Pre-K in Mississippi: Briefing Book

Pre-K in Mississippi

BRIEFING BOOK

Prepared for Supporters Interested in Learning More About Pre-K in Mississippi

Driven to change the fact that Mississippi has historically been last, our founders set a bold vision: a Mississippi first in education nationally. Mississippi First champions transformative policy solutions ensuring educational excellence for every Mississippi child. We are a leading voice for state-funded pre-K, high-quality public charter schools, access to highly effective teachers, and rigorous state learning standards and materials.

Team

Micayla Tatum | Director of Early Childhood Policy • Editor

Rachel Canter | Executive Director • Author

Brooke Williams | Director of Communications

• Designer

Rory Doyle | Photographer (unless noted otherwise)

Sonja Semion | Proofreader

Introduction

High-quality pre-K plays a critical role in closing the opportunity gap while raising achievement for all learners. When children start school without important skills, it becomes harder for them to achieve their potential without considerable intervention. These challenges can often lead children to face more severe issues, such as being retained in a grade, experiencing discipline troubles, or failing to finish high school. Research supporting the positive impact of pre-K on children’s later outcomes has fueled the proliferation of state-funded pre-K programs across the country. Since our founding, Mississippi First has been an active advocate for pre-K in the state of Mississippi and has worked hard to pass legislation that supports state-funded pre-K. Currently, Mississippi First advocates for the continued improvement and expansion of the early learning collaboratives, our state-funded pre-K program.

This briefing book provides the reader with a working understanding of early education in Mississippi, particularly the early learning collaboratives. The book also includes a detailed explanation of the cost of high-quality, state-funded pre-K and Mississippi First’s recommendations for how policymakers can support pre-K, including the program’s improvement and expansion. While we recommend reading the briefing book in the order presented, each section stands alone for easy reference by the reader.

PRE-K

Types of pre-k in mississippi

PRE-K CLASSROOM AT LONGLEAF ELEMENTARY IN PETAL, MS

EARLY LEARNING COLLABORATIVES

Early learning collaboratives are state-funded pre-k programs established by the Early Learning Collaborative Act of 2013 (see Appendix A). These programs, also known as “ELCs,” operate in 36 communities and serve over 6,000 students as of August 2023. All collaboratives are overseen by the Mississippi Department of Education (MDE), even though individual providers may also have other oversight agencies.

DISTINGUISHING FEATURES

Collaboration

To be eligible for state funding, all collaboratives are required to have two or more partners, including at least one school district and at least one Head Start, if one exists within the county. Collaboratives can also include private childcare centers and private or parochial schools. These partners form a collaborative council and select a lead partner, who serves as the fiscal agent of the collaborative. The lead partner coordinates a joint application for state funding. More information about the collaborative council can be found in Mississippi First’s How to Start a State-Funded Collaborative Pre-K Program

State Tax Credit

Individuals or corporations who make a contribution to support the local matching fund of an approved early learning collaborative may be eligible to receive a state tax credit for the donated amount up to $1 million. The Mississippi Department of Revenue can approve 1:1 tax credits up to the amount the legislature appropriates to collaboratives each year. See Appendix B for more information.

Application Required

Program participation is by application only. There have been five application cycles in 2013, 2016, 2018, 2022, and 2023, with a total of eleven rounds. New application cycles depend on the legislature increasing the funding for the program or on the closure of a current collaborative. Due to the program’s 2022 expansion, the Mississippi Department of Education (MDE) is hosting new application cycles throughout 2023.

POPULATION SERVED

Any child who has attained the age of four on or before September 1 of the school year is eligible to attend state-funded pre-K, where available, unless the matching funds’ source or a specific provider imposes additional restrictions. For example, a collaborative’s students attending a Head Start must still meet Head Start’s income guidelines unless the program is operated as a blended Head Start program.

FUNDING

Approved collaboratives receive state funding to operate full-day or half-day programs. The funding amounts to $5,000 per child enrolled in full-day programs and $2,500 per child enrolled in half-day programs. The State of Mississippi provides half of these costs ($2,500 per child enrolled in full-day pre-K and $1,250 per child enrolled in half-day pre-K). The State requires that the other half be provided by local matching funds, which may include local tax dollars, federal dollars (as allowed), tuition (as allowed), philanthropic contributions, or in-kind donations of facilities, equipment, and services required as part of the program, such as food service or health screenings. Most often, matching funds come from the federal Title I program or from philanthropic contributions.

QUALITY

Collaborative pre-K programs are required to meet the highest levels of quality, as defined by meeting 10 of 10 of the quality benchmarks by the National Institute for Early Education Research (NIEER). In addition, collaboratives must help students become kindergarten ready according to child outcome data.

MDE is tasked with ensuring quality through an annual effectiveness evaluation. Collaboratives, and each provider within a collaborative, must meet a minimum score on this evaluation to continue in the state-funded program. The effectiveness evaluation combines child outcome data from the kindergarten readiness assessment (MKAS2), the comprehensive early learning assessment (Brigance Early Childhood Screen III (3-5)), and a measure of classroom quality (CLASS). The effectiveness evaluation requires MDE to annually complete on-site monitoring to determine the collaborative’s adherence to program standards (the Mississippi Early Learning Guidelines for Classrooms Serving Threeand Four-Year Old Children as well as the NIEER benchmarks) and to conduct CLASS observations in each collaborative.

Any collaborative program that uses Title I dollars must also follow the Title I, Part A – Basic Guidelines. Head Start or blended programs within a collaborative must additionally follow the Head Start Program Performance Standards. Childcare providers who participate in collaboratives must be licensed by the state unless they are exempted by § 43-20-5 of the Mississippi Code of 1972. Providers must also “select and utilize a nationally recognized assessment tool, approved by the State Department of Education, designed to document classroom quality.” Because the CLASS evaluation is used by MDE to monitor all collaboratives, childcare providers within collaboratives may use the MDE CLASS observations to satisfy this requirement, provided that the childcare provider meets the minimum score on the CLASS. Other tools that can be used include the ECERS-R, FCCERS-R, PQA, PQA-FCC, ELLCO, and CHELLO. If a childcare provider wishes to use an alternate assessment tool, it must receive prior approval from MDE.

HEAD START PROGRAM

Head Start is a program of the United States Department of Health and Human Services that provides comprehensive early childhood education, health, nutrition, and family involvement services to low-income children and their families. Most counties in Mississippi have at least one Head Start center. As of FY 2023, Mississippi has 16 Head Start grantees serving 7,500 four- and five-year-olds out of more than 16,800 total children in Head Start and Early Head Start.1

POPULATION SERVED

90% of Head Start children in a given program must be at or below 100% of federal poverty guidelines unless the program is operated as a blended Head Start. Head Start centers must also serve children with disabilities or other risk factors.

FUNDING

Head Start centers are funded by a federal grant awarded directly to community agencies; state, local, or tribal governments; school districts; nonprofits; and other qualified organizations. Head Start center grantees received approximately $9,484 per child in fiscal year 2022.2 The state has no official role in funding Head Start centers that are not part of the state-funded pre-K program.

QUALITY

The federal Office of Head Start monitors the quality of local Head Start centers using the Head Start Program Performance Standards set forth in the Head Start Act of 2007. Head Start grantees may also meet state childcare licensure requirements if they are not operating in conjunction with an elementary school. In addition to meeting these standards, Head Start requires that programs use a quality measure, such as CLASS. Head Start grantees who consistently fail to meet standards are required to “re-compete” for their grants. The state has no official role in evaluating or monitoring Head Start centers with the exception of those who must hold childcare licensure. Head Start centers that participate in the state-funded pre-K program must meet program requirements of the state, including program standards and evaluation measures.

LICENSED CHILDCARE

A licensed childcare center provides supervised care to children of any age for which the facility is licensed by the State Department of Health. Examples include childcare centers located in church facilities or private businesses. Some Head Start centers must also be licensed, if not affiliated with an educational institution such as a public school. Most, but not all, counties in Mississippi have licensed childcare centers.

POPULATION SERVED

Children who are age 12 or younger can be served by licensed childcare centers. Licensed childcare programs can also serve older children through summer programs and before and after school care. Childcare centers, as a matter of state law or policy, do not have participant income restrictions on whom they may serve.

FUNDING

Most Mississippi licensed childcare centers charge tuition to cover their expenses as most are for-profit, private businesses, making affordability a key issue for access to childcare. Some nonprofit childcare centers may subsidize tuition through donations. If a licensed childcare center is part of a state-funded collaborative, they receive state funds. If a licensed childcare center is qualified to accept childcare certificates (known as vouchers), these can offset the cost of tuition for the child holding the certificate.

QUALITY

Childcare centers serving six or more unrelated children must be licensed by the State Department of Health to operate in Mississippi. Licensure guidelines are primarily focused on health and safety. In the past, Mississippi had a five-star, multi-pronged quality rating and improvement system operated by the Mississippi Department of Human Services (DHS). This system was voluntary and served only about 30% of licensed childcare centers at its peak. Today, Mississippi does not have a functioning system, but DHS’ Office of Early Childhood Care & Development is in the process of developing a new system.

