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Children’s World – For Profit or Loss Leader?

Date posted - November 27, 2012

Can anyone explain to me the role of the city/county/state and Children’s World? It seems that they operate like a privately funded business but yet have some sharing with the Sheldon school district? How are these entities tied together and how has Children’s World ended up in the red? I understand that there are government mandates and upgrades that are required and that those cost money…but when they are the highest charging and highest volume childcare center in town, why is there a gap? I am NOT in anyway saying that Children’s World is a poor facility, I am just confused as to its operating structure….


Confused and late to the party

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36 Responses to “Children’s World – For Profit or Loss Leader?”

  1. mama says:

    Excellent question, I was wondering the same thing.

  2. MomOf2 says:

    Children’s World is a not-for-profit center. They are a 4 star QRS quality rated center. They receive no funding from the school district or other sources at this time.

    • teacher says:

      Their preschool program is funded by the state, as are the preschools at St. Pat’s and Noah’s Ark, so there should be no financial problems with that part of their center.

      If the city is going to help them, then it should only be fair that they help the other child care givers and preschools in the community.

    • Mama Bear says:

      Department of Human Services has them currently listed QRS star 3 not 4.

  3. Aaron says:

    I agree that if the City gives money to Children’s World, the City should pay out to the other daycares in Sheldon too. BUT, I would require that if a daycare is subsidized by the City, they have to be held to the same high standard Children’s World is. Children’s World is held to a very high standard by the State (i.e. children to adult ratios, fire marshal inspections, etc) that most of the other smaller or in-home daycares are not. This causes Children’s World to be more expensive and an in-home daycare to be more profitable.
    If you look at Orange City and Sioux Center (heck, even Sanborn!) their not-for-profit daycares are subsidized by some public entity, whether it is the hospital, the City, municipal utilities or any combination of those.
    We talk about what would allow Sheldon to move forward? Safe, reliable, and affordable child care is a major ingredient. What do I mean by that?
    Safe – the fire marshal and the state inspections, the child to adult ratios that are maintained (they can’t have 15 kids with one adult like an in-home daycare)
    Reliable – I have employees that call me and say “my daycare provider is sick today so I can’t come in to work” what?!? Childrens World doesn’t get sick or take vacations.
    Affordable – I do agree that $3/hr is too much for most parents to pay for daycare. If you dropped off your child at daycare at 7.30am and picked them up at 5.30 and worked year-round, daycare would cost over $7,500 a year per child!

    I think it is worth subsidizing any daycare in Sheldon that maintains high standards for their staff and their building. I’d recommend the City donate $400 per “full-time” child per year to any daycare in Sheldon willing to put up the extra money to be safe and reliable as determined and qualified by the State.

    Thanks for reading!

  4. Sandy says:

    Aaron— you are right on—some home providers get tired of the wear and tear on their homes and even some do not meet standards. They do not have to meet the standards that Children’s World need to meet.
    Sheldon’s logo is Where families come first!!! Stand up to the logo and help this entity. Children are the future leaders.
    In the beginning your community leaders seen the need for the center—now it is time for the present leaders to step up to the plate.

    • Mama Bear says:

      If a home provider is state registered and QRS registered they have to abide by the same rules and regulations a center does;only tailored to homes.

  5. April says:

    As Children’s World is a not-for-profit center and is held to a high degree of regulation beyond in-home daycares, there is a large difference between the largest daycare center in Northwest Iowa and the other community in-home daycares and preschools. I think it would be beneficial for the Children’s World board to hold a public meeting with press present so they can explain how the center is funded, the costs including overhead of the facility and the demands placed upon the center by the state. It would be a huge eyeopener to the public who believe they are funded by the state and the school. As for the preschool, funding is provided for the students so they can attend FREE but the center does not receive reimbursement for space rental, utilities and maintenance. It seems to me the parents receive the benefits of the preschool with highly qualified and educated teachers at no price to them but significant cost to the center. The public needs to be educated before passing judement!

    • citizen says:

      You are correct about state funding not covering all expenses but how are the other state funded preschools making their ends meet? Children’s World has a banker on their board….hmmmmm….Maybe preschool parents could be asked to supply some of the things that state funds won’t cover.

  6. sheldonite says:

    funny how in nw iowa everybody wants to claim republican (small government) but still expects hand outs! already they get money from the state to provide daycare for low income parents. it has to stop no more free money. that is my tax money because people can’t raise their own kids, not right! if they can’t stay in the black close the doors. see what happens to the rates in town. a small raise now will not look bad after that.

