Possible Existing Funding Sources for Preschool*

  • Title I
  • State Preschool Program
  • State Preschool and Family Literacy (AB 172)
  • Head Start
  • General Child Care and Development Program
  • First 5 School Readiness Initiative
  • First 5 Power of Preschool Demonstration Grants
  • Child Care Food Program
  • Early Reading First
  • Community-Based English Tutoring Program (CBET)
  • Adult Education: Basic Grants to States
  • Special Education- Preschool Grants
  • Even Start – Family Literacy Program
  • Migrant Education Even Start (MEES) Family Literacy Program

Potential Funding Sources for Wraparound Care*

  • Child Care and Development Block Grant (CCDBG)
  • CalWORKS – Alternative Payment Program

Additional Possible Sources of Revenue

Direct Services

  • Sales Tax
  • Charter Amendments

Facilities

  • Property Tax (Real Estate Tax)
  • General Obligation Bonds/Bond Measures
  • Developer Fees

*Updated by AIR, October 2006. Adapted from the UCLACenter for Healthier Children, Families and CommunitiesFinancingSchool Readiness Efforts Toolkit (Oct.2002).

Possible Existing Funding Sources for Preschool

Title I Grants to Local Education Agencies
(Title I, Part A, NCLB of 2001)
Administering Agencies / U.S. Department of Education, Office of Elementary and Secondary Education (OESE); California Department of Education
Type of Program / Formula Grants
Description / Title I, Part A, Improving the Academic Achievement of the Disadvantaged Program, is now part of the No Child Left Behind legislation, and is the largest federal education program for elementary and secondary schools.
The NCLB Act encourages the use of Title I, Part A funds for Preschool programs. Any Title I school may use the funds to operate a Preschool program. Or a Local Educational Agency (LEA) may reserve an amount off the top to operate a Preschool program for Preschool children in the district as a whole or for a portion of the district.
Title I funds are targeted to high poverty schools and districts and used to provide educational services to students who are educationally disadvantaged or at risk of failing to meet state standards.
Title I serves over 12.5 million children across the nation in roughly 14,000 school districts and 48,000 schools. Roughly 90% of all school districts nationally receive Title I funds and approximately 24% of all public school students are affected by Title I services provided at the local level.
In 1999-2000, 17% of Title I LEAs nationwide spent an estimated $407 million on Preschool services, making Title I second only to Head Start in its level of federal Preschool education funding. However, while Preschool children (ages 3 and 4) represent more than 12% of the children eligible for Title I, they compose only 2% of the children actually receiving Title I services.
Applicability for Preschool / Title I funds may be used to: (1) Create a new Preschool at the district or school level, (2) Expand an existing Preschool by adding more children, more time or more services; and (3) Improve the quality of existing Preschool programs. For example, Title I funds may be used for:
  • Teacher salaries
  • Parent education/involvement
  • Professional development
  • Counseling services
  • Minor remodeling
  • Leasing or renting of space in a community facility or home as well as in a public school building.
Preschool services may be provided at any location that other Title I services may be provided, including public school buildings, public libraries, community centers, privately owned facilities(including facilities owned by faith-based organizations), the child’s home, and other appropriate settings.
Amount of CaliforniaFunding / Total preliminary funding for 2006-2007 is expected to be $1.635 billion in Title I funds. Total funding for 2005-06was$1.687 billion in Title I funds with 57 districts reserving a total of $13.5 million for Preschool. This was an increase from 2004-2005 funding of $1.576 in Title I funds with 52 districts reserving $13.0 million for Preschool
Special Features / Schools that receive Title I funds may operate a targeted assistance program or a school-wide program.
To operate a school-wide program, schools must have a child poverty rate of at least 40 percent. School-wide programs are not required to identify eligible students; all children in the attendance area are eligible for Preschool services.
Contact info (National) /
Contact info (State) / Preschool funds:Carol Dickson, Title I Policy and Partnerships Office
(916) 319-0382