PRE-K CLASSROOM AT ROWAN ELEMENTARY IN HATTIESBURG, MS

OTHER PUBLIC SCHOOL PRE-K

“Other public school pre-K programs” refers to pre-K programs that are operated by a Mississippi public school district, including a charter school. Districts may offer seven types of other public school pre-K programs, if they choose, categorized mainly by their funding source and its related restrictions, including Title I, local district, tuition-based, blended, hybrid, externally funded programs, or state invested pre-K programs. Some districts offer more than one type of these programs. See “funding” for more information about these types.

POPULATION SERVED

Any child who has attained the age of four on or before September 1 of the pre-K year is eligible to attend public school pre-K, where available, unless the specific pre-K program’s funding source imposes additional restrictions. For example, children enrolled in public school pre-K programs supported through Title I dollars must also meet Title I eligibility requirements.

FUNDING

1. Title I: All funds utilized to support this program come from the federal Title I program. Title I pre-K programs are typically located on campus at one or more elementary schools in a given district.

2. Local district: District dollars are utilized to support these programs. These programs are typically located on campus at one or more elementary schools in a given district.

3. Tuition-based: Tuition paid by parents of enrolled children supports these programs. These programs are typically located on campus at one or more elementary schools in a given district.

4. Blended Head Start: Head Start dollars are blended with another funding source (most often Title I) to support these programs. These programs may be located either on campus at one or more elementary schools in a given district or at a local Head Start agency.

5. Hybrid: These programs are funded by multiple sources, such as Title I and the Individuals with Disabilities Education Act (IDEA), district dollars and tuition, external sources and Title I, etc. These programs may be located on campus at one or more elementary schools in a given district or in a donated space (e.g., apartment complex).

6. Externally funded: These programs are funded by sources outside of the school district, excluding Head Start funds. Examples of externally funded pre-K programs are those that are funded through grants, private donations, and nonprofit organizations. These programs may be located on campus at one or more elementary schools in a given district or in a donated space (e.g., apartment complex).

7. State Invested Pre-K (SIP) Program: These programs are only available to school districts who apply for three-year grants from the state. These are time-limited programs that received a over $20 million in grants from the legislature in 2022 and 2023.

QUALITY

All public school programs, regardless of the funding source, must follow the Mississippi Early Learning Guidelines for Classrooms Serving Three- and Four-Year-Old Children and are monitored by MDE’s Office of Early Childhood. MDE is committed to ensuring that all public school pre-K programs meet the 10 NIEER quality benchmarks, which are being phased into the MDE guidelines. Professional development and coaching for staff is the last benchmark that MDE will phase into the guidelines. Other quality standards that public school pre-K programs follow are listed below:

• Any public school pre-K program funded in whole or in part with Title I dollars must follow U.S. Department of Education guidance, including the Title I, Part A – Basic Guidelines.

• Any public school pre-K program funded in part with Head Start dollars must also follow the Head Start Program Performance Standards.

History and Current Status of StateFunded Pre-K

On April 2, 2013, the Mississippi legislature passed the Early Learning Collaborative Act of 2013, which established Mississippi’s first state-funded pre-K program. (See Appendix A for the current text of the law.) Ten years after its enactment, the pre-K law is a popular program with broad bipartisan support.

Mississippi First was the lead advocate working with bill authors Senator Brice Wiggins (R-Pascagoula) and then-Representative Toby Barker (R-Hattiesburg, now Mayor of Hattiesburg) to draft the bill, whose model is based on the proposal within Mississippi First’s 2012 publication Leaving Last in Line. Read the exciting story of how the Early Learning Collaborative Act of 2013 evolved from an impossible idea to a celebrated achievement in our 2023 case study, Transforming Pre-K in Mississippi: The Story of the Early Learning Collaborative Act.

PROGRAM POPULARITY

Passing both the House and the Senate with over 80% of the vote, the Early Learning Collaborative Act of 2013 was the most popular education effort in many years. One of the reasons for its popularity is the strong support that pre-K has with the public.

Over 94% of Mississippians agreed or strongly agreed that “pre-K is important for preparing children for their K-12 education,” according to an August 2023 statewide scientific poll by Mississippi First.

In the same poll, 91.7% of respondents agreed or strongly agreed that “the State of Mississippi should fund pre-K in all school districts throughout the state.” This percentage has increased since our last poll in November 2017, when 82.9% of respondents agreed with the statement. The other reason for pre-K’s strong support is that the law enshrined Mississippi First’s recommended “collaborative” model (see “Types of Pre-K in Mississippi” for more details about the program’s model). Legislators valued the program’s focus on parent choice and the maximization of resources across the entire sector.

In 2013, the legislature appropriated $3 million for the program, the first-ever state investment in pre-K. Since then, the legislature has increased its commitment to the program many times over, expanding from $4 million in 2016 to six times that amount, $24 million, in 2022. As the program has grown, advocates supported technical changes to the enacting legislation through House Bill 1123 (2021) to protect the program’s quality. These changes provided further professional development to teachers, required the use of high-quality curricula, and established more robust evaluations of the program (see sidebar). In 2023, the legislature also passed a law to permanently raise the per-pupil funding rate to $5,000 for full-day students and $2,500 for half-day students.

COLLABORATIVES AS OF 2023

In December 2013, the Mississippi Department of Education (MDE) selected 11 communities from across the state for the first round of early learning collaboratives (ELCs). With each legislative funding increase, the number of impacted communities has grown—14 in 2016, 19 in the 2019-2020 school year, and 35 in the 2022-2023 school year. In March 2023, MDE announced that three additional collaboratives would open, bringing the total to 36.3 In the 2022-2023 school year, approximately 25% of Mississippi four-year-olds were enrolled in statefunded pre-K.4

Collaboratives are located in every corner of the state. The map in this section shows each collaborative by cohort. All of the collaboratives, lead partners, and enrollment numbers can be found in Appendix C.

NEARLY 65% OF KIDS IN THE PROGRAM SCORE ABOVE THE KINDERGARTEN READINESS SCORE.

2021 IMPROVEMENTS

Evidence-based Curriculum

House Bill 1123 (2021) requires ELCs to use curriculum meeting the definition of “evidence-based” in the federal Every Student Succeeds Act, which passed in 2015. This new definition requires any ELC curriculum to meet the highest evidence standards. If no qualifying curriculum exists, the program must use a curriculum meeting the next highest tier of evidence.

Technical Assistance from MDE

The bill expanded MDE’s duty to provide technical assistance to specifically allow coaching and other classroom supports for teachers and assistant teachers. This change aligned to the addition of coaching funds in the appropriations bill as well as the 2017 NIEER standards.

Individualized Professional Development Plans

The bill added a requirement that collaboratives create individualized plans to help teachers supplement their skill sets. It also specifically referenced “classroom-embedded supports” as a professional development opportunity. This language was necessary to align the law with the 2017 NIEER standards.

Program Evaluation

The bill amended MDE’s annual report on the program to an evaluation of program operations and outcomes and added a rigorous evaluation of program effectiveness every three years. The Performance Evaluation and Expenditure Review (PEER) Committee’s responsibility to review the program was updated to every three years starting in 2023 and the scope changed to become an independent summary of MDE’s findings.

Adjustment of Terms

The law’s references to “parent involvement” shifted to “family engagement” to be more inclusive and to align with national trends.

3 MDE announced three new early learning collaboratives in March 2023. However, the Ocean Springs ELC was not approved by the Ocean Springs School District’s school board, so only two new early learning collaboratives will open. See: https://www.mdek12.org/news/2023/3/9/State-Board-of-Education-approves-three-new-early-learning-collaboratives-toserve-pre-K-4-year-olds_20230309. The Sunflower County ELC also dissolved in April 2023 due to internal conflicts.

4 See https://www.mississippifirst.org/blog/pre-k-in-the-2022-legislative-session/

OUTCOMES

One of the hallmarks of the program is its emphasis on quality and accountability. All participants in a collaborative must administer the pre-K version of the kindergarten-readiness assessment in the fall and spring of a participant’s pre-K year so that the public can assess how much each program is growing its students, regardless of their starting point. Collaboratives have a strong record of growing their students to kindergarten readiness. The spring 2023 statewide average score of pre-K collaborative students on the Mississippi kindergarten-readiness assessment was 551, above the fall kindergarten-entry readiness score of 530, indicating that, on average, collaborative students are ready for kindergarten (see Table 1, below).

As a comparison, non-collaborative public school pre-K classrooms had a lower average scale score and a slightly lower percentage of children scoring at or above the readiness score. Statewide, nearly 65% of all students who entered kindergarten in fall 2022 scored below the readiness score, which is consistent with kindergarten entry scores for the last decade.

With nearly 65% of collaborative children scoring at or above the readiness benchmark, collaborative students are more than twice as likely to be ready for kindergarten as the average child in Mississippi and even outperform children in non-collaborative public school pre-K classrooms.

Over time, collaboratives’ readiness scores have remained far above the end-of-year pre-K readiness benchmark, 498, even in years of program expansion, when a dip in scores is expected as first-year programs work out implementation. Even the COVID-19 pandemic, which negatively impacted all public school pre-K scores, had less impact on collaborative students’ learning. The average scale score gain of students was largely consistent with previous years (see Table I). This is strong evidence that the collaborative program is not only living up to its promise of quality but is a resilient program that is getting better with time, making it one of the state’s best education investments.

