Attempts to solve a narrowly framed ECE “problem” typically result in creating a new initiative — something with a catchy name, aimed at a specific and generally limited group of children, something that will fix the problem because it is finally the “right” way to provide services. Funds are allocated for the initiative and a set of standards, rules, regulations, and monitoring practices is established to ensure accountability. While each new initiative has something to offer, the approach results in a fragmented system that not only fails to adequately serve America’s children and families, but makes it extremely difficult to gather comprehensive data or plan and finance an effective ECE system.
The Alliance takes a different approach. We focus on crafting system-wide standards and a range of portable and direct financing strategies linked to those standards. We build on what unites the ECE system rather than what divides it and seek to build financing strategies and ECE policy that span the many sectors and sub-systems. We also acknowledge that some ECE services function outside formal markets, such as child care provided by family, friends and neighbors. And we believe that an ECE system must include supports for parents, including paid family leave and high-quality part-time jobs and flexible work schedules.
Nearly every state has, or is developing, an early care and education quality rating and improvement system (QRIS). But many states find that only a small percentage of providers participate and that parents often do not use the system to guide decision-making. Last year Louisiana enacted an innovative tax credit package designed to address these concerns by offering financial rewards for those who participate in Quality Start the state’s new QRIS. This blog, written by Louise Stoney, in June 2009, for New America’s Early Education Watch, summarizes the tax credit package.
Tax credits have been used in a variety of policy areas to encourage increased investments in programs seen as “social goods,” such as clean energy and charitable donations. “Using Tax Credits to Promote High Quality Early Care and Education Services (2007)” explores financing strategies for early childhood programs by examining whether carefully crafted individual or business tax credits/deductions could 1) help finance early care and education and 2) spur additional private investment and create incentives for families to use, and early childhood program to offer, high- quality services.
Finance Downloads
Financing Early Childhood Care and Education Systems: A Standards-Based Approach (2006). This paper, written in 2004 by Anne Mitchell and Louise Stoney for the James A Baker III Institute for Public Policy, discusses why early childhood finance reform is rooted in standards, and describes a standards-based approach to financing the ECE system. The paper was revised and included in a book, edited by Alvin Tarlov, entitled “Nurturing the National Treasure.”
Looking into New Mirrors: Lessons for Early Childhood Finance and System-Building (1998). Advocates borrowing successful financing strategies pioneered in housing, higher education, health care and education finance for use in early childhood education. Those successful strategies can be translated into innovative funding approaches for more and better child care and early education for America’s children who need it most. Hopefully the report will stimulate discussion of these important questions: How should effective systems be structured? Should financing systems support families, early childhood programs, or both? What new funds might be generated, and how? Success hinges on creative thinking. The report was sponsored by the Horizons’ Initiative, and funded by the James C. Penney Foundation.