Article Link: http://exchangepress.com/article/the-iron-triangle/5021012/
Early childhood program budgets, like all budgets, have two sides: the money coming in and the money going out. Balancing these two sides is essential, and is particularly challenging in the current recession economy. When seeking to balance their budgets, early childhood program directors typically focus on their rate �" the price charged to parents or received as reimbursement from government. Rates are indeed important, however early care and education program income is also profoundly influenced by two other factors: enrollment and fee collection. These three factors form the ‘iron triangle’ of early care and education (ECE) finance. Paying close attention to the three sides of the iron triangle is key to sound fiscal management.Full Enrollment
Almost all ECE revenue is tuition collected on behalf of an enrolled child. While government and philanthropy sometimes help finance ECE, this funding is rarely provided as general operating support; typically the dollars provided by third party funders are linked to enrollment of specific children. If the children are not enrolled, the funding does not flow. This makes full enrollment a cornerstone of ECE finance, regardless of whether the program relies mainly on public funds or relies primarily on parent fees, or a combination. Unless a ...