Table I. Early Learning Collaborative Kindergarten-Readiness Assessment Results

EARLY LEARNING COLLABORATIVES

2023

Cohort I: Collaboratives founded in 2014

Cohort II: Collaboratives founded in 2016

Cohort IV: Collaboratives founded in 2022

Cohort III: Collaboratives founded in 2018

Cohort V: Collaboratives founded in 2022 and 2023

MAP

Collaboratives

Biloxi Early Learning Collaborative

Brookhaven Early Learning Collaborative

Clarke County Early Learning Partnership

Cleveland Early Learning Collaborative

Coahoma County Pre-K Collaborative

Corinth-Alcorn-Prentiss Early Learning Collaborative

George County Early Learning Collaborative

Greenwood – Leflore County Early Learning Collaborative

Grenada Early Learning Collaborative

Hattiesburg Early Learning Collaborative

Hollandale Early Learning Collaborative

Holly Springs Early Learning Collaborative

Holmes County Early Learning Collaborative

Jackson Public Schools/Hinds County Early Learning

Collaborative

Jefferson County Early Learning

Kosciusko Early Learning Collaborative

Lafayette-Oxford Early Learning Collaborative

Lamar County Early Learning Collaborative

Leland Early Learning Collaborative

Long Beach Early Learning Collaborative

Marion County and Columbia Early Learning Collaborative

McComb Community Collaborative for Early Learning Success

Monroe Early Learning Collaborative

Noxubee Early Learning Collaborative

Pass Christian Early Learning Collaborative

Petal Early Learning Collaborative

Picayune School District Early Head Start

Pontotoc Pre-K Partners Early Learning Collaborative

Rankin County Early Learning Collaborative

Scott County Early Learning Collaborative

Senatobia Early Learning Collaborative

South Panola County Early Learning Collaborative

Starkville Oktibbeha Early Learning Collaborative

Tallahatchie Early Learning Alliance

TIMELINE

Mississippi passed its first state-funded pre-K law, the Early Learning Collaborative Act, which established state-funded pre-K. Just as importantly, the legislature appropriated $3M for the program.

2013

2012

By 2012, Mississippi First published two major reports: the Title I Preliminary Report, which highlighted districts using Title I dollars to provide pre-K services, and Leaving Last in Line, which recommended a model for state-funded pre-K. These reports served as the foundation of the Early Learning Collaborative Act of 2013.

Mississippi First released the first State of Public Pre-K in Mississippi report. The report detailed programmatic and contextual data about public school pre-K programs and the communities they serve.

2015

2014

The first 11 early learning collaboratives (ELCs) received state funding to provide no-cost or lowcost high-quality pre-K seats.

Mississippi First published the second edition of the State of Pre-K in Mississippi report. The 2017 report updated our 2015 report on public pre-K and expanded it to include information about licensed childcare centers serving four-year-olds. Our 2017 report was the first attempt to quantify pre-K access—whether public or private—in every Mississippi community. We also commissioned our first opinion poll to measure public support of pre-K.

2017

2016

The Mississippi legislature expanded the Early Learning Collaborative Act by appropriating an additional $1M for the program, making the total appropriation $4M.

The legislature level-funded ELCs and amended the law to permanently increase the per-pupil funding rate to $5,000 per child in a full-day program. Mississippi First commissioned its second opinion poll of pre-K and found that public support for pre-K has increased. The legislature slightly increased funding to nearly $6.7 million.

2019

2018

The legislature expanded the Early Learning Collaborative Act by appropriating an additional $2.5M for the program, making the total appropriation $6.5M.

The legislature

DOUBLED the funding to $16 million and once again raised the per-pupil funding rate in the education appropriations bill.

2020 2021 2023

The legislature increased funding to $8 million despite the onset of the COVID-19 pandemic. The legislature also raised the per-pupil funding rate in the education appropriations bill.

2022

Mississippi First published the third edition of the State of Pre-K in Mississippi report. The 2021 report was the first to use a data dashboard. The legislature increased its commitment to the early learning collaboratives to $24 million and raised the per-pupil funding rate for the final time through the education appropriations bill.

STATEFUNDED PRE-K PROGRAM COSTs AND LONG-TERM BUDGET IMPLICATIONS

CURRENT COSTS

For the 2022-2023 school year, the pre-K program received a $24,000,000 appropriation from the legislature, which will fund over 6,000 full-time students in 36 collaboratives statewide.

PRE-K FUNDING BASICS

Every pre-K appropriation allows for two types of expenses: program operations and program administration. Ninety-five percent of the appropriation must go to program operations, while MDE can withhold 5% for administration.

Program Operation Expenses (95%)

Program operation expenses are the funds that go to local communities to operate collaboratives. Like K-12, pre-K program operations are funded on a per-pupil basis, with the amount determined by whether the pre-K program is half day or full day.

For students in a half-day program, the funding per child is at least $2,500, with half coming from the state ($1,250) and half coming from the local program ($1,250).

For students in a full-day program, the funding per child is at least $5,000, with half coming from the state ($2,500) and half coming from the local program ($2,500).

The requirement that local programs pay for half of the cost is referred to as a “local match” or “1:1 match. ” The local match is the minimum local amount required for a collaborative to receive state dollars.

Program Administration Expenses (5%)

Program administration expenses include all of the costs for MDE to manage its oversight responsibilities for the pre-K program. These include

• selecting communities for collaborative funds using a rigorous application process,

• monitoring collaboratives for adherence to program standards,

• evaluating the effectiveness of collaboratives,

• providing technical assistance to collaboratives to improve their quality, and

• determining whether collaboratives can remain a part of the program.

Several of these responsibilities—particularly monitoring and technical assistance—are extremely time intensive and require MDE to have dedicated pre-K staff. Over time, the MDE program staff has had to grow alongside the program.

For example, for every additional million in state funding, MDE must add 1.2 coaches to support new ELC teachers. Since the 5% set-aside for program administration is not enough to cover both basic administration and coaching, the state legislature has also appropriated a separate fund for the ELC coaches. As of 2023, this line item is $3.25M.

UNDERSTANDING THE LOCAL MATCH REQUIREMENT

Collaboratives are allowed to use any source of funding to match state dollars. For example, a collaborative can use Title I or other federal funding (as allowed), local district dollars, tuition (as allowed),6 philanthropic sources, or even in-kind donations to meet its match. (See Appendix B for information about how the pre-K tax credit can be used to raise funds for the local match.) If any match dollars come with their own set of restrictions—as in the case of Title I dollars—collaboratives must abide by those restrictions in addition to the collaborative program rules. In-kind donations that can be valued monetarily and are of use to the collaborative may be accepted and may count towards a collaborative’s match; however, a collaborative must still raise enough cash to meet the requirements of its budget. A collaborative whose match is primarily in-kind donations will have a hard time meeting payroll on a regular basis, the largest expense of any pre-K program.

Since class sizes in the state-funded program are capped at 20 students, full-day programs can expect $100,000 in program funding ($50,000 from the state and $50,000 in local match). This amount is enough to staff one classroom meeting MDE’s Mississippi Guidelines for Classrooms Serving Three- and Four-Year-Old Children (2018), depending on the salary set for the lead and assistant teachers. Furthermore, the legislature assumed collaborative funding will cover only classroom-based costs. Any additional administrative costs generated by the program (such as a pre-K coordinator who is not also a classroom teacher) or additional rent expenses would need to be borne by the local program.

WHY MISSISSIPPI RAISED THE PER-PUPIL PRE-K FUNDING RATE

Mississippi First carefully studied the amount of money required to establish and operate a high-quality pre-K classroom. We defined “high quality” by whether a classroom could meet the MDE guidelines, which are based on the NIEER quality benchmarks (see Appendix D for a comprehensive list of the 10 NIEER quality benchmarks). Our first step was to review the MDE guidelines to establish the required and recommended expenses. We developed this basic list into an exhaustive list of expenses typical of collaboratives by consulting with both current and former collaborative leaders as well as staff members at MDE. (When we say “exhaustive,” we mean it, down to the number and cost of crayons to order.) We then used actual costs from vendors and district personnel salary scales to determine how much each of the items on the list would cost.

Our detailed estimates show that a high-quality pre-K classroom costs approximately $100,000 per year. Again, this amount excludes any costs for local administration—such as a pre-K coordinator for larger programs or other costs, such as rent–and only budgets for the minimum requirements of a classroom. For a classroom meeting the maximum class size of 20, the per-pupil rate for full-day programs needs to be at least $5,000 per child to generate enough just for classroom-based expenses. This cost analysis led us to launch our Raise the Rate campaign in 2020 to increase the per-pupil spending rate by $700 to reach $5,000. Because the original law set the per-pupil rate at $4,300, increasing the rate required both a change in the law as well as a larger appropriation. The bill to fix the law struggled to pass each year for reasons unrelated to pre-K, so the legislature raised the rate solely through the education appropriations bill in 2020, 2021, and 2022. In 2023, the rate legislation finally passed. This amendment sets a minimum floor of $5,000 per child and allows the legislature to raise the rate in future years purely through the budget.

While we are excited about the bill’s passage, we believe that our work is not done. The legislature should re-evaluate the

per-pupil rate on a regular schedule, such as every four years, and/or increase the per-pupil amount allocated in the budget by a reasonable rate of inflation, such as the consumer price index. This is especially important as we have faced historic inflation since the COVID-19 pandemic, and the cost of a high-quality classroom has certainly increased. In fact, we had to adjust this budget to account for recent cost increases but stay within the $100,000 revenue guarantee. It is almost certain that the legislature will need to raise the rate again over the next four-year legislative term.

