Fp-ppvprogramcostpresentation2609

By Jean Baldwin Grossman Christianne Lind Cheryl Hayes Andrew Gersick Jennifer McMaken

Purpose and Methods

To Learn About the Range of Resources Needed to Provide High-Quality Programming • Collected consistent cost data on an intentionally diverse set of 111 high-quality mature OST programs that serve low-income children • Large but non-random sample of programs in 6 cities

Wallace OST Learning Sites

We Found Strong Programs Characteristics • Average staff/youth ratio: 1:8 or 1:9 • Percentage of staff with 2- or 4-year degrees: – 67 percent in programs serving ES children – 84 percent in programs serving teens • About 70 percent had been in operation for 5 or more years

We Present the Cost per Slot NOT per Youth Let a box be a slot. There are two sessions a year. This program has 5 slots but served 8 youth enrollees: 1

2

3

4

5

Key Findings

Quality OST Programs Had a Range of Costs • Programs’ costs differed by their characteristics (we will illustrate a few) • But even programs of similar types had a large range of costs

Costs increase with age diversity

Multiple focus programs are the least costly

Program costs ratchet with size

But Ranges are Large

Conveying Cost Range Information We visually depict the findings with range boxes, where the boxes extend from the 25th to the 75th percentile of costs. The average cost is shown with a red diamond. Ordering programs by cost: least……25th …………average………...75th ......most

$5

$10

$15

$20

$25

$30

$35

$40

Quality OST Programs Had a Range of Costs Why? • Program operators faced different local youth needs, preferences and priorities • Program operators faced different resource constraints (both financial and in-kind)
Program operators made different choices based on what they believed they needed to do to attract their chosen target population and achieve their mission

Annual Cost per Enrollee is Less Than Cost per Slot Program Type

Number of Enrollees vs. Slots

Full Annual Cost per Slot

Full Annual Cost per Enrollee

ES/MS Programs School Year

193 vs. 107

$4,320

$2,640

Summer

128 vs. 93

$1,330

$1,000

School Year

297 vs. 70

$4,580

$1,880

Summer

282 vs. 55

$1,420

$ 790

Teen Programs

Our Cost Estimates Are in Line with Other Estimates Program (ES/MS)

2006 Annual Cost per Enrollee (w/o space)

ESS

$2,724

MOST

$3,500

2006 Daily Cost per Enrollee (w/o space)

SF Beacons

$27

CORAL

$21

Wallace Cost Study

$2,366

TASC

$1,387

LA’s Best

$ 740

21st CCLC

$1,010

SD’s 6-to-6

$1,491

$21

Funding Sources

Percent of Programs Receiving ANY Funding from Various Sources

Median number of sources: 4

If Funded by a Source, How Important Is It?

Summary

Unique Features of This Cost Study • Data from multiple cities from both school-based and community-based programs • Largest cost sample to date • Focused on costs of programs that local leaders thought highly of and that had characteristics of quality • Captured full costs (out-of-pocket expenditures, including space, and in-kind costs) • Reports cost per slot to allow users to explicitly control the participation rate assumption

Key Findings 1. Costs varied by program characteristics, BUT 2. Even for similar types of programs, both hourly and daily costs varied greatly, driven by programming and staffing choices directors made based on: • Local conditions and priorities (e.g. which children are served; youth’s needs, interests and constraints; city cost structures) • Available resources (financial, as well as inkind goods and services)

Key Findings 3. Staff costs were the primary cost driver, thus hours per day and days per year had a major effect on annual cost 4. The average cost per enrollee was substantially lower than the average cost per slot •

Thus the cost per slot in teen programs was more than the cost per slot in programs serving younger children, but the reverse was true on a per-youth basis

Key Findings 5. In-kind contributions were a common source of funding (comprising an average of 20 percent of program costs) 6. OST programs typically relied on 3-5 sources of funding (balancing public and private sources)

Resources • The full report is available online at: – www.ppv.org – www.financeproject.org – www.wallacefoundation.org/cost-of-quality • Our online OST cost calculator (to tailor cost estimates to your own situation) is available at: – www.wallacefoundation.org/cost-of-quality

Cost Calculator Output

Contact Us Jean Grossman Public/Private Ventures 2000 Market Street, Suite 600 Philadelphia, PA 19103 215-557-4400; [email protected] www.ppv.org Cheri Hayes/ Christianne Lind The Finance Project 1401 New York Avenue, NW, Suite 800 Washington, DC 20005 202-628-4200; [email protected] www.financeproject.org

About Us Public/Private Ventures Innovation. Research. Action. P/PV tackles critical challenges facing low-income communities by seeking out and designing innovative programs, rigorously testing them, and promoting the solutions proven to work. P/PV is a 501(c)(3) nonprofit, nonpartisan organization with offices in Philadelphia, New York City and Oakland. For more information, please visit www.ppv.org. The Finance Project is an independent nonprofit research, consulting, technical assistance, and training firm for public and private sector leaders nationwide. We specialize in helping leaders plan and implement financing and sustainability strategies for initiatives that benefit children, families and communities. Through a broad array of products, tools and services, we help leaders make smart investment decisions, develop sound financing strategies, and build solid partnerships. To learn more, visit www.financeproject.org.