City of Chicago Extension of Funding for Early Learning Program Providers Updated FAQ

Background:

The City is extending funding for 25 early learning program providers who saw a decrease of more than 20% in funding as a result of the City’s recent RFP process. The City will extend funding for these providers to 80% of their existing contract level through June 30, 2020, which will allow children and families to remain in their current programs through the program year.

FAQ:

Why did the City decide to extend funding?

The City is deeply aware that this change in the early childhood landscape has been challenging and the timing of this change (with the impact coming midway through the school year) is particularly difficult for families. Through this funding extension, the City ensures children and families can stay in their programs through the remainder of the program year.

Does this mean the RFP process was flawed?

The City is not rescinding or invalidating the RFP process or outcomes. DFSS conducts RFPs on a routine basis and administers them in close consultation with Law and Procurement, and this process was handled no differently. All RFPs are competitive and result in some organizations being awarded funding and some organizations being denied funding.

Does this mean you are rescinding the RFP?

The City is not rescinding or invalidating the RFP process or outcomes. The City will be conducting an independent evaluation of the process, so that we can learn from this experience.

The City previously stated that all funds had been committed – where did this additional funding come from?

All of the funds that the federal and state governments provide for early learning (Early Headstart, Headstart, Preschool for All, and Preventive Intervention) were disbursed through the RFP. The dollars being used to support agencies through this change in funding are coming from the city’s corporate funds, because the City thinks it is a priority to ensure families can stay in their programs through the remainder of the program year.

What will happen in June to the agencies that were originally defunded during the RFP processes?

The new extension funding is a one-time offer to providers to ensure continuity and stability for families and children through the remainder of the program year. After June 30, 2020, agencies will be funded at the levels determined by the recent RFP.

DFSS will work diligently with all early learning program providers who saw a decrease in funding to create a sustainability plan for their organizations. Outreach is well underway to agencies that have been defunded or received significantly less funding so that customized plans can be developed that focus on each unique agency and the families and children that attend that particular program. DFSS will continue to meet and work with each agency throughout the program year to help with the transition.

Those families who wish to move to another placement, either in the public schools or community-based settings, can call the Chicago Early Learning Hotline at 312-229-1690 or visit https://www.chicago.gov/city/en/sites/chicagoearlylearning/home/how-to-apply.html to find a placement that is convenient for them.

When does the new funding through the RFP go into effect?

All currently funded agencies will continue to be funded through November 30, 2019. Contracts with the 101 agencies funded through this RFP process will begin December 1, 2019. The City is extending funding for 25 early learning program providers who saw a decrease of more than 20% in funding as a result of the City’s recent RFP process. The City will extend funding for these providers to 80% of their existing contract level through June 30, 2020.

What does this mean for UPK4 moving forward?

Our commitment to provide all 4-year-olds with full-day preschool options remains strong. The rollout of UPK4 this year was part of a process that began more than two years ago. The impact on the early childhood ecosystem that we are experiencing creates an opportunity to reflect and make adjustments as we move forward with universal pre-k under this administration.

Which agencies are receiving funding through the extension? Delegate

ABC PRESCHOOL LTD

CHANCE AFTER CHANCE MINISTRY NFP

HAPPY HOLIDAY NURSERY & KINDERGARTEN INC

IMANI CHILDREN'S ACADEMY INC

LITTLE ANGELS FAMILY DAYCARE II INC

LITTLE FOLKS DAYCARE INC

LITTLE KIDS VILLAGE INC

MOSAIC EARLY CHILDHOOD ACADEMY INC

THE CATHOLIC BISHOP OF CHICAGO

THE UNIVERSITY OF CHICAGO CHARTER SCHOOL CORPORATION

WEE CARE NURSERY SCHOOL AND KINDERGARTEN INC

BLACK RHINO, INC. DBA BUILDING BLOCKS LEARNING ACADEMY

EYES ON THE FUTURE, INC.

