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Childcare Pilot Project Funding Copyrighted January 22, 2019 City of Dubuque Action Items # 3. ITEM TITLE: Childcare Pilot Project Funding SUMMARY: City Manager recommending approval to provide the initial funding for the Childcare Pilot Project that provides free childcare to Opportunity Dubuque students and graduates. RESOLUTION Approving funding for the Opportunity Dubuque Childcare Pilot Program SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Childcare Pilot Program Funding-NNM Memo City Manager Memo Staff Memo Staff Memo Funding Request& Program Summary Supporting Documentation Resolution of Approval Resolutions THE CITY OF Dubuque � AIFA�erlwGh UB E '�� III► Masterpiece on the Mississippi Z°°'�w'2 7A13 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Childcare Pilot Program Funding DATE: January 16, 2019 Through the work of multiple partners over several years, the lack of access to affordable childcare has been identified as a barrier to employment in Dubuque. This is especially important with a 1 .8°k unemployment rate, one of the lowest in the United States. The Greater Dubuque Development Corporation has developed a pilot program to provide free childcare to Opportunity Dubuque students and graduates. In sum, the pilot program provides free childcare to any Opportunity Dubuque student during their certificate studies and continuing for one year after graduation from the program. The program delivers solutions to multiple local economic challenges, including creating a skilled workforce in multiple industries, alleviating the lack of childcare options by offering a Child Development Associate certificate through Opportunity Dubuque, and providing access to quality, affordable childcare for working parents. Addressing these challenges means more parents are able to fully participate in the workforce, improving our local economy — and very importantly, these parents' financial situation. The program is designed to be funded by several stakeholders. The Greater Dubuque Development Corporation has requested that the City contribute $80,000 to this effort. Budget Director Jennifer Larson has identified a source of funding for the $80,000. Economic Development Director Jill Connors recommends City Council approval to provide the initial $80,000 for the pilot program. I concur with the recommendation and respectfully request Mayor and City Council approval. �� Mic ael C. Van Milligen �� MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director Rick Dickinson, President & CEO, Greater Dubuque Development Corp. 2 Dubuque Economic Development Department THE CITY OF .� 5o West 13�^Street AIFMersality Dubuque,lowa 52001-4864 D� L E � � �� Office(563)589-4393 TTY(563)690-6678 http://www.cityofd u buq ue.org 2007•2012 Masterpiece on the Mississippi �,3.Zo„ TO: Michael Van Milligen, City Manager FROM: Jill Connors, Economic Development Director SUBJECT: Childcare Pilot Program Funding DATE: January 16, 2019 INTRODUCTION This memo presents for your consideration a request for funding of a Childcare Pilot Program to be provided in conjunction with the Opportunity Dubuque program and other partners. BACKGROUND Through the work of multiple partners over several years, the lack of access to affordable childcare has been identified as a barrier to employment in Dubuque. This is especially important with a 1 .8°k local unemployment rate — one of the lowest in the United States. DISCUSSION The Greater Dubuque Development Corporation has developed a pilot program to provide free childcare to Opportunity Dubuque students and graduates. In sum, the pilot program provides free childcare to any Opportunity Dubuque student during their certificate studies and continuing for one year after graduation from the program. The program delivers solutions to multiple local economic challenges, including creating a skilled workforce in multiple industries, alleviating the lack of childcare options by offering a Child Development Associate certificate through Opportunity Dubuque, and providing access to quality, affordable childcare for working parents. Addressing these challenges means more parents are able to fully participate in the workforce, improving our local economy — and very