financial pressure

Closure of Clayton Early Learning center in far northeast Denver exposes pain points in early childhood care

Preschoolers play at Clayton Early Learning in 2015.

When the news broke last week that Clayton Early Learning planned to shutter its child care center in Denver’s Green Valley Ranch neighborhood, dozens of parents voiced anger and surprise as they scrambled to line up new child care arrangements.

Behind the scenes, local and national early childhood advocates also took note.

Suddenly, one of the most well-respected names in early childhood education was downsizing. After just four years, Clayton was leaving an underserved city neighborhood, ending service for middle class tuition-paying families and retreating from its aspiration to provide quality child care to a mixed-income population.

“That is not a decision that we wanted to have to come to,” said Clayton’s President and CEO Charlotte Brantley. “We don’t believe it’s the right way to go to segregate kids based on their race, income or anything else.”

The move, however, illustrates just how financially tenuous the child care business can be — even for the biggest players in the game.

“It is concerning for Clayton, being a really well-known, high-functioning provider, to not be able to make it work,” said Emily Bustos, executive director of Denver’s Early Childhood Council.

Clayton, whose flagship school in northeast Denver is part of the national Educare network of child care centers serving at-risk children, doesn’t look like a place with money worries. Stately buildings dot its 20-acre campus, which long ago housed a boys orphanage and school. The organization also owns the 155-acre Park Hill Golf Club, which brings in about $650,000 a year after expenses.

Still, Clayton leaders and industry experts say top-notch child care is extremely expensive — costing tens of thousands of dollars a year per child. And help from government coffers is lagging.

“It’s an example of how underfunded high-quality programs in early childhood are,” said Cheryl Caldwell, director of early childhood education for Denver Public Schools.

Said Brantley: “The industry runs on an absolute shoestring budget.”

While Clayton is closing its far northeast Denver location, many of the approximately 100 children served there will be allowed to transfer to Clayton’s flagship campus on Martin Luther King Boulevard because they qualify for federally funded Head Start or Early Head Start. By combining Head Start funds with Denver Preschool Program funds and state money available to low-income families, the school can cover the cost of those slots more easily.

Up to 43 children, half of them infants or toddlers, will lose their spots at Clayton after Aug.18. They include 25 tuition-paying children at the main campus, three tuition-paying children at the far northeast site and possibly up to 15 low-income children at both sites who currently get state child care subsidies. Some of 15 children may be eligible for Head Start, which would allow them to stay at Clayton.

The closure will hit families with infants and toddlers particularly hard because there’s a chronic shortage of quality care for children that age in Denver.

While displaced preschoolers will probably be able to find other arrangements, “The infants and toddlers … they have basically nowhere to go,” Brantley said.

Some tuition-paying parents expressed their frustration at Clayton officials for not having being more proactive in addressing the financial challenges.

“You are the caretaker for the families because we don’t work with the budget,” Nate Paul, who has a 17-month-old in care at the main campus, and is expecting a baby who is already on the Clayton waitlist, told school officials at a recent meeting. “We don’t know what the cost per head is. We don’t have our hand on the gears and levers. You do. Your job is to make Clayton sustainable.”

Ryan Walsh, a father of two children served at Clayton’s main campus, said, “We’re not just a bunch of noise-making, smear campaign kind of people. We actually advocate for early childhood education, and this situation doesn’t benefit the community as a whole when we’re talking about early childhood and education funding advocacy in general.”

Brantley said about 30 staff members at the far northeast location will be able to transfer to jobs at the main campus, though some may take on somewhat different roles.

After operating its flagship campus for decades, Clayton Early Learning opened its second location in a building called Z Place in the Green Valley Ranch neighborhood in early 2013.

The additional space allowed both sites to begin accepting tuition-paying families. They had access to the same raft of benefits that Clayton’s Head Start families and those eligible for state child care subsidies did— small class sizes, extensive special services and lots of parent support.

But tuition — currently about $1,000 a month for full-day preschool and about $1,200 a month for full-day infant/toddler care — never covered the true cost of all that was provided, Brantley said.

Clayton covers $200,000 to $300,000 each year to close the gap between what tuition covers and what the program actually costs, Brantley said.

