School

Logistics

In the midst of this uncertain period of layoffs, furloughs and closings, businesses and families are searching for ways to manage their finances in unparalleled times.

Our beloved school is among those businesses heavily impacted as so many families face the uncertainty of their professional futures through the pandemic.

Though CK tuition is set as an annual rate (broken into 12 monthly payments), we certainly recognize and understand that many families are not in a position to continue payments as usual and especially when services are so greatly reduced.  And yet, without continued tuition payments, it would only take a matter of weeks before City Kids would no longer be viable.

Below is our plan in action.  We have been able to greatly reduce our operating expenses in an attempt to reduce the school's dependency upon tuition revenue, and by doing so, relieve much of the financial burden from families also facing extreme financial hardship. 

JUNE 2020

The above chart shows the seven major categories of expenses for City Kids in June 2020.  The purple bars represent the newly revised budget enacted by the administration to help maintain sustainability while requiring as little as possible from families who are struggling financially as a result of the Coronavirus pandemic.

1

51%

Percentage of families severely financially impacted by the Coronavirus pandemic.*

2

In response, we have reduced expenses down by

2%

3

49%

of costs will be covered by Federal relief from the CARES Act.

4

That leaves

49%

of CK expenses remaining to be covered by tuition.

*Families that have lost one or more sources of income as a result of the pandemic.  Does not include family members not previously employed.

Expenses Covered by Tuition

We applied for and received the SBA Payroll Protection Program loan which will absorb a large portion of our monthly expenses for June (49%).

We have been able to reduce the overall expenses by 2%.  The remaining 49% indicates funding needed to keep the school solvent.

While most of the remaining expenses were covered by the PPP and by families who paid full tuition along with severely impacted families who paid partial or discounted rates, some families have not yet paid and not all expenses are covered by tuition.

5

Students paid regular tuition rates for June

54

Students from financially impacted families who paid discounted tuition rates for June

8

Students yet to pay tuition for June

Updated as of 6/4/2020

MAY 2020

The above chart shows the seven major categories of expenses for City Kids in May 2020.  The purple bars represent the newly revised budget enacted by the administration to help maintain sustainability while requiring as little as possible from families who are struggling financially as a result of the Coronavirus pandemic.

1

58%

Percentage of families severely financially impacted by the Coronavirus pandemic.*

2

In response, we have reduced expenses down by

30%

3

40%

of costs will be covered by Federal relief from the CARES Act.

4

That leaves

30%

of CK expenses remaining to be covered by tuition.

*Families that have lost one or more sources of income as a result of the pandemic.  Does not include family members not previously employed.

Expenses Covered by Tuition

We applied for and received the SBA Payroll Protection Program loan which will absorb a large portion of our monthly expenses for May (40%).

We have been able to reduce the overall expenses by 30%.  The remaining 30% indicates funding needed to keep the school solvent.

While most of the remaining expenses were covered by the PPP and by families who paid full tuition along with severely impacted families who paid partial or discounted rates, some families have not yet paid and not all expenses are covered by tuition.

5

Students paid regular tuition rates for May

61

Students from financially impacted families who paid discounted tuition rates for May

Updated as of 5/13/2020

2

Students yet to pay tuition for May

APRIL 2020

The above chart shows the seven major categories of expenses for City Kids in April 2020.  The purple bars represent the newly revised budget enacted by the administration to help maintain sustainability while requiring as little as possible from families who are struggling financially as a result of the Coronavirus pandemic.

Expenses Covered by Tuition

We have been able to reduce the overall expenses by 37%.  The remaining 63% indicates funding needed to keep the school solvent.

We have additionally applied for relief loans which, if granted, will help to further relieve the financial burden.

While most of the remaining expenses were covered by families who paid full tuition along with severely impacted families who paid partial or discounted rates, some families have not yet paid and not all expenses are covered by tuition.

42

Students paid regular tuition rates for April

31

Students from financially impacted families who paid discounted tuition rates for April

2

Students yet to pay tuition for April

Updated as of 4/20/2020

Questions

Why is June only showing a 2% reduction in expenses?

In both April and May, City Kids was able to reduce company expenses by at least 30%, while in June the reduction in expenses is only 2%.  The primary reason is because staff expenses were greatly reduced due to the number of staff placed on furlough.  All staff were rehired starting on May 11th, which still allowed from some cutbacks since payroll is always two weeks behind.

