Factors Influencing the Relationship Between Contract Providers and a State Funding Agency

Abstract

This study examines relationships between the Texas Department of Family and Protective Services and the nonprofit child care agencies providing services through contract arrangements. The study tested the proposition that the administrators of contract child care agencies will define their agency's relationship with the Texas Department of Family and Protective Services as supplementary, complementary, or adversarial (Young, 1998) based on the administrator and agency demographic variables, administrator's attitude toward the role of government, the administrator's view on management, and the agency's financial characteristics. The study found that the percentage of budget from the state agency and the level of education of the administrator significantly predicted one type of relationship (complementary). None of the other structural factors identified were found to be significant predictors. The qualitative findings indicate that the social dimensions, such as mutual respect, fairness, and individual relationships, are more important than structural factors in determining relationships.