    • Aaron says:

      Everyone in NW Iowa wants smaller Federal and State Government. I don’t think I’ve heard NW Iowans complaining about the size of the local government.
      This discussion is about what we want our local government to do, not what I expect Obama to do for me.

      We need childcare in Sheldon just like we need a pool. Why should I pay property taxes that go towards a pool when I don’t have children that use it? What a crock, right? The answer – The pool allows Sheldon to attract families to move here.
      A good, high quality, safe and affordable daycare does the same thing.

  7. Jeff says:

    Bottom Line here folks JOBS. JOBS being paid well. Mow your yard or hire it for $20 / cut. Don’t complain when Joe plumber charges a service fee of X. Your hair cut just went by $5.00. Quality JOBS in town that pay decent and people will come – which boils down to city leaders or whoever that might be. Does CWorld need to raise rates? OR can they increase volume minus the room taken from preschool? But lets take it a step further – isn’t East elem. school looking at adding on or re-configuration of the building? Lets get them involved in this equation. But I do beleive CWorld is a great asset for this town.

  8. Red says:

    Think of it this way. Minimum wage is $7.25 an hour. Children’s world is charging $3.00 an hour per child. I am thinking there is some sort of break for families with multiple children. Still is it worth it to go to work at minimum wage to pay 15% in taxes and $3.00 an hour in child care? That $7.25 an hour ends up being $3.16 an hour cleared. Housing is supposed to cost 30% of you income, which would be $2.17 an hour. After all is said and done. that $7.25 leaves a person with .99 an hour to cover transportation, groceries, etc… Hmmm Childcare is 41% of the minimum wage earner’s income.

    • April says:

      The raise in minimum wage was the onset of $3/hr daycare rates. Prior to the raise in minimum wage, rates at the center had remained steady at 1.50-1.75/hr but when the wage of most its workers jumped $2/hr so did the center’s rates. They provide a service so its major expense is payroll.

      • dg says:

        They were making a profit before the mandated increase in minimum wage,just less when they had to pay their workers more,not saying the center is not providing a outstanding service to parents.Just like in the service when you live off base an use your housing allowance,the landlord knows when you get your raise an raises your rent to that increase,bottom line is the business man will alway make a profit.

    • Lee Ann says:

      A lot of young families don’t make a high income, and they may have two or even three children, and I am sure they get some kind of payment to C.World for their care. The alternative is welfare, and we all know we don’t want that. I support money appropriated for childcare assistance for young families, so that the parents are able to get out and work.

  9. April says:

    It is important to realize the value and necessity a daycare center with a capacity of 250 children provides to Sheldon, the surrounding areas and its employers. If Children World were to close, there is not enough places for those children to go. In-home daycares are full beyond their capacity. Employees would be absent from work which affects the employers which in turn will affect the economy as a whole. Children World also employs more people than a majority of the businesses within this community so employment would be affected.

    On another note, many of the communities in this area subsidize their community daycares such as Sanborn, Hartley, Sioux Center and Orange City to name a few. Why do we, as Sheldon taxpayers, think we are exempt from this level of support? Children are the future of this community and the nation for that matter. Another way to help Children’s World is to volunteer rather it be in the center or with the upkeep of the center. A few extra dynamic individuals can make all the difference in managing the bottom line.

  10. dg says:

    Just curious,who owns childrens world?

    • Aaron says:

      May have to copy and paste in your browser to make it work

      • dg says:

        Thanks Aaron for info,when 1 plus 1 don’t equal 2, something seems wrong to me, so hopefully i can generate alittle more excitment into a subject. the plain truth is sheldon could be a fantastic place to live an work but they can’t get over the hump or they can’t let go of the old money,left 20 plus yrs ago to do the serve the county bit an came back an nothing has change.

  11. Mad Guy says:

    I say let Children’s World come up with their own money. Don’t raise my taxes to pay for your bad money management. If you need more money, charge the parents of the kids that go there or hold some fundraisers where people who want to help out Children’s World can do so, but don’t force people who get no benefit from Children’s World to pay for your shortfalls. If you still can’t afford to stay open, close your doors.

    • Aaron says:

      Mad Guy, that’s the same way I feel about the pool. I say charge kids $25 per day to swim there to balance the books at the pool. Don’t force people who get no benefit from the City Pool to pay for the pool’s shortfalls. If you can’t afford to run the city pool off of day passes, close your doors.

      Children’s Word remaining affordable helps us all by allowing families to move here and work and become a meaningful part of society. They can have a nice property and pay more in property taxes.