ESTIMATING THE COST OF EXPANDING THE PROGRAM

To estimate how much money the pre-K program would cost the state for a particular number of students, the formula is as follows:

Program Operations + Program Administration = State Cost

Program Operations = [($1,250 X # of half-day students) + ($2,500 X # of full-day students)]

Program Administration = Program Operations ÷ 0.95 X 0.05

In the 2022-2023 school year, the pre-K program received a $24,000,000 appropriation from the legislature, which will fund approximately 9,100 full-time students.7 Example costs for growing the program are below. Full-time students have been used to provide estimates; the “percent of four-year-olds” uses the 2021 American Community Survey 1-Year Estimates for the total number of four-year-olds as the denominator (35,010).

*If the current appropriation holds steady, Mississippi will serve more than 25% of four-year-olds annually.

7 Because the program is still ramping up due to its 2022 expansion, MDE continues to select new collaboratives. In 2023, the program served over 6,000 children.

Table 2. Cost to Reach Enrollment Benchmarks at Current Rate of Funding

FOUR-YEAR-OLD ENGAGES IN READING WITH TEACHER AT WEST AMORY ELEMENTARY IN AMORY, MS

improving the program

Since 2013,the legislature has dramatically expanded the program, passed technical changes to improve the law, and permanently raised the per-pupil funding rate. Still, as with all programs, Mississippi First believes more work lies ahead to continue to improve the program and ensure excellence for children.

GROWING THE IMPACT

As the program enters its second decade, Mississippi First has three primary recommendations:

1

Ensure ELCs are the state’s premier, highquality pre-K program–and that the focus remains on quality.

2

Increase access to the program.

3

Incentivize and support childcare centers to join collaboratives.

Ensure ELCs Are the State’s Premier, HighQuality Pre-K Program—and That the Focus Remains on Quality

In the 2022 and 2023 legislative session, the legislature inserted a $20 million line item in the education appropriations bill that poses a threat to the collaboration that is the hallmark of the collaboratives. The line item did not have accompanying legislation and simply stated it was for “Other Early Learning Programs.” This line item became the State Invested Pre-K (SIP) program. Because there was no accompanying legislation, MDE could impose very few rules on school districts, most notably no requirement to partner with other early learning programs, no local match, and no quality requirements.

Although MDE did incentivize collaboration by offering competitive preference points for applicants, most SIP programs do not feature robust partnerships.

The Early Learning Collaborative Act requires communities to come together to develop a pre-K program using the community’s available assets. This collaboration is essential to a cost-effective, high-quality program. Another key to the success of the Early Learning Collaborative Act is its emphasis on quality. Mississippi is one of only five states meeting all 10 of the NIEER benchmarks, and the impact of those quality benchmarks on students is clear in the student outcomes the program has produced. Initiatives such as the SIP program to “establish, expand, support, and facilitate the successful implementation of quality early childhood education” have the potential to fracture the cohesive system the Early Learning Collaborative Act worked so hard to create. Funding the SIP program is also less cost effective for the state and jeopardizes needed federal funding since the program can be used to undercut Head Start.

The state cannot endanger its success by creating a separate state-funded early childhood system lacking legislative guardrails to ensure quality. We recommend that SIP funds instead be reinvested in the collaborative program generally, provided as start-up funding for all new collaboratives, or be refocused as early-stage funding for communities with challenges in meeting their matching requirement.

Finally, the state should continue to fund initiatives to train, recruit, and retain high-quality early education teachers and support a quality coach for every pre-K teacher. Pre-K providers across the country have identified challenges in finding qualified teaching staff with the appropriate credentials, a key part of Mississippi’s success. Pay and benefits also are a challenge for some providers as the state per-pupil rate currently remains the same each year, making it difficult for childcare providers to increase teacher pay. We recommend establishing a study commission to propose additional ways to support pre-K teacher candidates in earning their credentials and securing higher pay. State investments in pre-K coaches are also necessary to the program’s quality, as these MDE-hired and -trained professionals provide individualized professional development and support to every collaborative teacher statewide. We recommend increasing the coaching line item in accordance with any growth in the collaborative program.

Increase Access to the Program

As legislative investment in the program increased over the last ten years, the number of children served by the collaboratives has also steadily grown. In the first years of the collaboratives, the state’s $3 million appropriation served approximately 4% of four-year-olds in one of 11 collaboratives. After several years of slow growth, in 2021, the legislature doubled funding for the program from $8 million to $16 million, enabling 7% of the state’s four-year-olds to enroll in one of 18 collaboratives. In 2022, the legislature again increased funding from $16 million to $24 million, expanding the number of collaboratives to 36 and increasing access to 25% of the state’s four-year-olds. But there are still many children within the state who are not served. NIEER’s state rankings placed Mississippi as 38th in the nation in terms of four-year-olds’ access and 40th in state spending.

Ultimately, we hope Mississippi can provide a pre-K seat for every child who wants one. Mississippi

First believes the steady approach to expanding the program is best, as it gives the state time to implement each new cohort of collaboratives with quality while also supporting older collaboratives as they mature. Since Mississippi has achieved our long-running goal of reaching 25% of four-year-olds by 2025 three years early, we believe the next benchmark for Mississippi to reach is serving 50% of four-year-olds by 2030. We estimate this will cost approximately $49.3 million, with an additional $6.5 million for coaching.

Support Greater Inclusion of Childcare Centers in Collaboratives

Currently, eight of Mississippi’s 36 collaboratives, a little over 20%, have childcare partners, with some childcare-inclusive collaboratives having far more childcare providers than others. From national research, we know that when childcare centers join quality-focused programs, the support they receive raises the bar for every child in that center, even those who are not in targeted classrooms. However, a number of barriers prevent more childcare centers from participating in collaboratives. In some communities, there are few, if any, licensed childcare providers at all. Where providers exist, they may not be prepared for the rigorous program requirements—such as the requirement that teachers hold a bachelor’s degree—as the expense of such requirements may be greater than the center can afford. Even more challenging are the cases in which providers have been left out of conversations in their communities due to ongoing conflicts over four-year-old enrollment within the early childhood sector.

This is a missed opportunity. Childcare centers proved indispensable to families and the economy during the COVID-19 pandemic. When many schools had not yet reopened their doors, childcare provided a safe and welcoming place for children whose parents had no choice but to work. Recognizing this essential role in the economy, the federal government poured billions into helping centers keep their doors open through programs such as the Child Care Stabilization Grants and the American Rescue Plan Act. However, these were temporary forms of assistance for an industry that has faced systemic and entrenched human resource and financial challenges long before 2020. When these federal funds disappear in September 2024, childcare will continue to face the same issues but without the support of billions in federal dollars. This will make it even harder for childcare centers to partner with a collaborative.

To increase childcare’s inclusion in the ELC program, we recommend offering additional funds to collaboratives who partner with childcare providers. These funds should specifically support these providers’ unique needs in order to remove barriers to participation. Mississippi could pilot this idea with a subset of current collaboratives and should also work closely with the Department of Human Services, which oversees other federal funding to support childcare access and quality. An initial set aside of $500,000 would provide childcare centers an extra $500 per child, no matching required, to support quality and defray unique costs. With this amount, up to 1,000 children in childcare centers could be served, doubling the number of collaborative children in childcare centers.

APPENDIX A

The Early Learning collaborative Act, as Amended (2023)

§

37-21-51.

(1) As used in this section:

(a) “Preschool or prekindergarten children” means any children who have not entered kindergarten but will have obtained four (4) years of age on or before September 1 of a school year.

(b) An “early learning collaborative” is a district or countywide council that writes and submits an application to participate in the voluntary prekindergarten program. An early learning collaborative is comprised, at a minimum, of a public school district and/or a local Head Start affiliate if in existence, private or parochial schools, or one or more licensed child care centers. Agencies or other organizations that work with young children and their families may also participate in the collaborative to provide resources and coordination even if those agencies or organizations are not prekindergarten providers.

(c) A “prekindergarten provider” is a public, private or parochial school, licensed child care center or Head Start center that serves prekindergarten children and participates in the voluntary prekindergarten program.

(d) A “lead partner” is a public school district or other nonprofit entity with the instructional expertise and operational capacity to manage the early learning collaborative’s prekindergarten program as described in the collaborative’s approved application for funds. The lead partner serves as the fiscal agent for the collaborative and shall disburse awarded funds in accordance with the collaborative’s approved application. The lead partner must facilitate a professional learning community for the teachers in the prekindergarten program and lead the collaborative. The lead partner ensures that the collaborative adopts and implements curriculum and assessments that align with the comprehensive early learning standards. The public school district shall be the lead partner if no other qualifying lead partner is selected.

(e) “Comprehensive early learning standards” are standards adopted by the State Board of Education that address the highest level of fundamental domains of early learning to include, but not be limited to, physical well-being and motor development, social/emotional development, approaches toward learning, language development and cognition and general knowledge. The comprehensive early learning standards shall also include standards for emergent literacy skills, including oral communication, knowledge of print and letters, phonological and phonemic awareness, and vocabulary and comprehension development.

