VT Blue Ribbon Commission
VT Blue Ribbon Commission
Cost of Care Methodology: Summar
August 2016
Cost of Care Methodology: Summary
August 2016
Child Care Cost Methodology: Summary
August 2016
CENTER-BASED PROGRAM LINE ITEMS
Below is a summary of the annual expenses for the BRC for a high-quality center-based program.
Table 1. Center-Based Program Expenses (page 6 of “PCG Cost of Care Methodology”)
EXPENSES
Gross Salaries
Infant Staff
Toddler Staff
Preschool Staff
Center Staff
Taxes, Fees, and Employee Benefits
Federal Tax Liability
Healthcare
Workers Comp
Retirement Contribution
Reduced tuition for employee
children
Training & Professional Development
Travel
Staff wellness activities
Rent
Telephone + Internet
Utilities & Services
Shared Services: Administrative
Services
Shared Services: Comprehensive
Services
Liability Insurance
Debt Service
Food and Supplies
Educational supplies & equipment
Repairs to program-owned
equipment
Allowance for bad debt and vacancy
Contribution to Capital Expense Fund
- 1% of AGR
Miscellaneous expenses
TOTAL EXPENSES
NOTES
TOTAL
2.5 FTE
2.5 FTE
2.5 FTE
3 FTE
$
$
$
$
97,760.00
97,760.00
112,320.00
96,096.00
7.65% of gross salaries
$
$
30,901.10
87,281.86
$
5,857.07
$
28,236.00
$
21,320.00
$
3,800.00
$
2,520.00
$
$
$
$
1,800.00
43,350.00
1,847.87
12,600.00
$
14,812.80
$
$
$
$
6,996.00
6,000.00
54,330.00
10,200.00
$
3,600.00
$
19,016.88
$
6,557.73
$
$
3,000.00
767,963.31
1.45% of GAI for all positions spread
across 12 months
3% GAI for FT Employees
Assume 1 infant, 1 toddler, and 2
preschoolers
Quarterly
Quarterly field trips, vehicle
maintenance and Staff mileage
reimbursement for work-related travel
Placeholder
Fluctuates monthly based on days open
Assume $25/child per month
2
Child Care Cost Methodology: Summary
August 2016
HOME-BASED PROGRAM LINE ITEMS
Below is a summary of the annual expenses for the BRC for a high-quality home-based program.
Table 2. Registered Home-Based Program Expenses (page 12 of “PCG Cost of Care Methodology”)
EXPENSES
NOTES
TOTAL
Salaries (inclusive of any federal or state taxes)

4hrs/wk for
7wks/academic yr
1/2 day/wk year round
$
3,404.00
$
2,704.00
$
4,200.00
$
$
39.21
1,372.80
$
1,000.00
$
1,992.00
$
$
$
$
$
$
$
1,380.00
3,600.00
680.00
864.00
5,400.00
$
12,228.00
$
1,800.00
Repairs to program equipment
Allowance for bad debt and vacancy
Miscellaneous expenses
Capital Expense Fund Contribution - 3% of AGR
Owner's Draw (Provider's Salary)
$
$
$
$
$
600.00
3,250.08
600.00
3,250.08
45,760.00
TOTAL EXPENSES
$
94,124.17
Pre-K Consulting Teacher
 Regular sub
Employee Benefits
 Healthcare - Assume provider purchases
family plan through Vermont Health Connect
and receives a subsidy
 Workers Comp
 Retirement Contribution - 3% of GMI
Assume $1000/yr for
provider
Gas for field trips,
maintenance, etc.
Tax write-off
Training & Professional Development
Travel
Rent/Mortgage
Telephone + Internet
Utilities
Shared Services: Administration
Shared Services: Comprehensive Services
Liability Insurance
Debt Service
Provider cleans
Placeholder
Fluctuates monthly
based on days open
Assume $20/child per
month @ 7.5 children
Food and Supplies
Educational supplies & equipment
3
Child Care Cost Methodology: Summary
August 2016
TOTAL COST OF CARE CALCULATIONS
(Table 4.) Cost by Program Type (page 18)
CENTER-BASED MODEL
Cost of Operations
Enrollment
# of
Age Groups
children
Cost per age group
Cost per child
Infant
Toddler
Preschool
$
$
$
$
$
$
Age Groups
Infant = <1
Toddler = 1 & 2
Preschool = 3,4,5
8
8
18
Total
Children
6,023
12,224
18,360
$
255,987.77
255,987.77
255,987.77
Perceived Demand
For all Non-Relative
24.7%
24.7%
25.2%
REGISTERED-HOME MODEL
Cost of Operations
Enrollment
# of
Age Groups
Children
767,963.31
34
31,998.47
31,998.47
14,221.54
Infant
Toddler
Preschool
School-Age
Children (PT)*
1
2
3
$
Cost per age group
Cost per child
$
$
$
$
$
$
31,374.72
31,374.72
31,374.72
31,374.72
15,687.36
10,458.24
3 $
31,374.72
$
10,458.24
Total
Perceived Demand
Age groups
Children For all Non-Relative
Total # of Children
Infant = <1
6,023
19.8%
1,193
Toddler = 1 & 2
12,224
19.8%
2,420
Preschool = 3,4,5
18,360
13.0%
2,387
*The cost of school-age care is not included in the overall cost of care
calculation
Total # of Children
1,488
3,019
4,627
(Table 5.) Total Cost of High-Quality Care in Vermont (page 18)
Cost of Infant, Toddler Licensed Center-Based Child Care
Center Infant Cost
# of
+
Toddler Cost per
per Child
Infants
Child
$
31,998.47
1,488
$
31,998.47
Cost of Infant, Toddler Licensed Family Child Care
Family Infant Cost
# of
+
Toddler Cost per
Per Child
Infants
Child
$
31,494.72
1,193
$
15,687.36
94,484.17
9
# of
toddlers
3,019
+
# of
toddlers
2,420
+
PreK Cost per Child
# of Prek
$
4,627
14,221.54
PreK Cost per Child
$
10,458.24
# of
Toddlers
2,387
=
$210,016,494.31
=
Total Family Cost
$100,346,718.88
=
4
Total Center Cost
GRAND TOTAL
$310,363,213.19