Creeks,Carolina
North,Durham Technical Community College and other entities that may be expanding
their sites so that child care needs will be considered during new development.
6. Request that county staff work on efforts to educate the public on the value of early child
development.
7. Agencies who provide subsidy money should explore issues of access,including but not
limited to common applications.
8. Request that Orange County Government,UNC,Town of Chapel Hill,Town of Carrboro,
and other agencies,at a minimum,maintain their current level of support.
It is recommended that the Social Services Board report back to the Board of County
Commissioners annually on the activities that have occurred and on the progress being made in these
areas,particularly on the effort to increase financial support for subsidy programs.
9
Child Care Task Force Members
Appointed Positions Name
Board of County Commissioners (2) Valerie Foushee
Steve Halkiotis (Alternate)
Orange County Department of Social Services, Director Nancy Coston
Orange County Partnership for Young Children, Director Michele Rivest
Child Care Services Association, Executive Director Sue Russell
Superintendent, Chapel Hill-Carrboro City Schools Neil Pedersen
Superintendent, Orange County Schools Shirley Carraway
Town of Hillsborough Brian Lowen
Town of Chapel Hill Cindy Wilkins
Town of Carrboro Mark Chilton
Chamber of Commerce, Hillsborough(2) Margaret Wood Cannell
Tom Underwood
Chamber of Commerce, Chapel Hill-Carrboro (2) Aaron Nelson
Barbara Jessie-Black
Tracy Hager
Orange County Economic Development, Director Dianne Reid
Orange County Community Services Director Sharron Hinton
UNC/UNC Hospital Jeanne Wakefield
Lorri Allison
Day Care Provider (2) Marguerite Stimpson
Kate Sanford
Anna Mercer-McLean
Day Care Consumer/Citizen(4) Rachel Hawkins
Maria Sherburne
Juliellen Simpson-Voss
Brandy Fowler
Support Staff Tina Broadway No
Lindsey Dennis
Subsidized Child Care Rates for Child Care Centers(100% Rates)
Effective October 1,2006
One Star Rates Two Star Rates Three Star Rates Four Star Rates Five Star Rates
Infant- 2- 3-5 School- Infant- 2- 3-5 School- Infant- 2- 3-5 School- Infant- 2 3,5 3-5 School- Infant- 2- 3-5 School-
Toddler Year.Year- Age Toddler Year- Year. Age Toddler Year-Year- Age Toddler Year Year- Age Toddler Year- Year- Age
County Rates Old Old Rates* Rates Old Old Rates Rates Old Old Rates' Rates Old Old Rates* Rates Old Old Rates
Rate Rate Rate Rate Rate Rate Rate Rate Rate Rates
Alamance $402 $379 $356 $335 $422 $390 $368 $346 $585 $541 $515 $392 $600 $569 $537 $409 $641 $609 $575 $430
Alexander $463 $402 $379 $382 $486 $410 $386 $390 $585 $551 $515 $448 $617 $581 $528 $468 $671 $622 $563 $491
Alleghany $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $448 $622 $573 $548 $471
Anson $437 $402 $379 $356 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $448 $622 $573 $548 $471
Ashe $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $453 $645_ $580 $555 $476
Avery $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $453 $645 $580 $555 $476
Beaufort $437 $403 $379 $356 $445 $418 $386 $363 $585 $551 $517 $448 $617 $5811$543 $468 $671 $622 $582 $491