School officials launched the new location knowing that, but they hoped that more public funding would be coming to the early childhood field. At the time, a campaign was underway for a statewide ballot initiative that would raise millions for education, including preschool and full-day kindergarten. Voters soundly rejected the measure in November 2013.

There were other setbacks. In 2014, Colorado lost its bid for a federal grant that would have paid for new state preschool slots. Clayton would have been a partner in the effort.

Brantley said the state legislature’s perennial reluctance to increase education funding, combined with uncertainties about what will happen to federal early childhood funding under the Trump administration’s budget, also factored into the discussion to close the far northeast location.

In the midst of the deliberations, Clayton leaders learned that two separate grants that help fund other parts of the organization’s work — weekly “play and learn” groups for kids and caregivers, and coaching for other child care providers — would not be renewed.

“It’s this multitude of things that crashed together all at once,” said Brantley. “This was an incredibly difficult and disappointing decision to have to come to.”

Although Clayton owns the Park Hill Golf Club land and is in the midst of deciding whether and how to redevelop it, Brantley said it wouldn’t solve the problem of the far northeast site. For one thing, it will remain a golf course at least through the end of 2018, meaning no additional revenue is expected any time soon. In addition, any revenue from it would also need to support other aspects of Clayton’s large operation, which includes research, training and coaching.

Brantley said the fate of the seven classrooms at Z Place became clear in the spring as school leaders were developing the budget for the fiscal year that began July 1. The board voted to close the far northeast site in June.

Some of Clayton’s tuition-paying parents argued that they would have been willing to pay more if only school leaders had asked. But Clayton officials say the gap was too large.

Mike Burke, vice president of the Buffett Early Childhood Fund, a national Educare partner, said that he understands the parents’ instinct, but that it probably wasn’t a realistic request.

“An organization of Clayton’s caliber would have made it work if they could,” he said.

Educare programs have very robust staffing models “where you’re paying for degreed professionals, you’re paying for one, two, three teachers in the classrooms, family support workers, nurses, mental health consultants, speech and language consultants,” Burke said.

“When you start piecing it all together, you can see these cost-per-child averages raising, raising, raising.”

Burke said only a few of the country’s 21 Educare schools, including those in Miami, Maine and suburban Chicago, have classrooms that include children from tuition-paying families. But in most cases, it’s small-scale integration — only about 10 children.

Research on mixed-income preschool classrooms shows that such diversity has a positive influence on language development and social and emotional skills of low-income children. But Burke said early childhood financing structures aren’t set up to encourage socioeconomic integration because they come with strict eligibility requirements, often based on family income.

Locally, Mile High Early Learning, which like Clayton focuses on serving low-income families through Head Start and Early Head Start, draws around 7 percent of its 500 children from tuition-paying families.

But Pamela Harris, the organization’s executive director, knows how hard the balancing act is. Leaders there recently increased monthly tuition from $1,400 to $1,700 after a year of discussions.

That said, there’s still an invisible subsidy at work, Harris said — the discount that comes from paying child care workers a relatively low wage. Some in the field make so little they qualify for government assistance.

Overall, Harris believes there’s been progress on the early childhood front — gradual growth in Colorado’s state-funded preschool program, a new focus on early education in the federal Every Student Succeeds Act, and local efforts to connect the birth to five age span to the K-12 education system.

Against that backdrop though, Clayton’s plan to close its far northeast site “exposes the pain points that are still in early childhood,” she said.

leading the state

Three things we heard at a gubernatorial candidates forum on early childhood

PHOTO: Ann Schimke | Chalkbeat
Jared Polis, the Democratic candidate for Colorado governor, and Lang Sias, the Republican lieutenant governor candidate, spoke at forum on early childhood issues.

Stark differences in how Colorado’s two would-be governors plan to tackle early childhood issues were clear at a candidate forum Monday evening.

U.S. Rep. Jared Polis, the Democratic nominee, envisions free full-day preschool and kindergarten for all Colorado children — a sweeping and pricey expansion of what’s currently available.

Republican lieutenant governor candidate Lang Sias, who stood in for gubernatorial candidate Walker Stapleton, said Republicans would focus public funds on narrower programs that benefit the poorest children.

