Orange County Child Care Task Force - 11-14-2006, Item 7b

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Purchase of Space:The employer arranges to"own"a specified number of spaces in a local child care program.Parent fees may cover most or all of the cost of any spaces used,but the company typically covers all or a portion of the cost of the unused spaces so that the program can afford to keep the spaces open for the company. Consortium Model:A number of employers come together on an industrial or geographic basis and pool resources to conduct joint child care projects. Consortium members generally share start-up costs and in return receive priority enrollment for their employees'children. Sometimes a specific number of slots are set aside for each company. Operating costs,however,are usually funded through a combination of parent fees and contributions from the employers.Member corporations may choose to subsidize their employees'fees through a voucher or reimbursement program(see first option). On-Site or Off-Site Centel:.An on-site or off-site center sponsored by an employer at the work site or at another location.The center can be operated by the employer or by a nonprofit or for-profit child care provider.Employers usually pay all start-up costs;any operating losses that occur in the early stages of the center before it is fully enrolled;and some portion of the ongoing operational expenses. Parent fees cover the balance of the center's operating expenses. CURRENT PRACTICES • There are currently several Orange County employers that have established child care support for their employees and/or are doing innovative things to provide additional money for child care in the county. Subsidy Reimbursement: Employers can pay back in to the subsidy system for subsidy dollars used by their employees. Orange County Government currently participates is this program and is helping to free up subsidy dollars for other families. On-Site Child Care: Employers run centers on-site for their employees, often at a reduced rate. Carol Woods has an on-site five star center that is run by the YMCA. The center accepts age eligible children of employees and is subsidized at a rate of$225/month for Carol Woods'employees. There is no cost for children of YMCA employees to attend the center. The Center is also open to non- Carol Woods affiliated children between the ages of three and five at a regular rate. UNC and UNC Health operate Victory Village,a child care center that serves students and employees of the university and the hospital. This particular center does not subsidize employees and students because of the scholarship program offered by UNC. SAS,Inc. a Cary-based corporation partnered with Bright Horizons to run its two on-site child care centers,and two near-site centers. The day-to-day operations are managed by Bright Horizons,a child care center. SAS subsidizes the cost of child care in the centers for its employees,so that they play a fiat rate of$300 a month. Also partnering with Bright Horizons in the State of North Carolina are GlaxoSmithKline,Blue Cross/Blue Shield,IBM,Duke University,and Wachovia. 7