importantly, these parents' financial situation. The Greater Dubuque Development Corp. has requested that the City contribute $80,000 to this effort. See attached letter of request. BUDGETIMPACT Budget Director Jennifer Larson has identified the source of funding for the $80,000. The FY19 funding will come from unbudgeted parking lease revenue from the Diamond Jo Casino. RECOMMENDATION/ ACTION STEP Due to the identified need for quality, affordable childcare locally and the City Council's top priority of studying and funding affordable childcare, I recommend providing this initial $80,000 for the pilot program. li Greater J�°� 9, z°19 Dubuque �oaP Michael VanMilligen �. on Ceocer CiryofDubuque % 1 ��S_iceio9 50 W. 13'�Street _. �. .. ,. s�oo� n �� -� �.ii Dubuque,Iowa52001 �� Dear Mike: Enclosed you will find documentation for Greater Dubuque DevelopmenPs requestfor financial supportfrom the Ciry of DubuqueWpartiallyfundourcommuniry'sinnovativechildcarepilot Owrequestfor$8QOOOwillfundthepilotfrom March1,2019tliroughJune3Q2021. Theworkforoechildcareinitiativewillsupportsingleparentheadofhousehold Opportuniry Dubuque Participants below 80%of inedian household income Opportunity Dubuque Ctrild�re Yilot Objective:Increase skilled worldoroe tlirough childcare supportfor Opportuniry Dubuque students and graduates. Background: Opportuniry Dubuque is a short-te�rn certification prograrn tliroughNortheastIowa Communiry College in a variery ofhigh-demand certificates, including: • Construction • CertifiedNwseAide • ComputerNumerical Control Machine OperaWr • Class A CDL • IndustrialSewing • PhleboWmy • Welding • EMT • HealthSupportRofessional • 1VEW: Q�sWmerServiceProfessional • 1VEW: ChildDevelopmentAssociate Goals: 1) Increase participation ofwomen and parenfs in Opportuniry Dubuque by providing childcare W sh�dents enrolled in any Opporhmiry Dubuqueprograrn atno cost(women cmrently accountfor approximately 34%of all enrollees since 2012; only 35%of students enrolled by the outreach success coach in FY17 had children) 2) Increase number of qualified childcare workers (132 annual openings in the Greater Dubuque area between 2017-2027), including in-home and center workers 3) Increaseparticipationofparentsintheworldoroe 4) Increase qualiry of care and future education and workforoe potential of children age 0-Pr�K Assumptions: 1) The average working parent with hvo children(a W ddler and an infant)in Dubuque Counry pays $1,035 a month in childcare expenses or$12,420 a year 2) Opporhmiry Dubuque success coaches identify childcareba�riers as one of tlie Wp ba�riers W participation in an Opporhmiry Dubuque program and one of the Wp reasons women are unde�represented in Opportuniry Dubuque. 3) In-home registered daycares should be treated as small-businesses,however,marry women who open them do nothave theresouroes and support W successfully run these businesses 4) Daycare centers arereluctant W expand or open buause of difficulry in hiring qualified personnel Elements ofPilot: 1) Implement Child DevelopmentAssociate certificate as part of Opportuniry Dubuque offerings 2) Offer childcare W up W 50 parenfs enrolled in Opportuniry Dubuque atno cost 3) SupportOpportuniryDubuquegraduateswhotakeful4timeemploymentaffergraduationwithslidingscalechildcare supportfor 12 months atter employment(as funder of lastresort) � Estimated Bud et for 50 students with a roximatel 100 ctril�en � � $32,000 Estimated childcare costs from local provider for 100 children during training (approx. $4/hour) ��4p� �c $31Q500 Estimatedcostofsubsidizedchildcareforl2montlisforapproximately100 �� children of Opportuniry Dubuque graduates co a e_ 5:hz�':I i�-�.r.-aiion Ceocer �roJ.�.c. .. ,��..��_iceio9 $342,500 TOTALFSTIMATE o:.'�,��:�..�.