Currently, Colorado funds early childhood programs for some of its young children. The state provides half-day preschool to 4-year-olds with certain risk factors, but the program covers only some of those who qualify. In addition, the state reimburses districts for just over half the cost of full-day kindergarten, leaving districts to pay for the rest or pass on the cost to families through tuition. Last spring, lawmakers expanded the state income tax credit for child care costs, but most families still need to come up with hundreds or even thousands of dollars a month.

Monday’s event at the Denver Museum of Nature and Science represented a rare opportunity to hear candidates address early childhood issues, which are often overshadowed on the campaign trail by topics such as housing, roads and health care. While the forum highlighted some of the big early childhood ideas championed by each campaign, it also left plenty of unanswered questions.

Stapleton, Colorado’s state treasurer, was originally slated to speak at the forum, but backed out citing family obligations. Sias, a state representative from Arvada and a member of the House Education Committee, spoke in his place.

Polis and Sias didn’t debate each other at Monday’s forum, or otherwise interact. Polis went first, giving a short statement about his early childhood platform then answering several questions posed by moderator Bill Jaeger, vice president for early childhood and policy initiatives at the Colorado Children’s Campaign. Sias followed suit.

The event was sponsored by Constellation Philanthropy, a group of funders focused on early childhood issues. (Constellation is a Chalkbeat funder.)

Here are three things we learned from the forum:

The candidates have different ideas about which young children need help and how to provide it

In discussing his plans to create universal full-day preschool and kindergarten, Polis talked about using a public-private financing mechanism that’s sometimes called “social impact bonds.”

In this kind of financing — also called “pay for success” — private investors or philanthropists pay up front for social programs and get repaid with interest if those programs save public money by reducing the need for costly services such as special education or reading remediation. If a project doesn’t yield the hoped-for savings, the investors lose some or all of their money.

Polis said if he wins in November, he’ll immediately “work out how to partner with philanthropy to create more early childhood education for all income levels.”

Currently a version of social impact bonds is being used to pay for full-day preschool for some students in the Westminster school district north of Denver, a fact Polis mentioned Monday. Still, the financing mechanism is relatively untested in Colorado’s education sphere and it’s unclear how it might be scaled to pay for something as ambitious as statewide full-day preschool and kindergarten.

When talking about the Republican ticket’s early-education priorities, Sias described early childhood education as “incredibly important” but “very inequitably distributed.”

“We want to focus our public spending on those who are least able to afford it on their own,” he said.

He cited a proposal for education savings accounts that allow families to set aside money tax-free for educational expenses, including early childhood education.

“We realize that is more focused on middle-class and above families,” he said, “but by targeting that money using that program, we feel we will have more available to target the folks at the bottom of the spectrum who really cannot avail themselves of that opportunity.”

Education savings accounts don’t typically work for low-income parents because they have no extra money to set aside for future expenses.

The candidates would take different approaches to strengthening the early childhood workforce

In a field marked by low pay and tough working conditions, recruiting and retaining qualified teachers is a chronic problem. The candidates had ideas about how to bulk up the workforce.

Sias advocated for a residency program to help turn out new early childhood teachers, similar to what he’s previously proposed to help address the K-12 teacher shortage. He said such programs are data-driven, helping retain teachers for longer periods and improving student results.

He also floated the idea of recruiting midlife career-changers to early childhood work — “folks north of 50” — and hinted that they would work in the low-paid field.

“Is that an opportunity to tap into … folks who would like to fill those spots who maybe don’t have the same set of issues that millennials do in terms of how long they want to stay and how long they need to be committed, and frankly how much they need to be paid?”

While some middle-aged people do enter the field, mediocre pay, a maze of state regulations, and the growing push to boost providers’ education levels could make it a tough sell.

Polis talked about creating partnerships with colleges to beef up the credentials of people who currently work in the early childhood field.

He said it’s important to “bridge the skills gap” for those whose hearts are already in the work. He didn’t address how he could dramatically expand preschool and kindergarten simply by focusing on the existing workforce, where turnover can be as high as 40 percent annually.

Neither candidate talked about how he would boost compensation for early childhood workers, whose median pay in Colorado is $12.32 an hour, Jaeger said.

