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The Child Care Partnership Project Child Care Works |
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Description
As in other cities, the demand for child care continues to grow at an unprecedented rate in the District of Columbia. The Metropolitan Washington, D.C. Council of Governments estimates that the demand for child care exceeds the supply by 34,253 slots. In 1996, a broad partnership including service providers, banks, government entities, and philanthropy was convened to address the need for financing to support expansion of child care capacity in the District. The many partners have persevered through a long and unusually inclusive process, and the result is a loan fund providing funding and technical assistance to family providers. Partners Many important District of Columbia stakeholders came together to create the Child Care Works initiative (CCW), including:
History and Development In 1996, the Center for Policy Alternatives, the Child Care Action Campaign, and Save the Children Federation convened a conference on innovations in child care financing. One focus of the conference was the Community Reinvestment Act (CRA) of 1977, a federal law that requires banks to invest in the communities in which they are chartered. Historically, banks have fulfilled CRA obligations through investment in housing. In 1996, however, new CRA regulations included language that explicitly listed child care as a viable community development option. The conference stressed the importance of partnerships between the public sector, banks, and the community to improve child care financing. As a result of the conference, the Center for Policy Alternatives brought stakeholders together to address child care financing in the District of Columbia. An advisory panel was formed with representatives from the D.C. government, the child care community, the business community, community activists, private philanthropy, and the banking community. This group designed Child Care Works, a mini micro-loan pool aimed at increasing the number of licensed family child care providers in D.C. In December 1998, the partnership launched Child Care Works. Current Activities Child Care Works (CCW) includes a continuum of services to assist family child care providers, from helping them become established to helping them file their taxes: Licensing: The Washington Child Development Council, a resource and referral agency, helps potential and current unlicensed providers in D.C. to meet licensing requirements and complete the licensing application process. Loans: ARCH and H Street Community Development Corporations administer loans of $500 to $1,500 to help family child care providers pay for their license, buy equipment, and make improvements to their home that are necessary to pass inspection. Business Training: ARCH and H Street Community Development Corporations also provide guidance on how to market and run a successful home child care business, how to manage money, and how to pay taxes. In addition, family child care providers have mentors to guide them and respond to their questions. Resources Child Care Works is funded by the collaborative support of banks, the D.C. government, and private philanthropies. The Fannie Mae Foundation, Ford Foundation, Freddie Mac Foundation, Meyer Foundation, and Moriah Fund supported the initial planning and development phase of the work. The Metro Bankers Consortium has contributed $40,000 to fund the loan pool, as well as $10,000 to fund technical assistance. The DC government has contributed $75,000 from the federal Child Care and Development Fund to guarantee the loan pool, and $75,000 to support technical assistance. The technical assistance dollars are administered by the Community Foundation for the National Capital Region, and Riggs Bank administers the loan fund. Results The project has leveraged a $40,000 loan pool for mini micro-loans, and the goal is to create 500 new child care slots as a result of the first round of lending. Although Child Care Works is still in its implementation stage, project coordinators point to the value of relationships built among various partners, particularly between the public and private sectors, as an important early result. The project has bridged an information gap between the banking community and public and private human service providers. Sustaining and Replicating Loan funds in Maryland, Illinois, and Ohio helped inform the development of Child Care Works. The future of Child Care works depends on the commitment of the partners. So far, they have demonstrated strong commitment to the project by maintaining involvement through a long and at times arduous planning process. In addition, the ongoing need to meet CRA requirements provides some assurance that the banks will maintain their funding commitment to the project. Lessons Learned Communication is key. Establishing clear and regular communication among the various partners is vital to progress and success. There must be a means for all partners to receive regular updates, report on any activities for which they are responsible, and raise concerns. Avoid potential misunderstandings by putting all plans, commitments, and agreements in writing. Know your partners. Knowing the community you are working in, the historic roles and relationships among partners, and the interests, motivation, and values of each partner helps build the partnership. Partners should be chosen carefully, both to reflect the many stakeholders in the community and to be capable of working together effectively. Know when to draw the bottom line. Partnerships must have a way to make decisions when there is disagreement among partners. The inclusion and engagement of a variety of partners must be balanced with the need for progress toward the project goals. From the beginning, partners should agree on how to close debate on contentious issues and move forward. Contact Information Darold Johnson
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