FY funding and funding results prior years

Preliminary Title I, Part A Entitlements by LEA, 2007-08

Information updated July 2007
State Preschool Program
Administering Agencies / California Department of Education, Child Development Division
Type of Program / Competitive Grants and
Non-competitive expansion of contracts
Description / Administered by CDE, CDD through contracts with school districts, county offices of education, colleges, community action agencies, and private non-profit agencies, this program served 77,012 children in October 2003.
Usually a part-day, part-year program that emphasizes Preschool and parent education along with some health, nutrition and social services, the program serves Preschool children ages 3-5 from low-income families (60% of the State Median Income, although 10% of participants can come from families up to 75% of SMI).
Programs must meet Title 5 standards relating to teacher qualifications and staff-child ratios, which are stricter than those for Title 22 licensed child care.
Applicability for Preschool / Preschool for All could allow this program, established more than 60 years ago, to expand its services to serve more disadvantaged children and at the same time reach out to those above the income ceiling. Preschool for All could also allow the program to raise standards and improve teacher compensation.
Amount of Funding / Existing contractors saw a rate increase to $20.30 per day for 175-180 days in 2005-06. The rate in 2007-08 is $21.22.
Special features / First priority is given to child protective services children; then priority is given to children from families with the lowest adjusted monthly income. Then priority is given to eligible 4-year-olds. If income is the same, the contractor may establish the following priorities in an order determined by the contractor: limited English proficiency, exceptional need, and children form families who special circumstances may diminish the child’s opportunities for normal development.
Contact info (State) / Karen Almquist (916) 322-5939 (fiscal)
RFA Team (916) 322-6233
See also funding opportunities on the CDE website at

Information updated October 2006.
State Preschool and Family Literacy
Administering Agencies / California Department of Education
Type of Program / Formula Grant and/or Competitive Grant
Description
(As Approved September 7, 2006) / This law amends existing law, the Child Care and Developmental Services Act. The new legislation amends the state preschool program to add a component focused on decile 1-3 school attendance areas. The law appropriates $50 million in the Budget Act of 2006 for child development and preschool programs as follows: $45 million for expanding state preschool programs located in deciles 1-3 and $5 million for family literacy services. In addition, $5 million of unearned contract funds from the Budget Act of 2005 is appropriated for direct child care services for children in part-day preschool classrooms.
Applicability for CountyPreschool Plan / This law expands State Preschool in decile 1-3 API schools and add a family literacy component that includes: provision of literacy services to families, creating a partnership between each program and an adult education program, and promoting parental involvement in participating classrooms
Amount of Funding / $50 million from Budget Act of 2006 and $5 million from Budget Act of 2005.
Special Features / Participating providers will be encouraged to offer full-day services through a combination of part-day preschool slots and part-day general child care and development programs..
Authors of Bill / Principal Coauthors: Assembly Member Chan, Senator Escutia
Coauthors: Assembly Members Berg, Bermudez, Cohn, Coto, Evans, Hancock, Jones, Koretz, Leno, Lieber, Liu, Montanez, Mullin, Nava, Parra, Pavley, Ruskin, Salinas, and Yee
Coauthors: Senators Figueroa, Florez, Kuehl, Lowenthal, and Ortiz
Contact info (State) / Linda Parfitt at CDE

