SECTION 9. CHILD CARE CONTENTS Introduction Employment and Marital Status of Mothers Child Care Arrangements Used by Working Mothers Child Care Costs Supply of Child Care Providers Child Care Standards The Federal Role--Background and Overview The Federal Role--Major Day Care Programs Dependent Care Tax Credit Child Care Programs Under Title IV-A of the Social Security Act Child Care and Development Block Grant Title XX--Social Services Block Grant Child and Adult Care Food Program Head Start Child Care Tables References INTRODUCTION Child care is an issue of significant public interest for several reasons. The dramatic increase in the labor force participation of mothers is the most important factor affecting the demand for child care in the last quarter century. Currently, in a majority of American families with children-- even those with very young children--the mother is in the paid labor force. Similarly, an increasingly significant trend affecting the demand for child care is the proportion of mothers who are the sole or primary financial supporters of their children, either because of divorce or because they never married. In addition, child care has been a significant issue in recent debates over how to move welfare recipients toward employment and self-sufficiency; some observers have argued that some mothers on welfare are not entering the labor force because of child care problems. Finally, the impact of child care on the children themselves is an issue of considerable interest, with ongoing discussion of whether low-income children benefit from participation in programs with an early childhood development focus. Concerns that child care may be in short supply, not of good enough quality, or too expensive for many families escalated during the late 1980s into a national debate over the nature and extent of the Nation's child care problems and what, if any, Federal interventions would be appropriate. The debate culminated in the enactment of legislation in 1990 that expanded Federal support for child care by establishing two new State child care grant programs. The programs--the Child Care and Development Block Grant and the At-Risk Child Care Program--were enacted as part of the Omnibus Budget Reconciliation Act of 1990 (Public Law 101-508). These programs were preceded by enactment of a major welfare reform initiative, the Family Support Act of 1988 (Public Law 100- 485), which authorized expanded child care assistance for welfare families and families leaving welfare. Most recently, these programs were consolidated into an expanded Child Care and Development Block Grant, which will provide increased Federal funding and will serve both low-income working families and families attempting to transition off welfare through work. This child care consolidation and expansion was enacted in 1996 as a component of welfare reform legislation (Personal Responsibility and Work Opportunity Reconciliation Act, Public Law 104-193). This chapter provides background information on the major indicators of the demand for and supply of child care, and a summary description of the major Federal programs that fund child care services. EMPLOYMENT AND MARITAL STATUS OF MOTHERS The dramatic increase in the labor force participation of mothers is commonly regarded as the most significant factor fueling the increased demand for child care services. A person is defined as participating in the labor force if she is working or seeking work. As shown in table 9-1, in 1947, just following World War II, slightly over one-fourth of all mothers with children between the ages of 6 and 17 were in the labor force. By contrast, in 1996, three-quarters of such mothers were labor force participants. The increased labor force participation of mothers with younger children has also been dramatic. In 1947, it was unusual to find mothers with a preschool-age child in the labor force--only about 12 percent of mothers with children under the age of 6 were in the labor force. But in 1996, over 62 percent of mothers with preschool- age children were in the labor force, a rate more than 5 times higher than in 1947. Women with infant children have become increasingly engaged in the labor market as well. Today, over half of all mothers whose youngest child is under age 2 are in the labor market, while in 1975 less than one-third of all such mothers were labor force participants. The rise in the number of female-headed families has also contributed to increased demand for child care services. Single mothers maintain a greater share of all families with children today than in the past. Census data show that in 1970 less than 11 percent of families with children were headed by a single mother, compared with almost 18 percent of families with children in 1996. Perhaps the most telling statistic about female-headed families is that while the number of 2-parent families with children increased by 20 percent between 1970 and 1996, female-headed families with children exploded by 127 percent, to 12.5 million families in 1996. These families headed by mothers were a major source of growth in the demand for child care. Mothers' attachment to the labor force differs depending on the age of their youngest child and marital status, as tables 9-2 and 9-3 show. Table 9-2 exhibits the labor force participation rates of various demographic groups of mothers with youngest child over or under age 6. The table provides graphic evidence of the exploding rate of working mothers, especially working mothers with preschool children. TABLE 9-1.--LABOR FORCE PARTICIPATION RATES OF WOMEN, BY PRESENCE AND AGE OF YOUNGEST CHILD, SELECTED YEARS, 1947-96 ---------------------------------------------------------------------------------------------------------------- With children under age 18 No -------------------------------------------- children Age 6- Under age 6 under 18 Total 17 only -------------------------- Total Under 3 Under 2 ---------------------------------------------------------------------------------------------------------------- April 1947............................................... 29.8 18.6 27.3 12.0 NA NA April 1950............................................... 31.4 21.6 32.8 13.6 NA NA April 1955............................................... 33.9 27.0 38.4 18.2 NA NA March 1960............................................... 35.0 30.4 42.5 20.2 NA NA March 1965............................................... 36.5 35.0 45.7 25.3 21.4 NA March 1970............................................... 42.8 42.4 51.6 32.2 27.3 NA March 1975............................................... 45.1 47.3 54.8 38.8 34.1 31.5 March 1980............................................... 48.1 56.6 64.3 46.8 41.9 39.2 March 1985............................................... 50.4 62.1 69.9 53.5 49.5 48.0 March 1986............................................... 50.5 62.8 70.4 54.4 50.8 49.2 March 1987............................................... 50.5 64.7 72.0 56.7 52.9 51.9 March 1988............................................... 51.2 65.0 73.3 56.1 52.5 50.8 March 1989............................................... 51.9 65.7 74.2 56.7 52.4 51.7 March 1990............................................... 52.3 66.7 74.7 58.2 53.6 52.1 March 1991............................................... 52.0 66.6 74.4 58.4 54.5 53.8 March 1992............................................... 52.3 67.2 75.9 58.0 54.5 54.3 March 1993............................................... 52.1 66.9 75.4 57.9 53.9 54.2 March 1994............................................... 53.1 68.4 76.0 60.3 57.1 \1\ 56. 7 March 1995............................................... 52.9 69.7 76.4 62.3 58.7 \1\ 57. 9 March 1996............................................... 53.0 70.2 77.2 62.3 59.0 57.9 ---------------------------------------------------------------------------------------------------------------- \1\ Includes mothers in the Armed Forces. NA--Not available. Note.--Data for 1994 and beyond are not directly comparable with data for 1993 and earlier years because of introduction of a major redesign in the Current Population Survey (household survey) questionnaire and collection methodology and the introduction of 1990 census-based population controls, adjusted for the estimated undercount. For additional information, see ``Revisions in the Current Population Survey Effective January 1994'' in the February 1994 issue of Employment and Earnings. Source: U.S. Department of Labor, Bureau of Labor Statistics. Table 9-3 provides a detailed breakdown of the labor force participation of women for March 1996 by marital status and the age of the youngest child. Among those with children under 18, divorced women have the highest labor force participation rates, followed by married and separated women. Widowed and never-married women have lower labor force participation rates. As table 9-3 illustrates, no matter what the marital status of the woman, labor force participation rates tend to increase as the age of the youngest child increases. Among all women with children under 18, 59 percent of those with a child under 3 participate, 67 percent of those whose youngest child is between 3 and 5 participate, and 79 percent of those whose youngest child is between 14 and 17 participate. TABLE 9-2.--LABOR FORCE PARTICIPATION RATES OF WOMEN WITH CHILDREN, BY MARITAL STATUS AND AGE OF YOUNGEST CHILD FOR SELECTED YEARS, 1960-96 -------------------------------------------------------------------------------------------------------------------------------------------------------- Percent 1960 1970 1980 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 increase, 1970-96 -------------------------------------------------------------------------------------------------------------------------------------------------------- Married women: Youngest under 6............................ 18.6 30.3 45.0 56.8 57.1 57.4 58.9 59.9 59.9 59.6 61.7 63.5 62.7 106.9 Youngest 6 or older......................... 39.0 49.2 61.8 70.6 72.5 73.4 73.6 73.6 75.4 74.9 76.0 76.2 76.7 55.9 Separated women: Youngest under 6............................ NA 45.4 52.2 55.1 53.0 54.9 59.3 52.2 55.7 52.1 59.2 59.3 63.1 39.0 Youngest 6 or older......................... NA 60.6 66.6 72.6 69.3 68.0 75.0 74.7 71.6 71.6 70.7 71.5 73.3 21.0 Divorced women: Youngest under 6............................ NA 63.3 68.3 70.5 70.1 66.3 69.8 68.5 65.9 68.1 67.5 73.3 76.5 20.9 Youngest 6 or older......................... NA 82.4 82.3 84.5 83.9 85.7 85.9 84.6 85.9 83.6 84.9 85.2 85.5 3.8 Never-married women: Youngest under 6............................ NA NA 44.1 49.9 44.7 48.9 48.7 48.8 45.8 47.4 52.2 53.0 55.1 NA Youngest 6 or older......................... NA NA 67.6 64.1 67.1 69.0 69.7 64.8 67.2 70.2 67.5 67.0 71.8 NA ------------------------------------------------------------------------------------------------------- All women............................... \1\ 30 .4 \1\ 52 .9 56.6 64.7 65.0 65.7 66.7 66.6 67.2 66.9 68.4 69.7 70.2 32.7 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Excludes never-married women. NA--Not available. Note.--Data for 1994 and beyond are not directly comparable with data for 1993 and earlier years because of introduction of a major redesign in the Current Population Survey (household survey) questionnaire and collection methodology and the introduction of 1990 census-based population controls, adjusted for the estimated undercount. For additional information, see ``Revisions in the Current Population Survey Effective January 1994'' in the February 1994 issue of Employment and Earnings. Source: U.S. Department of Labor, Bureau of Labor Statistics. TABLE 9-3.--LABOR FORCE PARTICIPATION RATES OF WOMEN WITH CHILDREN UNDER 18, BY MARITAL STATUS AND AGE OF YOUNGEST CHILD, MARCH 1996 ---------------------------------------------------------------------------------------------------------------- Age of youngest child ------------------------------------------------ Marital status Under Under Under 3 6 18 3-5 6-13 6-17 14-17 ---------------------------------------------------------------------------------------------------------------- Married, spouse present........................................ 60.5 62.7 70 66 76 76.7 78.4 Divorced....................................................... 67.1 76.5 83.2 81.4 84.8 85.5 86.9 Separated...................................................... 62.1 63.1 68.8 64 73.2 73.3 73.5 Widowed........................................................ 33.1 48.3 63.3 55.8 64.5 65.9 67.6 Never married.................................................. 50.3 55.1 60.5 64.1 71.7 71.8 72.4 ------------------------------------------------ All women with children under 18........................... 59 62.3 70.2 66.9 76.6 77.2 78.9 ---------------------------------------------------------------------------------------------------------------- Note.--Labor force participation rates include nonworking mothers who are actively looking for work. Source: U.S. Department of Labor, Bureau of Labor Statistics. While there has been a substantial increase in the proportion of mothers in the labor force, the data can be misleading. Although 70 percent of mothers participated in the labor force in 1996, table 9-4 shows almost 48 percent worked full time and 19 percent worked part time (less than 35 hours per week). Thirty-nine percent of mothers with children under age 6 worked full time, and 19 percent worked part time. TABLE 9-4.--PERCENT OF MOTHERS BY FULL- OR PART-TIME EMPLOYMENT STATUS, MARCH 1996 \1\ ------------------------------------------------------------------------ With children With children Marital status under 18 under 6 ------------------------------------------------------------------------ Married, spouse present: Employed full time.................. 46.3 39.4 Employed part time.................. 21.3 20.9 Divorced: Employed full time.................. 66.2 56.5 Employed part time.................. 12.6 12.9 Never married: Employed full time.................. 35.5 28.8 Employed part time.................. 13.8 15.1 ------------------------------- All mothers: Employed full time.............. 47.5 39.0 Employed part time.............. 19.0 19.1 ------------------------------------------------------------------------ \1\ Full-time workers work 35 hours or more per week. Source: U.S. Department of Labor, Bureau of Labor Statistics. As table 9-4 demonstrates, how much mothers work differs according to their marital status and the age of their children. Forty-six percent of married women with children worked full time; thus, over 50 percent either didn't work at all or worked part time. Some 66 percent of all divorced mothers worked full time; almost 57 percent of divorced mothers with children under 6 worked full time. Almost 36 percent of never-married mothers worked full time, and 14 percent worked part time. CHILD CARE ARRANGEMENTS USED BY WORKING MOTHERS Data are collected periodically by the Census Bureau on the types of child care arrangements used by families with working mothers. Because the interview questions obtain information about both paid and unpaid substitute care used while the mother works, it provides information on categories of care that generally are not considered child care, such as care provided by the father and school attendance. Further, the survey does not gather information on the child care arrangements used by the family while the father works. Though information is collected on the arrangements of families in which there is only a father present, it is considered too negligible to report. The most recent Census Bureau statistics on child care arrangements are based on data collected by the Survey of Income and Program Participation (SIPP) for the fall of 1994. These data indicate that the types of child care arrangements used by families while the mother works vary depending on the age of the child, as well as the mother's work schedule, marital status, and family income. Table 9-5 shows the distribution of primary child care arrangements provided for preschoolers (children under age 5), by marital status and mother's work schedule. ``Primary'' child care arrangement refers to the arrangement used most frequently during a typical work week. TABLE 9-5.--PRIMARY CHILD CARE ARRANGEMENTS OF CHILDREN UNDER 5 WITH AN EMPLOYED MOTHER, BY MARITAL AND EMPLOYMENT STATUS OF THE MOTHER, FALL 1994 [In percent] ------------------------------------------------------------------------ Mothers with children under 5 years -------------------------------------- Type of arrangement Employed Employed Total full time part time ------------------------------------------------------------------------ All Marital Statuses -------------------------------------- Care in child's home: By grandparent............... 5.9 5.1 7.2 By other relative............ 3.5 2.9 4.4 By nonrelative............... 5.1 4.8 5.6 -------------------------------------- Total.................... 14.5 12.8 17.2 ====================================== Care in another home: By grandparent............... 10.4 10.5 10.1 By other relative............ 5.5 6.7 3.2 By nonrelative \1\........... 15.4 18.2 10.3 -------------------------------------- Total.................... 31.3 35.4 23.6 ====================================== Organized child care facilities: Day/group care center........ 21.6 25.0 15.2 Nursery school/preschool..... 7.8 8.5 6.4 Kindergarten/grade school.... 0.9 0.8 0.9 School-based activity........ 0.2 0.2 0.1 -------------------------------------- Total.................... 30.5 34.5 22.6 ====================================== Parental care: By father.................... 18.4 13.3 28.1 By mother at work \2\........ 5.5 3.9 8.5 Child cares for self......... ........... ........... ........... -------------------------------------- Total.................... 23.9 17.2 36.6 ====================================== Total children of employed mothers (in thousands).............. 10,329 6,732 3,597 -------------------------------------- Married, Husband Present -------------------------------------- Care in child's home: By grandparent............... 