Case Study Undergraduate 954 words

Daycare Budget Planning: Balancing the Northville FY 2012–13

~5 min read 5 sections Government · Public Budgeting

Abstract

This paper develops and analyzes a monthly operating budget for the proposed Northville City employee daycare center for fiscal year 2012–13. Beginning with a scenario in which a mid-western city's workforce survey identifies affordable childcare as a key concern, the paper constructs a baseline budget (Appendix 1) that reveals a $164,992 annual deficit across all twelve months. It then proposes three corrective measures: adjusting the child-to-caregiver ratio to a realistic 8:1, increasing the union contribution rate from $1.00 to $1.50 per day, and raising the monthly per-child fee from $200 to $240. The revised budget (Appendix 2) converts the deficit into a $59,498 annual surplus, demonstrating a path to long-term financial sustainability for the program.

Key Takeaways

Scenario and Background: City workforce survey motivates daycare proposal
Overview of the FY 2012–13 Monthly Budget: Baseline budget shows $164,992 annual deficit
Methods for Balancing the Budget: Three adjustments increase revenue and close gap
Revised Budget Results and Summary: Revised budget yields $59,498 annual surplus
Conclusion: Sustainability achieved through revenue adjustments

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What makes this paper effective

The paper grounds its analysis in a realistic public-sector scenario, connecting workforce survey data to a concrete policy decision, which gives the budget calculations practical context.
It clearly distinguishes between the initial deficit budget and the revised balanced budget, making the impact of each adjustment easy to trace.
The summary comparison table provides a concise, at-a-glance view of how the three changes collectively transform a $164,992 deficit into a $59,498 surplus.

Key academic technique demonstrated

The paper demonstrates incremental budget adjustment, a standard public-administration technique in which individual revenue and expenditure variables are modified one at a time so that the contribution of each change can be isolated and justified. The child-to-caregiver ratio correction is particularly well-handled: the author explains why the original ratio (5.84:1) is operationally unrealistic before rounding it to the policy-compliant 8:1 standard.

Structure breakdown

The paper follows a problem–analysis–solution structure. It opens with the scenario and policy context, presents the original deficit budget with line-item detail, proposes and explains three balancing strategies, and closes with a summary table that compares key totals before and after the changes. Two detailed appendices (monthly budget spreadsheets) support every numerical claim made in the narrative.

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Essay 954 words

Scenario and Background

Northville, located in the mid-western United States, has experienced a significant change in the composition of its workforce. The city currently employs 1,800 workers, of whom 35% are female. Based on findings from a recent employee survey, over 40% of employees agreed that "affordable daycare for children is important for them" (Hallway, 2000, p. 1). These results led the Director of the Office of Personnel to conclude that the lack of affordable daycare in the city is a major cause of lateness and absenteeism among city employees.

Mayor Spark supports the new initiative but is unwilling to incur additional expenses from the city government's already strained budget. With the Mayor's approval to provide "space and utilities for a year at no cost," the next step is to prepare a budget for the daycare center in order to determine its profitability (Hallway, 2000, p. 1). The objective of this paper is to prepare a balanced budget for the daycare and to determine the total surplus or deficit for each month.

4 Sections Hidden · 570 words

Overview of the FY 2012–13 Monthly Budget230 words

The plan to provide a childcare center for Northville city employees is ambitious and worthwhile; however, before proceeding with implementation it is important to assess whether the program can achieve long-term sustainability. The data in Appendix 1 show that total monthly expenditures exceed…

Methods for Balancing the Budget200 words

One method used to balance the budget is to recalculate the revenue from child enrollment fees based on a corrected child-to-caregiver ratio of 8:1, as shown in Appendix 2. The ratio is adjusted by dividing the number of enrolled children…

Revised Budget Results and Summary80 words

Changes to the child-to-caregiver ratio, the union contribution rate, and the monthly per-child fee together transform the program's financial outlook. The revised total yearly revenue rises to $898,950 against total expenditures…

Conclusion60 words

The proposed Northville daycare center can achieve long-term financial sustainability through targeted revenue adjustments. By correcting the child-to-caregiver ratio to the realistic standard of 8:1,…

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References

Hallway (2000). Daycare comes to Northville. Evans School of Public Affairs. USA.

