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Understanding Cost Models

Learn what a cost model is, why your community should create one, and how to begin.

Understanding Cost Models

A cost model measures the true cost of equitably implementing, maintaining or expanding a program or service for kids. It examines a program’s requirements, staffing needs, employee wages and benefits, facility rent and utilities, number of expected participants, and other factors that influence costs to estimate how much money a state or community must spend to run a program. Depending on its format, the model also can provide cost variations based on policy changes and quality characteristics.

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