Giving Quest

Advocates push to extend tax credit to encourage donations to cash-strapped child care providers

PHOTO: Porter-Leath

A wide-ranging coalition that includes early childhood, education and business groups is galvanizing support for a bill to extend a state tax credit that incentivizes donations to Colorado child care providers.

Advocates say the Child Care Contribution Tax Credit, which will be up for reauthorization during the 2018 legislative session, represents a key tool for supporting an expensive but perpetually underfunded sector.

“It’s the child care provider’s lifeline to additional funding,” said Gloria Higgins, president of the business group Executives Partnering to Invest in Children, or EPIC.

It’s a public-private partnership of sorts — with the state rewarding private citizens and businesses with lower tax bills when they support early childhood education.

During fiscal year 2016, Colorado taxpayers made about $52 million in donations that qualified for the tax credit, according to data from the Colorado Department of Revenue. Donations can cover costs such as child care scholarships, teacher salaries and building improvements.

“If parents had to pay $50 million more for child care, I don’t know what they would do,” Higgins said.

The tax credit, which first took effect in 1999 and has been reauthorized once, allows donors to claim an income tax credit worth up to 50 percent of their contribution. In other words, a donation of $200 to a qualifying child care provider would yield a state tax credit of $100 for the donor.

Donations to a variety of organizations — including child care centers, programs offering before- and after-school care, residential treatment centers and homeless youth shelters — are eligible for the credit.

The tax credit was suspended for a couple years during the Great Recession because slow-growing state revenue triggered a special provision in the law. The credit was restored in phases starting in 2013 and will expire in 2019 if it’s not reauthorized.

Given the state’s historically bipartisan support for the tax credit, advocates are hoping for a smooth passage.

“The reason why some people like tax credits … really comes from the fact that you’re just declining revenue,” said Bill Jaeger, vice president of early childhood initiatives at the Colorado Children’s Campaign. “You’re not necessarily building new government programs.”

And for taxpayers who make the donations, the philosophy is about “letting people keep more of money they’ve earned,” he said.

Currently, there is no organized opposition to renewing the tax credit for another 10 years.

Still, advocates know there are many demands for state dollars.

“We, in early childhood, are truly competing … with potholes or K-12 education,” Higgins said. “We just want to hold onto what we have.”

Colorado is one of only a handful of states that offer tax credits to individuals or businesses that donate to child care providers or related programs, according to the National Conference of State Legislatures. Oregon, Mississippi, Louisiana and Pennsylvania all have some version of a contribution credit, though generally the parameters are more restrictive than in Colorado.

Tami Havener, who leads a nonprofit that offers full-day preschool and a host of other early childhood services in Steamboat Springs, believes the tax credit encourages supporters to donate more than they otherwise would.

“I think it definitely makes a difference in them deciding how much they can give,” she said. “It allows them to be more generous.”

The Family Development Center where Havener is executive director raises about $110,000 a year — in amounts ranging from $25 to $30,000. The money helps pay for need-based scholarships, teacher training and extra staff so that student-teacher ratios stay low.

The preschool enrolls 80 students, about one-third of whom come from low-income families.

Havener said she’s gotten more savvy in recent years about advertising and explaining the credit to donors because she realized that some didn’t understand the financial benefits.

Now, in addition to helping specific child care providers, some groups envision the credit as a way to get communities to collaborate on larger child care initiatives. The idea is to use the credit as a rallying point for donors interested in pooling their resources for big projects — say, building a child care facility in a neighborhood without one.

“This is no silver bullet by any stretch,” Jaeger said. “It’s a tool in the toolbox.”

New direction

Three years in, an ambitious experiment to improve the odds for kids at one elementary school is scaling back

PHOTO: Ann Schimke
Tennyson Knolls students return to school after a ribbon-cutting ceremony on school grounds in September.

Blocks of Hope was once envisioned as a pint-sized version of the Harlem Children’s Zone.

The project would provide an array of educational and social services to young children and families living within the boundaries of one high-poverty Adams County school — in the process, changing not only the lives of individual children but also the community around them.

But after three years, the Westminster-based nonprofit that spearheaded Blocks of Hope is scaling back its ambitions.

While the project won’t disappear entirely, the nonprofit’s leaders say they’re no longer focusing services and staff so tightly on the school’s boundary zone and may eventually stop using the Blocks of Hope name.

“We’re starting to question whether it’s the right strategic direction for the organization,” said Karen Fox Elwell, the new president and CEO of Growing Home, which launched the project in 2014.

