Okemos weighs future of Edgewood childcare: administration recommends trying targeted tuition increases and enrollment push

Okemos district leaders presented multiple options to address a growing shortfall in community education’s Edgewood early‑childhood and before/after‑school programs at the board’s Feb. 24 meeting and recommended the board allow administration to try a hybrid approach to restore sustainability.

Superintendent John Hood and Community Coordinator Christina Algeria (community coordinator) outlined how Edgewood’s low‑ratio infant/toddler rooms, a decline in school‑age before/after enrollment since COVID, rising staff wages and the loss of several one‑time revenue sources have combined to convert a previously positive community‑education net (2018–19) into a multi‑hundred thousand‑dollar deficit in recent years. Hood told trustees the district’s revised starting point for 2025–26 currently assumes about $1.8 million use of fund balance and highlighted specific program lines showing deficits, including infants/toddlers and before/after care. He emphasized the district is not required to provide community education but that it wants to find a sustainable model that does not draw down K–12 resources.

The administration presented four broad options: 1) maintain programming while spreading a tuition increase across most offerings (illustrative example: a 20% across‑the‑board increase with 75% classroom occupancy at Edgewood to reach breakeven); 2) target higher increases at the highest‑cost infant/toddler rooms (examples given were 40% for infant/toddlers, 30% for some classrooms and 10% for others); 3) discontinue infant/toddler full‑day programming and shift resources to expanded 3–4‑year‑old GSRP (Great Start Readiness Program) classrooms to feed K–12 long term; and 4) delay the decision pending strategic planning (the administration warned option 4 would cost roughly $20,000 per month while the district continued to draw down general funds).

Administration recommended the board approve implementation of a hybrid of options 1 and 2 — raising tuition on a phased timetable and aggressively enrolling to meet state licensing capacity targets — with several firm commitments: a July 1 effective date for rate changes (with advance notice published to families), quarterly public check‑ins (June, September, January and April) reporting enrollment and financial results, and a promise to hold Edgewood family meetings and publish current balance sheets so families can track progress. Hood said the district had already begun outreach to the waitlist and that a recent cleanup produced additional enrollments; Christina Algeria reported staff had contacted everyone on current waitlists in the past week and said leadership believes classrooms can be filled if enrollment is reactivated.

The plan also includes several operational steps: streamline before/after‑care rates into a single schedule; enroll rooms to state licensing maximums; convert one OPM (Okemos Montessori/OPM) afternoon enrichment classroom to a blended 3–4 GSRP option if state universal pre‑K guidance makes that viable; and pursue potential revenue enhancements such as renting two unused rooms at Edgewood to a school‑based community childcare provider (administration said a local provider has recently expressed interest and the district will vet that option). Administration told trustees it would repeat a tuition‑rate study each spring and set rates for the next fiscal year in late spring.

Trustees and members of the public pressed on affordability, equity and timing. Several parents and community members warned that large tuition increases could push families out of Edgewood and make OPM a de‑facto option only for families that can afford private care. Seth Burke told the board removing or shrinking infant offerings would "turn OPM into a school only for the rich and the elite." Other speakers asked the district for clearer accounting of the “other” or “administrative” line items in the community‑education budget, and urged the board to advertise openings and work with families on alternatives before removing services.

District leaders acknowledged tradeoffs. Christina Algeria and Hood said staff wages were raised in response to market pressures and to retain experienced caregivers, which increased operating costs. Administration noted past enrollment holds (a temporary freeze on new enrollments while the program review occurred) left open seats that can be filled quickly if the district relaunches outreach and resumes enrollment. Hood also warned that sunsetting infant/toddler rooms carries transition risks: families would seek alternatives and staff might leave for other employers, which could make a later restart more difficult.

After public comment the board heard additional questions from trustees about the timeline for implementation and whether administrative costs could be reduced; Hood asked trustees to direct administration to proceed with a hybrid of options 1 and 2, report quarterly on sustainability metrics, and continue community engagement. The board did not take an immediate formal vote to close or to sunset programs; trustees expressed differing views about details and how quickly to move, but the administrative recommendation was clear: try shared/targeted tuition increases combined with a concerted enrollment push and transparency measures, and return to the board with quarterly results and a timeline for further action if sustainability targets are not met.