FY16 CDBGREQUEST FOR PROPOSALS

Childcare Scholarship Assistance

What is the program?

Under the Scholarship Program, the City’s Division of Early Childhood will provide financial assistance to parents located within Lakewood on behalf of 25-35 qualifying children. To be eligible, parents must meet the following qualifications: 1. Family must reside within the City of Lakewood for at

least one year 2. Family has a household income that is just above 125% of

federal poverty level, and is therefore ineligible to participate in Cuyahoga County’s day care voucher program

3. Family has a household income that is below HUD’s moderate-income guideline

4. Parents must be either working or attending school (high school or beyond)

Primary Goals & Objectives

To support lower-income Lakewood parents in their effort to maintain stable employment and/or complete their education by subsidizing the cost of childcare.

To provide Lakewood children of lower-income parents who are working or completing their education with high quality, developmentally appropriate childcare that improves their literacy skills, preschool readiness and school success.

Who do we serve?

Why is it needed? Cost of childcare

outpaces inflation by 70%

Small increases in wages can result in a loss of county benefits

Children and childcare centers benefit from high quality, consistent care

Parents and the community benefit from stable employment

THE IMPACT OF CHILDCARE SCHOLARSHIPS ON AN ANNUAL HOUSEHOLD BUDGET

Two Parent, Two Children Household, Both parents employed Father earns $10.15/hour, Mother earns $11.48/hour

Family Pays Total Cost of Childcare Family Receives 40% Childcare ScholarshipGross Income $44,990.40 Gross Income $44,990.40Expenses:   Expenses:  Childcare for 2 Kids:Infant – $10,927.80Preschool - $9,334.00

$20,261.80 Childcare for 2 Kids:60% Paid by Parent40% Paid by CDBG

$12,157.08

Food $9,384.00 Food $9,384.00Housing $9,000.00 Housing $9,000.00Transportation $7,440.00 Transportation $7,440.00Total Expenses $46,085.80 Total Expenses $37,981.08Income Vs. Expenses

($1095.40) Income Vs. Expenses $7,009.32

FY16 Expense Budget

Expense Category Total Project (A) CDBG Only (B) CDBG % of Total (B/A)PersonnelSalaries 15,606 12,992.64 83%Fringe Benefits 2,411 2,007.36 83%

Sub-Total $ 18,017 $ 15,000 83%Overhead & OperationsRent/Lease      Insurance      Materials & Supplies

     

Professional Services     

Postage      Travel      Utilities/Telephone      Insurance      Equipment      Indirect Costs1      Other: Child Care Scholarships 60,000 60,000 100%

Other:      Other:      

Sub-Total $ 60,000 $ 60,000 100%Total Project Costs $ 78,017 $ 75,000 96%

1 Indirect costs may not be paid with CDBG funds.