3.4 3.1 3.9 By other relative............ 2.5 2.1 3.3 By nonrelative............... 5.6 5.5 5.8 -------------------------------------- Total.................... 11.5 10.7 13.0 ====================================== Care in another home: By grandparent............... 10.1 10.7 9.1 By other relative............ 4.0 4.8 2.6 By nonrelative \1\........... 15.7 19.0 9.8 -------------------------------------- Total.................... 29.8 34.5 21.5 ====================================== Organized child care facilities: Day/group care center........ 20.7 24.6 13.7 Nursery school/preschool..... 8.3 9.0 6.9 Kindergarten/grade school.... 0.8 0.8 0.8 School-based activity........ 0.2 0.3 0.1 -------------------------------------- Total.................... 30.0 34.7 21.5 ====================================== Parental care: By father.................... 22.3 15.9 33.7 By mother at work \2\........ 6.3 4.1 10.3 Child cares for self......... ........... ........... ........... -------------------------------------- Total.................... 28.6 20.0 44.0 ====================================== Total children of employed mothers (in thousands).............. 7,961 5,105 2,856 -------------------------------------- All Other Marital Statuses \3\ -------------------------------------- Care in child's home: By grandparent............... 14.2 11.4 20.3 By other relative............ 6.5 5.4 8.9 By nonrelative............... 3.4 2.8 4.8 -------------------------------------- Total.................... 24.1 19.6 34.0 ====================================== Care in another home: By grandparent............... 11.2 10.0 14.0 By other relative............ 10.5 12.7 5.4 By nonrelative \1\........... 14.6 15.7 12.3 -------------------------------------- Total.................... 36.3 38.4 31.7 ====================================== Organized child care facilities: Day/group care center........ 24.3 26.0 20.6 Nursery school/preschool..... 6.2 6.9 4.5 Kindergarten/grade school.... 1.1 0.9 1.3 School-based activity........ 0.1 0.1 ........... -------------------------------------- Total.................... 31.7 33.9 26.4 ====================================== Parental care: By father.................... 5.4 5.0 6.3 By mother at work \2\........ 2.5 3.0 1.5 Child cares for self......... ........... ........... ........... -------------------------------------- Total.................... 7.9 8.0 7.8 ====================================== Total children of employed mothers (in thousands).............. 2,368 1,627 741 ------------------------------------------------------------------------ \1\ Care in another's home by a nonrelative is known as ``family day care.'' \2\ Includes women working at home or away from home. \3\ Includes married, husband absent (including separated), widowed, divorced, and never-married women. Source: Survey of Income and Program Participation, Bureau of the Census, U.S. Department of Commerce. Families of preschoolers with working mothers rely more on care provided in an organized child care facility (30.5 percent) than on family day care (care in another home by nonrelative; 15 percent). Relative care, either in the child's home or the relative's home, is used by 25 percent of preschool children. Many families with young children do not rely on others for help with child care arrangements while the mother works because they use parental care (24 percent), especially care by fathers (18 percent). Only 5 percent of families rely on care provided in the child's home by a nonrelative. Preschool children of part-time employed mothers are much less likely to be cared for at an organized child care facility or by a family day care provider, and more likely to be cared for by a parent, than children of full-time employed mothers. Children of employed single mothers, shown in table 9-5 under the heading ``all other marital statuses,'' are much more likely to be cared for by a relative than children of married mothers. Table 9-6 shows the types of afterschool arrangements used in 1993 for school-age children by working mothers, as well as cases in which there were no arrangements used at all. A total of 1.2 million school-age children (5.4 percent of children age 5-14) were reported to be in self-care or to be unsupervised by an adult for some time while their mothers were working. It is not known if the children in the ``no care mentioned'' category were unsupervised, or if other factors may account for their not being reported in a child care arrangement, such as travel time from school. Table 9-7 shows that the type of child care arrangements used for children under 5 varies by the economic well-being of the family. Children in poor families are more likely to be cared for by relatives (35 versus 24 percent) while their mother works than children in nonpoor families. In addition, children in nonpoor families use organized child care facilities more than children in poor families (31 versus 24 percent). Children in nonpoor families rely more on family day care provided by nonrelatives than do children living in poverty (16 versus 11 percent). Table 9-8 shows the primary arrangements used by working mothers for their preschool-aged children from June 1977 through the fall of 1994. In general, the table does not show dramatic changes in the arrangements used during this time period, except with regard to day care centers and nursery schools. The share of children enrolled in day care centers and nursery schools increased sharply between 1977 and 1994, from 13 to 29 percent. The table shows that the role of fathers in caring for their preschool children increased slightly after 1977, including for children of single mothers. The share of children cared for by their mothers at work decreased from 1977 to 1994, as did the percent of children in family day care homes. Data on children cared for by their grandparents were obtained beginning in 1985, and remained relatively stable during the period from 1985 to 1994. TABLE 9-6.--AFTERSCHOOL CHILD CARE ARRANGEMENTS USED BY EMPLOYED MOTHERS FOR CHILDREN 5-14, FALL 1993 ------------------------------------------------------------------------ Number (in Type of arrangement thousands) Percent ------------------------------------------------------------------------ Care in child's home: By grandparent............................... 779 3.5 By other relative............................ 1,209 5.4 By nonrelative............................... 547 2.5 ---------------------- Total.................................... 2,535 11.4 ====================== Care in another home: By grandparent............................... 949 4.3 By other relative............................ 517 2.3 By nonrelative \1\........................... 1,179 5.3 ---------------------- Total.................................... 2,645 11.9 ====================== Organized child care facilities: Day/group care center........................ 1,071 4.8 Nursery school/preschool..................... 167 0.7 School-based activity........................ 1,217 5.5 ---------------------- Total.................................... 2,455 11.0 ====================== Parental care: By father.................................... 2,587 11.6 By mother at work \2\........................ 616 2.8 Child cares for self......................... 1,202 5.4 ---------------------- Total.................................... 4,405 19.8 ====================== No care mentioned................................ 10,236 46.0 ---------------------- Total children........................... 22,276 100.0 ------------------------------------------------------------------------ \1\ Care in another home by a nonrelative is known as a ``family day care.'' \2\ Includes women working at home or away from home. Source: Survey of Income and Program Participation, Bureau of the Census, U.S. Department of Commerce. TABLE 9-7.--PRIMARY CHILD CARE ARRANGEMENTS USED BY EMPLOYED MOTHERS FOR CHILDREN UNDER 5, BY POVERTY STATUS OF THE MOTHERS, FALL 1994 ------------------------------------------------------------------------ All marital statuses Total \1\ Poor \2\ Not poor ------------------------------------------------------------------------ Care in child's home: By grandparent..................... 5.9 7.5 5.7 By other relative.................. 3.5 7.2 3.0 By nonrelative..................... 5.1 3.7 5.3 -------------------------------- Total.......................... 14.5 18.4 14.0 ================================ Care in another home: By grandparent..................... 10.4 9.4 10.5 By other relative.................. 5.5 10.5 4.9 By nonrelative \3\................. 15.4 10.8 16.0 -------------------------------- Total.......................... 31.3 30.7 31.4 ================================ Organized child care facilities: Day/group care center.............. 21.6 17.2 22.1 Nursery school/preschool........... 7.8 5.0 8.1 Kindergarten/grade school.......... 0.9 1.3 0.8 School-based activity.............. 0.2 0.2 0.2 -------------------------------- Total.......................... 30.5 23.7 31.2 ================================ Parental care: By father.......................... 18.4 17.6 18.5 By mother at work \4\.............. 5.5 9.7 4.9 Child cares for self............... ......... ......... ......... -------------------------------- Total.......................... 23.9 27.3 23.4 ================================ Total children of employed mothers (in thousands)........ 10,329 1,109 9,208 ------------------------------------------------------------------------ \1\ Includes children for which no poverty estimates were available. \2\ Below the poverty threshold, which was $15,141 annually or $1,262 monthly in 1994 for a family of four. \3\ Care in another home by a nonrelative is known as ``family day care.'' \4\ Includes women working at home or away from home. Source: Survey of Income and Program Participation, Bureau of the Census, U.S. Department of Commerce. TABLE 9-8.--PERCENT OF CHILDREN UNDER 5 IN SELECTED CHILD CARE ARRANGEMENTS, 1977-94 ---------------------------------------------------------------------------------------------------------------- Percent of children cared for by ---------------------------------------------------------------- Day care Family status and date of survey Family day center/nursery Father Mother \1\ Grandparent care \2\ school ---------------------------------------------------------------------------------------------------------------- All families: Fall 1994.................................. 18.4 5.5 16.3 15.4 29.4 Fall 1993.................................. 15.9 6.2 16.5 16.6 29.9 Fall 1991.................................. 20.0 8.7 15.8 17.9 23.0 Fall 1990.................................. 16.5 6.4 14.3 20.1 27.5 Fall 1988.................................. 15.1 7.6 13.9 23.6 25.8 Fall 1987.................................. 15.3 8.9 13.8 22.3 24.4 Fall 1986.................................. 14.5 7.4 15.7 24.0 22.4 Winter 1985................................ 15.7 8.1 15.9 22.3 23.1 June 1977.................................. 14.4 11.4 NA 22.4 13.0 Married couples: Fall 1994.................................. 22.3 6.3 13.5 15.7 29.0 Fall 1993.................................. 19.3 6.9 14.4 16.4 30.0 Fall 1991.................................. 22.9 9.8 13.7 17.1 22.7 Fall 1990.................................. 19.8 7.8 13.0 19.7 26.8 Fall 1988.................................. 17.9 8.7 11.8 23.7 25.4 Fall 1987.................................. 18.2 10.1 12.2 22.2 23.4 Fall 1986.................................. 17.9 8.3 14.1 24.4 20.3 Winter 1985................................ 18.8 9.2 13.9 21.8 22.3 June 1977.................................. 17.1 12.9 NA 22.6 11.6 Single mothers: Fall 1994.................................. 5.4 2.5 25.4 14.6 30.5 Fall 1993.................................. 3.4 3.5 24.6 17.3 29.5 Fall 1991.................................. 7.0 3.7 24.8 21.3 24.5 Fall 1990.................................. 3.2 0.7 20.0 27.8 30.4 Fall 1988.................................. 1.5 2.4 23.9 22.8 27.8 Fall 1987.................................. 2.3 3.4 20.8 22.3 28.3 Fall 1986.................................. 1.4 3.8 20.3 22.4 30.2 Winter 1985................................ 2.2 3.5 24.5 24.4 26.7 June 1977.................................. 0.8 4.4 NA 21.8 19.1 ---------------------------------------------------------------------------------------------------------------- \1\ Includes mothers working at home or away from home. \2\ Children cared for in another home by nonrelatives. NA--Not available. Note.--Data are the principal arrangement used by mothers during most of their hours at work. Single mothers include women never married, widowed, divorced, and separated. Source: Survey of Income and Program Participation and the June 1977 Current Population Survey, ``Who's Minding the Kids? Child Care Arrangements: Fall 1991,'' Current Population Reports, Series P70-36, Bureau of the Census, U.S Department of Commerce. CHILD CARE COSTS Research studies have found that the majority of families with working mothers and preschool children purchase child care services. The tendency to purchase care and the amount spent on care, both in absolute terms and as a percent of family income, generally varies by the type of child care used, family type (married or single mothers), and the family's economic situation. The most recent data on child care expenditures are from the Survey of Income and Program Participation for the fall of 1993, published by the Census Bureau (Casper, 1995). These data show that 56 percent of families with employed mothers paid for child care for their preschool-aged children. Nonpaid child care was most typically provided by relatives. Families with mothers employed full time were more likely to purchase care for their young children than those with mothers working part time. Among families with full-time working mothers, 63 percent paid for child care, compared to 41 percent of families with mothers employed part time. Likewise, as shown in table 9-9, families with higher incomes were more likely to purchase care than families with lower incomes. For example, 69 percent of families with monthly incomes of $4,500 or more purchased child care in the fall of 1993, while only 39 percent of families with monthly incomes of less than $1,200 purchased care. TABLE 9-9.--AVERAGE WEEKLY CHILD CARE EXPENDITURES FOR PRESCHOOLERS AND PERCENTAGE OF INCOME SPENT ON CARE, BY POVERTY STATUS AND FAMILY INCOME, FALL 1993 ------------------------------------------------------------------------ Percent of monthly Percent Average family paying for weekly cost income care of care spent on care ------------------------------------------------------------------------ Poverty status: Below poverty................ 37 $49.56 17.7 Above poverty................ 58 76.03 7.3 Monthly family income: Less than $1,200............. 39 47.29 25.1 $1,200-$2,999................ 49 60.16 12.0 $3,000-$4,499................ 57 73.10 8.5 $4,500 and over.............. 69 91.93 5.7 -------------------------------------- Total.................... 56 74.15 7.5 ------------------------------------------------------------------------ Source: Casper (1995). As indicated in table 9-9, average weekly costs per family for all preschool-aged children were $74 in 1993 for those families who purchased care. Families with two or more preschoolers paid almost $110 per week for child care (11 percent of family income), while families with one child paid $66 per week (7 percent of family income). Married-couple families devoted a smaller percentage of their income to child care (7 percent) than single-parent families (12 percent), but their child care expenditures were nonetheless greater ($78 per week) than those of single-parent families (about $60 per week). Table 9-9 also shows that, while low-income families spend fewer dollars for child care than higher income families, they spend a much greater percentage of their family income for child care. Specifically, families with monthly incomes of less than $1,200 had average weekly child care expenses of $47 in 1993, compared with $92 for families with monthly incomes of $4,500 or more. However, lower income families devoted 25 percent of their family income to child care, while the higher income families spent less than 6 percent of their income for child care. For families purchasing care, the average weekly cost of child care per arrangement was $57 in 1993. In-home, nonrelative babysitters were the most expensive type of care, at an average weekly cost of $68, followed by organized child care centers at $64 per week. Family day care homes cost an average of $57 per week, while the least expensive form of paid care was provided by relatives, at an average of $42 per week. Looking at child care costs per child, the average weekly cost for preschoolers in 1993 was $60, ranging from $66 per week for infants under 1 year old to $56 for 3-year-olds and $59 for 4- year-olds. Child care costs have increased in recent years. Chart 9-1 illustrates growth in the average weekly cost of care for all children (up to age 15) in families with a preschooler from 1986 to 1993, in constant 1993 dollars. As the chart shows, the average weekly cost has gone up by $15, from $64 in 1986 to $79 in 1993. CHART 9-1. WEEKLY COST OF CHILD CARE \1\ [In constant 1993 dollars. Limited to families with a preschooler.] \1\ Represents total costs for all children in the family. Source: Casper (1995). SUPPLY OF CHILD CARE PROVIDERS The profile of child care settings (PCS) study, released by the U.S. Department of Education in 1991, is regarded as the most comprehensive national study of regulated child care/early education services since the 1970s (Kisker, Hofferth, Phillips & Farquhar, 1991). The study provides information on the supply and characteristics of State licensed child care centers and early education programs, center-based programs exempt from State or local licensing (such as programs sponsored by religious organizations or schools), and licensed family day care providers. Readers should note that both demand and Federal support for child care have increased since 1990, most likely also causing an increase in the supply since this study was conducted. Kisker and her colleagues reported that approximately 80,000 center-based early education and care programs were providing services in the United States at the beginning of 1990. The Children's Foundation has subsequently reported that, in 1996, there were 93,221 regulated child day care centers (Children's Foundation, 1996). The PCS researchers estimated that about 12 percent of centers on State licensing lists were not operating during the time of the survey, but that operating centers had about 5.3 million spaces (defined as the sum of enrollment plus vacancies), of which approximately 4.2 million were for preschool-age children and 1.1 million were for school-age children. The study found that an average of 88 percent of the available spaces in centers were filled. The researchers concluded that this high overall utilization rate indicates that ``the market seems to be working to increase supply as demand expands.'' As shown in table 9-10, centers were distributed across regions in urban/rural areas approximately in proportion to the population of children under age 5. TABLE 9-10.