EARLY CHILDHOOD CHILD CARE SYSTEMS FINANCING: SUPPORTING EQUITABLE, TRANSPARENT, AND IMPACTFUL COST MODELING APPROACHES

Early care and education cost modeling has been gaining traction as an approach to understanding current program and system costs, referred to as cost of care, as well as valuing high quality, appropriately-funded programs, referred to as called cost of quality. Motivated by 2024 federal regulatory changes for Head Start and the Child Care and Development Fund, two of the largest federal funding streams for child care in the United States, states are beginning to transition to alternative methodologies, including narrow cost analysis and cost modeling. As a result, the goal of this dissertation was to further understand published cost model methods and variables, to learn more about the lessons learned from cost modelers and public administrators, and to drive conversations regarding methods, equity, and impact, as well as to inform the development of a set of guidelines for the field. Inspired by the Multi-Stream Framework, I also sought to build the body of knowledge around child care cost modeling and the ways in which the results and reports can be used to inform strategic public financing efforts.

The methodological approach included 1) the development of a database of parameters used to analyze 25 local and state cost models for the purpose of understanding definitions, similarities and differences in approaches, and reports, 2) a survey to local and state leaders, 3) a survey to cost modelers, and 4) focus groups. The intervention design had three components, 1) sharing aggregate findings from the archival database; 2) the creation of a series of five Research Briefs, and 3) facilitation of three presentations at the Cost Modeling Technical Network.

Findings indicated that survey respondents did not consider cost models’ function as that of supporting a window of opportunity, however participants in both focus groups did. Cost modeling presents as one potential action step towards solving a problem that can feel too massive to navigate rather than solely as a means for compliance. Cost modeling has the power to promote equity when intentional decisions are made, and to promote transparency through reports. As a field of cost modelers, there are opportunities to learn from cost model methods and templates which are rarely used among the field, as well as to establish a common set of terms, definitions, and guidance.