Estimates suggest that the annual cost of most school-based centers runs between $100,000 and $300,000. Many efforts have been financed by foundations to demonstrate rather than permanently fund innovations. Some states like Kentucky and New Jersey have gone far to support the concept of school-based services, but no state has committed full funding. Nor has the federal government stepped into the breach. The most urgent question facing these initiatives is how to pay for them after initial funds dry up (Dryfoos, 1994).
The financing strategies used to support school-linked services will profoundly affect their nature and outcomes. Planning for new services should not proceed without simultaneously asking the question "Where will the money come from?" Core resources for school-linked services typically have come from a range of federal, state, and local grants and programs administered through the education, social services, and health care systems. Developing a comprehensive integrated service delivery system, however, requires more substantial, dependable, and flexible funding than these sources alone can provide. Collaboratives need to explore opportunities to supplement these funds by redirecting existing funds in institutional budgets to more appropriate uses and by taking full advantage of reimbursements for services offered under Medicaid and other state and federal legislation. (Refer to Farrow & Joe, 1992.)
As authority over categorical federal dollars shifts to states and localities, combined collaborative planning efforts of this sort will become increasingly important. Block grant proposals, for example, pose a variety of opportunities, challenges, and potential dangers for local communities. For a useful discussion from various points of view, see Dollars and Sense: Diverse Perspectives on Block Grants and the Personal Responsibility Act (The Finance Project and Institute for Educational Leadership, 1995).
Foundations and Funding Sources describes other resources that may assist in subsidizing collaborative efforts.