--DISTRIBUTION OF PRESCHOOL CHILDREN, EARLY CHILDHOOD PROGRAMS, AND PROGRAM SPACES BY REGION AND URBANICITY [In percent] ---------------------------------------------------------------------------------------------------------------- Spaces in Children Spaces Regulated regulated younger Centers in home- home- than 5 centers based based \1\ programs programs ---------------------------------------------------------------------------------------------------------------- Region: Northeast............................................... 19 18 16 14 11 South................................................... 35 41 42 21 20 Midwest................................................. 24 23 23 29 32 West.................................................... 23 18 19 36 37 Urbanicity: Metropolitan............................................ 75 76 83 77 77 Nonmetropolitan......................................... 25 24 17 23 23 ---------------------------------------------------------------------------------------------------------------- \1\ The distribution of children younger than age 5 by region is estimated from projections of 1980 census data to 1988 (U.S. Bureau of the Census, 1989). The distribution of children younger than age 5 by urbanicity is estimated as the distribution of the population by urbanicity in 1980 (U.S. Bureau of the Census, 1983). Source: Kisker, Hofferth, Phillips, & Farquhar (1991). The study also found that there were approximately 118,000 licensed family day care providers with a capacity to care for 860,000 children (defined as the number of children for whom the provider is licensed to provide care) operating in the United States at the beginning of 1990. This number is about 30 percent less than counts of family day care providers obtained directly from licensing lists because such lists are not generally up to date. About 82 percent of all family day care spaces were filled at the beginning of 1990. In contrast to centers, the distribution of family day care homes across regions of the United States was not proportional to the number of young children in those regions (table 9-10). The authors postulate that this imbalance may be due to regional differences in State family day care licensing requirements. When providers were asked how many vacancies were actually available, the study found that the average child care center had four full-time vacancies and that the average regulated family day care home had one full-time vacancy. For centers, the study reported that vacancies were concentrated in fewer than half of all centers and that two-thirds to three-fourths of all centers reported having no vacancies. Vacancies were also concentrated in less than half of all family day care homes. According to the study, more than half of all regulated homes reported being ``unable or unwilling'' to accept more children on a full-time basis. It is assumed by child care researchers that the number of unregulated family day care providers far exceeds the number of regulated family providers, though it is difficult to determine by how much. Based on an estimate that 4 million children were in family day care in 1991 and that the average number of children per home ranged from 3 to 6, Kisker et al. estimated that there were from 550,000 to 1.1 million unlicensed providers. Based on this estimate, the number of regulated family day care homes (118,000) represented 10-18 percent of the total number of family day care providers (National Association for the Education of Young Children, 1991). CHILD CARE STANDARDS Regulation and licensing of child care providers is conducted primarily at the State and local levels, although the extent to which the Federal Government should play a role in this area has been a topic of debate for many years (see below). Table 9-11 presents information on State licensing standards in 1993, which was collected by Parenting magazine and the Children's Defense Fund (CDF). It should be noted that these standards apply to licensed or regulated child care providers. In the case of family day care homes, most States exempt certain providers--typically those serving smaller numbers of children--from licensing or regulation. As cited above, research in 1990 estimated that between 82 and 90 percent of family child care is unregulated. TABLE 9-11.--NUMBER OF STATES WITH SELECTED CHILD CARE LICENSING REQUIREMENTS, FOR CHILD CARE CENTERS AND FAMILY DAY CARE HOMES, 1993 ------------------------------------------------------------------------ Child care Family day Item centers care homes ------------------------------------------------------------------------ Children must have all immunizations \1\...... 50 45 Children must have all recommended immunizations \2\............................ 7 9 All or some staff must have first aid training 42 28 All or some staff must have CPR training...... 32 18 Energy-absorbing surfaces must be under climbing equipment........................... 23 NA Smoke detectors and periodic fire drills: Both required............................. 44 35 Fire drill only........................... 6 2 Smoke detector only....................... 1 7 Staff must wash hands after diapering and before handling food......................... 48 NA Smoking prohibited............................ 45 19 Maximum number of children allowed per staff members exceeds NAEYC recommendation: \3\ 6 months old.............................. 18 NA 12 months old or walking.................. 20 NA 18 months old............................. 25 NA 2 years old............................... 31 NA 3 years old............................... 21 NA 4 years old............................... 33 NA Group size not regulated, or exceeds NAEYC recommendation: \3\ 6 months old.............................. 33 NA 12 months old or walking.................. 25 NA 18 months old............................. 30 NA 2 years old............................... 20 NA 3 years old............................... 23 NA 4 years old............................... 23 NA Parental access required...................... 46 42 Frequency of State licensing inspections: More than once per year................... 12 9 Once per year............................. 30 15 Less than once per year................... 8 21 Never..................................... 1 6 Liability insurance required.................. 20 5 Corporal punishment prohibited................ 43 39 ------------------------------------------------------------------------ \1\ Basic immunizations are the DPT vaccine against diphtheria-pertussis- tetanus, the OPV vaccine against polio, and the MMR vaccine against measles, mumps and rubella. \2\ In addition to the basic immunizations, the American Academy of Pediatrics recommends the Hib vaccine against bacterial meningitis, and HBV against hepatitis B. \3\ Staff-child ratios are recommended by the National Association for the Education of Young Children. NA--Not available. Source: Prepared by the Congressional Research Service from data reported by Adams, 1995. THE FEDERAL ROLE--BACKGROUND AND OVERVIEW The Federal Government entered the child care business during the New Deal of the 1930s when federally funded nursery schools were established for poor children. The motivation for creating these nursery schools was not specifically to provide child care for working families. Rather, the schools were designed primarily to create jobs for unemployed teachers, nurses, and others, and also to provide a wholesome environment for children in poverty. However, when mothers began to enter the work force in large numbers during World War II, many of these nursery schools were continued and expanded. Federal funding for child care, and other community facilities, was available during the war years under the Lanham Act, which financed child care for an estimated 550,000-600,000 children before it was terminated in 1946. The end of the war brought the expectation that mothers would return home to care for their children. However, many women chose to remain at work and the labor force participation of women has increased steadily ever since. The appropriate Federal role in supporting child care, including the extent to which the Federal Government should establish standards for federally funded child care, has been an ongoing topic of debate. In 1988 and 1990, four Federal child care programs were enacted providing child care for families receiving Aid to Families with Dependent Children (AFDC), families that formerly received AFDC, low-income working families at risk of becoming dependent on AFDC, and low-income working families generally. The establishment of these programs was the culmination of a lengthy, and often contentious debate, about what role the Federal Government should play in child care. Lasting nearly 4 years, the debate centered on questions about the type of Federal subsidies that should be made available and for whom, whether the Federal Government should set national child care standards, conditions under which religious child care providers could receive Federal funds, and how best to assure optimal choice for parents in selecting child care arrangements for their children, including options that would allow a mother to stay home. Differences stemming from philosophical and partisan views, as well as jurisdictional concerns, were reflected throughout the debate. Though the programs created in 1988 and 1990 represented a significant expansion of Federal support for child care, they joined a large number of existing Federal programs providing early childhood services, administered by numerous Federal agencies and overseen by several congressional committees. The General Accounting Office (GAO) estimated that in fiscal year 1992 and fiscal year 1993, more than 90 early childhood programs were funded by the Federal Government, administered through 11 Federal agencies and 20 offices. Of these programs, GAO identified 34 as having education or child care as key to their mission (U.S. General Accounting Office, 1994a). The Congressional Research Service (CRS), in a memo to the House Committee on Ways and Means (Forman, 1994), identified 46 Federal programs related to child care operating in fiscal year 1994, administered by 10 different Federal agencies. However, CRS noted that some of these programs were not primarily child care programs; rather, they were designed for some other major purpose but included some type of child care or related assistance. Moreover, a majority of the programs were small, with 32 of the 46 providing less than $50 million in annual funding. A more recent GAO (1998) report identified 22 key child care programs, of which 5 accounted for more than 80 percent of total child care spending in fiscal year 1997. Most recently, the 104th Congress passed a major restructuring of Federal welfare programs, including a consolidation of major Federal child care programs into an expanded Child Care and Development Block Grant (CCDBG) (Public Law 104-103). The child care provisions in the new law were developed to achieve several purposes. As a component of welfare reform, the child care provisions are intended to support the overall goal of promoting self-sufficiency through work. However, separate from the context of welfare reform, the legislation attempts to address concerns about program effectiveness and efficiency. The four separate child care programs that were enacted in 1988 and 1990 had different rules regarding eligibility, time limits on the receipt of assistance, and work requirements. Consistent with other block grant proposals considered in the 104th Congress, the child care provisions in Public Law 104-193 are intended to streamline the Federal role, reduce the number of Federal programs and conflicting rules, and increase the flexibility provided to States. In addition, the Child Care and Development Block Grant, which had originally been enacted in 1990 to provide child care services for low-income families, expired at the end of fiscal year 1995, and the welfare reform legislation was used as a vehicle for reauthorization. Under the new amendments, the CCDBG is now the primary child care subsidy program operated by the Federal Government, and replaces previous child care programs for welfare and working families. The new law makes available to States almost $20 billion over a 6-year period (1997-2002) in a combination of entitlement and discretionary funding for child care, which is approximately $4 billion above the level that would have been available under the previous programs. Despite this increase in Federal resources, concerns persist about the adequacy and quality of child care, particularly after welfare reform is fully implemented and States are required to ensure that a certain portion of their welfare caseload is enrolled in work activities. The Congressional Budget Office (CBO) projected in August 1996 a potential $1.4 billion shortfall in child care funding over the 6 years if all States complied with new welfare-to-work participation requirements. However, the CBO analysis was limited only to entitlement funding, and did not consider the $6 billion in discretionary funds also authorized for child care. Moreover, welfare caseloads have declined since CBO's analysis was conducted, which would free up funds from the Temporary Assistance for Needy Families (TANF) Block Grant that States could use for child care. On the other hand, about a third of the total child care funding is subject to maintenance-of-effort and matching requirements, and CBO's estimate was based on the assumption that all States would meet these requirements. If any States fail to meet these requirements, they would not receive the full amount of available Federal funds. It is likely that increased demand and Federal resources for child care will cause some growth in the supply of child care providers. The U.S. General Accounting Office (GAO) reported in May 1997 that gaps currently exist between the demand for child care and the ``known'' supply (i.e., providers that are regulated by or otherwise known to the States), based on research at four sites. These gaps are larger in poor areas and for certain types of care, such as infant and school-aged child care. It is important to note, however, that many parents rely on informal care givers, such as relatives and neighbors, who may not be known to State agencies. Nonetheless, as welfare reform and the new child care law are implemented, a number of perennial issues will be of continuing interest, including the availability, cost, and quality of child care. In addition, States now will have the flexibility and responsibility for determining the most equitable method of providing child care services to both welfare families who are trying to become self-sufficient, and low-income working families who are not dependent on welfare. THE FEDERAL ROLE--MAJOR DAY CARE PROGRAMS Table 9-12 provides a brief description of the major Federal programs that currently support child care and related activities. As the table shows, one of the largest Federal sources of child care assistance is provided indirectly through the Tax Code, in the form of a nonrefundable tax credit for taxpayers who work or are seeking work. Other major sources of Federal child care assistance, in addition to the CCDBG, include the Social Services Block Grant under title XX of the Social Security Act and the Child Care Food Program, which subsidizes meals for children in child care. Head Start, the early childhood development program targeted to poor preschool children, also has been characterized as a child care program. Although Head Start primarily operates on a part-day, part-year basis, programs increasingly are being linked to other all-day child care providers to better meet the needs of full-time working parents. Dependent Care Tax Credit Under section 21 of the Internal Revenue Code, a nonrefundable credit against income tax liability is available for up to 30 percent of a limited amount of employment-related dependent care expenses. Eligible employment-related expenses are limited to $2,400, if there is one qualifying dependent, or $4,800, if there are two or more qualifying dependents. The credit may be claimed by a taxpayer who maintains a household that includes one or more qualifying individuals. Generally, a qualifying individual is a dependent under the age of 13, a physically or mentally incapacitated dependent, or a physically or mentally incapacitated spouse. The costs of care must be incurred to enable a taxpayer (or taxpayer's spouse, if married) to work or look for work. Qualified expenses include the costs of household services. TABLE 9-12.