3.2 Budgeting in Childcare

Program Budget

When creating a sustainable budget for childcare operations, it is important to plan for every day and consider strategies for anticipating and managing unexpected expenses. 

When putting your budgets together, consider the cultural funding that will be needed to bring in knowledge keepers, Cultural supports, or have the staff do a “cedar brushing or the Early Learning programs may need to be brushed out before the children may enter that space.  Some communities shut everything down and are closed; some communities may bring the “loved one” home, which may be the community gym or the Band office, which is the same space that children may use after the funeral is completed, and you will need to have funds set aside for such cultural situations.  Best to ask and learn what is expected from the programs, families, children, staff and what their protocol is for this topic of funerals.  

Due to limited funding, fee caps, or unexpected expenses, getting creative with budgets is sometimes necessary. The hope is that you are in the black, not the red!

Ideally, bringing in stakeholders such as families, children and staff to have input on how funds are spent in the centre is a great way to understand stakeholders' priorities. It also allows ECE educators to feel heard and have input on how the centre is run.

Funds to run a childcare centre are made up of the funding models outlined in 3.1, parent fees, and may also include external grants and fundraising. Keeping track of incoming funding streams and ensuring they align with operating costs is critical.

Program Costs

Consider what funding sources your centre has and what the costs are.

Here are some expenses your program may have:

• Program supplies (such as toys, books, paint, craft supplies, strollers, beds, sheets, cleaning supplies, garbage bags, bubbles, cleaning products, ect).
• Food (if you provide snacks or lunches, extra food on hand for children).
• Health and safety supplies (Cleaning supplies, gloves, fire extinguisher, first aid kits, salt for sidewalks, ect).
• Any type of decorative items (pictures, rugs, lamps, etc).
• Any equipment (play structures, inside and out, chairs, tables, speakers etc).
• Any field trips or on site activities such as music, yoga, dance etc.
• Any space rentals/lease/mortgage
• Property taxes and any utilities (water, garbage, recycling)
• Phones and internet
• Car lease/rental/purchase
• Space/location maintenance
• Milage or travel costs
• Any consulting fees
• Cleaning and landscaping fees (cleaning, carpet cleaning, window, powerwashing, lawn and garden care, woodchips/rocks)
• Maintenance (varies depending on context)
• Insurance costs

Administrative Costs

• Administrative staffing
• Advertising (for both spots and staffing)
• Business license
• Accounting and legal costs
• Software costs for collecting fees, billing and invoicing
• Banking and credit card, or loan fees
• Any office supplies (computers, desks, paperclips, paper, etc.)
• Any debt repayments
• Website hosting

Human Resource Costs

Wages, taxes, and benefits for permanent staffing and substitutes for staff sick and vacation days. Consider staffing over and above the licensing minimum staffing ratios. This ensures adequate staffing to support children’s needs and facilitate inclusion. Software/ bookkeeper/accountant costs for managing payroll.

Professional development funds: Ensure that you budget for professional development for your staff to continue to learn and be up-to-date on best practices. Costs include paying the facilitator, location and food.

Professional dues or memberships: Memberships to ECEBC, professional organizations or membership to local CCRR and WorkSafeBC fees.

Explore this free resource from Childcare ED to support you in considering your budget:

Reference

ChildcareED (n.d). Monthly Budget [PDF]. https://www.childcareed.com/

Tax Exemption

First Nations, Bands and Tribes: Budgeting

Take time to work out your yearly budgets with your finance department, finding out which funds they receive yearly, what funds they regularly apply for, and what they are used for. And what is the amount usually requested? What will it look like for this year?

Remember, when you are on reserve and apply for funding, First Nations in BC do not have to pay taxes on reserve, so when you are applying for minor or capital funding, you should not pay taxes if it is delivered on reserve.  Each Band will have the required documentation, so they will not have to pay this expense. This will have an impact on your budgets.

 Also, First Nation staff members may be tax-exempt if working on reserve.  Need to talk with the H/R department and the finance department; staff will have to complete a tax exemption form, and it will be sent to the Canada Revenue Tax Canada.    

Finding out what the needs and wants of all those involved are, supporting the Early Learning programs and Childcare Centers and being able to apply for the funding that they and you may discover is needed or required.  

Keeping track of your funding and how you spend the funding, or reporting on the funding, may be a shared experience with your Supervisor, Director, the Band Manager Council member or the Finance department.  

Activity 3.2 | Costing it Out

In this activity, you will consider the costs you may incur in your centre.

1. Reflect on the costs outlined in this section, and consider what other expenses you might have that are not on that list.
2. Consider what is important to you, your staff, families and children. Rank these priorities 1 through 10. If having extra Educators (above minimum licensing regulations) in the room is a big priority, rank that #1.
3. Is this where you are spending the money?
4. What opportunities are there for additional funding streams? Are you accessing all the opportunities outlined in this course?