the local level. The discussion will include a summary of total spending for fiscal year 1974 and a detailed examination of the cost of operating one 30-child center. The information provided in the second part of this section will establish a yearly cost-per-child figure which will be used as a base figure for this study. The remaining sections will consider three approaches to reducing day care center costs: 2. Recommendations from Day Care Administrators--Five Montgomery County day care administrators were asked to comment on the feasibility of cost reduction methods suggested by this researcher. These methods were developed with the assis tance of Meade Breese, the Montgomery County Comprehensive Day Care Coordinator. Administrators were also asked to recommend cost reduction methods which they knew, through their own experience, could be implemented or at least considered by other program directors. 3. Comparison of operating costs between a federally-funded center and a privately-funded center--The operating costs of the 30-child, federallyfunded center described in section one, were compared on a line-item basis with the lower operating costs of a 30-child privately-funded center. The comparison was made to determine if any private center procedures could be adopted by federal centers to reduce costs. 4. Consideration of the Family Day Care Home and its lower costs--The family day care home was shown to be a viable alternative to the day care center in providing quality day care service. The cost of operating one family day care home was extrapolated from the total budget for fiscal year 1974 in Montgomery County, to show in detail the lower costs. The two leading county day care administrators were also asked to comment on the feasibility of this alternative. II The Montgomery County, Pennsylvania, Day Care Delivery System A. Structure and Funding Summary The first federal funds to support full-day, year-round day care in Montgomery County were expended in 1970. Under Title IV-A of the Social Security Act of 1967, the County Commissioners, acting as prime sponsors, contracted with the Day Care Association of Montgomery County, a private agency, to provide day care to 217 children from low income families. The total cost of the first contract was $640,663 of which 75% was federal support and 25% was state and local support. This funding formula is mandated by law. Over the next two years, increased Title IV-A funding permitted the Day Care 1 Association to open two new centers and enter into purchase of service agreements with three existing centers. In addition, two independent centers began operation. To coordinate the activities of the growing number of programs; to plan for possible expansion; and to act as a contracting agent, the County Commissioners created the Office of the Montgomery County Comprehensive Day Care Coordinator (OCDC) in 1972. The new office was given the primary responsibility of reviewing the yearly budget proposal to be sent to the Pennsylvania Department of Public Welfare for approval. (The D.P.W. administers all Title IV-A-funded day care programs operating in the Commonwealth.) In addition to developing a comprehensive budget proposal, the OCDC was given the responsibility of interpreting the constantly changing federal and state day care regulations. For fiscal year 1974, the OCDC has contracted with six agencies to provide day care to 514 children. The type of program and number of children served in the local level. The discussion will include a summary of total spending for fiscal year 1974 and a detailed examination of the cost of operating one 30-child center. The information provided in the second part of this section will establish a yearly cost-per-child figure which will be used as a base figure for this study. The remaining sections will consider three approaches to reducing day care center costs: 2. Recommendations from Day Care Administrators--Five Montgomery County day care administrators were asked to comment on the feasibility of cost reduction methods suggested by this researcher. These methods were developed with the assis tance of Meade Breese, the Montgomery County Comprehensive Day Care Coordinator. Administrators were also asked to recommend cost reduction methods which they knew, through their own experience, could be implemented or at least considered by other program directors. 3. Comparison of operating costs between a federally-funded center and a privately-funded center--The operating costs of the 30-child, federallyfunded center described in section one, were compared on a line-item basis with the lower operating costs of a 30-child privately-funded center. The comparison was made to determine if any private center procedures could be adopted by federal centers to reduce costs. 4. Consideration of the Family Day Care Home and its lower costs--The family day care home was shown to be a viable alternative to the day care center in providing quality day care service. The cost of operating one family day care home was extrapolated from the total budget for fiscal year 1974 in Montgomery County, to show in detail the lower costs. The two leading county day care administrators were also asked to comment on the feasibility of this alternative. II The Montgomery County, Pennsylvania, Day Care Delivery System A. Structure and Funding Summary The first federal funds to support full-day, year-round day care in Montgomery County were expended in 1970. Under Title IV-A of the Social Security Act of 1967, the County Commissioners, acting as prime sponsors, contracted with the Day Care Association of Montgomery County, a private agency, to provide day care to 217 children from low income families. The total cost of the first contract was $640,663 of which 75% was federal support and 25% was state and local support. This funding formula is mandated by law. Over the next two years, increased Title IV-A funding permitted the Day Care 1 Association to open two new centers and enter into purchase of service agreements with three existing centers. In addition, two independent centers began operation. To coordinate the activities of the growing number of programs; to plan for possible expansion; and to act as a contracting agent, the County Commissioners created the Office of the Montgomery County Comprehensive Day Care Coordinator (OCDC) in 1972. The new office was given the primary responsibility of reviewing the yearly budget proposal to be sent to the Pennsylvania Department of Public Welfare for approval. (The D. P.W. administers all Title IV-A-funded day care programs operating in the Commonwealth.) In addition to developing a comprehensive budget proposal, the OCDC was given the responsibility of interpreting the constantly changing federal and state day care regulations. For fiscal year 1974, the OCDC has contracted with six agencies to provide day care to 514 children. The type of program and number of children served in A general understanding of day care costs can be best obtained by dividing the total budget into cost categories. This report will use the eight categories established by the Pennsylvania Department of Public Welfare. The following chart will indicate spending in each category for fiscal year 1974 in Montgomery County. For convenience the costs have been listed in descending order according to their percentage of the total amount spent. B. Costs of Operating One 30-Child Day Care Center Because the greatest number of children served are enrolled in pre-school programs, the study will more closely examine the costs incurred in a program which provides care for children ages three to five years old. Although a tremendous demand exists for daycare programs serving other needs--especially those of after-school, "latch key" children and handicapped children--this report will restrict itself to evaluating pre-school program costs. Such an examination will establish a yearly cost-per-child figure for fiscal year 1974 to be used as |