8 CCR 1404-1-4.108 - PRESCHOOL PROVIDER FUNDING FOR CHILDREN THREE (3) AND FOUR (4) YEARS OF AGE
A. Preschool
program funding distributed to preschool providers shall be used only to pay
the costs of providing preschool services directly to eligible children
enrolled by the preschool provider or by a subcontracted preschool provider as
authorized for a school district pursuant to section 26.5-4-208(3)(c)(II),
C.R.S. Where applicable, preschool program funding can be used to cover special
education and related services costs that are in excess of the Exceptional
Children's Educational Act (ECEA) and Individuals with Disabilities Act (IDEA)
funds if the costs are allowable per subsections (A)(1) through (4) of this
rule. The costs of providing preschool services include:
1. Teacher and paraprofessional salaries and
benefits;
2. The cost of providing
to teachers and paraprofessionals any professional development activities
associated with the preschool services;
3. The costs incurred in purchasing supplies
and materials used in providing the preschool services;
4. Any additional costs that a preschool
provider would not have incurred but for the services provided in conjunction
with the preschool services; and
5.
A reasonable allocation of overhead costs as provided in rule section
4.108(G).
B.
Participating providers must agree to guarantee families at least the minimum
number of hours defined in rule sections 4.106(B) and 4.107(A) and (B) for the
per-child rate that is provided.
C.
Pursuant to section 26.5-4-208(3)(b), C.R.S., in a year in which there is
insufficient funding to provide additional preschool services to all eligible
children, those eligible children who are in low-income families and meet at
least one (1) qualifying factor will be prioritized.
D. Excess funds allocated to the preschool
program through underspent funding for children three (3) years of age, or
younger in waiver districts, and/or funds remaining after meeting the uses
described in section 26.5-4-209(3)(a), C.R.S., may be distributed by the
Department through hours of additional preschool services for children who
enroll in the year preceding eligibility for enrollment in
kindergarten.
E. The Department,
working with local coordinating organizations, shall make every effort to blend
and braid preschool programming funds where possible with head start, local
funding dollars, and the Colorado Child Care Assistance Program (CCCAP), prior
to distributing additional preschool programming funds to a child who is in a
low-income family per rule section 4.105(A), or who meets at least one (1)
qualifying factor in rule section 4.105(B).
F. The per-child rate funding formula for all
types of preschool services covered under the preschool program applies to the
following categories of services that a family may enroll their eligible child
in, as specified in sections 26.5-4-204 and 208, C.R.S., and clarified in these
rules:
G.
Overhead or
Indirect Costs. Overhead or indirect costs represent the expenses of
doing business that are not readily identified with the delivery of preschool
services, but are necessary for the general operation of participating
preschool providers. Preschool providers shall be allowed to expend a
reasonable allocation on overhead or indirect costs, not to exceed fifteen
percent (15%) of the total preschool program per-child rate funding
received.
H.
Per-Child Rate
Funding Formula. The Colorado Universal Preschool Program per-child rate
formula is expressed as ((PKC*PS*PA) + (PKC*(1-PS))*CL)* LIC*GF*QE*IEF). The
formula includes a base rate cost of high quality preschool services (PKC) with
specific parameters adjusting for personnel costs (PS) and variances to costs
by region (PA). Further adjustments are applied for local costs of living (CL),
considerations of a community's poverty level (LIC), geographical factors (GF),
increased quality of services (QE), and an annual adjustment for inflation and
economic factors (IEF).
1.
PKC (pre-k
costs) means the base cost of providing high quality preschool services
based on unique characteristics of provider settings and the families/children
they serve, recognized best practices and evidence-based standards, pursuant to
sections 26.5-4-208(1)(a)(I) and 26.5-4-205(2), C.R.S.
2.
PS (personnel share) means
the share of costs accounted for by personnel costs, including salaries and
benefits.
3.
PA (personnel
adjustment) means the adjustment factor that accounts for regional
variations in personnel costs.
4.
CL (cost of living) means a cost-of-living adjustment determined
at the county level to reflect evolving local economic realities and support
recruitment and retention of a high-quality workforce, as required by section
26.5-4-208(1)(a)(III), C.R.S.
5.
LIC (low income by county) means the parameter determined at the
county level to account for the identification of children in low-income
families, as defined by rule section 4.105(A) and pursuant to section
26.5-4-208(1)(a)(IV), C.R.S.
6.
GF (geographic factor) means the factor that adjusts for regional
differences and circumstances unique to rural communities that result in
variations in the cost of providing preschool services, which may include
difficulties in achieving economies of scale in rural areas and in recruiting
and retaining preschool educators, as required by section
26.5-4-208(1)(a)(III), C.R.S.
7.
QE (quality enhancement) means the component that accounts for the
cost of providing professional development activities and salary incentives to
teachers and paraprofessionals pursuant to sections 26.5-4-208(1)(a)(I) and
26.5-4-205(2), C.R.S.
8.
IEF
(inflation and economic factors) means the annual rate of inflation,
estimated for the Denver-Aurora-Lakewood core based statistical area, and other
state economic factors, including but not limited to personal income,
population and employment factors, and construction cost indicators, adjusted
by the Department for any other financial forecasts and circumstances directly
impacting available resources for the preschool program. The Department will
evaluate and consider data from the Bureau of Economic Analysis, Colorado
Department of Local Affairs, United States Census Bureau, and United States
Bureau of Labor Statistics to develop the IEF annually as part of the perchild
rate setting process.
Notes
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