Budget and Financial Guidelines
Start Up Grant Funding

Start Up Grant Funding 

Public Act (P.A.15) 15 of 2025 included additional funding for new or expanded Great Start Readiness Program (GSRP) classrooms; see section 32d(29).

Definitions: 

• “New classroom” is defined as one that is operating for the first time as a GSRP classroom. 
• “Expanded classroom” is defined as a classroom that did not previously receive a start up grant and is increasing capacity in an existing GSRP classroom by a minimum of 10%. 

Eligibility:

A classroom that meets one of the above definitions is eligible. A subrecipient may receive a start up grant for more than one classroom. Classrooms previously awarded a start up grant are not eligible for an additional start up grant. 
If classroom was previously awarded a start up grant and that classroom is moved to a new location, meeting the definition of “new classroom” due to a new license, a rationale for the relocation must be submitted along with the request to the ISD. The ISD has the authority to request funding for the relocated classroom if rationale supports increased expansion efforts. 

Funding: 

Start up funding will be awarded in funding rounds until funding is exhausted.  

Important information start up grants:

• Each eligible classroom will receive a start up grant up to $50,000 unless requests exceed available funding. If requests exceed available funding, grants will be prorated. Classrooms receiving a start up grant that do not successfully enroll GSRP children by the timeline specified in the Start Up grant guidance for that round, will have remaining funds recaptured. Additional rounds of start up grant funding may be made available as funds permit. 

ISDs must develop a policy regarding recapturing of supplies and materials funded through start up grants if a program does not open and provide GSRP within one year of receiving a start up grant. ISDs should refer to their program closure policies and MOUs. 

Funding awarded for new or expanded programs must be paid in full to the subrecipient operating the classroom(s) per distribution of funds timeline identified by ISD and may be used for the following purposes:

• Attracting, recruiting, retaining, and licensing required classroom education personnel to staff new or expanded classrooms, e.g., fingerprinting fee, training or additional education, hiring incentives, salaries, etc. (Sign on and retention bonuses for GSRP staff do not have to be applied program wide if using start up funds). 
• Facility improvements or purchasing facility space or modular classroom units, (only first twelve months of mortgage) e.g., costs associated with meeting licensing requirements including architectural drawings, permits, and other prelicensure inspection fees, replacement of outdated fixtures, flooring, windows, etc. 
• Outreach materials necessary for public awareness and for costs associated with enrolling eligible children in new or expanded classrooms, e.g., recruitment advertisements, promotional materials, etc.
• Costs in each new or expanded classroom associated with improving a provider’s great start to quality rating, e.g., curriculum and assessment materials, required professional development, classroom supplies, materials, and equipment.

Reporting:

Supporting documentation will not be required with the funding request or prior to expending the start up grant. At the end of the grant expenditure period, ISDs will be required to report total spending in each of the allowable categories identified above in the Final Expenditure Report (FER) Excel Template provided. ISDs will also be asked to provide identifying details on each of the classrooms that receive start up grant funding including provider type.

ISDs will be expected to follow their set policies and procedures regarding the use of GSRP funds. The budget(s) and proof of expenditures for each start up grant must be maintained at the ISD.