Finance Options

There are both short-term and long-term approaches to financing quality preschool. A long-term strategy would be to secure a stable revenue source and investment in preschool equivalent to that in kindergarten. The short-term approach is incremental and can best be summed up as "creative financing."

Even in the event that a state does invest in a statewide funding source dedicated to making preschool available to all, localities may still need supplemental finance strategies. With the possible exception of New Jersey, it is unlikely that any state receives sufficient revenues to fully support a quality preschool program. As is the case with K-12 education in the United States, even preschool initiatives with a dedicated state revenue source are unlikely to receive all the support they need from state government.

AIR offers technical assistance related to finance options from a local perspective, with or without a dedicated statewide funding source. Some of the options are sufficient to sustain preschool, at least within targeted neighborhoods, even without a new statewide dedicated revenue source.

AIR resources and tools can be downloaded below.

This powerpoint presentation estimates the impact that maximizing revenue sources, such as Title 1, Pre-K/Family Literacy (AB 172) funds, and parent fees can have on the financing of preschool statewide.

This document presents prioritization criteria for phasing in preschool and how Title I, AB172, and parent fees can be used to fund different phase-in scenarios in Riverside County.

This document estimates the cost of different targeting scenarios in San Diego County and how Title I and AB172 can be used to fund different phase-in scenarios in San Diego County.

This document, containing a list and description of possible existing funding sources for preschool, was made available at the October 2006 First 5 Association Preschool Learning Exchange Preschool Finance Symposium.

This is an example of one county's use of Title I dollars to fund preschool.