8 Colo. Code Regs. § 1404-1-4.108

Current through Register Vol. 48, No. 1, January 10, 2025

Section 8 CCR 1404-1-4.108 - PRESCHOOL PROVIDER FUNDING FOR CHILDREN THREE (3) AND FOUR (4) YEARS OF AGE

A. Preschool program funding distributed to preschool providers shall be used only to pay the costs of providing preschool services directly to eligible children enrolled by the preschool provider or by a subcontracted preschool provider as authorized for a school district pursuant to section 26.5-4-208(3)(c)(II), C.R.S. Where applicable, preschool program funding can be used to cover special education and related services costs that are in excess of the Exceptional Children's Educational Act (ECEA) and Individuals with Disabilities Act (IDEA) funds if the costs are allowable per subsections (A)(1) through (4) of this rule. The costs of providing preschool services include:

1. Teacher and paraprofessional salaries and benefits;

2. The cost of providing to teachers and paraprofessionals any professional development activities associated with the preschool services;

3. The costs incurred in purchasing supplies and materials used in providing the preschool services;

4. Any additional costs that a preschool provider would not have incurred but for the services provided in conjunction with the preschool services; and

5. A reasonable allocation of overhead costs as provided in rule section 4.108(G).

B. Participating providers must agree to guarantee families at least the minimum number of hours defined in rule sections 4.106(B) and 4.107(A) and (B) for the per-child rate that is provided.

C. Pursuant to section 26.5-4-208(3)(b), C.R.S., in a year in which there is insufficient funding to provide additional preschool services to all eligible children, those eligible children who are in low-income families and meet at least one (1) qualifying factor will be prioritized.

D. Excess funds allocated to the preschool program through underspent funding for children three (3) years of age, or younger in waiver districts, and/or funds remaining after meeting the uses described in section 26.5-4-209(3)(a), C.R.S., may be distributed by the Department through hours of additional preschool services for children who enroll in the year preceding eligibility for enrollment in kindergarten.

E. The Department, working with local coordinating organizations, shall make every effort to blend and braid preschool programming funds where possible with head start, local funding dollars, and the Colorado Child Care Assistance Program (CCCAP), prior to distributing additional preschool programming funds to a child who is in a low-income family per rule section 4.105(A), or who meets at least one (1) qualifying factor in rule section 4.105(B).

F. The per-child rate funding formula for all types of preschool services covered under the preschool program applies to the following categories of services that a family may enroll their eligible child in, as specified in sections 26.5-4-204 and 208, C.R.S., and clarified in these rules:

G.Overhead or Indirect Costs. Overhead or indirect costs represent the expenses of doing business that are not readily identified with the delivery of preschool services, but are necessary for the general operation of participating preschool providers. Preschool providers shall be allowed to expend a reasonable allocation on overhead or indirect costs, not to exceed fifteen percent (15%) of the total preschool program per-child rate funding received.

H.Per-Child Rate Funding Formula. The Colorado Universal Preschool Program per-child rate formula is expressed as ((PKC*PS*PA) + (PKC*(1-PS))*CL)* LIC*GF*QE*IEF). The formula includes a base rate cost of high quality preschool services (PKC) with specific parameters adjusting for personnel costs (PS) and variances to costs by region (PA). Further adjustments are applied for local costs of living (CL), considerations of a community's poverty level (LIC), geographical factors (GF), increased quality of services (QE), and an annual adjustment for inflation and economic factors (IEF).

1.PKC (pre-k costs) means the base cost of providing high quality preschool services based on unique characteristics of provider settings and the families/children they serve, recognized best practices and evidence-based standards, pursuant to sections 26.5-4-208(1)(a)(I) and 26.5-4-205(2), C.R.S.

2.PS (personnel share) means the share of costs accounted for by personnel costs, including salaries and benefits.

3.PA (personnel adjustment) means the adjustment factor that accounts for regional variations in personnel costs.

4.CL (cost of living) means a cost-of-living adjustment determined at the county level to reflect evolving local economic realities and support recruitment and retention of a high-quality workforce, as required by section 26.5-4-208(1)(a)(III), C.R.S.

5.LIC (low income by county) means the parameter determined at the county level to account for the identification of children in low-income families, as defined by rule section 4.105(A) and pursuant to section 26.5-4-208(1)(a)(IV), C.R.S.

6.GF (geographic factor) means the factor that adjusts for regional differences and circumstances unique to rural communities that result in variations in the cost of providing preschool services, which may include difficulties in achieving economies of scale in rural areas and in recruiting and retaining preschool educators, as required by section 26.5-4-208(1)(a)(III), C.R.S.

7.QE (quality enhancement) means the component that accounts for the cost of providing professional development activities and salary incentives to teachers and paraprofessionals pursuant to sections 26.5-4-208(1)(a)(I) and 26.5-4-205(2), C.R.S.

8.IEF (inflation and economic factors) means the annual rate of inflation, estimated for the Denver-Aurora-Lakewood core based statistical area, and other state economic factors, including but not limited to personal income, population and employment factors, and construction cost indicators, adjusted by the Department for any other financial forecasts and circumstances directly impacting available resources for the preschool program. The Department will evaluate and consider data from the Bureau of Economic Analysis, Colorado Department of Local Affairs, United States Census Bureau, and United States Bureau of Labor Statistics to develop the IEF annually as part of the perchild rate setting process.

8 CCR 1404-1-4.108

47 CR 04, February 25, 2024, effective 1/22/2024, exp. 5/21/2024 (Emergency)

47 CR 06, March 25, 2024, effective 4/14/2024

47 CR 12, June 25, 2024, effective 5/16/2024, exp. 9/13/2024 (Emergency)

47 CR 15, August 10, 2024, effective 8/30/2024

47 CR 24, December 25, 2024, effective 1/14/2025