--OVERVIEW OF FEDERAL PROGRAMS THAT SUPPORT CHILD CARE -------------------------------------------------------------------------------------------------------------------------------------------------------- Program --------------------------------------------------------------------------------------------------------------------- Child Care and Child and Adult Care Title XX Social Dependent Care Credit Development Block Grant Food Program Services Block Grant Head Start -------------------------------------------------------------------------------------------------------------------------------------------------------- Budgetary classification.......... Nonrefundable tax Discretionary Authorized Authorized Discretionary credit. authorization and entitlement. entitlement. authorization authorized entitlement. Statutory authority............... Internal Revenue Code Omnibus Budget National School Lunch Social Security Act.. Omnibus Budget Reconciliation Act of Act of 1946. Reconciliation Act 1990 and Personal of 1981 Responsibility and Work Opportunity Reconciliation Act of 1996. Federal administration............ U.S. Department of HHS, ACF \1\............ U.S. Department of HHS, ACF \1\......... HHS, ACF \1\ Treasury, Internal Agriculture, Food Revenue Service. and Nutrition Service. Federal funding support........... NA................... Funding ceiling, 100 Open-ended, 100 Funding ceiling, 100 Funding ceiling, 80 percent Federal funding percent Federal percent Federal percent Federal for discretionary and funding. funding. funding part of entitlement funding; balance at Medicaid match rate. Fiscal year 1997 estimates (in $2,800 \3\........... 970--discretionary, 1,524 \4\............ Total is 2,500 \5\... 3,981 \4\ millions) \2\. 1,435--mandatory. Target population................. Taxpayers who need Families with incomes at NA................... State discretion..... Low-income children dependent care in or below 85 percent of and families order to accept or State median income, maintain employment. with parents engaged in work or education/ training. Eligible children................. Children under age 13 Children under age 13 Children younger than State discretion..... Children from poor (unless incapable of 13; migrant children families who have self-care or under younger than 16. not reached the age court supervision). of compulsory school attendance Provider requirements............. Centers only must Must meet applicable Must meet applicable Must meet applicable Must meet federally meet applicable State and local State and local State and local established State and local standards (including standards. standards. standards with standards. relatives). With respect to health, exception of relatives, education, parental must also meet certain involvement, health and safety nutrition, and standards. social services Reimbursement rates to providers.. NA................... No limit................ Meal rates are No limit............. No limit indexed to inflation, rates vary by family income, and provider's income and location. -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ U.S. Department of Health and Human Services, Administration for Children and Families. \2\ Source: Congressional Budget Office for Programs, Joint Committee on Taxation for tax expenditures. \3\ See Joint Committee, 1996. p. 21. \4\ Obligations. \5\ States used almost 15 percent of SSBG funds for child day care in fiscal year 1995. NA--Not applicable. Source: Compiled by Committee on Ways and Means staff. The percentage used to calculate the credit depends on a taxpayer's adjusted gross income (AGI). A taxpayer whose AGI is $10,000 or less is allowed a credit equal to 30 percent of qualified work-related expenses. The credit percentage is reduced by 1 percentage point for each additional $2,000 in AGI above $10,000. For taxpayers whose AGI is greater than $28,000, the credit is equal to 20 percent of qualified expenses. The maximum amount of the credit is $720 for one qualifying individual and $1,440 for two or more qualifying individuals. The Internal Revenue Code also contains a provision that allows taxpayers to exclude from their income the value of certain dependent care benefits provided by their employers. This exclusion is limited to $5,000 per year, or $2,500 for a married individual filing a separate return. More detailed information on the dependent care tax credit and the exclusion for employer-provided dependent care is provided in section 13. Child Care Programs Under Title IV-A of the Social Security Act Congress enacted legislation in 1996 that repealed the 60- year-old Aid to Families with Dependent Children (AFDC) Program, which had been authorized under title IV-A of the Social Security Act, and established in its place a new block grant to States for Temporary Assistance for Needy Families (TANF). This legislation, the Personal Responsibility and Work Opportunity Reconciliation Act (Public Law 104-93), also repealed three child care programs that had been authorized under AFDC, and expanded the existing Child Care and Development Block Grant to include the purposes and populations that the repealed programs had served. The following sections describe the three AFDC-related child care programs as they existed before passage of the 1996 welfare reform legislation, and the expanded CCDBG, as it has been amended. Child care for AFDC recipients Under the AFDC Program, the Federal Government required States to ``guarantee'' child care to recipients of AFDC if the care was needed for individuals to accept employment or remain employed. Child care also was guaranteed to AFDC recipients who were participating in a State-approved education and training activity, including an AFDC Job Opportunities and Basic Skills (JOBS) Training Program. \1\ The AFDC Child Care Program was funded by an open-ended entitlement. The Federal share of a State's child care payments was based on the Medicaid matching rate, which varies by State and is inversely related to a State's per capita income. The program was administered on the Federal level by the Administration for Children and Families (ACF) of the U.S. Department of Health and Human Services, as part of the AFDC Program. --------------------------------------------------------------------------- \1\ Under the Family Support Act of 1988 (Public Law 100-485), all States were required to have a JOBS Program in place by October 1, 1990. The centerpiece of a major welfare reform initiative, JOBS was intended to prevent long-term welfare dependency by providing needy families with education, training, and employment. All AFDC recipients not otherwise exempt by law were required to participate in JOBS. The parent of a child under age 6 could be required to participate only if child care was guaranteed and if participation was limited to no more than 20 hours per week. A parent of a child under age 3 was exempt from participation, unless required to participate at State option. More detailed information on the AFDC JOBS Program is provided in section 7. --------------------------------------------------------------------------- State welfare agencies were responsible for administering the program at the State level and were required to inform AFDC applicants and recipients of the availability of child care assistance and the types and locations of child care services. The State agencies could provide child care directly, arrange for care with providers through contracts or vouchers, provide cash or vouchers in advance to families, reimburse families, or use other arrangements. States could also choose to disregard certain child care expenses--up to $175 per month per child age 2 and over and up to $200 per month per child under age 2--from the earned income of a family in determining the family's eligibility for AFDC benefits. Reimbursement for child care costs had to be at least equal to the lower of the actual cost of care or a statewide limit (which could be the child care disregard amount or a higher amount). Reimbursement could not be more than the 75th percentile of the local market rate for the type of care being provided, as determined by each State. \2\ The child care had to meet applicable standards of State and local law. In addition, States had to ensure that center-based child care was subject to State and local health and safety requirements, including fire safety protections. States also had to endeavor to develop guidelines for family day care services. --------------------------------------------------------------------------- \2\ The 75th percentile does not mean 75 percent of the cost of care. To determine the 75th percentile, child care rates are ranked from lowest to highest. Starting from the bottom of the list, the amount separating the 75 percent of providers with the lowest rates from the 25 percent with highest rates is the 75th percentile. --------------------------------------------------------------------------- GAO reported, on the basis of a nationwide survey, that about three-fourths of State JOBS Programs able to provide child care subsidies or help arrange child care for all or most of their participants who needed such assistance. However, GAO attributed this success to the relatively small number of AFDC recipients actually participating in JOBS--about 13 percent of the adult caseload in a given month. State and local officials told GAO that barriers to providing child care assistance included shortages of certain types of care, such as infant care, sick child care, before- and after-school care, and child care during nontraditional work hours, as well as transportation problems (U.S. General Accounting Office, 1995). Transitional child care assistance Under the AFDC Program, the Federal Government also required States to ``guarantee'' child care to a family that lost AFDC eligibility due to increased hours of, or increased income from employment or loss of the income disregard due to the time limitations, if the care was necessary for an individual to accept or retain employment. To be eligible for transitional child care (TCC), families had to have received AFDC in at least 3 of the 6 months immediately before the month in which they became ineligible for AFDC. The child care assistance under this program was limited to a period of 12 months after the last month for which the family received AFDC benefits. The program, which was administered by ACF at the Federal level operated under the same rules as those that applied to the Child Care Program for eligible AFDC recipients, except that families had to contribute to the cost of the care in accordance with a State-established sliding fee scale. At-Risk Child Care Program The At-Risk Child Care Program authorized by the Omnibus Budget Reconciliation Act of 1990 (Public Law 101-508) entitled States to Federal matching funds for child care services for low-income families who were not receiving AFDC, needed child care in order to work, and were ``at risk'' of becoming eligible for welfare if child care were not provided. The program was authorized as a capped entitlement at $300 million annually. It was administered by ACF. States were entitled to matching funds for child care expenditures up to State allocation limits determined by a formula in the law. State allocations were based on the number of children under age 13 in a State compared to the total number of such children in the United States. If a State's grant award was less than its full allocation limit in 1 year, the difference could be applied to the State's allocation limit in the next year. Like the AFDC Child Care Programs, the Federal share of a State's child care payments was based on the Medicaid matching rate, which varies by State. The At-Risk Program was similar to the AFDC Child Care Programs with regard to the flexibility States were afforded in providing care. The requirements for reimbursement rates also were similar. Like the TCC Program, families were required to make some contribution to the cost of care, based on a State- designed sliding fee scale. At-risk child care had to meet applicable standards of State and local law. In contrast to the other title IV-A child care programs, at-risk child care providers not required to meet such standards (with the exception of those providing care solely to family members) had to be registered by the State. Child Care and Development Block Grant The Child Care and Development Block Grant (CCDBG) was originally authorized as an amendment to the Omnibus Budget Reconciliation Act of 1990, and most recently, has been reauthorized and amended by the Personal Responsibility and Work Opportunity Reconciliation Act (Public Law 104-193). The program provides funding for child care services for low-income families, as well as for activities intended to improve the overall quality and supply of child care for families in general. The CCDBG currently is authorized through fiscal year 2002. Financing Under the original CCDBG Act, discretionary funds were authorized, subject to the annual appropriations process. As amended by the 1996 welfare reform law, the program is funded by a combination of discretionary and entitlement amounts. With regard to the discretionary funds, $1 billion is authorized annually. These funds are allocated among States according to the same formula contained in the original CCDBG Act, which is based on each State's share of children under age 5, the State's share of children receiving free or reduced-price lunches, and State per capita income. Half of 1 percent of appropriated funds is reserved for the territories, and between 1 and 2 percent is reserved for payments to Indian tribes and tribal organizations. States are not required to match these discretionary funds. Funds must be obligated in the year they are received or in the subsequent fiscal year, and the law authorizes the Secretary to reallocate unused funds. The 1996 welfare reform law replaced the AFDC Program with a new block grant to States for Temporary Assistance for Needy Families (TANF), under title IV-A of the Social Security Act (see section 7). The welfare reform law also provides entitlement funding to States for child care under title IV-A, and directs the States to transfer these funds to the lead agency that administers the CCDBG. Although provided through TANF, these child care funds must be spent subject to the requirements and limitations of the CCDBG Act. The law authorizes and appropriates the following entitlement amounts for child care: $1.967 billion in fiscal year 1997; $2.067 billion in fiscal year 1998; $2.167 billion in fiscal year 1999; $2.367 billion in fiscal year 2000; $2.567 billion in fiscal year 2001; and $2.717 billion in fiscal year 2002. As required for discretionary funds, the Secretary must reserve between 1 and 2 percent of entitlement funds for payments to Indian tribes and tribal organizations. After this amount is reserved, remaining entitlement funds are allocated to States in two components. First, each State receives a fixed amount each year, equal to the funding received by the State under the three child care programs previously authorized under AFDC in fiscal year 1994 or fiscal year 1995, or the average of fiscal years 1992-94, whichever is greater. This amount totals approximately $1.2 billion each year. This component of the entitlement funds are sometimes referred to as ``guaranteed'' or ``mandatory'' funds. No State match is required for these funds, which may remain available for expenditure by States with no fiscal year limitation. However, to receive their full TANF allotment, States must maintain at least 80 percent of their previous welfare expenditures, including previous expenditures for welfare-related child care, in fiscal year 1994. This may be reduced to 75 percent for States that meet Federal requirements regarding the participation of welfare recipients in work activities. Second, remaining entitlement funds (after the Indian reserve and ``guaranteed'' entitlement funds are allocated) are distributed to States according to each State's share of children under age 13. States must meet maintenance-of-effort and matching requirements to receive these funds. Specifically, States must spend all of their ``guaranteed'' Federal entitlement funds for child care, plus 100 percent of the amount they spent of their own funds in fiscal year 1994 or fiscal year 1995, whichever is higher, under the previous AFDC- related child care programs. Further, States must provide matching funds at the fiscal year 1995 Medicaid matching rate to receive these additional entitlement funds for child care. If the Secretary determines that a State will not spend its entire allotment for a given fiscal year, then the unused amounts may be redistributed among other States according to those States' share of children under age 13. In addition to amounts provided to States specifically for child care, States may transfer up to 30 percent of their TANF Block Grant allotments into their CCDBG or Social Services Block Grant Programs. Funds transferred into child care must be spent according to the CCDBG rules. However, States also may use TANF funds for child care without formally transferring them to the CCDBG, in which case, CCDBG rules would not necessarily apply. Eligibility and target population groups Children eligible for services under the revised CCDBG are those whose family income does not exceed 85 percent of the State median. The original CCDBG limited eligibility to children whose family income did not exceed 75 percent of State median. Children must be less than 13 years old and be living with parents who are working or enrolled in school or training, or be in need of protective services. States must use at least 70 percent of their total entitlement funds for child care services for families that are trying to become independent of TANF through work activities, and families that are at risk of becoming dependent on public assistance. In their State plans, States must demonstrate how they will meet the specific child care needs of these families. Of remaining child care funds (including discretionary amounts), States must ensure that a substantial portion is used for child care services to eligible families other than welfare recipients or families at risk of welfare dependency. Use of funds CCDBG funds may be used