Budgeting is the central means of creating the road map for a program year and

implementing program goals and objectives.

It is the financial part of good planning for any organization and should be done
annually with goal setting and objective planning sessions.
Thoughtful planning, including setting goals, objectives, and budget parameters,
is essential to effectively and efficiently managing Early Childhood programs.

The coordinator is responsible for developing a budget that is fiscally

responsible, supports the program philosophy, and aligns community needs with the
use of resources. This means that the coordinator should be actively involved in the
development of the program budget.
To be effective in this area, the coordinator must be knowledgeable about the
budgeting process, i.e., the district, state and federal guidelines and statutes for
budgeting, spending, and reporting.
Working closely with school district or organization finance personnel helps
assure compliance with both local district procedures and state and/or federal statutes.
Budgeting is a straightforward process that uses basic mathematics.
All coordinators can develop the skills needed to create and manage an effective
program budget.

Development Of The Budget In Preschool Programs

Developing a budget is an essential aspect of managing a preschool program and
involves careful planning and consideration of all expenses and sources of income.
Here are some key steps in the development of a budget for a preschool program:

1. Identify expenses: Make a list of all expenses associated with operating the
preschool program, including salaries, rent, utilities, supplies, insurance, and
professional development.

2. Estimate expenses: Estimate the costs of each expense item based on past
experience, research, and market rates. It's important to be realistic and
conservative in estimating expenses.

3. Identify income sources: Identify all potential sources of income, including

tuition fees, government subsidies, grants, donations, and fundraising.

4. Estimate income: Estimate the income from each source based on past
experience and projections for the coming year. It's important to be realistic and
conservative in estimating income as well.

5. Calculate the net income: Subtract the total expenses from the total income to
determine the net income. This will give you a sense of the financial health of the
preschool program.

6. Revise the budget: If the net income is negative, or if there are significant
discrepancies between estimated and actual expenses or income, revise the
budget accordingly. Look for ways to reduce expenses or increase income
without compromising the quality of the program.

7. Monitor the budget: Once the budget is finalized, it's important to monitor it
regularly to ensure that actual expenses and income are in line with the budgeted
amounts. Adjust the budget as necessary throughout the year to ensure the
financial health of the program.
Expenses in Preschool Programs
Expenses in preschool programs can vary depending on the size of the program, the
location, the type of program, and other factors. Here are some common expenses
associated with operating a preschool program:

1. Salaries and Benefits: The largest expense for most preschool programs is staff
salaries and benefits, including teachers, assistants, administrative staff, and
others. Salaries may vary depending on qualifications, experience, and location.

2. Facility Costs: Rent, utilities, repairs, and maintenance of the facility are
significant expenses for preschool programs. The cost of rent may vary
depending on the location and size of the facility.

3. Materials and Supplies: Preschool programs require a variety of instructional

materials, art supplies, and other materials needed for daily operations. These
can include books, toys, play equipment, cleaning supplies, and snacks.

4. Insurance and Liability: Preschool programs need to carry insurance and

liability coverage to protect against potential claims or accidents. This can include
property insurance, liability insurance, and workers' compensation insurance.

5. Professional Development: Providing staff training and professional

development opportunities is an important expense for preschool programs.
These may include workshops, conferences, and ongoing training in early
childhood education.

6. Administrative Costs: Preschool programs need to cover administrative costs

such as accounting, payroll, and other office expenses.

7. Marketing and Outreach: Preschool programs may need to spend money on

marketing and outreach efforts to attract new families and students. This can
include website development, brochures, and advertising.

8. Transportation: Some preschool programs offer transportation services for

students, which can be an additional expense.

9. Extracurricular Activities: Preschool programs may offer extracurricular

activities such as music, art, or sports programs, which can incur additional
expenses for equipment, instructors, and supplies.

Overall, managing expenses is critical for the financial sustainability of preschool

programs while ensuring high-quality early childhood education.
Income in Preschool Programs
Preschool programs can generate income from a variety of sources. Here are some
common sources of income for preschool programs:

1. Tuition Fees: The most common source of income for preschool programs is
tuition fees paid by parents or guardians. The tuition fee may vary depending on
the location, size, and type of program.

2. Government Subsidies: Preschool programs may be eligible for government

subsidies, which can provide funding to cover a portion of the program's
expenses. Eligibility for subsidies may depend on factors such as income level,
family size, and other criteria.

3. Grants: Preschool programs may apply for grants from foundations,

corporations, or government agencies. Grants can provide funding for specific
programs or projects, such as improving facilities or expanding the curriculum.

4. Donations: Preschool programs may receive donations from individuals,

businesses, or community organizations. Donations can provide funding for
specific needs such as classroom supplies, technology, or playground
equipment.

5. Fundraising: Preschool programs may engage in fundraising activities such as

selling products or organizing events. Fundraising can provide additional income
to cover expenses or to support specific programs or projects.

6. Corporate Sponsorship: Preschool programs may seek corporate sponsorships

from local businesses or organizations. Corporate sponsorships can provide
funding for specific needs or events and can help to build relationships with the
local community.

Overall, managing income is critical for the financial sustainability of preschool

programs while ensuring high-quality early childhood education. Preschool programs
may need to diversify their sources of income to ensure stability and to provide the best
possible learning experience for young children.