Both candidates agree that Colorado can do much better by its youngest residents

When asked how Colorado is doing overall in supporting young children and their families, both candidates agreed that the state has a long way to go.

Sias emphasized that low-income children continue to be left out. Polis talked about the lack of uniform access to full-day kindergarten.

Both candidates expressed interest in working with bipartisan coalitions on solutions.

“There’s so many people in our state who want to do right by their kids,” said Polis. “It’s really going to take folks from across the spectrum coming together.”

Sias, who argued for a combination of business-minded acumen and public money for early childhood, asked the audience to partner with lawmakers in finding what programs work.

He said he and Stapleton are “more than willing to work across the aisle with folks that we like and respect, and have knowledge in this area.”

Threes please

As 4-year-old preschool programs become the norm, Denver looks to reach 3-year-olds next

PHOTO: Ann Schimke | Chalkbeat

The Denver Preschool Program, most well-known for providing millions of dollars to help the families of 4-year-olds pay for preschool, is expanding its scope.

Starting this month, the nonprofit will put a share of its funding from a citywide sales tax toward improving preschool classrooms for 3-year-olds — something it has long done in 4-year-old classrooms. Those improvements could take the form of teacher training or coaching, teacher scholarships for educational programs, or new blocks and playground equipment.

The $700,000 initiative pales in comparison to the $15 million that the Denver Preschool Program will spend on tuition assistance for the city’s 4-year-olds this year. Still, it’s another sign of growing recognition that investments in younger children help amplify the benefits of widespread and politically popular 4-year-old prekindergarten programs.

The push to serve more 3-year-olds can be seen around the state and nation. Colorado’s two largest school districts — Denver and Jeffco — both plan to add new preschool seats for 3-year-olds if tax measures for education pass in November.

Last year, New York City school leaders began phasing in free universal preschool for the city’s 3-year-olds, an expansion of the city’s ambitious Pre-K for All program, which served about 70,000 4-year-olds in 2017-18. In 2008, Washington, D.C., passed a major preschool overhaul law, which helped make it one of the few places in the country where a large majority of 3-year-olds attend free preschool.

Jennifer Landrum, president and CEO of the Denver Preschool Program, said when city voters first passed a sales tax in 2006 to fund the program, the ballot language specifically earmarked the proceeds for 4-year-olds. But in 2014, when voters approved a 10-year extension of the sales tax, they also OK’d language that allowed spending on 3-year-olds.

The expanded age range fit with the shifting national policy conversation at the time, which increasingly emphasized the importance of starting with children younger than 4, said Landrum.

Research shows that early childhood programs can produce huge long-term gains for children, particularly those from low-income families. But there’s a caveat: The programs must be high-quality.

That’s part of the reason the Denver Preschool Program will focus its new 3-year-old funding on boosting quality.

“It’s such a logical next step when you can see the gains 4-year-olds can make in that one year of high-quality preschool,” said Landrum. “It just makes sense.”

The improvement efforts will focus on the preschool classrooms of about 3,400 Denver 3-year-olds.

Unlike the city’s 4-year-olds, those 3-year-olds will not get tuition help from the Denver Preschool Program. There’s not enough money for that, said Landrum.

In Colorado, a fraction of 3-year-olds attend publicly funded preschool through Head Start or the Colorado Preschool Program, a statewide program that pays for preschool for young children with certain risk factors. Some 3-year-olds also qualify for free preschool because they have disabilities.

Denver district officials say they hope to add 500 new preschool seats for 3-year-olds if the statewide ballot measure, Amendment 73, passes in November. Right now, there are long waitlists for that age group.

In Jeffco, which serves 3- and 4-year-olds together in the same classrooms, expansion plans also hinge on the outcome of November’s election. A proposed district bond measure would help renovate 70 classrooms for the preschool set, for a total of about 1,100 additional seats. Currently, the district serves about 3,500 preschoolers — about half of them 3-year olds.

And if Amendment 73 or the district’s mill levy override  — or both — pass, district officials say it would allow them to convert more half-day preschool slots to full-day slots, hike teacher pay, and improve the qualifications of early childhood staff.