(f) An evidence-based curriculum is an age-appropriate curriculum that demonstrates a statistically significant effect on improving student outcomes or other relevant outcomes based on:

(i) Strong evidence from at least one (1) well-designed and well-implemented experimental study;

(ii) Moderate evidence from at least one (1) well-designed and well-implemented quasi-experimental study; or

(iii) Promising evidence from at least one (1) well-designed and well-implemented correlational study with statistical

controls for selection bias.

(2) To ensure that all children have access to quality early childhood education and development services, the Legislature finds and declares the following:

(a) “Parents have the primary duty to educate their young preschool children;

(b) The State of Mississippi can assist and educate parents in their role as the primary caregivers and educators of young preschool children;

(c) There is a need to explore innovative approaches and strategies for aiding parents and families in the education and development of young preschool children; and

(d) There exists a patchwork of prekindergarten entities but no coordination of services and there needs to be a coordination of these services.

(3)

(a) This subsection shall be known and may be cited as the “Early Learning Collaborative Act of 2013.”

(b) Effective with the 2013-2014 school year, the Mississippi State Department of Education shall establish a voluntary prekindergarten program, which shall be a collaboration among the entities providing prekindergarten programs including Head Start, licensed child care facilities and licensed public, parochial and private school prekindergarten programs. This program shall be implemented no later than the 2014-2015 school year. Enrollment in the prekindergarten program shall be coordinated with the Head Start agencies in the local areas and shall not be permitted to cause a reduction in children served by the Head Start program. Under this program, eligible entities may submit an application for funds to

(i) defray the cost of additional and/or more qualified teaching staff, appropriate educational materials and equipment and to improve the quality of educational experiences offered to four-year-old children in early care and education programs, and/or to

(ii) extend developmentally appropriate education services at such programs currently serving four-year-old children to include practices of high-quality instruction, and to

(iii) administer, implement, monitor and evaluate the programs, and to

(iv) defray the cost of professional development and age-appropriate child assessment.

(c) Subject to the availability of funds appropriated therefor, the State Department of Education shall administer the implementation, monitoring and evaluation of the voluntary prekindergarten program, including awards and the application process.

(i) The department shall establish a rigorous and transparent application process for the awarding of funds. Lead partners shall submit the applications on behalf of their early learning collaborative.

(ii) The department will establish monitoring policies and procedures that, at a minimum, will include at least one (1) site visit a year.

(iii) The department will provide technical assistance to collaboratives and their providers to improve the quality of prekindergarten programs. Technical assistance may include classroom-embedded support for teachers and assistant teachers.

(iv) The department will evaluate the effectiveness of each early childhood collaborative and each prekindergarten provider. If the State Department of Education adopts a statewide kindergarten screening that assesses the readiness

of each student for kindergarten, the State Department of Education shall adopt a minimum rate of readiness that each prekindergarten provider must meet in order to remain eligible for prekindergarten program funds. Each parent who enrolls his or her child in the prekindergarten program must submit the child for the statewide kindergarten screening, regardless of whether the child is admitted to kindergarten in a public school.

(d) Prekindergarten program funds shall be awarded to early childhood collaboratives whose proposed programs meet the program criteria. The criteria shall include:

(i) Voluntary enrollment of children;

(ii) Collaboration among prekindergarten providers and other early childhood programs through the establishment of an early learning collaborative;

(iii) Qualifications of master teachers, teachers and assistants, which must conform to guidelines in Section 37-21-3;

(iv) At least fifteen (15) hours of annual professional development for program instructional staff, including professional development in early literacy, and individualized professional development plans for all teachers and teaching assistants supplemented by classroom-embedded support on an as-needed basis;

(v) The use of state-adopted comprehensive early learning standards;

(vi) The use of a curriculum based on strong evidence as defined in subsection (1)(f)(i) of this section and aligned with the comprehensive early learning standards;

(vii) The use of a curriculum based on moderate evidence as defined in subsection (1)(f)(ii) of this section and aligned with the comprehensive early learning standards if no strong-evidence curriculum is available;

(viii) The use of a curriculum based on promising evidence as defined in subsection (1)(f)(iii) of this section and aligned with the comprehensive early learning standards if no strong-evidence curriculum or moderate-evidence curriculum is available;

(ix) The use of age-appropriate assessments aligned to the comprehensive early learning standards;

(x) Teacher/child ratios of one (1) adult for every ten (10) children with a maximum of twenty (20) children per classroom and a minimum of five (5) children per classroom;

(xi) The provision of at least one (1) meal meeting state and federal nutrition guidelines for young children;

(xii) Plans to screen and/or refer children for vision, hearing and other health issues;

(xiii) Family engagement opportunities;

(xiv) Plans to serve children with disabilities as indicated under IDEA;

(xv) The number of instructional hours to be provided, which shall equal no less than five hundred forty (540) instructional hours per school year for half-day programs and one thousand eighty (1,080) instructional hours per school year for full-day programs; and

(xvi) A budget detailing the use of funds for allowed expenses

Participating child care centers shall: (a) meet state child care facility licensure requirements unless exempted under Section 43-20-5, Mississippi Code of 1972, and (b) select and utilize a nationally recognized assessment tool, approved by the State Department of Education, designed to document classroom quality, which must be in place not later than July 1, 2016, as certified by the State Department of Education.

Within the prekindergarten program, a prekindergarten provider must comply with the anti discrimination requirements applicable to public schools. A prekindergarten provider may not discriminate against a parent or child, including the refusal to admit a child for enrollment in the prekindergarten program, in violation of these anti discrimination requirements.

However, a prekindergarten provider may refuse to admit a child based on the provider’s standard eligibility guidelines, provided that these guidelines do not violate the antidiscrimination requirements. Consistent with the Legislature’s recognition of the primacy of a parent’s role in the education of a preschool-age child and the related recognition of the state in assisting and educating parents in that role, if the State Department of Education adopts a statewide kindergarten screening that assesses the readiness of each student for kindergarten, the State Department of Education shall recognize each child’s unique pattern of development when adopting a minimum rate of readiness that prekindergarten providers must meet in order to remain eligible for prekindergarten program funds. Each parent who enrolls his or her child in the prekindergarten program may submit the child for the statewide kindergarten screening, regardless of whether the child is admitted to kindergarten in a public school.

The State Department of Education may add program criteria not inconsistent with these requirements and shall develop policies and procedures to implement and enforce these criteria.

(e) The State Department of Education shall ensure that early learning collaboratives provide each parent enrolling a child in the voluntary prekindergarten program with a profile of every prekindergarten provider participating in the collaborative’s geographic catchment area. The State Department of Education shall prescribe the information to be included in each profile as well as the format of the profiles. At a minimum, the profiles must include the prekindergarten provider’s services, curriculum, instructor credentials and instructor-to-student ratio.

(f) A teacher, assistant teacher or other employee whose salary and fringe benefits are paid from state funds under this act shall only be classified as a state or local school district employee eligible for state health insurance benefits or membership in the Public Employees’ Retirement System, if the person’s employer is already an agency or instrumentality of the state, such as a school district, and the employee would be eligible for such benefits in the normal course of business.

(g) Funding shall be provided for this program beginning with the 2014 fiscal year subject to appropriation by the Legislature as provided in paragraph (h) of this subsection. The department shall make an annual report to the Legislature and the Governor regarding program operations and outcomes. Every three (3) years, with the first report due July 1, 2023, the department shall provide to the Legislature and the Governor a rigorous evaluation of program effectiveness using longitudinal data to measure short-term and long-term effects, including both achievement and nonachievement effects. After each three-year report, the PEER Committee shall review the three-year report and the intervening annual reports and submit an independent summary of its findings prior to the next legislative session.

(h)

(i) The Legislature shall appropriate funds to implement the Early Education Collaborative Act of 2013 on a phased-in basis as follows:

1. The first phase shall be based on an annual state appropriation of not more than Eight Million Dollars ($8,000,000.00) and shall serve approximately three thousand five hundred (3,500) children through five (5) to eight (8) early learning collaboratives and their prekindergarten providers;

2. The second phase shall be based on an annual state appropriation of not more than Sixteen Million Dollars ($16,000,000.00) and shall serve approximately seven thousand (7,000) children through ten (10) to fifteen (15) early learning collaboratives and their prekindergarten providers;

3. The third phase shall be based on an annual state appropriation of not more than Thirty-three Million Nine Hundred

Fifty Thousand Dollars ($33,950,000.00) and shall serve approximately fifteen thousand (15,000) children through twenty (20) to twenty-five (25) early learning collaboratives and their prekindergarten providers.

(ii) Future phases shall be based on interest in the program and the effectiveness of the program as determined by the school readiness of participants. Each phase shall last for at least three (3) years but no more than five (5) years. The State Department of Education shall determine when to move to a new phase of the program, within the timeline provided herein.

(iii) Funding shall be provided to early learning collaboratives on the basis of a minimum of Two Thousand Five Hundred Dollars ($2,500.00) per student in a full-day program per student in a full-day program and a minimum of One Thousand Two Hundred Fifty Dollars ($1,250.00) per student in a half-day program proposed in the collaborative’s approved application. Once an early learning collaborative’s plan is approved and funded, the collaborative and/or its prekindergarten providers shall receive funds on an ongoing basis unless the collaborative and/or its prekindergarten providers no longer meet the criteria to participate in the program.

