Arkansas’s mixed-delivery system for early care and education is funded through a patchwork of funding streams, including Arkansas Better Chance (ABC) and School Readiness Assistance (SRA), as well as Head Start, Early Head Start, and other public resources. To make more strategic decisions about these programs and investments, we first need a clearer picture of how those resources are working together.

We are working alongside state leaders, Local Leads, industry experts, and other stakeholders to analyze the fiscal system and build shared understanding. We are examining how funding flows across programs and communities; who and what those resources support; how current investments compare with the true cost of delivering quality care and education; and where gaps or opportunities may exist.

Bringing together statewide data, specialized expertise, and community knowledge will give us a more complete picture of the early childhood funding landscape. This shared understanding will create a stronger foundation for shared governance—giving state and local leaders a common starting point for aligning goals, identifying priorities, and making more informed decisions to advance quality, access, and sustainability.

The true cost of care is what is required to provide high-quality early learning—not simply what families can afford to pay, what providers can charge, or what a particular funding source supports. It encompasses a full range of resources: competitive compensation for qualified educators; appropriate staffing levels, facilities, materials, and supplies; administrative expenses; and supports needed to meet standards, deliver high-quality learning experiences, and serve families well. It can vary based on factors such as the ages and needs of children served, staffing requirements, program size, location, and hours of operation. Understanding these costs provides a clearer picture of the resources providers need to offer consistent, high-quality, and financially sustainable programs.

At the heart of our work is a collective of nine Local Leads from across Arkansas. Through facilitated working sessions, these organizations are examining governance and funding work in their communities to identify gaps and opportunities and develop action plans to align resources with local needs. As Local Leads put these strategies into action, we are providing them with the collaborative space to learn from what works, what does not, and what those experiences can teach us about strengthening the system more broadly. This local work is paired with statewide leadership and specialized expertise. OEC helps connect what is being learned to statewide priorities and requirements. Experts bring knowledge and experience in understanding funding, modeling costs, strengthening systems, and identifying promising strategies to achieve access and quality goals.

Together, these partners are creating a cycle of learning and action. What we learn locally and statewide will inform future strategy. We can refine and adapt promising approaches for use in other communities. At the same time, lessons from implementation can help leaders make better decisions about policy, procedures, investment, and system design. In this way, we are helping create a continuous cycle of understanding, action, learning, and improvement, moving us toward a more coordinated, sustainable early childhood system.

The decisions and investments behind early childhood care and education directly affect what happens in communities and classrooms. Strong governance and finance help ensure resources reflect the true cost of quality care and meet the needs of children and families in Arkansas communities.

The LEARNS Act created new state and local structures for coordinating early childhood programs and resources, enabling our state to re-examine how funding is working across communities, strengthen connections between state and local decision-making, and identify strategies that help maximize resources and align investments.

For many Arkansas families, finding affordable child care remains difficult. Long waitlists, limited infant and toddler care, and a lack of care during nontraditional work hours further restrict families’ options. Cost is another barrier. 63% of parents surveyed in our landscape analysis reported child care costs create challenges for their families, even with assistance. By helping Arkansas better understand where resources, available care, and community needs do not match, this work can inform decisions that improve how early childhood investments reach families.

Many Arkansas early childhood providers are operating under significant financial and workforce challenges. In 2024, the U.S. Bureau of Labor Statistics reported that Arkansas’s child care workers earned an average of $13.27 per hour, compared with $25.52 across all occupations. As a result, providers often lose staff to better-paying jobs. These shortages can force classrooms to remain closed even when demand is high. 

Our governance and finance work is designed to help Arkansas better understand these pressures and identify strategies that address them. By examining the true cost of quality care, how public funding reaches providers, and where current investments fall short, leaders can explore ways to improve provider stability, support a stronger early childhood workforce, and help more classrooms remain available to working families.

• Afton Partners
• Arkansas Community Foundation
• Arkansas Department of Education – Special Education
• Arkansas Early Childhood Association
• Arkansas Home Visiting Network
• Arkansas State Board of Education
• Department of Human Services – Specialty Medicaid Services
• Excel by Eight
• Family representatives
• Kristen Hayes, National Head Start/Early Head Start Expert
• University of Arkansas Early Care and Education Project’s Family Child Care Network
• University of Arkansas – Office of Education Policy
• University of Arkansas for Medical Sciences – Department of Family and Preventative Medicine
• Walton Personal Philanthropy Group
• Watershed Advisors