Head Start is a grant program and GCC (and SPS) is funded through state contracts. A single "collocated formula" is used to allocate costs across budget line items, regardless of whether expenses are for full-day or part- day programs. This simple cost allocation formula has been approved by both the California Department of Education and the Head Start program. For each budget line item, expenses are assigned as followed:
This proportional formula applies to all staff salaries, even though some teachers may not teach any Head Start children, while others may teach only Head Start children. Likewise, all administrators are paid according to this formula, regardless of the actual percentage of the time they devote to each program, and all centers are considered equally eligible for new Head Start program improvement or expansion funding, regardless of the percentages of Head Start children served at each center. When new Head Start funds are allocated to the program, administrators assign funds to centers based on need; and all cost allocation is performed using custom software designed by the California Department of Education.