Cost Modeling 101: Getting Real About the True Costs of Programs for Children and Youth Children’s Funding Project has combined our deep knowledge of cost modeling and our passion for building capacity to create our course Cost Modeling 101: Getting Real About the True Costs of Programs for Children and Youth. It’s designed to support your learning, regardless of your technical expertise.Our 12 course lessons teach our comprehensive approach to cost modeling—from shaping your initial goal to building your final cost model. We cover different types of cost models; explain why cities, states, and communities invest in cost models; describe who participates in creating a cost model; and detail how to build the cost model tool. Each lesson provides a step-by-step overview of each part of the cost modeling process, prompts users to reflect on key equity questions, guides you through decisions, and allows you to practice your skills.Throughout the course, you’ll apply new skills to your real-life goals. At the end of the course, you’ll have a dynamic, user-friendly Excel workbook that synthesizes different data sources into a comprehensive tool, allowing you to ask questions and explore answers to different scenarios related to your desired program or service. Filed under:Infants and Toddlers, Early Childhood, Middle Childhood, Youth, Young Adults, Advocates/Intermediaries, Leaders of Native Nations, Policymakers/Agency Leaders, Course, Cost Estimation and Modeling Course Lessons Lesson 1: Introduction and Overview of Cost Modeling Lesson Content 1.1 Background and Motivation for the Cost Modeling 101 Course1.2 What Is a Cost Model?1.3 Overview of Input Data in Cost Modeling1.4 Who Develops a Cost Model1.5 Overview of Cost Modeling as a Component of Strategic Public Financing 1.6 Why Should States and Communities Invest in Cost Models?1.7 Strengths and Limitations of Cost Modeling1.8 Roadmap to Cost Modeling1.9 Equity Check1.10 Decision Points: Is Cost Modeling the Right Tool?1.11 Key Takeaways1.12. Going Deeper: Learn More About Cost Modeling Learning ObjectivesAt the end of this lesson, you will be able to do the following: Differentiate between market costs and true costs for programs and services. Describe the difference between a cost estimation, cost study, and a cost model. Describe the different people and groups who participate in creating cost models. Define strategic public financing and identify how cost modeling fits into it. Identify at least two reasons why states and communities invest in cost models. Start the Lesson Lesson 2: Children’s Funding Project’s Approach to Cost Modeling Lesson Content2.1 About Children’s Funding Project2.2 Children’s Funding Project Point of View 2.3 Key Takeaways2.4 Going Deeper: Learn More About Children’s Funding ProjectLearning Objectives At the end of this lesson, you will be able to do the following:Understand Children’s Funding Project’s vision, mission, and approach to strategic public financing.Recognize Children’s Funding Project’s unique approach to cost modeling.Start the Lesson Lesson 3: Prioritizing Equity in Cost Modeling Lesson Content3.1 Defining Equity3.2 Equity as a Process3.3 Equity as an Outcome3.4 Building Self-Awareness and Skills to Support Your Commitment to Equity3.5 Decision Point: How Will You Prioritize Equity in Your Cost Model?3.6 Key Takeaways3.7 Going Deeper: Learn More About Equity3.8 EndnotesLearning ObjectivesAt the end of this lesson, you will be able to do the following:Explain how cost modeling can address inequity and promote equitable outcomes for children and youth.Describe strategies for cost modeling that promote equity as a process.Explain the importance of strength- and assets-based approaches, flexibility, and transparency to equitable cost modeling.Build self-awareness of implicit and explicit biases, surface cultural assumptions, and develop strategies to counter these biases while cost modeling.Start the Lesson Lesson 4: Choosing a Cost Model Lesson Content4.1 Start with Your Goal: What Are You Trying to Solve?4.2 Understanding the Different Types of Cost Models4.3 Engaging the Right People: Who Participates in the Cost Model Process?4.4 Different Ways to Engage Key Groups and Community Members4.5 Equity Check4.6 Decision Point: Which Type of Cost Model Aligns with Your Goals?4.7 Key Takeaways4.8 Going Deeper: Learn More About Different Types of Cost ModelsLearning ObjectivesAt the end of this lesson, you will be able to do the following:Identify the different cost model types and their applications.Describe the different contributing groups who typically participate in the cost model process.Understand different types of community engagement and examples of equitable participation in the cost model process.Contact Us