(iv) Early learning collaboratives shall match state funds on a 1:1 basis. Local matching funds may include local tax dollars, federal dollars as allowed, parent tuition, philanthropic contributions, or in-kind donations of facilities, equipment and services required as part of the program such as food service or health screenings.

(v) The State Department of Education shall reserve no more than five percent (5%) of the appropriation in any year for administrative costs. Funds remaining after awards to early learning collaboratives and the department’s administrative needs are met may be carried over in the following year. In the first year of implementation of the program, the department may delay the awarding of funds until the 2014-2015 school year should time not be sufficient to establish the program’s operation prior to the 2013-2014 school year.

(vi) In the initial phase of implementation, the State Department of Education shall award state funds under the Early Learning Collaborative Act of 2013 based on a community’s capacity, commitment and need. To determine capacity, commitment and need, the State Department of Education shall require evidence of existing strong local collaborations of early education stakeholders. Such evidence shall include, but not be limited to, collaborations resulting from any of the following:

1. Participation in Excel By 5;

2. Participation in supporting Partnerships to Assure Ready Kids (SPARK);

3. Participation in the Gilmore Early Learning Initiative (GELI); or

4. Participation in the Mississippi Building Blocks.

In determining community need, the department shall consider low academic achievement within the public school districts participating in an applicant early learning collaborative and the number and percentage of children without quality prekindergarten options.

(vii) All authority granted to the State Department of Education to establish program rules is subject to the public processes established in the provisions of the Mississippi Administrative Procedures Law, including, but not limited to, filing notice of the proposed rules, public hearings and any economic impact statement with the Office of the Secretary of State before presenting such information to the State Board of Education for final approval.

APPENDIX B

pre-k tax credit

This section was originally created as part of a guide for individuals or businesses interested in donating to a pre-K collaborative.

One of the unique features of the Early Learning Collaborative Act is its creation of a state tax credit to help local programs raise their matching funds. This state tax credit allows donors to reduce their state taxes by an amount equal to their donation to an approved collaborative. For example, a donor giving $100 to a pre-K collaborative can reduce her tax burden by $100. Collaboratives have used this tax credit to raise additional funds for their programs. In the 2022 tax year, collaboratives raised $5.2 million, according to the Mississippi Department of Education (MDE). Donations to all collaboratives are capped at the amount appropriated by the legislature to the collaborative program in any given year. Since the fiscal year and the calendar year do not align, MDE averages the appropriation amounts to find the number of available tax credits. In 2021, the legislature appropriated $16 million to the program. In 2022, the legislature appropriated $24 million to the program. MDE averaged the appropriations to set a tax credit cap of $20 million.

The state tax credit program is administered by the Department of Revenue with support from MDE. The Department of Revenue has now implemented a system of pre-certification to ensure that donors are eligible to receive the tax credit. Although donors still give directly to a local collaborative program, MDE issues a certificate to donors in the order that donations are received to ensure that the tax credit is available. All donors with a certificate can claim the tax credit, regardless of the order in which they file their state taxes. This process incentivizes donations early in the year, rather than in December.

Mississippi First has done extensive work explaining the tax credit and providing ongoing technical assistance to collaboratives interested in promoting it.

HOW THE PRE-K TAX CREDIT WORKS

Each legislative session, the legislature determines how much funding is invested into the Early Learning Collaborative Act of 2013. In 2023, the state maintained its $24 million investment in pre-K. The sum of donations eligible for the tax credit may not exceed $24 million. $24 million is the 2023 appropriation for the Early Learning Collaborative Act.

UNDERSTANDING THE PRE-K TAX CREDIT

Tax credits are often confused with tax deductions. Tax deductions reduce the amount of your taxable income (what you earned), while tax credits reduce your tax liability (what you owe).

Without any credits or deductions, this is how tax liability is calculated with a income of $50,000 and a tax rate of 20%.

With a tax credit, you apply the credit directly to your liability. How Tax Credits Work

With a tax deduction, you apply the deduction to your taxable income then determine your new liability.

SECURING THE TAX CREDIT

To donate to a collaborative and receive a state tax credit, follow these steps:

The tax credit is first come, first served based on the date of a qualifying donation. First, contact the lead partner for the collaborative to which you wish to donate. See below for a list of all the currently approved early learning collaboratives, along with contact information for the person responsible for collecting donations. The Mississippi Department of Education (MDE) tracks qualifying donations towards the cap.

When contacting the lead partner, verify that the tax credit cap has not been reached. If the program is nearing the cap, a donor can request that MDE “hold” the contribution spot for 30 days, pending the documentation of the donation, to ensure the donor’s place in line for the credit.

After you make a donation, the Mississippi Department of Education will issue you a donation certificate documenting that you have contributed to the local matching funds of an approved collaborative. This documentation preserves your place in line to claim the tax credit.

Indicate your donation when you file your state taxes. Use form 80-401, which can be found on the Department of Revenue’s website. The Department of Revenue will verify your donation with MDE.

EARLY LEARNING COLLABORATIVES APPROVED TO RECEIVE DONATIONS FOR THE TAX CREDIT

Collaborative

Starkville Oktibbeha Early Learning Collaborative

Tallahatchie Early Learning Alliance

FREQUENTLY ASKED QUESTIONS

South Panola School District

The Starkville-Oktibbeha

Consolidated School District

Tallahatchie Early Learning Alliance

1. How do I make a qualifying donation to a pre-K collaborative?

Lashunda Hamilton

Ellen Goodman

Leigh Sargent

Contact the lead partner for the collaborative to which you wish to donate. You may donate to the collaborative as a whole or to a specific provider within the collaborative. Collaboratives always welcome cash donations. However, you can also donate in-kind resources, such as goods or services. Contact the collaborative first to see if the goods or services will be accepted. Once you have made a donation, the Mississippi Department of Education (MDE) will issue you a donation certificate to allow you to claim the tax credit when you file your taxes.

2. If I want to donate to a specific provider instead of the whole collaborative, how do I do that?

Follow the same steps that you would to donate to the collaborative, except tell the lead partner that you want your donation to be earmarked for a specific provider.

3. Is there a limit to how much of a tax credit I can claim?

You can donate an unlimited amount to a collaborative or specific provider. However, any individual or organization can only receive a credit of up to $1,000,000.00 in a single year.

4. How do I claim the pre-K tax credit?

When you file your taxes, you must fill out form 80-401, which can be found on the Department of Revenue’s website each year. The Department of Revenue will verify your eligibility through MDE. Keep your donation certificate as your documentation.

5. What is the total amount of credits available for this tax year?

The Mississippi Department of Revenue can approve 1:1 tax credits up to the amount the legislature appropriates to the Early Learning Collaborative Act each year. Check with MDE for the annual amount.

6. When do I need to make my donation in order to claim the tax credit?

Donations must be made during the calendar year for which a tax return is filed. For tax returns filed during next calendar year, the donation must be made this calendar year. The tax credit is first come, first served based on the date of donation.

7. How will the Department of Revenue determine who receives the tax credit if the cap is reached?

MDE issues a donation certificate to donors in the order that donations are received to ensure that the tax credit is available at the time of donation. As long as you have a donation certificate, you can claim the tax credit, regardless of the order in which you file your state taxes. This new process incentivizes donors to donate early in the year, rather than wait until December.

8. As an individual, if I have too much money withheld from my income and I make a qualifying donation in order to claim the tax credit, how much money will I get in a refund?

A tax credit reduces the amount of taxes that a person owes. The Department of Revenue (DOR) will first calculate the amount of taxes you owe based on your income. This is called your tax liability. DOR will subtract from your tax liability any tax credits you can claim. Then, your withholdings (money that you had withheld for taxes from your paycheck each pay period), if any, will be applied to the amount of remaining tax liability after subtracting your tax credits. If you have had more taxes withheld from your paycheck than your remaining tax liability after subtracting your tax credits, you will qualify for a refund for the amount of withholdings that you overpaid.

For example, let’s assume that you earned $50,000 in taxable income in a year, and you are required to pay 20% in taxes, or $10,000. (In other words, your tax liability is $10,000.) During the tax year, you also made a qualifying donation of $2,000 to your local collaborative. This donation means you can claim a $2,000 tax credit, which will reduce your tax liability to $8,000.

Tax liability of $10,000- Tax credit of $2,000 = Remaining tax liability of $8,000

Let’s also assume that you had $8,500 withheld from your paycheck over the course of the year. Because your withholdings were greater than your remaining tax liability, you would qualify for a refund in the amount of the overpayment:

Remaining tax liability of $8,000 – Withholdings of $8,500 = Overpayment of $500 = Refund of $500

It is very important to note that while your withholdings are refundable, the tax credit itself is not refundable. This means that if you make a qualifying donation that is greater than your tax liability, you will not get a “refund” for the amount of the donation greater than your liability.

For example, let’s assume again that your tax liability is $10,000, but this time, you make a qualifying donation of $15,000.

Since the tax credit is not “refundable,” you will not receive the $5,000 as a refund; instead, your current year tax liability has been reduced to $0. Since your tax liability is $0 in this example, any withholdings from your earnings will be returned to you as a refund.

