Pre-school costs

Shock. Horror. "The cost of child care now exceeds the price of college tuition in 38 states and the District of Columbia." So reads a recent article.* While this may be true, it is not the whole story. Because the cost of providing childcare likely costs more than the cost of providing college tuition, and without grants, donations and endowments.

Regular readers will know that I formerly led schools with Pre-School divisions and so I am deeply familiar with the relevant finances. Truth be told, anthis mead I will explain, Pre-Schools are generally loss leaders but they bring families into a school and higher grades can recover that deficit.

So what does a PreSchool cost and why must fees be so high?

Well, firstly you need to know that each state mandates a certain level of staffing, square footage, number of toilets and very expensively, number of parking spaces.

So, in my most recent position, the ratio for a three year-old / PK class was one adult per 8 students and as we had a class size of 16, this meant two teachers. We insisted on certified teachers, and so base salary plus professional development plus medical plus payroll taxes, FICA, unemployment etc > $240.000.

We had six classes thus 1/6 of a receptionist / secretary, cleaner, janitor / handyman / gardener was 1/6 of $200.000 > $70.000.

And 1/6 of a Head of Pre-School was another > $33.000.

These are all rounded of course, and medical insurance premium increases will have made these even higher.

Then we have insurance, licensing fees, professional association memberships, accreditation fees so another $5000 a month, or for once group annually > $10.000.

Office expenses like internet, printing, postage added to the overall expenses, but fothis exercise perhaps > $1000.

Operational costs like cleaning supplies, toilet paper, AC filters were around $1000 > $2000.

Utilities were at least $5000 a month, often more, but for this exercise > $10000.

Minor capital works, furniture like tables and bookcases, curtains, parking lot reurfacing and striping were another $60.000 so > $10.000 for this class.

Minor program capital items like books, scissors, scooters and playyard toys likewise were budgetted at $5000 monthly > $10.000 again.

Program consumables like paint, paper, glue and printing and copying were another $500 per clas per month or $6000.

Co-curricular activities like field trips, concerts, festivals, displays for parents were another $10000 per class per year. 

So for one PK class, with no contribution to central office expenses, to major capital projects, to reserve funds and so, we have a total of some $400,000 or more than $25.000 per student.

Kindergarten classes had a higher ratio, this one fewer adult or nearly $20,000.

And this is why, "The cost of child care now exceeds the price of college tuition" ...

*Please leave comments and queries in the comments below.*

Further Reading

*Costs of child care now outpace college tuition in 38 states