Bertie $433 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $441 $614 $563 $537 $460 $668 $604 $578 $483
Bladen $424 $390 $368 $260 $445 $410 $386 $273 $585 $541 $515 $433 $600 $555 $528 $453 $645 $580 $555 $476
Brunswick $437 $402 $379 $368 $458 $422 $398 $386 $602 $5601$5281 $455 $619 $592 $543 $468 $671 $6251$582 $491
Buncombe $379 $356 $335 $335 $398 $374 $351 $351 $585 $4771$456 $503 $617 $504 $482 $525 $672 $537 $522 $555
Burke $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $386 $388 $600 $555 $396 $406 $615 $569 $423 $435
Cabarrus $446 $392 $366 $356 $469 $412 $384 $374 $624 $564 $493 $410 $668 $595 $519 $422 $733 $638 $560 $443
Caldwell 1 $437 $312 $312 $289 $445 $328 $328 $304 $585 $541 $515 $441 $600 $5631$528 $460 $614 $604 $541 $483
Camden $424 $3901$368 $346 $445 $4101$386 $363 $585 $541 $515 $433 $600 $555 $528 $448 $622 $573 $548 $471
Carteret $424 $3031$303 $299 1 $445 $318 $318 $314 $585 $541 $515 $433 $600 $555 $528 $453 $645 $580 $554 $476
Caswell $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $448 $622 $573 $548 $471
Catawba $379 $379 $351 $325 $398 $390 $369 $341 $585 $419 $402 $449 $600 $442 $422 $465 $627 $4771$452 $483
Chatham $490 $413 $460 $346 $500 $434 $483 $363 $635 $585 $520 $582 $676 $622 $552 $612 $702 $641 $571 $620
Cherokee $437 $402 $379 $356 $445 $410 $386 $363 $585 $541 $515 $441 $614 $563 $537 $460 $668 $604 $578 $483
Chowan $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $5551$528 $453 $645 $580 $555 $476
Clay $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $441 $614 $563 $537 $460 $668 $604 $578 $483
Cleveland $424 $312 $325 $312 $458 $328 $342 $328 $585 $541 $515 $433 $600 $555 $528 $453 $641 $577 $560 $476
Columbus $424 $2891$289 $323 $445 $304 $304 $340 $585 $541 $515 $433 $600 $555 $528 $453 $645 $580 $541 $476
Craven $437 $3301$312 $312 $445 $346 $328 $328 $585 $543 $518 $441 $623 $573 $547 $460 $679 $615 $590 $483
Cumberland $415 $3661$335 $348 $424 $384 $351 $366 $585 $541 $515 $456 $623 $569 $528 $477 $679 $611 $568 $501
Currituck $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $441 $614 $563 $528 $460 $668 $604 $566 $483
Dare $437 $402 $379 $335 $445 $410 $386 $341 $585 $551 $539 $448 $617 $581 $567 $468 $671 $6221$610 $491
Davidson $366 $356 $356 $312 $384 $374,$368 $322 $585 $541 $515 $433 $601 $555 $528 $453 $657 $591 $556 $476
Davie $424 $390 $368 $346 $445 $410 $386 $363 $585 $551 $527 $448 $617 $581 $555 $468 $671 $622 $596 $491
Du lin $424 $289 $312 $289 $445 $304 $328 $304 $585 $541 $515 $433 $600 $555 $528 $448 $614 $573 $541 $471
Durham $544 $469 $446 $419 $571 $492 $469 $440 $733 $7191$642 $585 $762 $731 $666 $601 $794 $765 $697 $622
Edgecom_b_e_ $424 $402 $368 $281_ $445 $422 $386 $295 $5_85 $5_41 $515 $_433 $600 $555 $528_ $453_ $645 $580 $555 _$_476
Forsyth $433 $423 $388 $339 $454 $445 $408 $355 $585 $475 $447 $398 $602 $5011$472 $416 $654 $540 $508 $438
Franklin $437 $403 $379 $335 $445 $412 $386 $341 $598 $551 $515 $448 $617 $581 $533 $468 $671 $622 $570 $491
Gaston $379 $370 $335 $348 $398 $388 $351 $366 $585 $548 $515 $441 $606 $579 $535 $460 $658 $623 $576 $483
Gates $424 $390 $3681 346 1 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $448 $622 $573$548 $471
