noted however, that some training sessions, such as psychological consulting, are most effective when the consultant visits the center. All of the administrators agreed though, that conferences are not utilized as much as they could and that the cost of consultants could be lowered through group training sessions.

Other Costs/Equipment and Furniture

Since travel costs were discussed in the personnel section, only these two categories remain to be considered. None of the administrators could recommend methods of reducing these expenditures. All stated that "sound business practices"-shopping comparatively, buying quality equipment and taking care of equipment--were the best ways to keep costs to a minimum.

A review of the ideas presented in part two of the study shows four suggestions were made for reducing operating costs: 1. Transportation services can be reduced or discontinued at some centers with no decline in attendance or program quality. 2. Rental costs might be lowered by establishing federal day care center rent ceiling regulations--maximum cost-per-square-foot guidelines for different facilities. 3. Consultant costs can be lowered at all centers by replacing individual center training sessions with group training conferences set up by the County Coordinator 1 and by utilizing existing free workshops to a greater extent. 4. Total costs could be reduced if programs could relocate to larger facilities and increase enrollment. The savings in transportation costs was estimated to be $4,240 a year, based on the experiences of the Crestmont and Ambler day care centers. The rental savings could not be estimated. The consultant cost reduction was computed as $475 for the staff of 3 centers, or approximately $1,225 for the nine Title IV-A centers in Montgomery County. And the total cost savings from increased center sizes was estimated to be $126/child, or approximately $3,780 if a center of 30 was doubled to 60 children. The total amount saved--$9,245--is enough to provide day care to three more children for one year.

But day care costs, like all others, are subject to variables which cause

57-649 76 pt. 44

Some programs, such as Conshohocken and North Hills, do not provide transportation because all of the children served live in the immediate area and can

walk to the centers.

Other programs such as Main Line, do provide transportation

to children who do not live within walking distance of one of the two centers. However, the child's distance from the center need not be the only criteria used to determine whether transportation should be provided.

The Ambler Day Care Center (DCAMC), troubled by frequent bus repairs, decided in February 1974, to conduct a one-month experiment of not providing transportation to the 14 children out of 28 enrolled who did not live within walking distance of the center. It was hoped that with less use, the bus could continue to be used for field trips and that the purchase of a new vehicle could be postponed for at least another year.

The parents of all but two of the affected children agreed to form carpools and the resulting vacancies were quickly filled. Average daily attendance remained the same as before the experiment and the results were so encouraging that transportation services were suspended permanently in the beginning of March.

As a result of the change, the director was able to eliminate the bus driver position entirely, a yearly savings of $2,400 in salary plus $140 in F.I.C.A., yielding a total savings of $2,540. (Information pertaining to gas savings was not available.) The money saved will be used for unanticipated transportation expenses incurred by another DCAMC center.

Transportation is one of the few components of the day care program which is not mandated by federal or state regulations. It is also one of the few components, which if reduced or eliminated, would not result in lowering the quality of a

program

Both the Crestmont and Ambler program directors can attest to the accuracy of this statement based on their experiences. The Crestmont experience in particular, shows that obvious methods of cost reduction can often be overlooked. The Ambler experience demonstrates the importance of using parent participation to help a day care program operate more efficiently.

1

These two programs alone, saved $4,240 in transportation personnel costs. A nationwide review of day care transportation arrangements could probably save several thousand dollars more.

Additional suggestions for reducing personnel costs could not be provided because federal and state regulations mandate all other positions (except nonteaching Director) and establish strict child-adult ratios. And according to Ruth Mayden, Executive Director of DCAMC, personnel costs will probably rise in the future due to the increase in the number of college students trained in early childhood education who will be able to command higher salaries.

Consumable Supplies

Once again, federal and state regulations pre-determine the level of spending to a great extent and therefore cost reduction suggestions are limited.

item.

Ms. Nedell and Ms. Hartsoe pointed out that paper is wasted more than any other Both agreed that the best method for controlling waste was appealing to the children and staff on an individual basis, to use paper and other construction materials completely, before using more.