    • lets grow our community says:

      Mad Guy and others who are outraged by the thought of keeping our community alive and living up to our city’s brand promise of “Where families come first”:

      I do not utlize this facility and yet I can see beyond my own selfishness that communities remain vital only if we, as a community, continue to work to develop and grow it. This large center has a capacity beyond what in-home daycares could even absorb if it closes. In addition, how can you ASSUME it is bad money management that has caused the budget deficit? Have you ever been an active board member on a not-for-profit board? It is not as easy as my small personal budget. There are many variables that affect the budget. Have you ever tried to fundraise for an organization? People don’t give money for the general fund-they give money when there is a designated project! Instead of being mad, start to volunteer and make a difference in growing our community!!

      • Knowledge Is Power says:

        I think it would be a smart play if a member of the board were to utilize this thread to explain to the masses EXACTLY why they are in the red??

        I think we understand the need, let us understand the why…and more importantly…how we can help

        • Aaron says:

          I’m not a board member, but I’m sure it isn’t too tricky to figure out why they are in the red. I’m going out on a limb here and guessing they have more expenditures than receipts.
          A couple things that could cause that to happen are – Increased costs due to more required building maintenance, State mandated equipment replacement, employee pay and benefit increases, increased cost of utilities, property and liability insurance increases, bad debts…
          All these come and go through the years and this year could have been really bad for the daycare.

    • CW Mom says:

      Mad Guy, you apparently know nothing about Children’s World otherwise you would know how hard they work on Fundraisers and the fact that this is not due to bad money management!

      • 2boymom says:

        I agree!! My kids go to Children’s World and it means the world to me that they have the guidelines they do. I always feel like my kids are well taken care of when I drop them off and am willing to pay extra for that piece of mind. Each age group has their own room with educational activities throughout the day even for those not preschool age. Does anyone have any idea about the abuse some of these workers take from the children attending daycare. Some of the workers have had scissors, chairs etc thrown at them from unruly children. I have seen the discipline at CW and they are remarkable!!! How would an in home daycare worker handle these situations? The child care workers don’t get paid enough for taking care of our children!! It takes a special person to care for other people’s children all day and I cannot tell you how much I appreciate them. To those people who say CW does not benefit them. Well, they are helping to mold future adults that will someday benefit Sheldon. They are more than just a daycare!!!!

  12. Jeff says:

    I don’t utilitze CWORLD either. My children are grown. But to say it doesn’t benefit you, or the pool benefit you, you, I and the next person must look beyond ourselves, look at the greater good here folks. Sheldon has this notion, which is speaking volumes on this board, that if this deal isn’t good for me, then I want no part of it, I don’t want my tax money going to it and thats that. We need to put that attitude behind us. Maybe some day your children, grandchildren may need CWORLD or use the pool. It takes a collective effort on everyone’s part to make a community.

    Now why CWORLD can’t make it, I am not sure. Maybe someone should speak up on this issue. Are there books a closed deal or can the public view them? The school system publishes there records, why not CWORLD?

    • Aaron says:

      My comments about the pool were sarcastic in nature. My point is that the entire town can rally around a new pool even though 70% of the town will never use it. But there seems to be difficulty getting the town to rally around a need like quality, affordable childcare.

  13. Sue says:

    Does the school pay rent to use cworld for the pre-school rooms and transitional kindergarten room? If not, why?
    Does the school help pay utilities and expenses to run those classrooms?
    The state funded preschool grant supplies a large amount of money in order for those programs to run independently. Cworld should be receiving money for those things!

  14. mama says:

    I understand the need to help Childrens World with thier financial problems, but I think after this year they need to take a long hard look at how they are loosing money and what they can do to change it. I don’t think you should run a business hoping for a large amount of donations at the end of the year either. Also, how long do they allow children to come to daycare if thier parents can’t pay thier bills? They might need to change their policies on that as well. Everyone needs to be accountable for their bills. The city can’t step in everytime a business if having financial problems.

  15. Grandma says:

    Children’s World is a positive non profit buisness in Sheldon. I love how they greet my grandchild in the morning by name and are happy to see her. I love it that there are 2 adults in the 3’s room and they have different activities every 20 minutes that are planned. I love how the caregivers are thoughtful and loving to my little one and how routine helps her to know what is going on and that makes her feel secure. I use to be like “Mad Guy” and thought my tax dollars should only benefit me, myself, and I, but as I see all these parents dropping off their children, I feel a sense of relief that there is a place to go that is not only accountable to parents, but is accountable and follows guildlines of the state. That is what community is about. That’s why Sheldon has parks, swimming pools, librarys, police, maintenance workers, rec activities, and Celebration Days.

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