What happens to the $5,000 from our example above? The pre-K law allows donors to “carry forward” unused portions of the tax credit. In other words, if you qualify for a tax credit that is greater than your tax liability in the year you donated, you can “carry forward” the unused portion for the next three years to apply to future taxes. As in our example, if you donated $15,000 but only owed $10,000, you can apply the $5,000 extra that you donated in this tax year to your taxes for next year. Tax credits that are “carried forward” do not count against the cap, so if you donate extra this year and the cap is reached next year, you can still use your remaining tax credit next year.

9. If my company pays too much in its quarterly estimated tax payments and makes a qualifying donation in order to claim the tax credit, how much money will the company receive in a refund?

See the answer to #8. The process to calculate a refund would be the same, except instead of withholdings, a company should substitute its estimated tax payments.

10. Is the tax credit refundable?

No. See the answer to #8 to understand what refunds you might qualify for.

11. How will I know when the tax credit cap is reached if I want to donate?

Your local collaborative can tell you what remains of the tax credit at the time you wish to donate. If the donor is concerned the cap may be reached quickly, a donor can request that MDE “hold” the contribution spot for 30 days, pending the paperwork documenting the donation. The donor will need to indicate the collaborative receiving the donation as well as the amount. Remember, regardless of when or if the cap is reached, the Department of Revenue will award the tax credit to donors with a donation certificate when they file their taxes.

12. Do I need to file my taxes quickly in order to claim the tax credit?

No. Because MDE is now tracking tax credit eligibility in real time, donors with a donation certificate will receive the credit regardless of when they file. The Department of Revenue publishes the forms and instructions for state taxes in January of each year. As soon as the new form is out for claiming a tax credit, you can file your tax return.

13. Can I claim the state tax credit and a federal tax deduction for the same qualifying donation?

No. In years past, the IRS regulations about using the same donation for a state tax credit and a federal deduction were ambiguous; however, the IRS finalized rules in 2019 that prohibit the practice if the full amount of the donation is used for a state tax credit. Since the pre-K tax credit is 1:1 (in other words, 100% of the donation can be used for credit) and any unused amount can be carried forward, there is no remaining amount that can be used for a federal deduction if a donor claims the pre-K tax credit. This means that a donor should choose whether to use their pre-K donation for either the state tax credit or a federal deduction. Donors should make this decision based on their own circumstances in consultation with their tax advisors. For more information, we encourage you to read the final regulations on charitable contributions and state and local tax credits on the IRS website: https://www.irs.gov/newsroom/final-regulations-on-charitable-contributions-and-state-and-local-taxcredits.

14. How will I know what the cap is every year?

The legislature must annually appropriate money to fund the pre-K program. The tax credit cap is dependent upon this annual appropriation. Your local collaborative or MDE can tell you what money was appropriated and, therefore, what the cap is.

15. What if I am eligible for a state tax credit larger than what I owe in state taxes?

You can “carry forward” unused portions of the tax credit for up to three years. See the answer to #8 for more explanation.

APPENDIX C

mde-approved collaborative sites and partners

APPENDIX D

nieer quality benchmarks

The National Institute for Early Education Research (NIEER) quality benchmarks are research-based, widely recognized indicators of quality among the early childhood community. The state’s program standards reflect the NIEER benchmarks as updated in 2017. The content on this page is taken from the State of Preschool 2021 Executive Summary, pages 28-29, published by NIEER in 2021.

Benchmark Explanation

Early Learning and Development Standards (ELDS)

Curriculum Supports

Teacher Degree

Teacher Specialized Training

Assistant Teacher Degree

Staff Professional Development

Maximum Class Size

To meet the benchmark, ELDS should be comprehensive and specific to preschool-aged children and vertically aligned with state standards for younger and older children so that children’s experiences at each stage build on what has gone before. ELDS also should be aligned with any required child assessments, and sensitive to children’s diverse cultural and language backgrounds. Finally, the state must provide some support for those charged with implementing the ELDS so they understand them, such as professional development and additional resources.

To meet the benchmark for curriculum support, states must provide guidance or an approval process for selecting curricula, and support for curriculum implementation, such as training or ongoing technical assistance to facilitate adequate implementation of the curriculum.

To meet the benchmark, state policy must require lead teachers in every classroom to have at least a bachelor’s degree.

To meet the benchmark, policy must require specialized training in early childhood education and/or child development. We recognize that early childhood teacher preparation programs are variable. States may wish to consider supports to improve programs offered by their state institutions of higher education and alignment with the state ELDS.

To meet the benchmark, policy must require that assistant teachers hold a CDA or have equivalent preparation based on coursework.

To meet this benchmark both teachers and assistant teachers must be required to have at least 15 hours of annual in-service training. In addition, some professional development must be provided through coaching or similar ongoing classroom-embedded support. Lead and assistant teachers are also required to have annual written individualized professional development plans.

To meet this benchmark, class size should be limited to at most 20 children.

Benchmark

Staff-Child Ratio

Screenings and Referrals

Continuous Quality Improvement System

Explanation

To meet this benchmark, classes should be permitted to have no more than 10 children per classroom teaching staff member.

To meet the benchmark, policies should require that preschool programs ensure children receive vision and hearing screenings and at least one additional health screening; as well as referrals when needed.

To meet this benchmark, policy must at a minimum require that (1) data on classroom quality is systematically collected, and (2) local programs and the state both use information from the CQIS to help improve policy or practice.

APPENDIX

COSTS OF A HIGH-QUALITY PRE-K CLASSROOM

Costs updated as of September 2023

This budget and accompanying narrative is intended to provide a realistic, but minimum, estimate of how much a new pre-K classroom meeting MDE guidelines may cost to operate. This budget assumes that the pre-K program is housed within an organization that is already paying for overhead costs—rent, utilities, and maintenance—as well as general administration. If a provider expects to add multiple classrooms, then the provider should multiply each line item by the number of classrooms except for the “student assessment” line. Please see the “Student Assessment” section to determine how to increase this amount as the program grows. Furthermore, if a provider has three or more classrooms, then the provider should consider a part-time or fulltime pre-K coordinator, depending on the number of classrooms. For the start-up budget, we have included only “essential” items. Please refer to page 60 for more information.

Revenue estimated in this budget is separated into three categories—program revenue, match revenue, and other revenue—in order to show how much revenue participants in the state-funded program can expect. Program and match revenue assume a provider will receive the minimum guaranteed by the state-funded program—$5,000 per child with half paid by the state and half matched by the provider—for each of 20 children in a classroom ($2,500 per child from the state; $2,500 per child matched). “Other revenue” is additional revenue that the provider must raise, either through over-matching or other sources, to meet the requirements of this sample budget. “Other revenue” was rounded to the nearest $250 to provide a small cushion each year. As this budget shows, due to the effects of inflation, it will almost certainly be necessary to the raise the per-pupil funding rate in the 2024-2027 legislative term to fairly share costs between the collaboratives and the state.

More detailed figures supporting this budget can be found in the pages that follow.

*We do not budget any expenses in these categories; however, a collaborative may choose to do so. Remember, no more than 10% of state funds may be used for student transportation.

SALARIES AND WAGES

Justification: Salaries comprise the largest single item in the budget. We budget for two full-time employees (FTE) for each pre-K classroom: a lead teacher and an assistant teacher. For both lead teachers and assistant teachers, we estimate that salaries will grow by 1% annually (Year 1 Salary * 1.01Year-1= Annual Salary). Salaries are estimated conservatively by assuming higher pay as noted below:

Lead Teacher: Salary for a lead teacher is estimated at $47,100.00 per year. A lead teacher in a public school classroom must hold a valid pre-K license. A salary of $47,100 assumes the teacher holds a bachelor’s degree with 10 years’ experience.

Assistant Teacher: Salary for an assistant teacher is estimated at $23,690.00 in Year 1. For assistant teachers, we used the averages provided by the Mississippi Department of Employment Security as of April 2023 (see https://mdes. ms.gov/media/126875/msoes.pdf, SOC code 35-9045).

FRINGE BENEFITS

Although this salary is substantially higher than the entrylevel wage for assistant teachers in public schools, we believe the average more accurately recognizes the additional qualifications required for pre-K paraprofessionals.

PLEASE NOTE: Salary for a pre-K coordinator is not included, but many school districts designate a pre-K coordinator who may have other responsibilities, such as the federal programs director. If the position is new, the additional salary should be included in the overall budget for the program, either as a portion per classroom or as a non-classroom overhead item.

*These salaries are approximations and do not include local salary supplements.

Justification: Fringe benefits per FTE are estimated at 28% of salary per year as follows: Salary * %Fringe = Fringe. Because salaries increase at a rate of 1% annually, the cost of fringe benefits is also estimated to increase by 1% per year.

TRAVEL

Justification: We estimate $1,192 in Years 1-3 for in-state travel to meetings, conferences, or trainings. We use state government rates for travel for budgeting purposes. More details on these estimates are provided below:

Mileage: State government policy mandates the state mileage rate when traveling in-state in a privately owned vehicle. The approved mileage rate is $0.655/mile in 2023. Since school districts may be located in any part of the state, a round-trip of 400 miles is estimated per trip. (Please note that if a government vehicle is available, the rate is only $0.22/mile; collaboratives should adjust their budget accordingly if using a government vehicle.)

Hotel: We assume a rate of $98 for in-state hotels, as this is the standard government rate for most places in Mississippi, including Jackson.

Meals: We use the government in-state rate of $46 per day for meals, as this is the standard government rate for most places in Mississippi, including Jackson.

