Sullivan County school officials ask to pursue grant-funded childcare centers, recommend $75,000 seed request

District officials asked the Sullivan County Board of Education to authorize staff to pursue grant funding and planning work for two proposed district-run childcare centers, and recommended a $75,000 seed-money request to the county commission for the Annex location.

Andrea Smith of the First Tennessee Development District presented enrollment and budget scenarios for the proposed centers. Using one modeling example, 24 enrolled children paying $6,000 annually would generate roughly $144,000 in tuition revenue. Staff cautioned that the modeled revenue did not fully offset the projected salary costs: a presenter noted approximately $164,000 on the cost side for salaries in one scenario and said additional offsets (work-based learning placements, TISA funding) could help reduce the shortfall but were not guaranteed.

Staff described a three-staff model for a site: two part-time five-hour shifts plus one full-time childcare director, and shared survey results showing 61 employee responses accounting for 68 children across the district as an indicator of demand. They said program design would need to meet licensing requirements with the Department of Human Services or Department of Education and that some grant opportunities could become available after anticipated legislative changes; staff said they expect to know more about eligibility in March.

The board and staff discussed operational flexibility (for example shifting age-group slots if three- and four-year-old demand is low), building configuration possibilities (movable walls, ADA restrooms, and a nearby proposed playground), and whether construction and equipment could be fully funded by an “innovative model” grant if the district becomes eligible. Staff said the East site could move forward with existing innovative-model grant money, while the Annex would likely need seed money from the district unless additional grant funds are secured.

To allow planning to continue while waiting for grant decisions, a board member recommended asking the commission for up to $75,000 in seed money for the Annex site, with the condition that the district would return those funds to fund balance if external grant funding is received. The board indicated support for moving the recommendation to the commission and asked staff to return next month with formal cost estimates and next steps.

The proposal remains conditional: staff said grant awards are competitive and not guaranteed, and the board’s authorization at the meeting was to permit further planning and to seek commission approval of seed funding rather than to commit final construction funds.