Starting in June, most previous expenses for the facilities are returned to normal regardless of the number of children in attendance.  The bulk of the reduction in tuition therefore comes from remaining funds from the CARES Act.  The funds we received through the PPP program are to be used primarily to pay for payroll expenses which allows for funds that would otherwise be used to pay for staff to be used to reduce tuition for families financially impacted by the pandemic.

The funding, of course, won't last forever.  We are doing our best to stretch these funds for as long as possible while providing relief to families in need.

Is it safe for my child to return to school?

Ultimately, this must be each family's decision based upon data provided from all reputable sources such as the Public Health Dept, WHO, and State and local government agencies.  Presently in California, Governor Newsom has devised a gradual reopening of the economy over a series of four Phases.  We are currently in Phase 2 which allows for preschools to remain open for "essential workers" only.  But based upon current trends we anticipate that preschools and even private elementary schools and summer programs will be opened up to the general public soon-- possibly in June.

It is important to note that regardless of when the schools are allowed to fully open, there will be strict preventative protocols in place to help continue to mitigate the spread of COVID-19.  We are fully prepared to adhere to these protocols to promote the health and well-being of our community.  Of course, there is no guarantee that by following these standards that a member of our community will not contract the virus, and we cannot guarantee any family complete immunity.  Our goal is to follow the safety standards given to us as fully as possible.

How is CK supporting fulroughed staff?

Of our 18 FT & PT staff members, 12 staff have been temporarily furloughed without pay.  This was an incredibly difficult decision to make as we care so very deeply for the well being of our staff and their families.  In light of this decision, we are additionally supporting our staff in the following ways:

  • Health Benefits.  All furloughed staff will maintain their existing health benefits throughout the furlough period.  CK will pay 100% of all premiums for staff and their families.

  • Unemployment Assistance.  CK will update staff on the continuously evolving state of Unemployment benefits during the pandemic.

  • Emergency Supplies.  All furloughed staff have been instructed to immediately contact the administration if they are in need of any emergency supplies to include:  groceries, household supplies, gasoline, etc.  The administrators will personally purchase any needed supplies for any furloughed staff member.

Families continuing to pay tuition make all this possible.

Once disaster relief ​is available to us, our plan is to immediately reinstate all furloughed staff.

One positive note:  the Stimulus Package that was recently passed by Congress will allow for a boost in Unemployment funds to include an additional amount up to $600 per week on top of regular benefits payments.  This boost, in conjunction with the Stimulus check, will help to stabilize many of our furloughed staff members during this time.

Will staff be rehired if CK receives emergency relief funds?

We applied for and received funds from the PPP (Payroll Protection Program) in early May.  As of May 11th, all staff were rehired to their original positions and at their regular rates of pay.

Why are we being charged tuition when my child must stay at home?

School from home is not what any family signed up for, to be sure.  During the 'Safer at Home' order, so many families are stuck working at home while trying to manage the care of their young children at the same time.  As any parent will tell you:  this feels like a nearly impossible feat. 

So why is CK asking you to continue to pay tuition during this time?  

The shortest answer is that without tuition payments City Kids School would close.  As you can see above, the school has significant costs and without your partnership we would shutter our doors in a matter of weeks leaving staff, students, and parents with no school to return to at the end of the pandemic.

 

Private School Tuition Explained In Greater Depth

Tuition for each school year is budgeted as an annual total.  When we plan for programs, activities, and staff benefit expenses, it is not the same month-to-month.  Our school budget is based on each family’s annual tuition rate which means some programs were paid heavily into at the beginning of the year while others are quarterly payments, etc.  If families stop paying tuition City Kids School would be burdened with such a large amount of debt that our doors would likely close for good.  Up until this point we have not included a force majeure clause written into our contract like most private schools.  We allow for families to leave City Kids School for any reason as long as they give a 30-day notice.  

 

There is another aspect we must look at when discussing financial planning:  Many of our families are also trying to survive in the face of massive uncertainty and personal financial dilemma.  When we first started planning with families, many felt they would be able to work from home during Covid-19 without their financial situations changing.  Within one week's time families called and wrote to us explaining that one or both members of their households had lost their jobs.  It all happened so fast and brought on a great deal of fear and anxiety to us all.  It is due to these factors that we are continuously adapting our plan to take in the needs of all impacted families while ensuring we have a school for our kids to come back to.

