Chart 3

Analysis of Recommendation to Privatize HCD Day Care: Chart III
III. Differences in Child Per Cost $2,468
IV. TOTAL SAVINGS RESULTING FROM PRIVATIZATION (IN YEAR 1) $501,004
V. Difference in per child fees charged: $8
HCD Day Care sites = $64-$94/week, depending upon income:
(assume 79)
$79
Private centers = $95-$164/week, depending upon age
441542
4551.979
87.53807
$87
VI. ADDITIONAL COST TO CHILD WITH PRIVATIZATION (without further subsidy) $8
VII. TOTAL SAVINGS TO HCD WITH PRIVATIZATION(assuming additional fee subsidy: $2,468-8 = $2,460 per child X 203 children $499,380