She

Phyllis Borland, Director of the North Hills program, explained that the Pennsylvania Special Food Services Program for Children, although it pays her center's food costs up to .55/child/day, is wasteful. Since program regulations require all purchases to be invoiced, Ms. Borland can only shop in small, higherpriced stores, where personnel have the time to write out the entire order. recommended that the invoice regulation be suspended and replaced by a periodic field check by state officials to determine that proper food items were in fact, being purchased. At the present time, Ms. Borland estimated that her food costs are between 5% and 10% higher than necessary.

No additional recommendations were made by other administrators and unfortunately increasing food costs promise to raise the level of consumable supplies spending higher in the near future. Based on the five interviews, it seems that consumable supplies costs cannot be significantly reduced.

Space

Discussions about space costs revealed the greatest cost discrepancies between centers of any one category: The North Hills program, located in the North Hills Community Center, contributes $100 each month for the center's utilities but does not pay rent. The Crestmont program, located in the basement of the Seventh Day Adventist Church of Willow Grove, pays $400 each month for rent and yet does

not have exclusive use of the facilities. The Main Line program has two locations. It pays $385 each month for two classrooms and janitorial services in St. Mary's Church, Ardmore and $500 each month for three classrooms and janitorial services at the Lower Merion High School, also in Ardmore. The Conshohocken program is presently located in a commercial building on Fayette Street in Conshohocken. It pays $1,000 each month for use of the entire building. However because the facility violates safety codes, the program will be moving to a church across the street in early June 1974. The rent will be $800 each month.

If nothing else, the comparison of five centers shows a wide range of rental costs--from no cost to $1000/month. However it also dramatizes the fact that day care programs must pay whatever is asked by the lessor. And although it cannot be proven without a comparison of cost-per-square-foot statistics, several day care administrators feel that they are overcharged, based on the belief that federallyfunded programs have "plenty of money." Because adequate facilities for day care programs are difficult to find, administrators often feel that they do not have an alternative to high rents and thus, are forced to accept space at whatever terms that are offered.

One solution to the problem of cost discrepancies and excesses might be a costper-square-foot federal regulation establishing maximum rental costs for various 1 facilities. The regulation would have the effect of proving to lessors that federal funds for day care programs are limited and would hopefully encourage them to offer space at rates in line with the rental costs of similar facilities. All

of the administrators supported the recommendation for an additional regulation.

Asked what type of facility they considered ideal for a day care program, the administrators stated that one best-suited facility does not exist. The type of building--church, school, or community center--is not as important as the individual features it contains such as a well-equipped kitchen, ample indoor and outdoor space, convenient location of bathrooms, and the proximity of the center to the homes of the children.

However a brief discussion of the Main Line program located at the Lower Merion High School shows that schools can offer special benefits which are not available in other locations. For example, the children at Main Line are exposed to a greater variety of activities at no additional cost. They attend school orchestra performances and sports events and they use special school facilities such as the swimming pool and planetarium. Day care classrooms receive school janitorial services and lunch

is prepared in the school cafeteria and wheeled into classrooms at a lower cost-perchild than other Title IV-A centers in Montgomery County.

1

Karen Perrott, Main Line's director, is quick to point out that certain disadvantages exist too. Classes are frequently disturbed by visiting brothers, sisters, and relatives; corridor traffic often confuses the younger children and places a strain on teachers; and bathroom facilities located outside the classrooms necessitate scheduled group visits which also break up activities. She did suggest however, that if a program were located in an elementary school and classrooms were designed with separate bathroom facilities, running water, and separate play areas, such an arrangement would be superior to other situations.

2

The results of an OEO day care cost study conducted in 1971 revealed that the yearly-cost-per-child declines as the center size increases. With this information in mind, the researcher asked the third question: Could administrators recommend the establishment of quality day care centers serving more than 30 children (the size of the Crestmont program)? what would be the maximum recommendation?

If so,

All of the administrators agreed that quality day care centers could be