for Access Lesson 5: Defining Your Cost Model Parameters and Cost Drivers Lesson Content5.1 Determining Parameters for Your Cost Model5.2 What Is a Cost Driver?5.3 The Ingredients Method5.4 Overview of Personnel Costs5.5 Overview of Nonpersonnel Costs5.6 Consideration of Special Populations5.7 Revenue Sources 5.8 Equity Check5.9 Decision Point: Which Parameters Will You Include in Your Cost Model?5.10 Key Takeaways5.11 Going Deeper: Learn More About Cost Drivers and ParametersLearning ObjectivesAt the end of this lesson, you will be able to do the following:Explain the important role that key cost drivers play in accurate cost modeling.Define parameters and cost drivers for cost modeling.Determine which parameters to include in a cost model using personnel costs, nonpersonnel costs, and costs related to special populations.Identify the various revenue sources included in cost models.Contact Us for Access Lesson 6: Aligning Input Data with Parameters in Your Cost Model Lesson Content6.1 Input Data in Cost Modeling6.2 Factors That Influence Input Data in Cost Modeling6.3 Common Input Data in Cost Models6.4 Example from the Field6.5 Equity Check6.6 Decision Point: What Input Data Will You Include in Your Cost Model?6.7 Key Takeaways6.8 Going Deeper: Learn More About Data Input in Cost ModelsLearning ObjectivesAt the end of this lesson, you will be able to do the following:Define what input data is in cost modeling and understand the difference between determined data and estimated data.Identify two or three factors that influence the accuracy and reliability of input data in cost modeling.Describe four or five common types of input data used in cost models.Understand how to engage key groups to check the accuracy and validity of input data used in cost models.Start the Lesson Lesson 7: Accessing and Collecting Your Cost Model Data Lesson Content7.1 Knowing Where to Look for the Data You Need7.2 Negotiating Access to Data7.3 The Data Collection Process7.4 Designing Surveys for Cost Modeling7.5 Designing Interview Protocols for Cost Modeling7.6 Public Community Meetings for Cost Modeling7.7 How to Handle Missing or Unavailable Data7.8 Equity Check7.9 Decision Point: What Data Do You Need to Collect and How Will You Access It? 7.10 Key Takeaways7.11 Going Deeper: Learn More About Accessing and Collecting Data for Cost ModelingLearning ObjectivesAt the end of this lesson, you will be able to do the following:Find websites and databases commonly used to find existing data for cost models.Understand the importance of creating a data sharing agreement and knowing where to find templates for these legal documents.Describe the steps in the data collection process for cost modeling.Understand how to design a survey or interview/focus group protocol for cost modeling data collection.Identify one or more strategies to use if/when there is missing or unavailable data.Contact Us for Access Lesson 8: Cleaning Your Data Lesson Content8.1 Create Your Data Workbook8.2 Prepare to Clean Your Data8.3 Check That Data Accurately Reflects Licensing Standards8.4 Clean Your Data: Remove and Correct Errors and Inconsistencies8.5 Clean Your Data: Remove Outliers8.6 Pull Data into an Aggregate Data Worksheet8.7 Compute Summary Statistics8.8 Equity Check8.9 Decision Point: How Will You Create and Use a Reliable Data Workbook?8.10 Key Takeaways8.11 Going Deeper: Learn More About Cleaning Data in Cost ModelingLearning ObjectivesAt the end of this lesson, you will be able to do the following:Create a Data Workbook that includes all the cost model data for use in a Cost Model Workbook.Check your data to ensure it accurately reflects local/state licensing standards.Remove and correct errors and inconsistencies in your data.Remove outliers in your data.Pull your data into an Aggregate Data worksheet tab within your Data Workbook.Compute summary statistics with your clean data grouped according to different parameters.Contact Us for Access Lesson 9: Building Your Cost Model Lesson Content9.1 Time to “Bake the Cake”: Building Your Cost Model9.2 Color Coding9.3 Creating a Cost Model Index9.4 Setting Up Your Tabs, Headers, and Core Inputs9.5 Adding Formulas to Your Cost Model9.6 The Power of a Cost Model9.7 Common Challenges Encountered When Building Cost Models9.8 Equity Check9.9 Decision Point: What Data Do You Need to Build Your Cost Model?9.10 Key Takeaways9.11 Going Deeper: Learn More About Building Your Cost ModelLearning ObjectivesAt the end of this lesson, you will be able to do the following:Build a cost model, which includes formatting your cost model spreadsheets and setting up a Cost Model Index.Use common Excel formulas for cost model analyses.Apply different program and service delivery scenarios to a cost model.Describe common challenges