The DPP Scholarship Program: Advancing Equity and Access Brief

The DPP Scholarship Program: Advancing Equity and Access1 For Colorado families, the average cost of preschool for a four-year-old is estimated at over $12,000 per year.2 In response to the high cost of preschool, the Denver Preschool Program (DPP) works to increase access to quality early learning through innovative funding initiatives.

DPP has provided support to families for over a decade, and in May 2019, DPP launched a pilot Scholarship program with the goals of: 1) addressing barriers to preschool affordability for families with lower incomes, 2) increasing access and enrollment for families with the greatest need, and 3) providing a learning opportunity for DPP related to helping families afford high quality preschool. As of the 20202021 program year, the Scholarship provided full tuition coverage for DPP families who were enrolled in a participating provider and met eligibility criteria related to income, preschool cost, enrollment hours, and other funding.3 Scholarship Evaluation. The Butler Institute for Families at the University of Denver evaluates the strengths and opportunities of the Scholarship pilot program. This brief highlights findings on provider reimbursement and families’ perceptions of impact during the 2020-2021 year. A total of 37 families and 44 providers who participated in the Scholarship completed surveys between February and March of 2021. During March-May of 2021, 5 providers and 3 families participated in follow-up interviews, and focus groups were held with DPP staff and contractors. This evaluation also included an analysis of program administrative data from September 2020-August 2021.

What are the benefits of fully funded preschool for families?

Equity and Financial Impact.

“The cost of living is still really high in Denver, so for the families that are struggling to keep up with rent or mortgage payments, this becomes something that creates that equity at a higher level.”

DPP Staff Member/Contractor According to administrative data, many DPP Scholarship recipients identify as Black, Indigenous, or as People of Color (BIPOC) (70%), indicating that the Scholarship reaches families who may face systemic barriers to early care and learning opportunities. Almost all families (97%) also reported experiencing economic hardships in one or more of the following areas:

1

Recommended citation: Delap, S., Wacker, A., & Roberts. A. (2022). The DPP Scholarship Program: Advancing Equity and Access. Butler Institute for Families, Graduate School of Social Work, University of Denver 2

The US and the high price of child care: 2019. Child Care Aware® of America. (2021, February 4). Retrieved from https://www.childcareaware.org/our-issues/research/the-us-and-the-high-price-of-child-care-2019/ 3 The DPP Scholarship was designed for families: 1) living at or below 300 percent of the federal poverty line, 2) spending more than 7 percent of their income on preschool tuition, 3) Attending 5 or more hours a day (25 hours per week) at preschool, and 4) Not receiving other public funding sources (Head Start, CPP, CCCAP, ECARE, or Mill Levy)

Figure 1. Scholarship Families Reporting Economic Hardship (n = 37) Temporary or permanent layoff, reduced pay, or fewer hours due to COVID

81%

Food insecurity

64%

Being a single parent

36%

Difficulty affording rent or mortgage

35%

Having an income below the federal poverty level

35%

Working a second job to make ends meet

19%

Housing instability

9%

Many parents and guardians (69%) felt that the Scholarship made it “much easier” for them to make ends meet (Fig. 2). In addition to paying bills and affording basic needs like housing, clothing, and food, families were able to send siblings to preschool and enrichment activities – outcomes that would not have been possible without the DPP Scholarship.

Figure 2. How does receiving fully covered preschool tuition impact your family? Making ends meet is… (n = 32) Much harder, 6% A little bit easier, 25%

Much easier, 69% Families also reported increased employment and education opportunities because of the Scholarship, affording parents the ability to work, attend school, and/or take care of a family member during an illness as a direct result of the program. (Fig. 3 and 4). The implication is that improving access to preschool positively affects a family’s immediate finances, as well as their ability to access economic and social opportunities.

Figure 3. Options Available to Scholarship Families as a Result of Having Their Child Enrolled in Preschool (n = 37) 95%

70% 41%

Work

Work longer hours

35%

Look for a job Go to school

27% Take care of someone who is sick

Figure 4. Impact of receiving fully covered preschool tuition on families’ ability to work and/or attend school: 2020-2021 average scores[1]

Much harder

A little bit About the A little bit Much harder same easier easier

“I am deeply grateful for DPP and all their support and help with my daughter's tuition. I became a single mom last year and then when I thought things were going to be great, we got hit with the pandemic and turned our lives upside down. 2021 has not been any easier and I continue to be on survival mode.

Everyday just making sure my daughter's well-being and happiness continues and we do all that we can to thrive under hard conditions. Thank you, DPP!” - Scholarship Parent DPP Scholarship families reported that they had a choice of quality educational experiences. Most families were able to enroll their child in their preferred provider with the hours and days that were most helpful for their needs. A vast majority of children (89%, n = 209) who received the scholarship were enrolled in high quality settings.4 “If I did not have the DPP [Scholarship], I probably would have been really struggling a lot to put him through preschool.” - Scholarship Parent How does the Scholarship impact providers?

DPP has a reimbursement model that pays providers for either their published tuition rates or the estimated cost of providing preschool in their area, whichever is higher. This is an important support for providers, as many find that operating costs cannot be covered by tuition alone. As a direct result of the DPP Scholarship and its cost of care model, providers were able to repurpose revenue in the following areas: • • • •

Use for general operating support during the pandemic (n = 6) Materials, supplies and/or PPE (n = 5) Use funds for other families (n = 4) Teacher training (n = 2)

Over half of providers also experienced an increase in enrollment and hours of attendance for Scholarship children. Thus, the DPP Scholarship has supported provider sustainability during the COVID-19 pandemic by providing an infusion of funds and growing enrollment.

4

Defined as a preschool with a Colorado Shines rating of 3 or higher.

“The scholarships that were offered this year were really life-changing for [the] families. I felt very humbled to be able to help them in that way, because I do like to think of myself as a resource for my families. And I really felt like I helped. And that was because of DPP. That was tremendous.”

DPP Scholarship Provider Implications for the Field In the past year, enrollment in the DPP Scholarship program has expanded due to increased outreach, full coverage for tuition, and allowing all types of community preschool providers to participate. Based on providers’ estimates, 69 children enrolled in their preschool because of the DPP Scholarship in 20202021, versus 18 the previous year. More families now have access to fully funded preschool through the Scholarship, and providers have benefitted from a reimbursement model that covers the true cost of providing quality care. By pairing the Cost of Care model with full tuition coverage for Scholarship families, DPP demonstrates a multi-layered approach to increasing access to quality preschool.

During the Scholarship's 3-year pilot phase, the program has highlighted opportunities to bridge funding gaps for BIPOC and economically disadvantaged families with preschool-aged children. According to DPP Scholarship families and providers, full tuition coverage has had a profound impact. As Colorado moves to universal preschool for all children, the Scholarship provides a model of how blending and braiding funds can benefit both providers and families in the Denver community, while decreasing barriers to access.