Appendix 1: Northville Day Care Center FY 2012–13 Budget (U.S. $)

Revenue

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Yearly Total
# of Employees	20	22	25	27	30	32	33	35	37	39	41	43
# of Children													2,270
Fees/Child	24,000	26,400	29,200	32,200	35,600	37,400	39,400	41,400	43,600	45,800	48,200	50,800	454,000
Union Contribution ($1.00/day)	1,680	1,848	2,044	2,254	2,492	2,618	2,758	2,898	3,052	3,206	3,374	3,556	31,780
Start-Up Grant	7,500	7,500	7,500	7,500	7,500	7,500	7,500	7,500	7,500	7,500	7,500	7,500	90,000
Facility Subsidy	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	24,000
Total Revenue	35,180	37,748	40,744	43,954	47,592	49,518	51,658	53,798	56,152	58,506	61,074	63,856	599,780

Expenditures — Salary

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Yearly Total
Director	(600)	(600)	(600)	(600)	(600)	(600)	(600)	(600)	(600)	(600)	(600)	(600)	(7,200)
Admin/Secretary	(325)	(325)	(325)	(325)	(325)	(325)	(325)	(325)	(325)	(325)	(325)	(325)	(3,900)
FT Daycare	(20,800)	(22,880)	(26,000)	(28,080)	(31,200)	(33,280)	(34,320)	(36,400)	(38,480)	(40,560)	(42,640)	(44,720)	(399,360)
Sub-total	(21,725)	(23,805)	(26,925)	(29,005)	(32,125)	(34,205)	(35,245)	(37,325)	(39,405)	(41,485)	(43,565)	(45,645)	(410,460)

Expenditures — Benefits

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Yearly Total
Social Security	(1,553)	(1,702)	(1,925)	(2,074)	(2,297)	(2,446)	(2,520)	(2,669)	(2,817)	(2,966)	(3,115)	(3,264)	(29,348)
Unemployment/Disability	(1,738)	(1,904)	(2,154)	(2,320)	(2,570)	(2,736)	(2,820)	(2,986)	(3,152)	(3,319)	(3,485)	(3,652)	(32,837)
Health Insurance	(1,230)	(1,350)	(1,530)	(1,650)	(1,830)	(1,950)	(2,010)	(2,130)	(2,250)	(2,370)	(2,490)	(2,610)	(23,400)
Pension	(1,304)	(1,428)	(1,616)	(1,740)	(1,928)	(2,052)	(2,115)	(2,240)	(2,364)	(2,489)	(2,614)	(2,739)	(24,628)
Sub-total	(5,825)	(6,385)	(7,225)	(7,785)	(8,624)	(9,184)	(9,464)	(10,024)	(10,584)	(11,144)	(11,704)	(12,264)	(110,212)
Total Personnel	(27,550)	(30,190)	(34,150)	(36,790)	(40,749)	(43,389)	(44,709)	(47,349)	(49,989)	(52,629)	(55,269)	(57,909)	(520,672)

Expenditures — Operations

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Yearly Total
Food	(7,200)	(7,920)	(8,760)	(9,660)	(10,680)	(11,220)	(11,820)	(12,420)	(13,080)	(13,740)	(14,460)	(15,240)	(136,200)
Supplies	(3,600)	(3,960)	(4,380)	(4,830)	(5,340)	(5,610)	(5,910)	(6,210)	(6,540)	(6,870)	(7,230)	(7,620)	(68,100)
Capital Equipment	(600)	(700)	(750)	(850)	(450)	(500)	(500)	(550)	(550)	(600)	(650)	—	(6,700)
Employee Training	(4,000)	(400)	(600)	(400)	(600)	(400)	(200)	(400)	(400)	(400)	(400)	(400)	(8,600)
Facility Rental	(2,000)	(2,000)	(2,000)	(2,000)	(2,000)	(2,000)	(2,000)	(2,000)	(2,000)	(2,000)	(2,000)	(2,000)	(24,000)
Annual Inspection	(42)	(42)	(42)	(42)	(42)	(42)	(42)	(42)	(42)	(42)	(42)	(42)	(500)
Sub-total	(16,842)	(14,922)	(16,482)	(17,682)	(19,512)	(19,722)	(20,472)	(21,572)	(22,612)	(23,602)	(24,732)	(25,952)	(244,100)
Total Expenditures	(44,392)	(45,111)	(50,631)	(54,471)	(60,261)	(63,111)	(65,181)	(68,921)	(72,601)	(76,231)	(80,001)	(83,861)	(764,772)
Monthly Gap	(9,212)	(7,363)	(9,887)	(10,517)	(12,669)	(13,593)	(13,523)	(15,123)	(16,449)	(17,725)	(18,927)	(20,005)	(164,992)

Appendix 2: Northville Day Care Center FY 2012–13 Balanced Budget (U.S. $)