for child care services provided on a sliding fee scale basis; however, Federal regulations allow States to waive child care fees for families with incomes at or below the poverty line. Funds also may be used for activities to improve the quality or availability of child care. States are required to spend no less than 4 percent of their child care allotments (discretionary and entitlement) for activities to provide comprehensive consumer education to parents and the public, activities that increase parental choice, and activities designed to improve the quality and availability of child care (such as resource and referral services). Child care providers receiving Federal assistance must meet all licensing or regulatory requirements, including registration requirements, applicable under State or local law. States must have in effect licensing requirements applicable to child care; however, Federal law does not dictate what these licensing requirements should be or what types of providers they should cover. States must establish minimum health and safety standards, applicable to child care providers receiving block grant assistance (except relative providers). These standards must cover: prevention and control of infectious diseases (including immunizations); building and physical premises safety; and health and safety training. Parents of children eligible to receive subsidized child care must be given maximum choice in selecting a child care provider. Parents must be offered the option to enroll their child with a provider that has a grant or contract with the State to provide such services, or parents may receive a certificate or voucher that can be used to purchase child care from a provider of the parents' choice. Child care certificates can be used only to pay for child care services from eligible providers, which can include sectarian child care providers. Eligible providers also can include individuals, age 18 or older, who provide child care for their grandchildren, great grandchildren, nieces or nephews, or siblings (if the provider lives in a separate residence). States must establish payment rates for child care services that are sufficient to ensure equal access for eligible children to comparable services provided to children whose parents are not eligible for subsidies. The CCDBG contains specific requirements with regard to the use of funds for religious activities. Under the program, a provider that receives operating assistance through a direct grant or contract with a government agency may not use these funds for any sectarian purpose or activity, including religious worship and instruction. However, a sectarian provider that receives a child care certificate from an eligible parent is not so restricted in the use of funds. Administration and data collection At the Federal level, the CCDBG is administered by the Administration for Children and Families (ACF), of the Department of Health and Human Services (HHS). The Secretary is required to coordinate all child care activities within the agency and with similar activities in other Federal agencies. States are required to designate a lead agency to administer the CCDBG, and may use no more than 5 percent of their Federal child care allotment for administrative costs. States must submit disaggregated data on children and families receiving subsidized child care to HHS every quarter, and aggregate data twice a year. The Secretary is required to submit a report to Congress once every 2 years. Title XX--Social Services Block Grant Title XX of the Social Security Act authorizes grants to States for providing social services that are determined appropriate by the State. The program operates as a ``capped entitlement,'' under which States are allocated funds based on their relative population size up to a nationwide ceiling. No matching funds are required. In addition, there are no Federal eligibility requirements for participants. The program is administered at the Federal level by ACF, HHS. The Omnibus Budget Reconciliation Act of 1989 (Public Law 101-239) permanently authorized $2.8 billion annually for the program. However, Congress reduced the entitlement ceiling to $2.38 billion in fiscal year 1996 through appropriations legislation. Omnibus welfare reform legislation (Public Law 104-193) established $2.38 billion as the entitlement ceiling in fiscal years 1997-2002, although Congress exceeded this ceiling in fiscal year 1997 appropriations legislation (Public Law 104- 208), which provides $2.5 billion for title XX. Available information on use of title XX funds indicates that a majority of States typically spend some portion of their grants on child care services. According to State reports on the intended use of title XX funds (known as preexpenditure reports), 45 States funded child care services in fiscal year 1990. States also submit reports to HHS on their actual use of funds. According to an unpublished analysis of these reports for fiscal year 1995 from all States, conducted by the Congressional Research Service, States spent almost 14 percent of their title XX funds on child day care. More information on title XX, including State allocations, is provided in section 10. Child and Adult Care Food Program The Child and Adult Care Food Program (CACFP) is permanently authorized under section 17 of the National School Lunch Act. The CACFP provides Federal subsidies for breakfasts, lunches, suppers, and snacks meeting Federal nutrition requirements that are served in licensed nonresidential child care centers (including programs run by schools) and family or group day care homes. \3\ Federal assistance is made up overwhelmingly of cash subsidies based on the number of meals and snacks served; about 2 percent is in the form of federally donated commodities. CACFP subsidies to participating centers and homes are available for meals and snacks served to children age 12 or under, migrant children age 15 or under, and handicapped children of any age. But the majority of children in the program are between 3 and 6 years old. CACFP spending was $1.58 billion (including commodities) in fiscal year 1996 (up from $1.467 billion in 1995 and $1.355 billion in 1994). In fiscal year 1996, average daily attendance in CACFP-subsidized centers and homes totaled 2.4 million children. --------------------------------------------------------------------------- \3\ CACFP subsidies also are available for meal services to chronically impaired adults and the elderly in adult day care centers under the same general terms and conditions as child care centers. However, very few adult centers participate (about 1,600 sites serving some 50,000 persons in fiscal year 1996), and Federal spending for them is a minor fraction of the total cost of the CACFP ($25 million in fiscal year 1996, or about 1.6 percent of overall CACFP spending). --------------------------------------------------------------------------- At the Federal level, the program is administered by the Agriculture Department's Food and Consumer Service. At the State level, a variety of agencies have been designated as responsible by the individual States, and, in one State (Virginia) the Federal Government operates the program in lieu of the State. In fiscal year 1996, State agencies, in turn, approved, oversaw, and provided payments to some 13,000 child care centers with over 30,000 sites and to their sponsoring organizations some 1,200 family or group day care home sponsors with more than 190,000 homes. Child care centers in the CACFP serve an average of 40-50 children and are of 4 types: public or private nonprofit centers (the single largest group), Head Start centers, for- profit proprietary centers (see restrictions noted below), and outside-of-school centers often operated by schools. \4\ Almost 60 percent of children in the CACFP are reached through centers, and, of those participating through centers, one-third are in Head Start centers, 1 out of 8 are in proprietary centers, and 1 out of 10 are in afterschool centers. On the other hand, only about 40 percent of CACFP funding is provided to centers, primarily because subsidies are differentiated by children's family income (see below). Child care centers must meet any applicable Federal, State, or local licensing requirements, or otherwise demonstrate that they comply with government-established standards (e.g., receive title XX funds). Proprietary centers are eligible for CACFP subsidies only if they receive title XX funding for at least 25 percent of their enrollment or licensed capacity, regardless of the income status of the children they serve. \5\ --------------------------------------------------------------------------- \4\ A small Homeless Children Nutrition Program (with about 100 sites) also provides shelters with subsidies for free meals and snacks served to homeless children in their charge who are under age 6. \5\ In two States (Iowa and Kentucky), a pilot project allows proprietary centers to participate in the CACFP if children representing at least 25 percent of their enrollment or licensed capacity have family income below 185 percent of the Federal poverty income guidelines (the income test for receiving free or reduced-price meals and snacks). --------------------------------------------------------------------------- Day care centers may receive daily subsidies for up to two meals and one snack or one meal and two snacks for each child. All meals and snacks served in centers are federally subsidized to at least some degree; different subsidies are provided for breakfasts, lunches/suppers, and snacks, and subsidy rates are indexed annually. However, subsidies vary according to the family income of each child, and applications for free or reduced-price meals and snacks must be taken. The largest subsidies are paid for meals and snacks served free to children with family income below 130 percent of the Federal poverty income guidelines: for July 1997-June 1998, these subsidies are 51.75 cents for each snack, $1.045 for each breakfast, and $1.89 for each lunch or supper. Smaller subsidies are available for meals and snacks served at a reduced price to children with family income between 130 and 185 percent of the Federal poverty guidelines: for July 1997-June 1998, these are 26 cents for each snack, 74.5 cents for each breakfast, and $1.49 for each lunch or supper. The smallest subsidies are paid for meals and snacks served to children who do not qualify or apply for free or reduced-price meals and snacks: for July 1997-June 1998, these are 4 cents for snacks, 20 cents for breakfasts, and 18 cents for lunches and suppers. CACFP-subsidized family and group day care homes serve an average of 4-6 children; just over 40 percent of children in the CACFP are in day care homes. Approximately 60 percent of CACFP money supports meals served in homes. As with day care centers, approved homes must meet licensing requirements or otherwise show compliance with government standards. Unlike centers, day care homes must participate under the auspices of a public or private nonprofit sponsor that typically has over 100 homes under its supervision; CACFP day care home sponsors receive monthly administrative payments based on the number of homes for which they are responsible. Also unlike centers, day care homes receive cash subsidies that do not differ by individual children's family income. Instead, there are two distinct subsidy rates. ``Tier I'' homes (those located in low- income areas or operated by low-income providers) receive higher subsidies; for July 1997-June 1998, all lunches and suppers are subsidized at $1.62, all breakfasts at 88 cents, and all snacks at 48 cents. ``Tier II'' homes (those not located in low-income areas or without low-income providers) receive lower subsidies; for July 1997-June 1998, all lunches and suppers are subsidized at 98 cents, all breakfasts at 33 cents, and all snacks at 13 cents. Payments are provided for no more than two meals and one snack (or one meal and two snacks), and tier II providers may seek higher tier I rates for individual low-income children for whom they collect and verify financial information. Head Start Head Start began in 1965 under the general authority of the Economic Opportunity Act, and is authorized currently through fiscal year 1998 under the Human Services Amendments of 1994 (Public Law 103-252). Head Start is federally administered by ACF, HHS, and provides grants directly to local programs. Head Start provides comprehensive early childhood development, educational, health, nutritional, social and other services to primarily low-income preschool children and their families. In general, Head Start operates a part-day program during the school year, although some local Head Start grantees coordinate with other programs to provide all-day care. With Federal appropriations of almost $4 billion in fiscal year 1997, Head Start will serve an estimated 800,000 children. (For more information on Head Start, see section 15.) CHILD CARE TABLES Tables 9-13 through 9-22 provide extensive information about selected Federal child care programs, especially former and current programs under the jurisdiction of the Committee on Ways and Means. These programs include AFDC Child Care, Transitional Child Care, At-Risk Child Care, and the Child Care and Development Block Grant. Table 9-13 provides data on Federal payments to States for AFDC child care and TCC for fiscal years 1991-96. Table 9-14 provides State-specific information on child care options under the AFDC and TCC Programs, based on biennial State ``supportive services'' plans filed with HHS as of February 6, 1996. Table 9-15 provides data on Federal payments to States for At-Risk Child Care for fiscal years 1991-96. Table 9-16 provides State- specific information on child care options under the At-Risk Child Care Program, based on biennial State ``supportive services'' plans. The most recent State-by-State data on the number of JOBS participants who received title IV-A child care subsidies are shown in table 9-17. The types of child care arrangements used by the JOBS participants' children is provided in table 9-18. The number of families not in JOBS who received title IV-A child care assistance is shown in table 9-19. The type of care used by AFDC families not in JOBS who received title IV-A child care assistance is shown in table 9-20. Data on the number of children who received TCC subsidies and the type of care arrangements used by their families are found in table 9-21. Table 9-22 summarizes State allocations for 1996 and 1997 under the Child Care and Development Block Grant. TABLE 9-13.--FEDERAL PAYMENTS TO STATES FOR AFDC CHILD CARE AND TRANSITIONAL CHILD CARE, FISCAL YEARS 1991-96 [Fiscal year in thousands] ---------------------------------------------------------------------------------------------------------------- States 1991 1992 1993 1994 1995 1996 ---------------------------------------------------------------------------------------------------------------- Alabama................................. $2,820 $5,981 $9,050 $13,586 $11,115 $11,637 Alaska.................................. 445 1,329 1,262 1,756 2,221 3,723 Arizona................................. 2,354 5,998 8,462 11,025 15,846 19,798 Arkansas................................ 4,348 1,940 1,268 1,525 2,142 2,752 California.............................. 11,331 16,655 34,401 30,586 48,205 37,716 Colorado................................ 3,649 4,082 5,315 5,763 5,342 7,734 Connecticut............................. 5,301 6,563 7,061 9,916 13,987 22,387 Delaware................................ 1,300 1,787 3,016 3,350 4,445 4,782 District of Columbia.................... 2,799 4,284 1,855 4,668 3,187 3,442 Florida................................. 20,678 17,506 20,136 20,457 31,313 33,829 Georgia................................. 13,231 16,060 25,247 36,240 36,599 42,086 Guam.................................... 9 22 4 1 3 2 Hawaii.................................. 249 70 273 1,084 1,667 4,906 Idaho................................... 756 775 1,069 1,468 1,307 1,440 Illinois................................ 8,468 4,455 11,949 22,237 42,870 70,379 Indiana................................. 12,828 4,640 7,101 5,763 22,696 31,559 Iowa.................................... 2,204 1,730 2,409 3,227 6,402 3,442 Kansas.................................. 3,233 5,388 6,677 7,836 5,442 7,219 Kentucky................................ 5,027 9,188 10,450 13,484 11,948 13,258 Louisiana............................... 12,741 10,955 15,512 11,233 12,088 10,247 Maine................................... 1,354 361 1,083 953 1,935 1,939 Maryland................................ 9,509 10,027 13,912 17,192 19,187 18,891 Massachusetts........................... 24,889 24,933 23,991 36,003 48,401 49,593 Michigan................................ 14,467 15,727 13,597 17,866 12,514 30,922 Minnestoa............................... 11,342 9,918 12,415 19,911 16,328 21,423 Mississippi............................. 574 2,577 3,230 3,660 5,782 6,135 Missouri................................ 1,196 8,624 14,348 14,201 17,528 21,728 Montana................................. 1,144 2,943 1,988 2,127 1,908 3,060 Nebraska................................ 5,152 5,630 7,455 9,936 8,787 6,555 Nevada.................................. 1,057 435 1,032 1,029 1,228 1,787 New Hampshire........................... 1,621 2,013 2,495 2,955 3,670 3,091 New Jersey.............................. 2,195 6,653 9,309 9,096 11,921 43,612 New Mexico.............................. 2,026 1,745 3,994 6,475 3,657 7,195 New York................................ 29,289 36,303 57,988 60,215 46,171 97,325 North Carolina.......................... 7,306 24,423 35,163 56,868 61,151 59,311 North Dakota............................ 1,554 1,725 1,709 1,841 1,513 990 Ohio.................................... 9,394 18,407 34,071 46,630 54,665 56,292 Oklahoma................................ 7,983 18,925 22,950 19,460 16,828 27,269 Oregon.................................. 6,260 5,392 8,768 15,007 15,937 20,025 Pennsylvania............................ (100) 28,647 31,105 32,473 40,964 46,816 Puerto Rico............................. 223 2,901 0 0 0 0 Rhode Island............................ 1,821 2,154 4,310 3,980 5,957 6,064 South Carolina.......................... 541 1,040 4,294 3,673 4,910 9,233 South Dakota............................ 983 13,457 1,759 766 1,003 1,174 Tennessee............................... 4,492 25,090 18,675 33,617 31,969 45,206 Texas................................... 20,803 6,544 33,737 39,014 43,929 46,040 Utah.................................... 6,275 1,605 9,236 10,401 10,026 11,070 Vermont................................. 1,626 3 2,023 2,684 3,567 2,585 Virgin Islands.......................... 11 11 11 4 1 1 Virginia................................ 4,320 15,439 8,328 11,009 16,386 14,913 Washington.............................. 8,355 3,205 21,057 28,887 43,654 31,924 West Virginia........................... 2,169 16,742 4,548 5,304 6,902 8,003 Wisconsin............................... 8,242 2,300 12,390 10,281 15,209 29,509 Wyoming................................. 957 .......... 2,076 1,825 2,416 1,784 ----------------------------------------------------------------------- Total............................. 320,744 415,000 595,568 730,544 854,828 1,063,800 ---------------------------------------------------------------------------------------------------------------- Source: Office of Financial Management, Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 9-14.--AFDC CHILD CARE AND TRANSITIONAL CHILD CARE (TCC)--SUMMARY OF STATE CHILD CARE OPTIONS, 1996 -------------------------------------------------------------------------------------------------------------------------------------------------------- Supplements Statewide limit; special State Method of providing dependent care Method of providing needs care (if different) Child care provided AFDC child care \1\ disregard TCC \1\ \2\ during gaps \3\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama........................... 2, 5, 6, 7.......... Yes................. 5, 6, 7............. $324.75..................... 2 weeks/1 month Alaska............................ 2, 6................ No.................. 6................... $845.00..................... 2 weeks/1 week Arizona........................... 2, 6, 7............. Yes................. 5, 6, 7............. $455.40/$391.00............. 2 weeks/1 month Arkansas.......................... 5, 6................ No.................. 5, 6................ $453.00..................... 1 month California........................ 2, 3, 4, 5, 6, 7, 8. Yes................. 3, 4, 5, 6, 7....... $1,068.30/$11,039.20; 2 weeks/1 month $1,602.45/$1,558.80. Colorado.......................... 1, 2, 7, 8.......... Yes................. 5, 7................ $314.00/$288.00; $637.00/ 2 weeks/1 month $575.00. Connecticut....................... 2, 3................ No.................. 3................... $325.00; $435.00............ 1 month Delaware.......................... 2, 4, 5, 6, 7....... No.................. 4, 5, 6, 7.......... $358.00/$312.00; $375.90/ 2 weeks/1 month $327.60. District of Columbia.............. 2, 3, 4, 5, 6, 7.... No.................. 3, 4, 5, 6, 7....... $635.50/$558.00; $1,555.00.. No Florida........................... 2, 5, 6, 7.......... Yes................. 5, 6, 7............. $340.00..................... 2 weeks/1 month Georgia........................... 6, 7................ No.................. 5, 6, 7............. $346.66/$303.33............. 1 month Guam.............................. 2, 5,............... No.................. 5................... $325.00/$300.00............. 1 month Hawaii............................ 1, 2, 3, 5, 6, 7.... No.................. 3, 5, 7............. $350.00..................... 2 weeks/1 month Idaho............................. 1, 2, 5............. No.................. 5................... $440.00..................... 2 weeks/1 month Illinois.......................... 2, 3, 5, 6, 7....... No.................. 3, 5, 6, 7.......... $932.17..................... 2 weeks/1 month Indiana........................... 2, 3, 5, 6.......... Yes................. 3, 5, 6............. $650.00..................... 1 month Iowa.............................. 2, 5, 8............. No.................. 7................... $844.80/$702.24; $2,067.12/ 1 month $2,633.84. Kansas............................ 2, 5, 6, 7.......... No.................. 5, 6, 7............. $563.00/$427.00; $947.00/ 2 weeks/1 month $844.00. Kentucky.......................... 2, 7, 8............. No.................. 5, 7, 8............. $496.00..................... 2 weeks/1 month Louisiana......................... 2, 3, 5, 6.......... No.................. 3, 5, 6............. $238.30/$216.50............. 2 weeks/1 month Maine............................. 2, 5, 6............. No.................. 5................... $551.00..................... 2 weeks/1 month Maryland.......................... 2, 7................ No.................. 7................... $662.42/$348.08; $387.21.... 2 weeks/1 month Massachusetts..................... 2, 4, 6, 7, 8....... No.................. 4, 6, 8............. $1,426.00................... 2 weeks/1 month Michigan.......................... 2, 7................ No.................. 3, 7................ $866.67..................... No Minnesota......................... 2, 5, 7............. Yes................. 7................... $200.00/$175.00; $4,300.00.. No Mississippi....................... 6, 7................ No.................. 6, 7................ $299.00/$276.00............. 2 weeks Missouri.......................... 2, 7, 8............. No.................. 7, 8................ $542.50/$474.30............. 1 month Montana........................... 2, 6, 8............. No.................. 6, 8................ $330.00/$308.00; $319.00.... 2 weeks/1 month Nebraska.......................... 2, 5, 6, 7.......... Yes................. 5, 7................ $1,150.00/$970.00; $3,000.00 2 weeks/1 month Nevada............................ 2, 5................ No.................. 5................... $516.00/$430.00............. No New Hampshire..................... 2, 5, 6............. No.................. 5, 6................ $548.70..................... 2 weeks New Jersey........................ 2, 7................ Yes................. 7................... $955.00/$787.00............. 2 weeks/1 month New Mexico........................ 2, 3, 5, 7.......... No.................. 5, 7................ $330.00/$291.50............. 2 weeks/1 month New York.......................... 1, 2, 3, 4, 5, 6, 8. Yes................. 1, 3, 4, 5, 6, 7, 8. $940.33..................... 2 weeks/1 month North Carolina.................... 1, 2, 3, 5, 6, 7.... No.................. 1, 3, 5, 6, 7....... $550.00; $2,164.00.......... 2 weeks/1 month North Dakota...................... 1, 2, 3, 5, 6....... No.................. 1, 5, 6............. $200.00/$175.00............. 1 month Ohio.............................. 2, 6, 7............. No.................. 6, 7................ $537.50/$494.50............. 2 weeks/1 month Oklahoma.......................... 2, 4, 7............. No.................. 5, 7................ $372.00/$341.00; $775.00.... 2 weeks/1 month Oregon............................ 4, 6, 7............. No.................. 7................... $450.00..................... 1 month Pennsylvania...................... 2, 3, 5, 6, 8....... No.................. 5, 8................ $878.00..................... 2 weeks/1 month Puerto Rico....................... 2, 6, 7............. Yes................. 7................... $200.00/$175.00; $250.00.... 1 month Rhode Island...................... 2, 7................ No.................. 7................... $415.97/$285.98............. No South Carolina.................... 1, 2, 6, 8.......... No.................. 5, 6, 8............. $425.00..................... 2 weeks/1 month South Dakota...................... 2, 3................ No.................. 3................... $300.00; $400.00............ No Tennessee......................... 2, 5, 7............. No.................. 5, 7................ $296.70/$258.00............. 1 month Texas............................. 2, 5, 7............. No.................. 5, 7................ $482.00; $916.00............ 2 weeks/1 month Utah.............................. 2, 5, 6............. No.................. 6................... $410.70/$296.70............. No Vermont........................... 5, 7................ No.................. 5, 7................ $659.51..................... 2 weeks/1 month Virgin Islands.................... 1, 8................ Yes................. 5................... $200.00/$175.00; $300.00.... 1 month Virginia.......................... 2, 5, 6, 7.......... No.................. 5, 6, 7............. $752.50/$593.40; $2,500.00.. 2 weeks/1 month Washington........................ 2, 7................ No.................. 7................... $616.00/$476.08; $1,206.15.. 1 month West Virginia..................... 2, 7................ Yes................. 7................... $300.00/$253.00; $300.00.... 2 weeks/1 month Wisconsin......................... 1, 2, 3, 4, 5, 6, 8. Yes................. 4, 6................ $600.00/$500.00............. 2 weeks/1 month Wyoming........................... 7................... No.................. 7................... $325.00..................... Up to 1 week -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Key: 1 = Direct; 2 = Dependent care disregard; 3 = Cash in advance; 4 = Voucher in advance; 5 = Cash reimbursement; 6 = Purchase of service; 7 = Certificate; 8 = Other. \2\ When two amounts are shown separated by a slash (/), the first amount is the statewide limit for children under 2. The second amount is the statewide limit for children over 2. Statewide limits for handicapped/special needs children follow a semicolon (;) when different limits apply. \3\ At State option, child care provided: for up to 2 weeks while participant is waiting to enter either approved education, training, or JOBS; OR for up to 1 month if JOBS component activity is scheduled to begin within that period or to reserve child care arrangements which would otherwise be lost. Source: Based on biennial supportive service plans filed as of February 6, 1996. Child Care Bureau, U.S. Department of Health and Human Services. TABLE 9-15.--FEDERAL PAYMENTS TO STATES FOR AT-RISK CHILD CARE, FISCAL YEARS 1991-96 \1\ [In thousands of dollars] -------------------------------------------------------------------------------------------------------------------------------------------------------- States 1991 actual 1992 actual 1993 actual 1994 actual 1995 actual 1996 actual -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama................................................. $4,935 $4,934 $4,692 $4,374 $4,978 $4,704 Alaska.................................................. 808 1,211 825 903 859 905 American Samoa 0 NA 0 145 72 NA Arizona................................................. 1,151 9,210 4,624 4,709 4,769 5,004 Arkansas................................................ 0 4,519 2,657 2,271 2,777 2,464 California.............................................. 36,592 73,183 25,170 36,592 55,766 43,879 Colorado................................................ 0 8,103 4,320 4,062 3,990 4,201 Connecticut............................................. 3,455 3,455 3,485 4,574 3,448 3,474 Delaware................................................ 777 776 770 771 778 763 District of Columbia.................................... 677 677 648 537 527 543 Florida................................................. 13,231 13,230 13,632 13,904 14,321 14,310 Georgia................................................. 8,110 8,110 7,986 3,905 1,342 6,858 Guam.................................................... 0 NA 0 0 0 0 Hawaii.................................................. 0 1,361 929 1,318 1,334 1,340 Idaho................................................... 1,392 2,088 879 1,439 1,396 1,396 Illinois................................................ 6,833 13,666 16,007 13,426 14,876 13,363 Indiana................................................. 6,538 6,537 6,538 6,539 7,433 6,127 Iowa.................................................... 3,226 3,225 3,226 3,177 3,114 3,034 Kansas.................................................. 3,070 3,070 3,052 5,162 2,972 2,948 Kentucky................................................ 4,294 4,294 4,551 4,109 4,142 4,031 Louisiana............................................... 0 5,903 0 0 5,346 2,469 Maine................................................... 1,367 1,367 809 1,335 1,318 1,088 Maryland................................................ 5,363 5,363 5,539 5,398 5,562 4,154 Massachusetts........................................... 6,122 6,121 6,287 6,240 6,226 6,288 Michigan................................................ 0 NA 0 11,522 8,242 10,270 Minnesota............................................... 5,245 5,245 5,427 5,359 5,359 5,305 Mississippi............................................. 0 NA 0 351 1,309 3,464 Missouri................................................ 5,966 5,966 6,022 5,926 5,894 5,872 Montana................................................. 0 843 568 84 857 567 Nebraska................................................ 1,951 1,951 1,958 1,929 1,894 1,231 Nevada.................................................. 0 3,262 1,589 1,352 1,713 1,713 New Hampshire........................................... 1,280 1,280 1,290 1,261 1,259 1,271 New Jersey.............................................. 8,290 8,290 8,000 8,272 8,363 8,441 New Mexico.............................................. 0 3,401 2,580 1,943 1,375 1,512 New York................................................ 19,931 19,930 19,699 19,647 19,697 19,785 North Carolina.......................................... 7,333 7,333 9,681 7,274 7,411 7,573 North Dakota............................................ 839 838 1,007 550 595 718 Ohio.................................................... 12,734 12,733 12,598 12,334 12,598 12,149 Oklahoma................................................ 3,909 3,656 3,762 3,734 2,616 3,729 Oregon.................................................. 3,194 5,029 3,354 3,352 3,352 3,311 Pennsylvania............................................ 0 25,616 12,681 12,502 12,485 12,429 Puerto Rico............................................. 0 NA 0 0 0 0 Rhode Island............................................ 1,057 1,056 1,046 923 821 1,056 South Carolina.......................................... 4,294 4,294 4,174 4,797 5,728 4,068 South Dakota............................................ 914 913 431 488 605 758 Tennessee............................................... 0 NA 575 2,859 5,441 2,437 Texas................................................... 8,923 37,103 26,480 19,601 18,623 27,284 Utah.................................................... 2,995 2,995 2,732 2,826 1,730 1,111 Vermont................................................. 646 646 650 637 628 623 Virgin Islands.......................................... 0 NA 0 0 0 0 Virginia................................................ 6,768 6,767 6,963 6,783 6,611 6,968 Washington.............................................. 5,649 8,941 5,997 6,038 6,117 6,079 West Virginia........................................... 0 2,001 1,762 1,802 1,761 1,724 Wisconsin............................................... 5,755 5,754 5,892 5,402 5,782 5,699 Wyoming................................................. 634 1,267 770 536 572 564 ----------------------------------------------------------------------------------------------- Total............................................... 216,248 357,535 264,316 275,585 296,709 291,054 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Represents grant awards to States. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 repealed the At-Risk Child Care Program as of October 1, 1996. NA--Not available. Source: Office of Financial Management, Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 9-16.--AT-RISK CHILD CARE--SUMMARY OF STATE CHILD CARE OPTIONS, 1996 -------------------------------------------------------------------------------------------------------------------------------------------------------- Method of providing Statewide limit; Rules for counting Registration required State at-risk child care special needs care (if income for sliding Child care provided for unlicensed \1\ different) \2\ fee scale during gaps \3\ providers -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama............................ 4, 5................. No statewide limit..... TCC rules............ 2 weeks/1 month...... Yes Alaska............................. 4.................... $845.00................ TCC rules............ No................... Yes Arizona............................ 4, 5................. $455.40/$391.00........ Different............ 2 weeks/1 month...... Yes Arkansas........................... 5.................... $1,135.00.............. Different............ 2 weeks/1 month...... Yes California......................... 2, 4, 5, 6........... $1,068.30/$1,039.20; TCC rules............ 2 weeks/1 month...... Yes $1,602.45/$1,558.80. Colorado........................... 5.................... $314.00/$288.00; Different............ 2 weeks/1 month...... Yes $637.00/$575.00. Connecticut........................ 5.................... No statewide limit..... Different............ 1 month.............. Yes Delaware........................... 2, 3, 4, 5, 6........ $358.00/$312.60; AFDC rules........... 2 weeks/1 month...... Yes $375.90/$327.60. District of Columbia............... 5.................... $635.50/$558.00; TCC rules............ 1 month.............. Yes $1,555.00. Florida............................ 3, 4, 5.............. $340.00................ AFDC rules........... 1 month.............. Yes Georgia............................ 4, 5................. $346.66/$303.33........ AFDC rules........... No................... Yes Hawaii............................. 2, 3, 5.............. $350.00................ Different............ 2 weeks/1 month...... Yes Idaho.............................. 6.................... $440.00................ Different............ 2 weeks/1 month...... Yes Illinois........................... 2, 3, 4, 5........... $932.17................ TCC rules............ 2 weeks/1 month...... Yes Indiana............................ 2, 3, 5, 6........... No statewide limit..... Different............ 1 month.............. Yes Iowa............................... 5.................... $844.80/$702.24; Different............ No................... Yes $2,067.12/$2,633.84. Kansas............................. 4, 5, 6.............. $563.00/$427.00; TCC rules............ No................... Yes $947.00/$844.00. Kentucky........................... 5.................... $496.00................ TCC rules............ 2 weeks/1 month...... AFDC-defined relatives are exempt Louisiana.......................... 5.................... No statewide limit..... Different............ 1 month.............. Yes Maine.............................. 3, 4, 5, 6........... No statewide limit..... Different............ 2 weeks/1 month...... Yes Maryland........................... 2, 5................. $662.42/$348.08; TCC rules............ No................... Yes $387.21. Massachusetts...................... 4, 6................. $1,426.00.............. AFDC rules........... 2 weeks/1 month...... Yes Michigan........................... 5.................... $866.67................ TCC rules............ No................... Yes Minnesota.......................... 5.................... No statewide limit..... TCC rules............ No................... Yes Mississippi........................ 4, 5................. $299.00/276.00......... AFDC rules........... 2 weeks/1 month...... Yes Missouri........................... 5, 6................. $542.50/$474.30........ TCC rules............ 2 weeks/1 month...... AFDC-defined relatives are exempt Montana............................ 4, 6................. $330.00/$308.00........ TCC rules............ 2 weeks.............. Yes Nebraska........................... 5, 6................. $1,150.00/$970.00; Different............ 2 weeks/1 month...... Yes $3,000.00. Nevada............................. 2, 3................. No statewide limit..... Different............ 2 weeks/1 month...... Yes New Hampshire...................... 3, 4................. $548.70................ TCC rules............ No................... Yes. New Jersey......................... 1, 4, 5.............. $955.00/$787.00........ TCC rules............ 2 weeks/1 month...... Yes New Mexico......................... 5.................... $300.00/$291.50........ AFDC rules........... 2 weeks/1 month...... Yes New York........................... 1, 2, 4, 5, 6........ $940.33................ TCC rules............ 2 weeks/1 month...... Yes North Carolina..................... 2, 3, 4, 5........... $550.00; $2,164........ TCC rules............ 2 weeks/1 month...... Yes North Dakota....................... 1.................... $200.00/$175.00........ AFDC rules........... 2 weeks/1 month...... Yes Ohio............................... 4, 5................. $537.50/$494.50........ TCC rules............ 2 weeks/1 month...... Yes Oklahoma........................... 5.................... $372.00/$341.00; TCC rules............ No................... Yes $775.00. Oregon............................. 5.................... $450.00................ TCC rules............ No................... Yes Pennsylvania....................... 4, 5................. No statewide limit..... Different............ 1 month.............. Yes Rhode Island....................... 5.................... $415.97/$285.98........ TCC rules............ No................... Yes South Carolina..................... 6.................... $425.00................ TCC rules............ 2 weeks/1 month...... Yes South Dakota....................... 5.................... $300.00; $400.00....... Different............ No................... Yes Tennessee.......................... 5.................... $296.70/$258.00........ TCC rules............ 1 month.............. Yes Texas.............................. 5, 6................. $482.00; $916.00....... TCC rules............ 2 weeks/1 month...... Yes Utah............................... 4.................... $410.70/$296.70........ TCC rules............ No................... Yes Vermont............................ 5.................... $659.51................ TCC rules............ 2 weeks/1 month...... Yes Virginia........................... 4, 5, 6.............. $752.50/$593.40; TCC rules............ 2 weeks/1 month...... Yes $2,500.00. Washington......................... 5.................... $616.00/$476.08; Different............ No................... Yes $1,206.15. West Virginia...................... 5.................... $300.00/$253.00; TCC rules............ 2 weeks/1 month...... Yes $300.00. Wisconsin.......................... 2, 3, 5.............. $600.00/$500.00........ Different............ 2 weeks/1 month...... Yes Wyoming............................ 5.................... $325.00................ TCC rules............ Up to 1 week......... Yes -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Key to the code: 1 = Direct; 2 = Cash/voucher in advance; 3 = Cash reimbursement; 4 = Purchase of service; 5 = Certificate; 6 = Other. \2\ When two amounts are shown separated by a slash (/), the first amount is the statewide limit for children under 2. The second amount is the statewide limit for children over 2. Statewide limits for handicapped/special needs children are followed by a semicolon (;) when different limits apply. \3\ At State option, child care provided: for up to 2 weeks while participant is waiting to enter either approved education, training, or JOBS; OR for up to 1 month if JOBS component activity is scheduled to begin within that period or to reserve child care arrangements which would otherwise be lost. Source: Based on biennial supportive services plans filed in Administration for Children and Families Central Office as of February 6, 1996. Child Care Bureau, U.S. Department of Health and Human Services. TABLE 9-17.--JOBS PARTICIPANTS RECEIVING TITLE IV-A PAID CHILD CARE, BY AFDC PROGRAM STATUS AND BY STATE--FISCAL YEAR 1994 ---------------------------------------------------------------------------------------------------------------- JOBS participants by AFDC Program (case) status, average monthly number ------------------------------------------------------------------------------ State Not Total Receiving Receiving Eligible receiving AFDC participants AFDC-basic AFDC-UP for AFDC-UP AFDC applicant ---------------------------------------------------------------------------------------------------------------- Alabama.......................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Alaska........................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Arizona.......................... 1,362 1,335 23 0 4 0 Arkansas......................... 330 322 8 0 0 0 California....................... 15,463 14,096 953 0 0 414 Colorado......................... 2,248 2,022 17 5 198 6 Connecticut...................... 4 4 0 0 0 0 Delaware......................... 112 109 1 0 2 0 District of Columbia............. (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Florida.......................... 3,505 3,489 9 7 0 0 Georgia.......................... 6,180 5,304 18 7 851 0 Guam............................. (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Hawaii........................... 386 367 17 0 2 0 Idaho............................ 342 314 27 0 1 0 Illinois......................... 6,992 0 164 56 0 6,772 Indiana.......................... 2,767 1,985 17 0 736 29 Iowa............................. 2,494 2,250 186 0 41 17 Kansas........................... 1,447 1,110 16 0 321 0 Kentucky......................... 3,038 0 113 0 0 2,925 Louisiana........................ 3,400 3,264 30 0 106 0 Maine............................ 1,413 1,289 124 0 0 0 Maryland......................... 2,558 2,503 7 0 13 35 Massachusetts.................... 6,471 6,361 14 0 48 48 Michigan......................... 7,264 6,681 243 0 268 72 Minnesota........................ 2,760 2,452 211 0 97 0 Mississippi...................... 1,789 1,779 10 0 0 0 Missouri......................... 2,896 2,703 193 0 0 0 Montana.......................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Nebraska......................... 1,853 1,727 41 9 73 3 Nevada........................... 213 188 0 0 25 0 New Hampshire.................... 573 532 20 0 19 2 New Jersey....................... 3,687 3,304 26 0 357 0 New Mexico....................... 1,970 1,929 34 0 7 0 New York......................... 21,201 20,668 533 0 0 0 North Carolina................... 6,272 5,979 108 0 185 0 North Dakota..................... 634 616 18 0 0 0 Ohio............................. 371 371 0 0 0 0 Oklahoma......................... 2,926 2,901 22 0 0 3 Oregon........................... 418 388 20 0 10 0 Pennsylvania..................... 11,881 11,787 94 0 0 0 Puerto Rico...................... 215 203 0 0 12 0 Rhode Island..................... 2,472 2,305 32 0 135 0 South Carolina................... 586 586 0 0 0 0 South Dakota..................... 499 488 0 0 11 0 Tennessee........................ 3,283 3,070 29 5 179 0 Texas............................ 636 487 133 16 0 0 Utah............................. 131 124 0 0 0 7 Vermont.......................... 538 507 22 0 4 5 Virgin Islands................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Virginia......................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Washington....................... 7,806 6,570 1,236 0 0 0 West Virginia.................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Wisconsin........................ 239 239 0 0 0 0 Wyoming.......................... 29 29 0 0 0 0 ------------------------------------------------------------------------------ U.S. total................... 143,654 124,737 4,769 105 3,705 10,338 ---------------------------------------------------------------------------------------------------------------- \1\ Data not reported by the State. Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 9-18.--AFDC CHILDREN IN THE JOBS PROGRAM RECEIVING TITLE IV-A PAID CHILD CARE, BY PRIMARY TYPE OF CARE ARRANGEMENT AND STATE--FISCAL YEAR 1994 -------------------------------------------------------------------------------------------------------------------------------------------------------- Children by type of care arrangement (average monthly no.) -------------------------------------------------------------- Care provided by a nonrelative in Care provided by a Percent Percent Total ------------------------------------ relative in children provided State children -------------------------- Unknown in center by a Center Group Child's Group care relative care family day home family day Child's care care home -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama................................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Alaska.................................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Arizona................................... 2,165 1,595 201 0 318 51 0 73.7 17.0 Arkansas.................................. 531 365 31 0 58 58 19 68.7 21.8 California................................ 24,938 8,808 9,467 0 6,048 0 615 35.3 24.3 Colorado.................................. 3,649 2,251 694 60 377 257 10 61.7 17.4 Connecticut............................... 4 0 0 0 0 0 4 0.0 0.0 Delaware.................................. 187 128 48 0 0 0 11 68.4 0.0 District of Columbia...................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Florida................................... 5,518 5,038 296 41 41 60 42 91.3 1.8 Georgia................................... 9,494 5,462 1,166 285 1,526 1,055 0 57.5 27.2 Guam...................................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Hawaii.................................... 556 226 81 23 218 8 0 40.6 40.6 Idaho..................................... 561 251 56 103 0 134 17 44.7 23.9 Illinois.................................. 10,680 2,300 1,858 2,417 2,627 1,478 0 21.5 38.4 Indiana................................... 4,705 2,183 1,194 0 680 0 648 46.4 14.5 Iowa...................................... 4,257 1,135 2,083 63 907 69 0 26.7 22.9 Kansas.................................... 2,387 1,017 708 185 117 122 238 42.6 10.0 Kentucky.................................. 4,636 1,616 566 634 0 796 1,024 34.9 17.2 Louisiana................................. 5,429 2,477 120 467 230 2,135 0 45.6 43.6 Maine..................................... 2,204 398 740 300 212 151 403 18.1 16.5 Maryland.................................. 4,418 1,279 952 364 278 722 823 28.9 22.6 Massachusetts............................. 9,191 7,172 474 616 498 431 0 78.0 10.1 Michigan.................................. 12,083 3,350 2,004 1,656 1,893 2,618 562 27.7 37.3 Minnesota................................. 4,151 2,174 1,430 84 269 72 122 52.4 8.2 Mississippi............................... 2,728 1,390 17 58 10 280 973 51.0 10.6 Missouri.................................. 4,818 2,010 949 746 810 132 171 41.7 19.6 Montana................................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Nebraska.................................. 3,284 1,596 1,299 129 189 71 0 48.6 7.9 Nevada.................................... 366 122 7 87 23 127 0 33.3 41.0 New Hampshire............................. 831 386 186 129 81 29 20 46.5 13.2 New Jersey................................ 5,288 3,101 0 2,109 0 0 78 58.6 0.0 New Mexico................................ 3,238 1,068 545 204 658 763 0 33.0 43.9 New York.................................. 38,503 7,850 19,115 4,650 4,483 1,790 615 20.4 16.3 North Carolina............................ 9,109 5,836 0 765 2,412 0 96 64.1 26.5 North Dakota.............................. 921 196 543 9 169 4 0 21.3 18.8 Ohio...................................... 482 185 186 0 111 0 0 38.4 23.0 Oklahoma.................................. 4,719 4,022 643 10 18 0 26 85.2 0.4 Oregon.................................... 682 0 489 0 190 0 3 0.0 27.9 Pennsylvania.............................. 19,318 10,110 5,299 1,868 1,075 541 425 52.3 8.4 Puerto Rico............................... 371 29 127 15 141 43 16 7.8 49.6 Rhode Island.............................. 4,028 2,222 192 167 928 410 109 55.2 33.2 South Carolina............................ 1,200 982 109 5 15 20 69 81.8 2.9 South Dakota.............................. 722 234 341 39 56 52 0 32.4 15.0 Tennessee................................. 5,455 3,738 984 0 305 0 428 68.5 5.6 Texas..................................... 1,297 0 0 0 0 0 1,297 0.0 0.0 Utah...................................... 172 0 172 0 0 0 0 0.0 0.0 Vermont................................... 903 11 191 329 176 196 0 1.2 41.2 Virgin Islands............................ (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Virginia.................................. (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Washington................................ 11,433 5,298 2,351 915 1,313 1,556 0 46.3 25.1 West Virginia............................. (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Wisconsin................................. 159 0 159 0 0 0 0 0.0 0.0 Wyoming................................... 25 12 0 0 0 0 13 48.0 0.0 ------------------------------------------------------------------------------------------------------------- U.S. totals........................... 231,796 99,623 58,073 19,532 29,460 16,231 8,877 43.0 19.7 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Data are applicable to the State, but not reported. Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 9-19.--NON-JOBS FAMILIES \1\ RECEIVING IV-A PAID CHILD CARE, WITH AND WITHOUT EARNED INCOME, BY AFDC PROGRAM STATUS AND BY STATE--FISCAL YEAR 1994 [Average monthly number] -------------------------------------------------------------------------------------------------------------------------------------------------------- Families with earnings and Families without earnings and ------------------------------------------------------------------------------ State Total Receiving Receiving families \2\ AFDC- Receiving Applying In AFDC- Receiving Applying basic AFDC-UP for AFDC transition basic AFDC-UP for AFDC -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama.................................................... 1,669 (\3\) (\3\) (\4\) 1,669 0 0 (\4\) Alaska..................................................... 301 31 2 (\4\) 167 94 5 (\4\) Arizona.................................................... 4,180 1,973 0 0 2,178 29 0 0 Arkansas................................................... 461 204 13 0 156 87 0 0 California................................................. 32,539 21,433 889 (\4\) 1,635 8,122 460 (\4\) Colorado................................................... 1,382 150 (\3\) (\3\) 1,214 (\4\) (\4\) (\4\) Connecticut................................................ 4,263 (\3\) (\3\) (\4\) 1,670 (\3\) (\3\) (\4\) Delaware................................................... 1,004 509 1 (\4\) 493 (\4\) (\4\) (\4\) District of Columbia....................................... 158 76 0 0 82 0 0 0 Florida.................................................... 9,051 2,699 10 (\4\) 6,341 0 0 (\4\) Georgia.................................................... 7,809 4,171 2 0 2,863 344 11 0 Guam....................................................... 4 0 0 0 4 0 0 0 Hawaii..................................................... 212 138 6 0 68 0 0 0 Idaho...................................................... 497 222 3 (\4\) 157 116 0 (\4\) Illinois................................................... 13,810 7,653 208 (\4\) 3,592 2,333 24 (\4\) Indiana.................................................... 6,737 409 4 (\4\) 2,480 3,789 56 (\4\) Iowa....................................................... 1,901 1,498 68 0 335 0 0 0 Kansas..................................................... (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) Kentucky................................................... 