�ii,. ;�oo� NS�nding: • Potential$8QOOOfromDubuqueCounry • Potential$8QOOOfromtheCiryofDubuque • $3QOOO committed from the Communiry Foundation • $152,500 from Greater Dubuque Development(sowce:Dubuque Works reserves) Timetine: Spring2019 • Recruitfirstl0studentsinWChildDevelopmentAssociateprograrn • Provide childcare for approximately 20 children during program • Graduate and place 10 sh�dents inW ful4time employment,continuing educatioq or preparation for in-homeregistration • Continue providing childcare as payer of lastresortfor up W 12 months Fa02019 • Recruitsecondcohortofl0sh�dentsinWChildDevelopmentAssociate • Ruruit additional 10 parents W enroll in other Opporhmiry Dubuque certificates • Provide childcare for approximately 40 children during program • Graduate and place 20 sh�dents inW ful4time employment,continuing educatioq or preparation for in-homeregistration • ContinueprovidingchildcareaspayeroflastresortforupWl2monthsatterjob lacement Spring2020 • Recruitthirdcohortofl0studentsinWChildDevelopmentAssociate • Ruruit additional 10 parents W enroll in other Opporhmiry Dubuque certificates • Provide childcare for approximately 40 children during program • Graduate and place 20 sh�dents inW ful4time employment,continuing educatioq or preparation for in-homeregistration • ContinueprovidingchildcareaspayeroflastresortforupWl2monthsatterjob lacement Spring2020. • Continue 12 months of supported childcareuntil Spring 2021 for last cohort Spring 2021 Targets 1.Recruit 50 parents inW Opportuniry Dubuque over 18 months by providing childcare services for tlieir children while in school and for up W 12 months after graduated and employed as payer of last resort 2.Attain 90%graduation and employmentrate. 3.Attain 90%employmentretention and/or promotion in 12 months of employment Return on Investment • Estimated$135 million in wages W employed graduates • Reducedtaepayerburden • Improved early childhood carefor children Please letus know ifthere is additional information thatyou may need in yow fawrable consideration of ow request We look forward to ow ongoing par[nership. Regards, //ii �iJ /;! ,��s�,��C(�� Rick Dickinson �� Presiden[&C50 � Prepared by: Jill Connors, Economic Development 50 W. 13th Street, Dubuque IA 52001, 563 589-4393 Return to: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393 RESOLUTION NO. 38-19 APPROVING FUNDING FOR THE OPPORTUNITY DUBUQUE CHILDCARE PILOT PROGRAM WHEREAS, several local partners including the Greater Dubuque Development Corporation (the Partners) have identified the need to address childcare issues in Dubuque; and WHEREAS, childcare is a key economic development issue; and WHEREAS, the Greater Dubuque Development Corporation has developed a proposed pilot program (the Program) intended for use by Opportunity Dubuque students and graduates; and WHEREAS, the Greater Dubuque Development Corporation has identified the need for funding, as described in the attached Program summary; and WHEREAS, the Greater Dubuque Development Corporation has requested the City of Dubuque to commit $80,000 to the Program; and WHEREAS, the City Council of the City of Dubuque believes this contribution is in the best interest of the residents of Dubuque. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: That the City Council of the City of Dubuque approves a $80,000 contribution to the Opportunity Dubuque Childcare Pilot Program. Passed, approved, and adopted this 22nd day of January 2019. Attest: Kevi ' S. Firnstahl, cfy Clerk to 0 Roy D. Buol, Mayor Opportunity Dubuque Childcare Pilot—PROGRAM SUMMARY Objective: Increase skilled workforce through child care support for Opportunity Dubuque students and graduates. Background: Opportunity Dubuque is a short-term certification program through Northeast lowa Community College in a variety of high-demand certificates, including: • Construction • Certified Nurse Aide • Computer Numerical Control Machine Operator • Class A CDL • Industrial Sewing • Phlebotomy • Welding • EMT • Health Support Professional • NEW: Customer Service Professional • NEW: Child Development Associate Goals: 1) Increase participation of women and parents in Opportunity Dubuque by providing childcare to students enrolled in any Opportunity Dubuque program at no cost (women currently account for approximately 34%of all enrollees since 2012; only 35%of students enrolled by the outreach success coach in FY17 had children) 2) Increase number of qualified childcare workers (132 annual openings in the Greater Dubuque area between 2017-2027), including in-home and center workers 3) Increase participation of parentsin the workforce 4) Increase quality of care and future education and workforce potential of children age 0-prek Assumptions: 1) The average working parent with two children (a toddler and an infant) in Dubuque County pays $1,035 a month in childcare expenses or$12,420 a year 2) Opportunity Dubuque success coaches identify childcare barriers as one of the top barriers to participation in an Opportunity Dubuque program and one of the top reasons women are underrepresented in Opportunity Dubuque. 