WEST AUSTIN DEVELOPMENT CENTER

PATHWAYS TO LEARNING CHILD CARE CENTER INCORPORATED

HOWARD AREA COMMUNITY CENTER

MOTHER'S TOUCH INC II

KIDDY KARE PRE SCHOOL INC

SOUTH-EAST ASIA CENTER

CHILDREN'S CENTER FOR CREATIVE LEARNING INC

ONE HOPE UNITED - NORTHERN REGION

THE MONTESSORI NETWORK

KENYATTA DAY CARE CENTER

MARILLAC ST. VINCENT FAMILY SERVICES INC DBA ST. VINCENT DEPAUL CENTER

EARLY CHILD CARE SERVICES INC

DFSS Chicago Early Learning RFP

Building on the strengths and power of the Head Start and Early-Head Start models and the track record of success they have for comprehensively supporting students, families, and communities, the City remains dedicated to providing high-quality early education to children through Chicago Early Learning.  The Chicago Department of Family and Support Services (DFSS) Request for Proposals (RFP)asked early childhood education organizations to submit proposals that embraced key policy goals such as kindergarten readiness, increasing credentials for early learning staff, raising salary minimums for pre-school teachers, and blending of federal and state dollars in order to fund early learning at the level necessary to deliver quality education.

The Context

The City of Chicago has made a commitment to providing young children across the city with access to high-quality early learning through a comprehensive, citywide system of school- and community-based programs known as Chicago Early Learning (CEL). The service philosophy of the City of Chicago and CEL is that children of all backgrounds require quality early learning experiences to promote their social emotional, physical, language and cognitive development.

The roll out of Universal Pre-K (UPK4) in communities across the city and new state policies that allow children to enroll in kindergarten earlier will shape a new early childhood ecosystem that community-based programs and public schools must respond to.

In addition, in the 2017-2018 school year, all kindergarten teachers in Illinois began observing their students on a common set of developmental measures using the Kindergarten Individual Development Survey (KIDS). According to the KIDS study, only 22% of African-American children and 15% of Hispanic children are considered school-ready when they show up on the first day of kindergarten.

The RFP - Policy Goals

The two recent RFPs released by DFSS help align best practices within this evolving system. Through the RFP process, DFSS policy priorities included:

1. Advancing Kindergarten readiness.
2. Providing City-wide Coverage: As part of slot allocation, DFSS seeks to provide access to high-quality Chicago Early Learning programs in community-based organizations in neighborhoods across the city.
3. Improving Quality Standards: Lower child-to-adult ratios, raising staff qualifications, increasing teacher salary minimums, prioritizing education/appropriate early learning services, etc.
4. Maximizing Funding Streams: Blending of federal and state dollars in order to fund early learning at the level necessary to deliver quality education.

The RFP – Competitive Process

DFSS received close to 250 proposals from over 150 different agencies. Under the new contracts, which go in to effect on December 1, 2019, 101 agencies will receive funding and partner with DFSS to provide high-quality early learning to communities around Chicago.

The Increased Investment in Early Learning

Across the city there was an increase of nearly 1600 early learning slots in community-based agencies through the RFP. While some communities did, in fact, see a reduction in funding as a result of the RFP, others will see an increase. Increases and decreases by community were due to many factors, including the quantity and quality of application by community area, the targeted populations by community area, community area need and capacity.

Through the RFP, funded agencies are being better compensated for services for each slot. The increased teacher salaries and higher quality standards were the reasons DFSS increased the cost per child, or reimbursement rate, across programs as illustrated below.

For preschool services:

For infant/toddler services:

The Funding

Through this year’s RFPs, DFSS will distribute to community-based agencies $193,147,500 in funding to support early learning services for children birth to five.  In federal funding, this includes $80,884,000 in Head Start, $25,587,000 in Early Head Start, $12,281,500 in Early Head Start-Child Care Partnership, and in state funding this include $32,049,000 in Preschool for All, and $42,346,000 in Prevention Initiative.

The Effective Date

DFSS granted extensions to state funded programs (PFA/PI), and all current grantees will be funded through November 30, 2019. DFSS will work with agencies that are not being funded in the new contract to develop customized transition plans for both families and agencies over the next three months.