Possible Existing Funding Sources for Preschool

Head Start
Administering Agencies / The Head Start Preschool and comprehensive services program is administered by the Head Start Bureau, the Administration on Children, Youth and Families (ACYF), Administration for Children and Families (ACF), Department of Health and Human Services (DHHS). Grants are awarded by the ACF Regional Offices and the Head Start Bureau's American Indian and Migrant Program Branches directly to local public agencies, private non-profit and for-profit organizations, Indian Tribes and school systems for the purpose of operating Head Start programs at the community level. State agencies are generally not involved in the administration of Head Start; however, a number of states are funding additional Head Start services through state funds. In addition, the federal government grants additional funding to states that develop unified plans for early care and education that includes participation from Head Start agencies. Beginning in 1992, ACYF awarded the state of California funds to launch the Head Start Collaboration Project. One of its purposes is to help link child care and development programs with Head Start services to create full-day services.
Type of Program / Project Grants
Description / The Head Start program has a long tradition of delivering comprehensive and high quality services designed to foster healthy development in low-income children. Head Start grantee and delegate agencies provide a range of individualized services in the areas of education and early childhood development; medical, dental, and mental health; nutrition; and parent involvement. In addition, the entire range of Head Start services is responsive and appropriate to each child's and family's developmental, ethnic, cultural, and linguistic heritage and experience.
Applicability for Preschool / Head Start programs offer an important vehicle for the delivery of preschool services in both new and upgraded Head Start spaces that meet preschool standards.
Amount of Funding / FY 03: $6,666,783,000l FY 04: $6,773,909,000
FY 05 appropriation:$6,843,114,000
California FY 2005 $829,439,955 FY2006 $812.7 million
Special features / Funding and eligibility is limited to low-income children (family income below the federal poverty level) between the ages of 3 and 5 (70% of Head Start funds are currently spent on 4-year-olds) and to children with disabilities.
All Head Start programs must adhere to Program Performance Standards. The Head Start Program Performance Standards define the services that Head Start Programs are to provide to the children and families they serve. They constitute the expectations and requirements that Head Start grantees must meet. They are designed to ensure that the Head Start goals and objectives are implemented successfully, that the Head Start philosophy continues to thrive, and that all grantee and delegate agencies maintain the highest possible quality in the provision of Head Start services.
Contact info (National) / Kevin Costigan
Head Start Bureau, DHHS
330 C Street, Switzer 2224
Washington, DC20447
Telephone: (202) 205-8396
Email:
Website:
Contact info (State) / Michael Zito, (Coordinator of the Collaboration Office)
California Department of Education
HeadStartState Collaboration Office
1430 N Street, Suite 3410
Sacramento, CA95814
Phone: (916) 323-9727
E-mail:
First 5 PoP (Power of Preschool) Demonstration Grants
Administering Agencies / First 5 California Children and Families Commission
Type of Program / Competitive Grants
Description / Power of Preschool Demonstration Projects are a voluntary, universal, free, high-quality, part-day preschool program for all four year-olds (or three and four year-olds) at a system-level (school district(s), city or county) that is designed to implement the preschool recommendations of California’s Master Plan for Education. The program will assist preschoolers in becoming personally, socially, and physically competent, effective learners and ready to transition into kindergarten. These PoP Projects will meet the First 5 California Quality Criteria that addresses program aspects, teaching staff qualifications, policy and fiscal items and family partnerships needs.
Applicability for Preschool / $90M will be used to contribute to the County Commission PoP Demonstration Projects over 5 years for funding new and improved preschool spaces in school district(s), city, or countywide preschool ‘systems' that include high quality providers in a variety of settings.
Amount of Funding / $100M approved for First 5 PoP in July 2003: $90M for PoP Demonstration Projects and $10M for PoP Quality Set Aside
Special features / Nine Counties are approved to serve approximately 85,000 preschoolers over the five-year period. The counties are: Los Angeles, Merced, San Diego, San Francisco, San Joaquin, San Mateo, Santa Clara, Venture and Yolo. Each county’s program is unique in its delivery system of achieving high quality preschool experiences for its children.
Contact info (State) / Power of Preschool
First 5 California Commission for Children and Families
501 J Street, Suite 530
Sacramento, CA95616
(916) 324-7775
Child Care Food Program
Administering Agencies / U.S. Department of Agriculture, Food and Nutrition Service, California Department of Education, Nutrition Division
Type of Program / Formula Grants