Graham $437 $402 $379 $356 $445 $410 $386 $363 $585 $541 $515 $441 $614 $563 $537 $460 $668 $604 $578 $483
Granville $437 $402 $402 $356 $458 $422 $422 $374 $639 $551 $556 $448 $685 $581 $587 $468 $754 $622 $632 $491
Greene $424 $390 $368 $281 $445 $410 $386 $295 $585 $541 $515 $433 $600 $555 $528 $448 $622 $573 $548 $471
Guilford $455 $437 $392 $392 $478 $458 $412 $412 $576 $547 $519 $491 $618 $578 $548 $512 $679 $623 $590 $538
Halifax $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 1$5551$528 $453 $645 $580 $541 $476
Harnett $424 $335 $312 $312 $445 $351 $328 $328 $585 $541_.$515 $433 $600 1$5551$528 $453 $646 $589 $547 $476
N
*The 100%rate represents the monthly rates for summer, holidays,teach work days and inclement weather for school-age children. 8-25-06
Subsidized Child Care Rates for Child Care Centers(100% Rates)
Effective October 1,2006
One Star Rates Two Star Rates Three Star Rates Four Star Rates Five Star Rates
Infant- 2- 3-5 School- Infant- 2- 3-6 School- Infant- 2- 3-6 School- Infant- 2- 3-5 School- Infant- 2- 3-6 School-
Toddler Year.Year- Age Toddler Year- Year. Age Toddler Year- Year- Age Toddler Year Year- Age Toddler Year- Year- Age
County Rates Old Old Rates* Rates Old Old Rates* Rates Old Old Rates* Rates Old Old Rates` Rates Old Old Rates
Rate Rate Rate Rate Rate Rate Rate Rate Rate Rates
Ha ooc $437 $402 $375 $353 $445 $410 $386 $363 $585 $541 $515 $395 $614 $5631$537 $413 $668 $604 $578 $435
Henderson $437 $4021$3351 $289 $445 $410 $351 $304 $585 $541 $515 $441 $614 $563 $532 $460 $668 $604 $572 $483
Hertford $424 $390 $368 $346 1 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $448 $622 $573 $541 $471
Hoke $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $441 $600 $555 $528 $460 $627 $568 $541 $483
Hyde $437 $437 $437 $437 $459 $459 $459 $459 $585 $541 $515 $459 $614 $563 $537 $477 $668 $604 $578 $501
Iredell $437 $379 $392 $339 $458 $398 $412 $355 $676 $635 $583 $557 $727 $673 $615 $571 $804 $727 $664 $585
Jackson $437 $402 $379 $356 $445 $410 $386 $363 $585 $541 $515 $441 $614 $563 $537 $460 $668 $604 $578 $483
Johnston $402 $379 $356 $321 $422 $390 $368 $333 $605 $556 $520 $418 $658 $586 $547 $437 $709 $628 $586 $458
Jones $424 $39011$368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $453 $645 $580 $555 $476
Lee $433 $402 $312 $312 $445 $410 $328 $328 $585 $541 $515 $441 $614 $563 $528 $460 $668 $604 $566 $483
Lenoir $424 $312 $312 $289 $445 $328 $328 $304 $585 $541 $515 $441 $614 $563 $538 $465 $668 $604 $566 $483
Lincoln $437 $402 $356 $356 $455 $4221$374 $374 $585 $541 $515 $441 $614 $555 $528 $460 $668 $580 $547 $483
Macon $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $448 $622 $5731$541 $471
Madison $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $453 $645 $580 $555 $476
Martin $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $5551$528 $453 $645 $580 $543 $476
McDowell $433 $3_90 $368_ $281 $4_45 $410 $386 $295 $5_85 $541 $515 $433 $600 $555 $528 $453 $645 $580 $555 $476
Mecklenbur $536 $490 $477 $423 $562 $515 $501 $445 $666 $654 $616 $538 $693 $679 $639 $556 $723 $698 $657 $567
Mitchell $43_7 $392 $368 $346_ _$445 $410 $386 $363 $585 $541 $515 $_433 $600 $555 $528_ $453 $645_ $580 $555_ $_476
