Iowa State University Extension

Problem:
Financial support to assist child care centers in meeting their management plans and emergency needs can improve the quality, stability and accessibility of child care in Iowa . In October 2002 the State Child Care Advisory Council asked it's Quality Committee to review and make recommendations for the future of the state's new pilot project that provided forgivable loans to child care centers for start-up/expansion and emergency needs.

Response:
The ISUE Family Life field Specialist, as chair of the Quality Committee of the State Child Care Quality Council, convened a broad-based state work group that carefully evaluated the activities that took place under the pilot effort, the level of need among centers in the field, strengths and weaknesses of the approach used, results achieved, and recommendations from participants. The work group developed a full proposal for a revised system focused on assisting child care centers in the development and implementation of sound management plans both in new and existing centers, and providing timely support to child care center emergency needs.

Impact:
Implementation of the state-wide three-year project began in July 2003. The $300,000 yearly budget supported the development of a Child Care Center Business Practices Project, housed in the Iowa Early Care and Education Network. The Center Business Practices Leadership Team provided input and oversight to the three core components of the project: 1) National Administrator Credential (NAC) Training - standardized training for child care center directors on sound management and business practices offered in group settings across the state, 2) regional technical assistance on identifying needs, setting program goals and developing business and management plans, and 3) a no – interest forgivable loans program for child care center start-up, expansion and emergency needs.

The forgivable loan program provided emergency, start-up and expansion loans of a maximum of $10,000 each for programs that met specific criteria, including participation in NAC training, development of sound management plans and individual consultation. The criteria were essential for promoting program stability and accountability for forgivable dollars. The budget provided for approximately $320,000 (through the Department of Human Services) to be spent over three years to provide forgivable loans to assist centers in implementing unfunded aspects of their management plans. Thirty-six forgivable loans were awarded to child care centers throughout the state of Iowa through 2005. Additional loans were awarded in 2006 and the project continues in 2007.

 

Contact:
Sharon Mays
Family Life Field Specialist
5201 NE 14 th Street Ste A, Des Moines IA 50313
Phone: (515) 261-4217
Fax: (515) 263-2704
E-mail: smays@iastate.edu