Is CK profiting during the shut down?

Absolutely not.  We are fighting very hard not to be 'in the red' which would mean our cashflow is negative. Our only goal is to pay for necessary basic expenses such as payroll, rent, utilities, professional fees, etc.  We project that as the pandemic continues over the coming weeks, the number of families facing hardship will continue to increase along with the severity.  We plan to direct funding to provide relief for families and staff in the coming weeks.

Our focus is survival, and that's it-- for us, for our staff, and for our families to have a school to return to at the end of the pandemic.  We are very strategic in this effort, and all our planning is focused on this singular mission.

What happens if I don't pay?  Will I lose my spot at CK?

Our hope is that all families contribute to the extent that they are able.  Families who are hit the hardest financially pay the least amounts while families who remain relatively the same financially are asked to contribute their regular rate.  If a significant number of families refuse to pay any amount, we run the risk of losing solvency, and it will not take very long before we can no longer afford to run any kind of operation-- before or after the pandemic.

It is very important for families to stay in contact with us during this time regarding their financial statuses so that we can manage expectations.

We do understand that some families believe they should not have to pay tuition during this time. Although we respect your decision we have had to make business decisions that are in the best interest of the school and our community as a whole.  If you choose not to pay tuition you will be giving up your spot at City Kids School.  We have no desire to remove any family from enrollment and are doing the very best we can to work in partnership with everyone.

If you qualify for a Disaster Relief Loan, will this mean that parents will not pay any tuition during the shutdown?

The initial plan of action is to reactivate all furloughed staff, so any relief funds would first serve that purpose.  For the PPP loan, much of the loan will be forgivable if the funds are used to pay payroll costs, rent, or utilities. However, the PPP funding is only based on a percentage of what our payroll is and we will not be awarded enough funding to cover all our expenses.  The PPP funding will last for approximately 8 weeks of payroll costs, and this will apply to all staff and should create some additional relief for families.  Also, if the shutdown lasts longer than 8 weeks, we anticipate continued government assistance but there are presently no provisions in place.  Please note that these projections are based on the fact that the majority of our community has been financially impacted during this time and our normal revenue in regard to tuition is a small percentage of what it normally is.

What is CK doing to uncover all forms of loans and financial relief available to businesses in this financial crisis?

We have been fervently active in acquiring as much knowledge as we can in regard to all loans and programs available.  We attend online informational seminars almost daily.  We have already applied for the EIDL loan through the SBA and the PPP loan application soon to be launched.

The main point is that the government is working at an unusually quickened pace, but because this is all so new for everyone they are still restricted by all the rules and policies they must create for these new programs.  And that takes time, unfortunately for all of us.

Some programs conflict with one another.  For example, the EIDL and PPP loans cannot be used to cover the same time period.

There are additional petitions currently at work to extend funding for small businesses and child care facilities.  We are in coordination with other private schools  in Los Angeles to share important updates and information as it becomes available.  We are prepared to immediately access and apply to any and all forms of financial assistance.

Why are Facility expenses virtually the same?  Can't you stop paying rent during the shutdown?

Mayor Garcetti has made a provision that tenants cannot be evicted throughout the 'Safer at Home' order and that rent payments may be deferred.  This does not mean that rent is not due, it only allows for  a  delayance of payment.  By doing so, we would not only place a heavy financial burden onto our property owners, but we would not be able to recover from accrued rental payments which would amount in the many tens of thousands of dollars by the time we are ready to reopen.  We are working with all our property owners regarding rent reduction during this time, but that is up to the owners and what they are able to do.

 In order for us to remain solvent by the end of the Public Health order, we plan to continue to pay rental costs as usual.

Have a question?  Please email us at: mycitykidsla@gmail.com

ADDRESS

5517 Venice Blvd

Los Angeles, CA  90019

CONTACT

admissions@lacitykids.com

323.447.5437

HOURS

OPEN DAILY

8AM-6PM

©2020 by City Kids LA  All rights reserved

 FACILITY #  197493565   FACILITY # 197494286

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