in cost modeling and their solutions.Contact Us for Access Lesson 10: Maintaining and Sustaining Your Cost Model Lesson Content10.1 Why Is It Important to Update Your Cost Model?10.2 Who Is Responsible for Updating a Cost Model?10.3 The Importance of Building Relationships and Coalitions for Sustainability10.4 Timeline and Frequency of Updates to Your Cost Model10.5 Data That Requires Updating10.6 Equity Check10.7 Decision Point: How Will You Maintain and Sustain Your Cost Model?10.8 Key Takeaways10.9 Going Deeper: Learn More About Maintaining and Sustaining Your Cost ModelLearning ObjectivesAt the end of this lesson, you will be able to do the following:Describe one or two reasons why it is important to update your cost model, the timeline, and frequency for revising the model, and identify the person(s) responsible for doing so.Discuss the specific data that requires updating in cost models.Contact Us for Access Lesson 11: Building Capacity for Cost Modeling in Your State or Community Lesson Content11.1 What Is a Capacity-Building Approach?11.2 Why Is It Important to Build Capacity for Cost Modeling in Your Community?11.3 Steps for Building Capacity for Cost Modeling Locally and/or in Your State11.4 Formulate a Capacity-Building Plan11.5 Equity Check11.6 Decision Point: Designing Your Capacity-Building Plan11.7 Key Takeaways11.8 Going Deeper: Learn More About Capacity Building for Cost Modeling and Strategic Public Financing11.9 EndnotesLearning ObjectivesAt the end of this lesson, you will be able to do the following:Define what it means to invest in a capacity-building approach and its benefits.Describe what is involved in building capacity for cost modeling in communities and why it is important to do so.Identify the steps for building capacity for cost modeling in a local community or state.Create a capacity-building plan for cost modeling.Contact Us for Access Lesson 12: Aligning Your Cost Model and Strategic Public Financing Initiatives in Your State or Community Lesson Content12.1 What Is Strategic Public Financing? 12.2 The Importance of Returning to and Reviewing Your Goals for Creating a Cost Model12.3 Using Cost Models as Part of a Larger Strategic Public Financing Plan12.4 Aligning Your Cost Model with Your Capacity-Building Implementation Plan12.5 Equity Check12.6 Decision Point: How Will Your Cost Model Be Built to Be Part of a Larger Strategic Public Financing Plan?12.7 Key Takeaways12.8 Going Deeper: Learn More About Cost Modeling as a Component of Strategic Public FinancingLearning ObjectivesAt the end of this lesson, you will be able to do the following:Define strategic public financing, how it relates to investments in programs and services for children and youth, and why states and communities should pursue strategic public financing.Describe how cost models fit into a larger strategic public financing plan and the main limitations of investing in cost models in isolation.Align plans to build a cost model with plans to build capacity for cost modeling.Contact Us for Access More Resources Publication Tracking the Flow of Federal Funding for Children and Youth An interactive chart that illustrates how federal funds flow through agencies and into communities Database Federal Funding Streams for Children and Youth Services This database catalogs the purposes and key characteristics of more than 320 federal funding streams that support cradle-to-career initiatives. Updates and Events News September 25, 2024 Cincinnati Preschool Promise Encourages Fund Leaders to “Contribute the Most You Can” to Support Local Early Child Care Systems Success Story September 18, 2024 Poughkeepsie, NY, on the Journey to Sustainable Funding for Children and Youth Insights August 28, 2024 How Community Members, Advocates, and Policymakers Can Make the Most of the Remaining American Rescue Plan Dollars for Children and Youth Close Share it! Share on Facebook Share on X Share on LinkedIn Click to copy URL Link Copied!
Publication Tracking the Flow of Federal Funding for Children and Youth An interactive chart that illustrates how federal funds flow through agencies and into communities
Database Federal Funding Streams for Children and Youth Services This database catalogs the purposes and key characteristics of more than 320 federal funding streams that support cradle-to-career initiatives.
News September 25, 2024 Cincinnati Preschool Promise Encourages Fund Leaders to “Contribute the Most You Can” to Support Local Early Child Care Systems
Success Story September 18, 2024 Poughkeepsie, NY, on the Journey to Sustainable Funding for Children and Youth
Insights August 28, 2024 How Community Members, Advocates, and Policymakers Can Make the Most of the Remaining American Rescue Plan Dollars for Children and Youth