Financing Early Care and Education in the 21st Century. The Higher Education Model : Challenges and Achievements. A Fable / Teresa Vast.

In the futuristic scenario described in this paper, the early care and education system is financed much like today's higher education system. Programs determine their full operating costs and receive subsidies that help reduce the price to families. Families choose from among a diverse array of accredited programs. Financial aid is combined from a variety of sources to help families pay tuition prices of programs they choose, or alternatively, to stay home with an infant. Essential infrastructure services are also funded. As in higher education, programs achieve accreditation status with federally approved accrediting organizations. Operating subsidies are available to help programs meet and maintain accreditation standards, compensate staff appropriately, and support general operations. Sources of revenue include public funds, endowment fund earnings, auxiliary sales and services, and private sector contributions. The balance of operating expenses is sought through a full tuition price collected from families and their sources of financial aid. Need-based financial aid is available through a standard application process. A community financial aid agency packages funds of different types from a variety of sources, awarding aid according to each family's demonstrated need and the eligibility criteria of the source and form of aid. A financial aid package may include a combination of grants, loans, work exchange, and tax credits. Sources of aid include federal, state, and local governments, endowment fund earnings, and private sector contributions from foundations, businesses, and individuals. Infrastructure services, supported predominantly by public funds, include facility licensing, accreditation, practitioner training and credentialing, consumer education, financial aid services, and national and state data systems. An umbrella association unites public education, policy, and advocacy efforts of early care and education organizations. This association brings the diverse care and education community together in efforts to achieve a common goal of available, accessible, and affordable high-quality programs. (EV)

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