3) In-home registered daycares should be treated as small-businesses, however, many women who open them do not have the resources and support to successfully run these businesses 4) Daycare centers are reluctant to expand or open because of difficulty in hiring qualified personnel Elements of Pilot: 1) Implement Child Development Associate certificate as part of Opportunity Dubuque offerings 2) Offer childcare to up to 50 parents enrolled in Opportunity Dubuque at no cost 3) Support Opportunity Dubuque graduates who take full-time employment after graduation with sliding scale childcare support for 12 months after employment (as funder of last resort) Estimated Budget for 50 students with approximately 100 children $32,000 Estimated childcare costs from local provider for 100 children during training (approx. $4/hour) $310,500 Estimated cost of subsidized childcare for 12 months for approximately 100 children of Opportunity Dubuque graduates $342,500 TOTAL ESTIMATE Funding: • Potential$80,000 from Dubuque County • Potential$80,000 from the City of Dubuque • $30,000 committed from the Community Foundation • $152,500 from Greater Dubuque Development (source: Dubuque Works reserves) Timeline: Spring 2019 • Recruit first 10 students into Child Development Associate program • Provide childcare for approximately 20 children during program • Graduate and place 10 students into full-time employment, continuing education, or preparation for in-home registration • Continue providing childcare as payer of last resort for up to 12 months Fall 2019 • Recruit second cohort of 10 students into Child Development Associate • Recruit additional 10 parents to enroll in other Opportunity Dubuque certificates • Provide childcare for approximately 40 children during program • Graduate and place 20 students into full-time employment, continuing education, or preparation for in-home registration • Continue providing childcare as payer of last resort for up to 12 months after job placement Spring 2020 • Recruit third cohort of 10 students into Child Development Associate • Recruit additional 10 parents to enroll in other Opportunity Dubuque certificates • Provide childcare for approximately 40 children during program • Graduate and place 20 students into full-time employment, continuing education, or preparation for in-home registration • Continue providing childcare as payer of last resort for up to 12 months after job placement Spring 2020- • Continue 12 months of supported childcare until Spring 2021 for last cohort. Spring 2021 Targets 1. Recruit 50 parents into Opportunity Dubuque over 18 months by providing childcare services for their children while in school and for up to 12 months after graduated and employed as payer of last resort. 2.Attain 90%graduation and employment rate. 3.Attain 90%employment retention and/or promotion in 12 months of employment. Return on Investment • Estimated $1.35m. in wages to employed graduates • Reduced taxpayer burden • Improved early childhood care for children This improvement level decision package request is for financial support of an Opportunity Dubuque Childcare Pilot. The Pilot proposes to provide childcare at no cost for its participants and graduates. This supports the City Council goal of promoting a robust local economy through a two-prong approach. First, the program could increase participation in the Opportunity Dubuque program -which offers a short-term certification program in a variety of high-demand positions—by removing the barriers to childcare for participants. This can ultimately result in increased participation of parents in the workforce. This in turn provides a robust economy by increasing household earnings as well as meeting workforce needs for local businesses. Secondly, Opportunity Dubuque plans to expand its certification program to include a Child Development Associate certificate. This fills a local need for additional childcare workers, alleviating a community-wide barrier to sustained employment.