879 10 36 0 778 53 2 0 Louisiana.................................................. 930 103 0 0 591 240 0 0 Maine...................................................... 4,825 4,114 403 (\3\) 308 (\3\) (\3\) (\3\) Maryland................................................... 4,724 1,229 (\3\) (\4\) 791 2,704 (\3\) (\4\) Massachusetts.............................................. 6,816 2,604 33 98 4,081 (\3\) (\3\) (\3\) Michigan................................................... 2,339 (\3\) 114 0 2,225 0 0 0 Minnesota.................................................. 3,118 399 10 (\4\) 1,861 827 21 (\4\) Mississippi................................................ 401 0 0 (\4\) 401 0 0 (\4\) Missouri................................................... 3,933 177 1 (\4\) 2,210 1,541 4 (\4\) Montana.................................................... 1,012 517 13 (\4\) 362 119 0 (\4\) Nebraska................................................... 1,521 545 14 2 388 560 10 2 Nevada..................................................... 508 176 0 (\4\) 331 0 0 (\4\) New Hampshire.............................................. 1,131 181 18 (\4\) 441 477 15 (\4\) New Jersey................................................. (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) New Mexico................................................. 1,236 554 5 (\4\) 629 50 (\3\) (\4\) New York................................................... 7,641 4,784 42 (\4\) 2,815 (\4\) (\4\) (\4\) North Carolina............................................. 12,761 9,620 5 (\4\) 3,137 0 0 (\4\) North Dakota............................................... 405 6 0 (\4\) 301 98 0 (\4\) Ohio....................................................... 4,423 1,516 46 (\4\) 1,687 1,105 23 (\4\) Oklahoma................................................... 5,931 2,408 0 20 1,189 2,153 33 128 Oregon..................................................... 4,075 1,448 20 23 2,373 1 0 210 Pennsylvania............................................... 13,834 2,970 1,480 2,270 7,113 (\4\) (\4\) (\4\) Puerto Rico................................................ (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) Rhode Island............................................... 727 382 0 0 344 0 0 0 South Carolina............................................. 1,557 1,026 5 (\4\) 525 0 0 (\4\) South Dakota............................................... 510 153 0 0 252 104 0 0 Tennessee.................................................. 10,062 5,659 12 (\4\) 4,391 0 0 (\4\) Texas...................................................... 8,726 1,370 8 (\4\) 7,269 80 1 (\4\) Utah....................................................... 4,824 29 0 0 1,240 3,552 0 3 Vermont.................................................... 1,589 422 24 36 303 769 21 13 Virgin Islands............................................. 14 26 0 0 0 0 0 0 Virginia................................................... 2,844 412 1 (\4\) 1,486 939 6 (\4\) Washington................................................. 4,202 2,831 114 0 1,234 19 3 2 West Virginia.............................................. 1,740 560 29 (\4\) 634 492 25 (\4\) Wisconsin.................................................. 3,481 1,521 121 0 1,518 299 24 0 Wyoming.................................................... 1,330 799 65 (\4\) 208 240 5 (\4\) -------------------------------------------------------------------------------------------- U.S. totals............................................ 210,027 89,717 3,825 2,449 78,520 31,336 749 358 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ ``Total families'' may not equal the sum of the categories due to incomplete, inconsistent, or duplicated State reporting. \2\ Data are reported for AFDC recipients who are employed or participating in a non-JOBS education and training program, tribal JOBS participants, and families receiving transitional child care. \3\ Data are applicable to the State, but not reported. \4\ The State indicates that the data are not applicable. Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 9-20.--NON-JOBS AFDC FAMILIES \1\ RECEIVING IV-A PAID CHILD CARE, BY TYPE OF CARE ARRANGEMENT AND BY STATE--FISCAL YEAR 1994 ---------------------------------------------------------------------------------------------------------------- Families by type of care arrangement (average monthly number) ---------------------------------------------- Care provided by Care provided by a State Total \2\ a relative nonrelative in families ---------------------------------------------- In Outside Family child's child's Child's day care Center home home home home care ---------------------------------------------------------------------------------------------------------------- Alabama............................................... (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) Alaska................................................ 133 15 17 5 39 60 Arizona............................................... 2,002 23 118 5 216 1,639 Arkansas.............................................. 293 24 18 3 36 213 California............................................ 30,913 (\3\) (\3\) (\3\) (\3\) (\3\) Colorado.............................................. 285 2 4 5 47 173 Connecticut........................................... 2,593 (\3\) (\3\) (\3\) (\3\) (\3\) Delaware.............................................. 510 1 10 1 172 345 District of Columbia.................................. (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) Florida............................................... 2,709 26 23 19 158 2,483 Georgia............................................... 4,946 482 651 119 623 3,071 Guam.................................................. 0 0 0 0 0 0 Hawaii................................................ 144 17 24 7 93 3 Idaho................................................. 340 13 73 19 156 90 Illinois.............................................. 10,218 1,327 2,757 2,379 1,646 2,110 Indiana............................................... 4,257 323 671 156 1,457 1,885 Iowa.................................................. 2,089 (\3\) (\3\) (\3\) (\3\) (\3\) Kansas................................................ (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) Kentucky.............................................. 123 11 31 16 21 52 Louisiana............................................. 686 (\3\) (\3\) (\3\) (\3\) (\3\) Maine................................................. 4,517 463 578 851 1,304 1,323 Maryland.............................................. 3,933 207 172 83 1,849 1,623 Massachusetts......................................... 2,735 44 51 598 499 1,545 Michigan.............................................. (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) Minnesota............................................. 1,257 31 93 36 558 583 Mississippi........................................... 0 0 0 0 0 0 Missouri.............................................. 1,731 18 90 44 688 945 Montana............................................... 646 8 50 30 358 201 Nebraska.............................................. 1,133 24 68 39 473 531 Nevada................................................ 176 16 14 16 33 98 New Hampshire......................................... 690 48 109 69 178 317 New Jersey............................................ (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) New Mexico............................................ 605 27 10 3 0 8 New York.............................................. 4,826 127 648 210 2,461 1,382 North Carolina........................................ 9,625 541 1,288 39 970 6,787 North Dakota.......................................... 103 0 86 0 16 4 Ohio.................................................. 2,690 0 103 2 1,101 1,484 Oklahoma.............................................. 4,743 3 14 10 725 3,991 Oregon................................................ 1,702 112 249 264 871 207 Pennsylvania.......................................... 4,624 (\3\) (\3\) (\3\) (\3\) (\3\) Puerto Rico........................................... (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) Rhode Island.......................................... 382 (\3\) (\3\) (\3\) (\3\) (\3\) South Carolina........................................ 1,031 (\3\) (\3\) (\3\) (\3\) (\3\) South Dakota.......................................... 257 41 43 25 98 67 Tennessee............................................. 5,671 94 247 46 640 4,643 Texas................................................. 90 5 8 0 6 72 Utah.................................................. 3,584 (\5\) (\5\) 181 1,393 2,010 Vermont............................................... 1,286 119 152 153 519 344 Virgin Islands........................................ 14 0 0 0 0 14 Virginia.............................................. 1,882 64 175 9 624 1,034 Washington............................................ 3,163 425 454 447 722 1,114 West Virginia......................................... 1,106 9 328 1 422 553 Wisconsin............................................. 1,963 80 217 61 803 804 Wyoming............................................... 1,413 96 168 54 555 540 --------------------------------------------------------- U.S. totals....................................... 129,819 4,866 9,812 6,005 22,530 44,348 ---------------------------------------------------------------------------------------------------------------- \1\ Data are reported for AFDC recipients who are employed or participating in a non-JOBS education and training program, and tribal JOBS participants. \2\ ``Total families'' may not equal the sum of the categories due to incomplete, inconsistent, or duplicative State reporting. \3\ Data are applicable to the State, but not reported. \4\ The State indicates that the data are not applicable. \5\ The State does not define ``type of care arrangements'' according to Federal reporting requirements. Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 9-21.--FAMILIES RECEIVING TRANSITIONAL CHILD CARE BY TYPE OF CARE ARRANGEMENT AND BY STATE--FISCAL YEAR 1994 ---------------------------------------------------------------------------------------------------------------- Families by type of care arrangement (average monthly number) ---------------------------------------------------------------- Care provided by a Care provided by a relative nonrelative in State Total \1\ ----------------------------------------------------- families Outside Family In child's child's Child's day care Center home home home home care ---------------------------------------------------------------------------------------------------------------- Alabama........................................ 1,754 11 232 32 315 1,165 Alaska......................................... 167 2 15 2 64 91 Arizona........................................ 2,178 43 174 9 212 1,740 Arkansas....................................... 168 29 16 2 17 105 California..................................... 1,635 (\2\) (\2\) (\2\) (\2\) (\2\) Colorado....................................... 1,256 56 58 15 219 461 Connecticut.................................... 1,670 (\2\) (\2\) (\2\) (\2\) (\2\) Delaware....................................... 493 1 12 1 153 343 District of Columbia........................... (\2\) (\2\) (\2\) (\2\) (\2\) (\2\) Florida........................................ 6,341 63 62 32 645 5,539 Georgia........................................ 2,880 272 455 83 376 1,693 Guam........................................... 4 2 1 0 0 0 Hawaii......................................... 68 0 17 0 42 13 Idaho.......................................... 157 6 27 6 73 58 Illinois....................................... 3,592 375 871 570 771 1,006 Indiana........................................ 2,480 195 413 84 949 954 Iowa........................................... 446 0 0 0 141 305 Kansas......................................... (\2\) (\2\) (\2\) (\2\) (\2\) (\2\) Kentucky....................................... 934 73 167 150 27 517 Louisiana...................................... 1,407 (\2\) (\2\) (\2\) (\2\) (\2\) Maine.......................................... 308 24 38 40 99 106 Maryland....................................... 790 79 83 28 320 281 Massachusetts.................................. 4,081 64 79 516 326 3,095 Michigan....................................... 2,339 143 524 248 736 688 Minnesota...................................... 1,861 78 208 70 1,015 698 Mississippi.................................... 401 48 92 7 63 192 Missouri....................................... 2,210 26 215 69 916 1,085 Montana........................................ 362 4 28 16 204 113 Nebraska....................................... 390 9 30 17 184 150 Nevada......................................... 329 93 26 76 24 136 New Hampshire.................................. 441 27 54 44 117 213 New Jersey..................................... (\2\) (\2\) (\2\) (\2\) (\2\) (\2\) New Mexico..................................... 629 140 136 40 136 211 New York....................................... 2,815 14 182 15 1,094 1,511 North Carolina................................. 3,137 225 707 64 242 1,907 North Dakota................................... 301 4 79 3 183 36 Ohio........................................... 1,687 0 70 1 643 973 Oklahoma....................................... 1,189 0 7 3 213 967 Oregon......................................... 2,373 183 276 377 1,159 379 Pennsylvania................................... 9,209 (\2\) (\2\) (\2\) (\2\) (\2\) Puerto Rico.................................... (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) Rhode Island................................... 344 17 59 11 30 242 South Carolina................................. 525 (\2\) (\2\) (\2\) (\2\) (\2\) South Dakota................................... 252 26 53 13 132 41 Tennessee...................................... 4,391 151 278 47 613 3,303 Texas.......................................... 7,269 503 401 2 439 6,060 Utah........................................... 1,240 (\4\) (\4\) 66 496 678 Vermont........................................ 303 21 19 32 157 75 Virgin Islands................................. 0 0 0 0 0 0 Virginia....................................... 2,024 108 254 23 629 1,037 Washington..................................... 1,302 137 179 127 327 532 West Virginia.................................. 634 0 184 0 235 301 Wisconsin...................................... 1,518 62 168 47 620 621 Wyoming........................................ 205 19 29 11 85 62 ---------------------------------------------------------------- U.S. totals................................ 82,489 3,333 6,978 2,999 15,441 39,683 ---------------------------------------------------------------------------------------------------------------- \1\ ``Total families'' may not equal the sum of the categories due to incomplete, inconsistent, or duplicated State reporting. \2\ Data are applicable to the State, but not reported. \3\ The State indicates that the data are not applicable. \4\ The State does not define ``type of care arrangements'' according to Federal reporting requirements. Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 9-22.--STATE ALLOCATIONS UNDER THE CHILD CARE AND DEVELOPMENT BLOCK GRANT, 1996-97 [By fiscal years, in thousands] ------------------------------------------------------------------------ 1996 actual 1997 estimate ------------------------------------------------------------------------ Alabama............................. 18,724 388 Alaska.............................. 1,764 37 Arizona............................. 17,129 355 Arkansas............................ 11,007 228 California.......................... 111,466 2,309 Colorado............................ 10,233 212 Connecticut......................... 6,685 138 Delaware............................ 1,954 40 District of Columbia................ 1,832 38 Florida............................. 46,307 959 Georgia............................. 29,755 616 Hawaii.............................. 3,389 70 Idaho............................... 4,738 98 Illinois............................ 34,888 723 Indiana............................. 16,716 346 Iowa................................ 8,540 177 Kansas.............................. 8,234 171 Kentucky............................ 16,602 344 Louisiana........................... 24,687 511 Maine............................... 3,584 74 Maryland............................ 12,217 253 Massachusetts....................... 13,320 276 Michigan............................ 27,035 560 Minnesota........................... 12,476 258 Mississippi......................... 16,062 333 Missouri............................ 16,865 349 Montana............................. 2,973 62 Nebraska............................ 5,123 106 Nevada.............................. 3,825 79 New Hampshire....................... 2,375 49 New Jersey.......................... 17,247 357 New Mexico.......................... 8,741 181 New York............................ 53,197 1,102 North Carolina...................... 26,046 540 North Dakota........................ 2,152 45 Ohio................................ 32,495 673 Oklahoma............................ 14,095 292 Oregon.............................. 9,228 191 Pennsylvania........................ 30,267 627 Rhode Island........................ 2,517 52 South Carolina...................... 16,767 347 South Dakota........................ 2,919 60 Tennessee........................... 19,291 400 Texas............................... 85,978 1,781 Utah................................ 8,694 180 Vermont............................. 1,587 33 Virginia............................ 17,819 369 Washington.......................... 14,717 305 West Virginia....................... 7,142 148 Wisconsin........................... 13,809 286 Wyoming............................. 1,505 31 Puerto Rico......................... 23,087 478 ----------------------------------- