Daycare Comes to Mad Dog Valley Village: Part II
It is now September of 2013, and the day care center has been successfully operating for 8 months. The demand for day care has been as strong as anticipated. While most of the parameters used to construct the 2000 budget were correct, there are a few adjustments which must be made to personnel scheduling and other cost factors for 2014.
1. Day care workers can work up to 9 hours per day, 40 hours per week, without being paid overtime (time and a half). The personnel costs will rise to:
Wage: $7.0 per hour
Social Security/month: 7.5%
Unemployment/month: 8%
Pension/month: 6.5%
Health insurance/month: $100
2. In addition, the center has had to add liability insurance of $1,000 per month and fire and theft insurance of $500 per month that will cover any services provided by the center.
3. All other costs are expected to increase by an inflation rate of 5 percent during 2001.
4. The day care director decided to add care for infants. They are expected to arrive in the same percent for each time as toddlers. The staffing ratio can be no higher than 3 infants to 1 staff person. The staff would receive the same pay and benefits as those taking care of toddlers. Food and equipment costs are expected to be the same per child. The city will subsidize equipment for the first 100 infants. The director expects to start in January 2014 with 100 infants and would like to maintain roughly a ratio of 3 toddlers for each infant in the center.
5. Presently, the day care center is housed in an old school that is not being used by the city. While the city agreed to provide free space and utilities the first year, the mayor has said this will not be possible for 2001. The city is willing to lease the full facility and provide utilities for $2,000 per month.