Montgomery $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $448 $622 $573 $562 $471
Moore $437 $402 $356 $335 $445 $410 $368 $346 $585 $541 $515 $384 $600 $555 $530 $399 $614 $568 $570 $420
Nash $339 $3301$3121 $312 $355 $346 $328 $328 $585 $541 $515 $433 $600 $555 $528 $453 $624 $581 Is554 $476
New Hanove $428 $4151$3921 $383 $450 $436 $412 $403 $586 $549 $549 $471 $608 $570 $560 $478 $637 $595 $587 $494
Northampton, $424 $390 $368 $346 $445 $410 $386 $363 1 $585 $541 $515 $441 $614 $563 $537 $460 $668 $604 $578 $483
Onslow $346 $346 $329 $312 $370 $359 $3_46 $328 $585 $541 $515 $433 $627 $575 $528 $453 $689 $624 $543 $476
Orange $513 $423 $446 $390 $539 $4451$469 $410 $866 $735 $687 $534 $909 $764 $729 $565 $954 $801 $761 $585
Pamlico $424 $390 $368 $346 $445 $4101$386 $363 $585 $541 $515 $433 $600 $555 $528 $448 $622 $573 $548 $471
Pas uotank $424 $390 $368 $281 $445 $4101$386 $295 $585 $541 $515 $433 $600 $555 $528 $453 $645 $580 $541 $476
Pender $437 $402 $379 $356 $445 $4101$386 $363 $585 $541 $515 $441 $614 $563 $544 $460 $668 $604 $586 $483
Perquimans $424 $390 $368 $346 $445 $4101$3861 $363 $585 $541 $515 $433 $600 $5551$528 $448 $622 $573 $557 $471
Person $424_ $390 $379 $356 $445 $410 $386 $363 $585_ $541_ $515 $433 $600 $555 $528 $453 $645_ $580 $570 $476
Pitt $423 $402 $388 $379 $432 $410 $396 $386 $598 $555 $528 $448 $638 $584 $556 $468 $696 $626 $596 $491
Polk $437 $402 $379 $356 $445 $410 $386 $363 $603 $541 $520 $443 $616 $563 $537 $460 $668 $6041$578 $483
Randolph $356 $335 $335 $299 $374 $351 $351 $314 $585 $541 $515 $441 $602 $555 $528 $460 $653 $580 $554 $483
Richmond $424 $390 $289 $268 $445 $410 $304 $281 $585 $541 $515 $433 $600 $555 $528 $448 $614 $568 $541 $471
Robeson $289 $289 $276 $276 $304 $304 $289 $289 $585 $541 $530 $446 $632 $575 $550 $454 1 $701 $624 $609 $485
Rockingham $437 $3121$312 $289 $445 $328 $328 $304 $585 $541 $515 $433 $600 $555 $528 $453 1 $616 $571 $541 $476
Rowan $433 $3351$3351 $312 $445 $351 $351 $328 $585 $541 $433 $449 $623 $563 $459 $469 $679 $604 $498 $492
Rutherford $424 $31_2 $312 $214 $445 $3_28 $328 $225 $585 $541 $515 $433 $600 $555 $528 $453 $645 $580 $558 $476
Sampson 1 $424 $312 $276 $356 $445 $328 $289 $374 1 $585 $541 $515 $433 1 $600 $5551$528 $448 $622 $568 043 $471
Scotland $424 $390 $289 $356 $445 $410 $304 $374 $585 $5411$515 $433 $600 $555 $528 $448 $622 $573 $547 $471
Stan $437 $356 $312 $303 $445 $374 $328 $318 $585 $541 $517 $441 $627 $575 $554 $467 $679 f$61 1 $588 $483
Stokes_ _ $437 $402 $312 $289 $445 $410 $328 $304 $602 $557 $515 $433 _$602 $557 $528_ $453_ $645580 $543 $476
Surry $424 $312 $301 $276 $445 $328 $316 $289 $585 $541 $515 $433 $600 $555 $528 $448 $634 583 $549 $471
"The 100%rate represents the monthly rates for summer,holidays,teach work days and inclement weather for school-age children. 8-25-06 N
Subsidized Child Care Rates for Child Care Centers (100% Rates)
Effective October 1,2006
One Star Rates Two Star Rates Three Star Rates Four Star Rates Five Star Rates
Infant- 2-, 3-5 School- Infant- 2- 3-5 School- Infant- 2. 3-5 School- Infant- 2- 3-5 School- Infant- 2- 3-5 School-
Coun Toddler Year Year- Age Toddler Year- Year. Age Toddler Year- Year- Age Toddler Year Year- Age Toddler .Year- Year- Age
