Commissioners Moyer and Brim-Edwards teamed up on a Preschool for All
proposal that reallocates funding and provides guidance to the Preschool and
Early Learning Division to commission a cost modeling tool that will help
determine PFA provider rates and contract amounts based on the true
operating costs for a provider delivering high quality preschool under PFA
standards.
The new cost modeling tool will be dynamic, can be adjusted year after year,
and will take into account all costs such as rent, wages and benefits,
insurance, training, student to teacher ratios, materials and supplies, and
more. The tool will also allow the County to cost out policy changes that
could increase or decrease expenses. For example, if the County chooses to
provide pooled health insurance for PFA teachers as a way to decrease PFA
benefits expenses, the cost model could back out that expense when
determining PFA payment rates.
This PFA True Operating Cost Modeling Budget Modification is in response to
a presentation by Dana Hepper with the Children’s Institute on January 27.
Her presentation compared using a “market rate” approach versus a “true
operating costs” approach to set PFA provider payment rates. Market rate
data is static and measures what preschool providers are charging
private-pay families. The true operating costs approach is dynamic,
measures all costs that go into providing care, and is considered best
practice.
This issue has been widely discussed in the Technical Advisory Group (TAG)
and Program Advisory Group (PAG). Both groups have expressed uncertainty
about projected PFA operating costs due to the County not using this cost
modeling tool. The TAG voted February 4th to recommend that the Board
commission a True Operating Cost modeling study. This Board action delivers
on that recommendation.
The County is currently in conversations with a potential contractor to
implement a "True Operating Costs" modeling tool. This tool is planned for
delivery in time to inform the Board's consideration of the TAG
recommendations, which will be presented in April and discussed further in
August.
“I am proud of the Board’s action today,” said Commissioner Moyer. “This is
key to practicing the good governance and fiscal accuracy Multnomah County
strives for.”
“In my experience with the K-12 school system and the parallels to
Preschool for All, there is always an interest in analyzing costs to best serve
the needs of children, which is integral to providing quality preschool,”
Commissioner Brim-Edwards said. “Looking at the true cost of universal
preschool and ways to address getting staff what they need to best support
students should be modeled and incorporated into our budgeting, and I’m
looking forward to that being part of the evolution of the Preschool for All
program.”
In response to the January 27 presentation which also heard from PFA
providers requesting additional support when serving children with high
needs, Commissioner Moyer plans to bring forward another Budget
Modification. Working with the Preschool and Early Learning Division and PFA
providers, her next Budget Modification will address PFA providers’ ability to
serve high-needs children on the first day of preschool.
“I am excited to bring these Budget Modifications forward because they
bring us one step closer to building the best free preschool program in the
nation,” added Commissioner Moyer. “My goal is to ensure that every
preschooler and PFA provider is set up for success. Preschool For All is a
wildly effective economic development tool that enhances the earnings of
working families, increases productivity for businesses, and educates the
workforce of the future.”