The shifting shape of Blocks of Hope — originally framed as a 20-year effort intended to change the trajectories of children 0 to 9 within the Tennyson Knolls Elementary School enrollment zone — is a disappointment for some advocates who’d hoped this “placed-based” approach would not only be successful, but also possibly serve as a model for other Colorado communities.

A raft of issues have prompted the changes, including greater-than-expected mobility among the school population, fundraising challenges, and the tension that came from devoting resources to the 2.25-square-mile project zone while also trying to serve the broader Adams County community.

“It was hard to find that balance to do both well,” said Fox Elwell, who joined Growing Home in January.

Organizers knew when they started that the community was changing, but gentrification pushed out families faster than they expected. About a quarter of Tennyson Knoll’s students left the school in 2015-16.

Leaders said that was one reason it was tricky to track child outcomes that would demonstrate the project’s impact — a hallmark of successful place-based work.

Fox Elwell said there’s more stability among residents in the Harlem Children’s Zone because of rent-controlled housing.

“So families are really staying in that community for years upon years,” she said. “With Blocks of Hope, it’s just not the case.”

Fox Elwell said the board and staff will determine the future of Blocks of Hope during the group’s upcoming strategic planning process starting in late spring.

Teva Sienicki, the former president and CEO of Growing Home and the project’s original champion, said significant evidence supports the place-based strategy that underpinned Blocks of Hope, but didn’t want to second-guess the decisions of Growing Home’s current leaders.

“I really do wish them the best,” said Sienicki, who left Growing Home last summer.

Even at the outset of the project,  Sienicki acknowledged that changing demographics and funding challenges could alter the long-term course of the project. Still, she was optimistic, projecting a gradual expansion that would bring two to three other elementary schools in the Westminster district under the Blocks of Hope umbrella, and increase the number of employees dedicated to the project from two to 70.

In addition to improving family functioning, the project’s goal was to boost school attendance, kindergarten readiness, and third-grade reading scores, and reduce the number of children referred for special education services. This year, 85 percent of Tennyson Knolls students are eligible for free or reduced-price school meals, a proxy for poverty.

One of the essential ideas behind place-based efforts like Blocks of Hope and the Harlem Children’s Zone is to flood a carefully defined geographic area with services in the hopes of touching a critical mass of residents, usually around 60 percent. By reaching such a large proportion of a population, proponents say such efforts create a kind of tipping point that pushes the whole community to adopt the norms and aspirations of those who receive services.

But Blocks of Hope never got close to that tipping point.

While certain components of the project, such as backpack and school supply giveaways, reached a large number of families, others, such as parent programs, never got above 15 percent, said Fox Elwell.

Aside from high mobility, the fact that many students ride the bus to Tennyson Knolls — instead of getting dropped off by their parents — made it harder to connect with parents than organizers anticipated.

The nonprofit’s limited budget was also a factor. Spending on the project was originally set at $250,000 annually, with eventual plans to reach $3 million if it expanded to other schools.

The nonprofit’s actual spending on Blocks of Hope has been around $100,000 a year, said Fox Elwell. In addition, a grant that Growing Home leaders hoped would pay for an evaluation of the project never came through.

“There were some incredible hopes to grow the budget and deeply invest in the community,” she said. “And maybe it was more challenging to fundraise than we anticipated.”

There are still several Blocks of Hope programs at Tennyson Knolls this year, including backpack giveaways, holiday gift and meal help, and two parenting classes. The school also houses a boutique with used children’s clothing and gear.

An after-school tutoring program was discontinued after last school year because it wasn’t effective, leaders said. Another program aimed at grandparents raising grandchildren was slated to launch this spring, but will not because school leaders felt they had too much going on.

A community organizer originally hired to work with Blocks of Hope families to advocate for affordable housing has expanded her territory to include other neighborhoods.

“There’s a lot of need just a little bit south and a little bit east of those (school) boundaries,” said Leslie Gonzalez, a Growing Home board member.

Residents in some of those areas began to assume they were no longer eligible for any of the nonprofit’s services as Blocks of Hope ramped up. That wasn’t true, but the project sent some “unintended negative messages,” she said.

Despite looming questions about the future of Blocks of Hope, leaders at Growing Home and Tennyson Knolls say the project has helped families, sparked welcome changes to the nonprofit’s case management strategy, and built community at the school.

Tennyson Knolls Principal Heather McGuire, who is the school’s third principal since Blocks of Hope began, said the project helped get parents involved at school, whether attending PTA meetings, taking Blocks of Hope classes, or attending “coffee with the principal” meetings.