Description / This program provides grants to state to fund local food services programs for children in nonresidential child care. The objectives of the program are to improve the diets of children less than 13 years of age by providing the children with nutritious, well-balanced meals and develop good eating habits in children that will last through later years.
Applicability for Preschool / Major source for nutritious meals for Preschool programs
Amount of Funding / National FY 2004 $1.7 billion, FY 2005 $1.7 billion
California FY 2004 $216 million FY 2005 $223 million
2006-07 amount available: $1.6 billion
Special Features / Eligible public and nonprofit private organizations include child care centers, outside-school-hours care centers, settlement houses, family and group child care homes, infant centers, Preschool centers, Head Start programs, Even Start programs, and institutions providing child care services to children with disabilities. Private for-profit centers may also participate if they receive compensation under Title XX for at least 25% of the enrolled children or 25% of the licensed capacity, whichever is less.
Contact info (National) / Child Nutrition Division, Food and Nutrition Services
U.S. Dept. of Agriculture
3101 Park Center Drive
Alexandria, VA22303
(703) 305-2590
Contact info (State) / Danette McReynolds
(916) 322-8313
Nutrition Services Division
California Department of Education
1430 N Street, Suite 1500
Sacramento, CA95814
Website for program info:
Information updated August 2007
Early Reading First
Administering Agencies / U.S. Department of Education, Office of Elementary and Secondary Education
California Department of Education, Reading/Language Arts Leadership Office
Type of Program / Discretionary Competitive Grants
Description / Early Reading First (ERF), part of the No Child Left BehindAct, is an initiative designed to transform existing early education programs into centers of excellence that provide high-quality, early education to young children, especially those from low-income families. The overall purpose of the Early Reading First Program is to prepare young children to enter kindergarten with the necessary language, cognitive, and early reading skills to prevent reading difficulties and ensure school success.
Applicability for Preschool / Projects must provide the following activities: 1) provide Preschool age children with high-quality oral language and print-rich environments, 2) provide professional development for staff that is scientifically based and will assist with developing children’s oral language, phonological awareness, print awareness, and letter recognition, 3) identify and provide activities and instructional material and 4) acquire, provide training in the use of, and implement screening assessments.
Amount of Funding / NationalFY 2005 $104 million FY2006 $103 million FY 2007 $118 million
Funding to projects in California FY 2004 $ 4.7 million FY 2005 $3.2 million FY2006 $2.2 million FY2007 $9.6 million
Special Features / Applicants must serve primarily children from low-income families. Department of Education plans on holding another competition for grants in 2005.
Contact info (National) / Rebecca (Becky) Haynes (202) 260-0968
Early Reading First Program
Early Childhood Education and Reading Student Achievement and School, Accountability Program
US Department of Education,
Office of Elementary and Secondary Education
400 Maryland Ave., SW.
Washington, DC20208-5524
Website:
Contact info (State) / Jeff Cohen
California Department of Education
Reading/Language Arts Leadership Office
1430 N Street, Suite 2409
Sacramento, CA95814
(916) 323-4629
Website:
Information Updated October 2006
General Child Care and Development Program
Administering Agencies / U.S. Department of Health and Human Services, Administration for Children and Families
California Department of Education, Child Development Division
Type of Program / Competitive Grants
Description / Meets the same standards as the State Preschool Program. It is the state’s largest contracted early care and education program, and utilizes centers and family child care networks to provide full-day services, including an educational component, to children birth to 12. The majority of the funds are to be used to provide child care services to families who meet certain income and need criteria. A portion of the funding (at least 4 percent of the block grant amount) is to be used for activities to improve the quality of child care.
Applicability for Preschool / This program could expand the number of spaces for children it serves, expand its services to serve more disadvantaged children, raise program standards, provide professional development and improve teacher compensation. It can also be used for facilities renovation and purchasing of materials.
Amount of Funding / California 2007-08: $43.9 million
FY 2005-06 $633 million, FY2004-2005, $631 million, FY 2003-04 $610 million. Every two years, states and territories receiving must prepare and submit to the federal government a plan detailing how these funds will be allocated and expended.
Provider reimbursement rates per child hour: 2005-06: $32.89 2006-07: $34.38
Special features / These programs provide an educational component that is developmentally, culturally, and linguistically appropriate for the children served. The programs also provide meals and snacks to children, parent education, referrals to health and social services for families, and staff development opportunities to employees.