MCDC Update
MCDC Families,
As you know, this is an unprecedented situation that is changing rapidly every day. The board is meeting weekly to assess the situation and are trying to make sure all of our decisions are made in the best interest of our entire MCDC community, including the children, parents and staff. We are currently using funds from savings to continue paying the staff salaries and benefits and can continue to do so for approximately 3 months, with the plan to replenish the account with the tuition owed upon re-opening. We will decide the path forward for a beyond 1 month closure, and a beyond 4 month closure, in our next meeting on April 1st. Some options being discussed include charging a reduced tuition, pulling additional funds from our savings to cover our teachers, and options for waitlist accommodations should currently enrolled students be pulled out but are interested in re-enrollment when the facility re-opens. I will say that if we are required to be closed for 4 months or more, it would mean the situation in general has gotten dire, and we have to consider more drastic measures.
This is new territory and we cannot predict what will happen in the next month or so, even after we re-open. In general, the funds in savings are for situations where MCDC experiences an unexpected income shortage (such as a program cancellation that results in reduced enrollment). Whatever the Board decides at the next meeting, our savings would need to be kept at a sufficient level to cover any shortfalls caused by families leaving MCDC during this time of closure (which we hope won't be the case, but know it is a possibility) and other future unforeseen income shortfalls.
A few points that come up frequently in our discussions:
* Our operating policies state that tuition will be due even when the center is closed. All parents are asked to review and sign it upon enrolling at MCDC. "Tuition will not be prorated or excused for days MCDC is closed for federal holidays, when Redstone Arsenal or MSFC is closed, when MSFC directs that the MCDC be closed, or for closures caused by other reasons outside of the MCDC's control."
* 90% of tuition costs goes to pay the teachers' salaries and benefits.
* Previous instances of daycare being closed when we still paid tuition:
o The April 27, 2011 tornadoes caused a power outage that closed the arsenal for around 2 weeks.
o Snow event in 2011 that closed the arsenal for a week.
o 2013 furlough (2-3 weeks).
* We understand this is an unprecedented event and we know it is a time of high stress and concern. We would like to follow the operating policies as closely as possible to keep from having to make high-impact decisions in stressful times such as these.
* We have researched what other daycares are doing to see how we are in comparison. We know of one that is not paying tuition at all and therefore not paying their teachers. We know of some that are still paying full tuition and we also know of one that is paying full now, but will be looking into a reduced tuition option in April if we are still in this scenario.
* The center has additional savings, but we don't want to have to use them since those are set aside for uncertain income, such as extremely low enrollment, as well as other unforeseen circumstances, such as a program cancellation/layoff that would likely cause a major withdrawal from daycare (as what happened in 2012 during Ares the cancellation). The point of the additional savings is to continue operation during times of income shortfalls until enrollment can be increased, or in the unfortunate event that we would have to suspend operations.
* As previously communicated, an MCDC teacher (Explorer area) was tested on Monday (23rd) for COVID-19 and received positive results on Wednesday (25th). This teacher's last day in contact with students was on Friday, March 13th. While direct contact with children obviously occurred, it is appropriate to assume contact occurred center-wide due to the nature of our center (floaters moving room to room, community adult bathroom, community break room, etc.). We would recommend that parents follow CDC and local health recommendations to monitor their family's health and potential symptoms. As always, and ultimately, we care about the well-being of every child in our care and hope that this situation takes a turn for the better in the very near future.
We will send another update after our board meeting on April 1st. As always, we appreciate your patience and input. Please continue to reach out to us with any further questions or concerns.
Please stay safe!