She credits the project with giving rise to the school’s tagline, “We are TKE,” a reference to the school’s initials.

Gonzalez said, “We don’t view Blocks of Hope as a failure necessarily … Even though there were a lot of challenges, a lot of good came out of it, too, and we were able to meet even more families in that community we serve.”

safe haven

Colorado could get its first 24/7 child care facility for families in crisis

PHOTO: Jamie Grill | Getty Images
Mother rubbing forehead while holding baby son.

Last fall, Lisa Rickerd Mills, a medical social worker in Grand Junction, worked with a single mother who needed inpatient mental health treatment.

The problem was child care. The woman had no one to watch her two small children during her stay and bowed out of treatment.

It’s exactly the kind of scenario a group of advocates hope to prevent with a 24-hour, seven-day-a-week child care facility for families facing emergencies or periods of high stress.

The center, to be called the Grand Valley Crisis Nursery and set to open in late 2018, would provide free care for children 0 to 5 years old for periods ranging from a few days to 30 days. The idea is to give parents a safe place to leave their youngest children when they’re facing a crisis — a period of homelessness, an emergency medical procedure, domestic violence, or the threat of job loss. It’s meant to prevent child abuse and neglect and keep kids out of the foster care system.

While there are around 70 crisis nurseries nationwide, the one planned for Grand Junction would be the first of its kind in Colorado. It could pave the way for a new type of state child care license and perhaps crisis nurseries elsewhere in the state. The project is unfolding amidst a broader push in the western Colorado community to improve child and family outcomes by dramatically expanding child care options over the next three years.

Kaleigh Stover, a former pharmaceutical sales representative who moved to Grand Junction from Sacramento last summer, is leading the charge on the crisis nursery. Prior to her move, the 26-year-old volunteered at the Sacramento Crisis Nursery, which runs two of five crisis nurseries in California and, like many such facilities, relies heavily on volunteers to care for the children.

“I’m like that girl in the grocery store who will offer to hold your baby,” she said. “I have a soft spot for babies and moms and helping those people who are experiencing hard times.”

When she first arrived in Grand Junction, Stover called around to several nonprofit organizations and was surprised to learn there wasn’t a crisis nursery in town.

She said local advocates told her, “We don’t have anything like this … but we need it.”

Child abuse cases — and hotline calls about suspected child abuse — have steadily risen over the last few years in Mesa County. The western Colorado county also faces numerous other challenges: higher than average rates of child poverty, foster care placement, and teen pregnancy.

The community’s transience also means that parents of young children often arrive without a circle of family and friends to help out in a pinch, said Rickerd Mills, a member of the crisis nursery’s board.

That can mean parents leave their kids in the care of people they don’t know well or enlist older siblings to watch them.

In addition to providing licensed overnight care for young children, crisis nurseries have case managers who work to connect parents with community resources and get them back on their feet.

While there are a host of typical housing, job, and medical problems that prompt parents to use crisis nurseries, parents with a child care problem outside the usual list won’t be turned away at the Grand Valley center, Stover said.

“We let families define the crisis,” she said, adding that parents using the center would be required to check in with case managers regularly.

Over the past six months, Stover has steadily made progress on the nursery — holding a community town hall, recruiting board members, and finding a local nonprofit to serve as the nursery’s fiscal sponsor. She’s currently in the process of finding a location for the nine- to 12-bed center and will soon begin fundraising.

Stover expects the first-year costs to be around $455,000 if the group purchases a building, with operations costing $150,000 in subsequent years. About 80 percent of the nursery’s funding will come from individual and corporate donations and 20 percent from grants, she said.

In what might be the nursery project’s biggest victory so far, Stover got a preliminary nod in February from the state’s child care licensing advisory committee, which agreed to consider giving the crisis nursery a waiver from state licensing rules.

If the waiver is granted, it could set the stage for a new kind of child care license in Colorado — a cross between a typical child care center license, which doesn’t allow 24-hour care, and a residential child care facility license, which allows 24-hour care but doesn’t permit care for children under 3 years old.

“Having a new license type is kind of nightmare, but it changes the whole state if we can make it happen,” Stover said.

Ebony White Douglas, program manager at the 22-year-old Sacramento Crisis Nursery, praised Stover’s persistence in pursuing the project. She said she routinely consults with people in other states interested in launching crisis nurseries and has seen many such projects sidelined because of complex licensing logistics or daunting fund-raising requirements.

Rickerd Mills said she was heartened to hear about the positive reception from the state’s licensing advisory committee.

“I think it just goes to show the need in this community and the state,” she said.