Where Costs Originate
La Luz ECC is committed to the highest level of
childcare. First and
foremost in our plan is a low ratio of children to staff. These low
ratios are the driving factor in the resultant tuition costs for children to
attend the center. We recognize that competitive wages and
benefits are critical to quality in that it helps to retain
staff. With low ratios and competitive compensation as two of the most
important elements of quality, it follows that payroll costs are the
largest single expense in the operation. The following pie chart shows the
actual break down of costs for La Luz ECC in the preliminary planning budgets.
The cost of payroll accounts for seventy-five percent of the operating costs of
the center, and totals over $700,000 annually to serve 94 children in a quality
setting. The second most significant cost is rent. All other costs are
categorized as fixed and variable. Fixed costs include items such as
janitorial services, insurance, professional services, professional development
and others. Variable costs are items such as kitchen expense, classroom
supplies, substitute teacher wages and others.