Cost estimation models, or cost calculators, are tools to understand the true cost of delivering early care and education and how that cost varies based on different program or child characteristics.
These tools are flexible financial models that estimate the costs to deliver care by incorporating both data and assumptions to project the expected costs incurred by child care providers under a variety of different scenarios and policy conditions. This is a powerful tool that policymakers and advocates in Montana can use to understand the cost of child care and the impact of policy decisions, and that child care providers can use to understand the fiscal impact of different program characteristics.
Prenatal to Five Fiscal Strategies (P5FS) was engaged through Zero to Five Montana to develop this cost calculator for Montana, building on the Cost of Care Calculator developed by the Montana Department of Public Health and Human Services (DPHHS) to support programs in the STARS quality rating and improvement system. Led by national early childhood finance experts Jeanna Capito and Simon Workman, P5FS has developed cost estimation models and cost calculators for several states and communities.
These models have informed child care subsidy rate setting and other early childhood policies and are aligned with cost model guidance provided by the U.S. Office of Child Care for rate setting under the Child Care Development Block Grant.
Check out the tool and guides below.
You can also watch a webinar and view the presentation slides.
For questions or additional information, contact Senior Child Care Business Advisor Jason Nitschke at jasonn@zerotofive.org
