California Early Learning Quality Improvement System (CAEL QIS) Advisory Committee
Finance and Incentives, Including Funding Model Subcommittee
Cliff Marcussen , Chair
Jeannie Oropeza, Vice-Chair
Subcommittee Meeting Highlights
The CAEL QIS Finance and Incentives Subcommittee met at the California Department of Education in Sacramento, California, on Thursday, August 19, 2010 from 10:00 a.m. to 1:00 p.m. Additional information such as the meeting agenda, power points and hand-outs are available on the CAEL QIS Advisory Committee Web page.
Introductions
Welcome and introductions were provided by Cliff Marcussen, Subcommittee Chair.Jeannie Oropeza, Vice Chair, was in attendance. Committee member Venus Garth was in attendance as well as Susan Swan, Department of Finance. A number of other Finance Subcommittee participants were in attendance.
Overview
Mr. Marcussen provided a brief summary of the CAEL QIS Finance and Incentives Subcommittee’s charge and Work Plan in the CAEL QIS process. Mr. Marcussen informed attendees of a project being conducted by CAEL QIS Consultants and will be an important charge in assisting the Finance Subcommittee with cost calculations. A presentation was conducted by the California Child Development Administrators Association (CCDAA) on Family Child Care Home Education Networks (FCCHEN) that may be effective in the implementation of the rating system. Mr. Marcussen reported, briefly, on the draft Funding Model that will be presented as a recommendation to the CAEL QIS. Additionally, Mr. Marcussen presented to the Finance Subcommittee attendees a draft report for submission to the CAEL QIS that outlines four major areas of work by the Finance Subcommittee. Furthermore. Mr. Marcussen provided an overview of the work that has been completed by the Design, Workforce and Data Subcommittees and the next steps for the Finance Subcommittee.
Discussion of the NCCIC QRIS Cost Estimation Tool
Mr. Marcussen presented a brief report on the use of the NCCIC QRIS Cost Calculator, which can estimate annual costs in several broad areas of the rating system, producing a total state-wide estimated cost. The Cost Calculator took became accessible for use in June, 2010; however, a true cost analysis cannot occur until specific decisions have been on the components of the rating system. The Cost Calculator is dependent upon a large quantity of data specific to California and its rating system. Some of this data can be pulled from a variety of sources and other data must be “estimated.” CAEL QIS Consultants and staff have been assigned responsibilities for collecting this data, which can then be input into the Calculator before the program can produce estimates. Mr. Marcussen has produced a draft report that covers four (4) major areas: 1) the specifics of the NCCIC QRIS Cost Calculator, 2) possible incentives to motivate providers into the rating system, 3) possible financial and non-financial sources to implement the rating system, and 4) developing a Funding Model. The draft report can be accessed on the CAEL QIS Web source under the Finance Subcommittee Handouts section.
Presentation on Family Child Care Home Education Networks
Nicola Howard from the CCDAA presented information on the family child care home education networks that she stated may be effective in the implementation of a rating system. Questions were brought forth from Finance Subcommittee staff and attendees, which resulted in discussions around the benefits of the FCCHEN’s participation in a rating system, relationships between providers in the participating counties and the FCCHEN, the establishment and familiarization of Child Development Division standards and rating system elements, the current evaluation process and the pursuit of improved services within participating providers, etc. Ms. Howard presented to the Finance Subcommittee the prospect of the CCDAA expanding the work of FCCHEN to local CAEL QIS providers in the area. Mr. Marcussen stated that the Finance Subcommittee is reviewing existing resources in which FCCHEN is another resource to consider. He went further to state that there are still other models to share before the work of the Finance Subcommittee ends. Moreover, the Subcommittee should be deliberate in including the FCCHEN in the pilot and that further data would need to be explored.
Draft Funding Model
Mr. Marcussen reported, briefly, on the Draft Funding Model that will be presented to the CAEL QIS meeting in September 2010. The Draft Funding Model will be presented to the CAEL QIS as a recommended tool that will be a work in progress by ELAC. The Draft Funding Model has two features, which are a list of cost centers paired with potential existing funding sources and streams. A more detailed, informational report on the Draft Funding Model can be viewed on the Draft Report in the Handouts section of the Finance Subcommittee Web source.
Discussion of Report from the Finance Subcommittee to the Advisory Committee
Mr. Marcussen gave an overview of a draft report of the Finance Subcommittee’s work that will be presented to the CAEL QIS Advisory Committee August 26, 2010. The draft report will not be submitted as an action item for the Committee to adopt, but rather as an informational report. Mr. Marcussen established four (4) major areas of the Finance Subcommittee’s work in the draft report:
- Cost analysis for components of the proposed QIS.
- Identification and assessment of various incentives to motivate providers to participate in the rating system, to motivate staff to obtain additional relevant training and to provide resources for quality improvements.
- Identify and assess possible sources of financial and non-financial resources to implement a QIS.
- Develop a Funding Model that would identify probable cost centers and relate those centers to possible funding sources.
Concerns were brought forward to the Finance Subcommittee regarding the effective use of the NCCIC Cost Calculator as the tool for estimating costs of the rating system. Additionally, there was concern that the work and data elements to produce a cost estimate would not be feasible as there are, in some cases, a lack of reliable data sources that exist. Concern was also directed at recommending the Cost Calculator tool to the CAEL QIS as it may be too costly. Other comments were expressed that favor the Cost Calculator as a starting point to assist in estimating costs for the pilot and to aid decision-makers as the pilot rolls out. Additionally, this tool captures the mission of the Finance Subcommittee and assists in establishing and identifying cost gaps. Other discussions were conducted on possible incentives listed from a brainstorming session at a prior Finance Subcommittee. The intent is to present the list of incentives to ELAC for their coordination. Further concerns were heard by the Finance Subcommittee on the role of the Resource and Referral (R&R) agencies with the rating process of providers and the importance of including the R&R’s in the selection of providers and meeting specific needs of families and family home child care providers. (Please edit for clarity. Hard to distinguish what the concern was as it bounced back and forth from the attendee at the meeting.)
Mr. Marcussen acknowledged the concerns and recommended that the Finance Committee work cooperatively to address the issues and recommendations brought forth from the draft report. Mr. Marcussen welcomed the Finance Subcommittee’s attendees’ comments on the draft report, instructing the attendees to submit their comments to Roberta Peck, Finance Subcommittee Staff Consultant. (Is there a deadline for these comments to be sent to Roberta?) Mr. Marcussen will conduct a further discussion of the four major areas of the draft report at the September 9, 2010, Finance Subcommittee meeting.
Next Steps for the Finance Subcommittee
Mr. Marcussen discussed next steps for the Finance Subcommittee, which would be to continue discussions on the implications of trade-offs within the current system, to continue building out a funding model for the QRIS that lines up with the other Subcommittees’ work and identifies a solid list of possible funding sources and streams, to look at the roles of the R&R’s in the rating system process, and to have further communication regarding possible incentives. Mr. Marcussen reminded the Finance Subcommittee attendees that the presented draft report is an ongoing piece of work and is meant to be a helpful resource of information for the CAEL QIS’s and ELAC’s discretion. A Finance Subcommittee staff recommended that a Power Point be developed to outline the discussions and points brought forth at the August 19, 2010, meeting in order to capture the specifics and work through them.Future Meetings
The next Finance and Incentives Subcommittee meeting is scheduled for September 9, 2010 from 10:00 am to 1:00 pm at the California Department of Education, Nutrition Services Division, 560 J Street, Room 250A, Sacramento, CA 95814.