ty Rates Old Old Rates* Rates Old Old Rates" Rates Old Old Rates* Rates Old Old Rates" Rates Old Old Rates"
Rate Rate Rate Rate Rate Rate Rate Rate I Rate Rates
Swain $437 $402 $390 $390 $445 $410 $398 $398 $585 $551 $527 $448 $617 $5811$555 $468 $671 $622 $596 $491
Trans Ivanie $437 $402 $379 $356 $445 $410 $386 $363 $585 $541 $515 $441 $614 $5631$537 $460 $668 $604 $578 $483
T rrell $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $448 $622 $573 $548 $471
Union $437 $379 $348 $356 $445 $390 $366 $374 $586 $558 $521 $410 $629 $599 $556 $427 $681 $633 $587 $443
Vance $424 $390 $312 $356 $445 $422 $328 $374 $585 $541 $515 $433 $600 $555 $528 $448 $623 $573 $543 $471
Wake $592 $513 $484 $446 $622 $539 $507 $467 $830 $724 $629 $630 $847 $737 $640 $639 $908 $785 $682 $676
Warren $424 $395 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $453 $645 $580 $555 $476
Washington $437 $4021$379 $356 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $453 $645 $580 $555 $476
Watauga $424 $3901$368 $346 $445 $410 $386 $363 $585 $541 $561 $441 $614 $563 $575 $460 $668 $604 $615 $483
Wayne $348 $339 $335 $335 $366 $355 $346 $346 $585 $541 $515 $494 $600 $5551$528 $518 1 $614 $573 $556 $548
Wilkes $424 $390 $368 $316 $445 $410 $386 $332 $585 $541 $515 $433 $600 $555 $528 $453 $645 $580 $549 $476
Wilson $424 $348 $335 $335 $445 $366 $346 $346 $585 $541 $515 $433 $600 $555 $528 $453 $638 $580 $572 $476
Yadkin $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $448 $622 $573 $557 $471
Yance $424 $390 $368 $346 $445 $410 $386 $363 $585 $541 $515 $433 $600 $555 $528 $448 1 $622 1$573 $548 $471
*The 100%rate represents the monthly rates for summer,holidays,teach work days and inclement weather for school-age children. 8-25.06 W
24
Families Receiving and Waiting For DSS Subsidy(10-16-2006)
Employers Families Served Families Waiting Total
UNC Hospital 20 2 22
CH/C City Schools 13 7 20
UNC 15 3 18
Duke 11 5 16
Wal Mart 7 6 13
Food Lion 6 1 7
Tiny Tots 4 3 7
Orange Co.Schools 4 1 5
Orange County 3 2 5
BCBS 2 2 4
Carillon Assted living 1 3 4
Carol Woods 4 4
Duke University 4 4
Kerr Drugs 2 2 4
Keston Care 3 1 4
Molly Maid 4 4
PHE 3 1 4
Sports Endeavors 4 4
Wee Care 3 1 4
Wendy's 1 3 4
Aramark 2 1 3
Bon's BBQ 3 3
Carolina House 1 2 3
Carolina Meadows 3 3
Dollar General 2 1 3
Durham Public Schools 1 2 3
Great Clips 2 1 3
SAMS 2 1 3
Spanish for Fun 3 3
Town of Chapel Hill 3 3
25
Child Care Task Force-Business/Employers Subcommittee
Name Organization
Nancy Coston, Co-Facilitator Orange County Social Services
Lindsey Shewmaker Dennis, Staff Support— Orange County Social Services
Tom Underwood PHE(Hills borou h Chamber of Commerce
Dianne Reid,Facilitator Economic Development
Jeanne Wakefield UNC Child Care Advisory Board
Aaron Nelson Cha el Hill Chamber of Commerce
Valerie Foushee Orange County Commissioners
Cindy Wilkins Town of Chapel Hill
Lorri Allison UNC
Tracy Hager Chapel Hill Chamber of Commerce
Ale ah Pankey UNC Hos ital
Barbara Jessie-Black PTA Thrift Shop
Dr. Shirley Carraway Orange C unty Schools
Sharron Hinton Orange County
Michele Rivest OCPYC
Sue Russell CCSA
Neil Pederson Chapel Hill-Carrboro City Schools
Patrick Phelan Edward Jones Investments