Per Diem: We use the government in-state rate of $46 per day for meals and incidentals.

Trips planned per staff member are as follows:

Lead Teacher: We estimate the lead teacher will take two trips of 1.5 days each, equaling three total travel days, for professional development opportunities. Each of these trips will require overnight stays. ($46 per diem *3 travel days)+($0.655 mileage*400 miles*2 trips [round trip])+(2 overnights*$98 per hotel night)=$858

Assistant Teacher: We estimate the assistant teacher will travel with the lead teacher on two trips of 1.5 days each, equaling three total travel days, for professional development opportunities. Each of these trips will require overnight stays. Because we assume the assistant teacher will travel with the lead teacher by car, we do not include mileage a second time; however, we do assume a separate hotel room for each overnight. ($46 per diem *3 travel days)+(2 overnights*$98 per hotel night)=$334

PLEASE NOTE: We no longer budget travel for a pre-K coordinator, as we assume all coordinator costs are part of overhead and not all collaboratives will have one. However, should the school hire a full-time coordinator, any travel costs should be included in the overall budget for the program, either as a portion per classroom or as a non-classroom overhead item.

EDUCATIONAL MATERIALS

Justification: We estimate significant costs in Educational Materials for start-up—$12,003.52 for essential items. (All recommended items would be $22,931.86.) A detailed list of items serving as the basis for these estimates is provided in the How to Start a State-Funded Collaborative Pre-K Program toolkit under “Start-Up Costs” (see page 59 for more). In Years 1-3, we budget for consumables and replacement costs only for essential items. We note replacement costs for recommended items should classrooms choose to purchase all items but do not include these costs in the budget; please note that they add significant costs to the annual budget.

Language and Literacy: We estimate $200 in replacement costs for damaged, worn, or missing essential items. We estimate a cost of $110.93 annually for recommended consumables, such as paper, pencils, and other writing instruments (see the toolkit for detailed information about these items).

Dramatic Play: We do not include any replacement costs for dramatic play, as the essential items should last for multiple years. However, we recommend budgeting $150 in annual replacement costs for damaged, worn, or missing recommended items.

Math: We budget $250 in annual replacement costs for damaged, worn, or missing essential items.

Science (sensory): We do not include any replacement costs for this category as the essential items should last for

multiple years. However, we recommend budgeting $29.95 in annual replacement costs for sand for the water table, if purchased during start-up.

Science (general): We estimate a small budget of $50 in annual replacement costs for damaged, worn, or missing essential items.

Arts (general): We do not include any replacement costs for this category as none of the start-up items are considered essential. However, we recommend budgeting $60 in annual replacement costs for damaged, worn, or missing items if recommended items were purchased during start-up.

Arts (consumables):As consumables are expected to be used within 12 months, all of these recommended items must be replenished annually if purchased during start-up. This is an annual cost of $1,925.99.

PROGRAM EVALUATION

Justification: Every classroom in a Mississippi public school pre-K or collaborative program is monitored by MDE using the CLASS evaluation. This evaluation is also common among non-collaborative Head Start classrooms. We estimate a budget of $1,000 a year to help teachers prepare for their CLASS evaluation, which is conducted by MDE. This budget can be used for CLASS resources, such as the video library or training workshops.

EQUIPMENT & TECHNOLOGY

Justification: We estimate significant costs in Equipment or Technology for start up. In Years 1-3, we budget for periodic replacement only.

Tablets (24): We estimate that each pre-K classroom will need a minimum of twenty-four tablets to ensure each student has access to a device and that there are tablets reserved for a technology center. We use 64GB iPads for cost estimation purposes. Annual replacement costs are estimated at $2,000. This will cover full replacement of up to one-quarter of the tablets or any needed repairs.

PROFESSIONAL DEVELOPMENT

Headsets for tablets (24): We budget for 24 headsets, one for each device, so that students may use tablets without disturbing other children, particularly during assessments.

Justification: We suggest budgeting $3,500 per year per classroom for costs associated with professional development for teachers and assistants. This may include registration to attend trainings or purchase training materials.

STUDENT ASSESSMENT

Justification: Pre-K programs commonly use literacy and math progress-monitoring assessments throughout the year. We estimate costs for the use of STAR Early Literacy (which also contains early math skills) because it is commonly used for this purpose in Mississippi. Collaboratives intending to use a different assessment should contact the vendor to determine the cost structure. This is the only budget line item that we do not recommend multiplying by the number of classrooms for an overall program cost. Below are the 2021 STAR Early Literacy agency prices by tier with the subscriptions per student noted as well.

STAR Early Literacy pricing is based on the number of children to be assessed through a single portal. Below, we provide pricing estimates based on whether all children in a collaborative are assessed through the same portal versus assessing children through different portals and combining the information for the collaborative after testing. In any case, we strongly suggest that potential collaboratives contact Renaissance Learning directly to talk about the best structure for their situation.8

Single Portal: The simplest way to price STAR Early Literacy is to purchase a new, single portal for the whole collaborative. The cost will be a flat fee based on the total number of children in the collaborative unless that number exceeds 250, at which point pricing is per pupil with lower pricing as the volume rises above certain benchmarks. The flat fee is an annual cost and includes any necessary set up. (See the table below for pricing.) This also means the pricing is consistent on a per-child basis across the collaborative, rather than different pricing structures based on the size of each provider and whether they have other Renaissance products already.

Using the single portal method also simplifies data reporting for the collaborative. Renaissance Learning, the company that owns STAR Early Literacy, will treat the collaborative as its own “school district” and each provider as a “classroom” or multiple “classrooms.” This enables the collaborative to draw down reports through a single portal and break down data by provider, rather than needing to combine reports from separate portals licensed to each individual provider.

2022 STAR Early Literacy Agency Prices

Multiple Portals: If all or some members of a collaborative want to “add on” to their existing Renaissance Learning licenses for their pre-K students, then the pricing structure (and the data reporting) becomes more complicated. Two scenarios are most likely: every partner provider already has other Renaissance licenses or some, but not all, partners already have other licenses.

• Every partner has licenses: If every partner already has other Renaissance licenses, it would be most cost-effective for each partner to add on to their existing licenses at a rate of $5.00 per child. While this would likely save money, it would make data reporting more complicated because the collaborative would need each partner provider to download the data for all collaborative children and submit it to the lead partner so that they can combine the information for reporting to MDE.

In this budget, we have assumed that collaboratives will use the single portal method. To conservatively estimate a classroom cost, we use a cost of $1,000 ($50 per child) which is higher per child than the highest flat-rate cost for a collaborative with 0-50 children. Collaboratives should not multiply this $1,000 cost by the number of classrooms to find an overall program cost; doing so will wildly inflate the overall cost of assessment. Instead, use the flat rate corresponding to the number of collaborative children for your overall assessment cost. 8 Contact Charlotte

• Some, but not all, partners have licenses: For example, a school district already has Renaissance licenses for later grades but the local Head Start and the childcare partners do not. The school, serving as the lead partner, may choose to add their pre-K students to their existing license while getting a new portal for the rest of the collaborative partners. This would mean that the collaborative would pay $5.00 for every collaborative child in the school district and then pay the relevant portal fee for the overall number of remaining Head Start and childcare students. After testing, the school district would then need to download data for its collaborative students and combine it in a spreadsheet with downloaded data from the new portal for the rest of the collaborative’s students. This method would require more work for data reporting with uncertain cost savings (depending on how the numbers work out, it may not save any money).

OTHER

Justification: Teacher office supplies are estimated at $700.00 per classroom. These office supplies include printer paper, pens, staples, ink cartridges, tape, etc., for each pre-K classroom. The estimate is based on the amount that K-12 teachers receive from their annual Education Enhancement Fund procurement cards.

START-UP COSTS

The Pre-K Budget Narrative Tool provides a detailed breakdown of start-up costs for a pre-K classroom. Reference the full breakdown in the How to Start a State-Funded Collaborative Pre-K Program toolkit, starting on page 45.

This section provides a list of items, organized by center type, for furnishing a new pre-K classroom meeting the MDE Guidelines. All example items were estimated using prices from Kaplan Early Learning Company, except where otherwise noted. Pre-K programs may find many comparable items at a lower cost from other vendors, such as Creative Playthings, Scholastic, Lakeshore, Walmart, Target, or Amazon. Items marked in green are specifically required by the MDE guidelines, while items marked in yellow are specifically recommended.9 To fully furnish a classroom, pre-K providers should purchase more than the essential items (those in green or yellow). This means the total cost of furnishing a start-up classroom will be somewhere between the essential items’ cost and the recommended items’ cost, after curriculum materials are accounted for. Items that appear in the “Equipment and Technology” line of the budget (fixed assets for public schools) are marked with an asterisk; all other items fall under “Educational Materials” in the budget. See the main budget narrative for more information on all expenses, including expenses beyond start up.

These costs are accurate as of September 2022.

For the purposes of this budget, we use the Mississippi Beginnings curriculum as the example curriculum because it is required by MDE. The Mississippi Beginnings curriculum is free and comes with most of the items needed to implement it. The Building Blocks curriculum is embedded in the Mississippi Beginnings curriculum. However, programs need the two-volume teacher edition ( Volume 1 and Volume 2) and, optionally, the classroom manipulative kit.

SUMMARY OF CENTER AND CLASSROOM COSTS

mississippifirst.org