Options for Full-Day Services for Children Participating in Head Start . Funding Sources


The Puget Sound grantee receives almost all of its funding from its Head Start grant. A small proportion of the program's funding comes from USDA and from the state. The grantee uses these funds to pay for administrative support: Head Start's Fiscal/MIS Specialist is responsible for fiscal monitoring of the Head Start subcontractors and preparation of budgets for Head Start; the business office prepares reports and official figures.

Multiple funding sources are used by the subcontractors to pay for each full-day program.36 For most of the full-day programs, the state child care subsidy is a major source of revenue. The state conducts surveys of the market rate for child care every three years, and its findings are used to determine reimbursement rates for the child care subsidy. Reimbursement rates have recently been increased from 25 percent to 75 percent of the market rate, a move expected to open up more slots for low-income families. The child care subsidy programs administered by the state include SSBG (Title XX), AFDC/JOBS child care, transitional child care, and child protective services and child welfare services child care.

Family child care providers receive most of their funding directly from the state child care subsidy. Puget Sound pays providers a stipend of $35 per month per Head Start child served, and $30 per month to pay substitutes in order to attend monthly meetings. It also pays for: (1) substitutes for home visits, special training sessions, and CDA classes; (2) a portion of liability insurance; and (3) facilities improvements, as well as paying for the managers and coordinators who support and monitor the family child care providers, and for the individuals who do screening, social service referrals, and mental health consultation.

The Redmond Family Village child care program receives about 50 percent of its funding from state and King County child care subsidies. Funds also come from their parent organization, the YWCA, and from grants, community and civic groups, and private donations. Head Start pays four and one-half hours per day of assistant teacher time to allow for planning, training, observations, paperwork, and home visits.

Bellevue Community College uses Head Start funds to pay for the eight core hours of service per day for children, and adds a small amount from their other sources. First, it receives a grant of about $7,000 per year from the City of Bellevue. All of the 18 families at BCC should qualify for the child care subsidy, but the BCC's family service worker indicates that families do not want to go to the trouble of applying for the subsidy, eligibility rules being the main deterrent. For example, the JOBS subsidy requires that individuals first be seen by a JOBS worker. If they are enrolled in school when they apply, individuals are usually eligible for the child care subsidy, but it is more difficult to access. BCC charges parent fees of $1.50 per hour for any extended hours not covered by a subsidy. Bills are sent out monthly; sometimes parents work at the center in exchange for payment.

Families First uses child care subsidies whenever families are eligible. However, this CCDP is a large program with a budget of $1.6 million. It can and will cover families who lose their child care subsidy or are in a period of transition and awaiting funding, in order to foster continuity of care for the child.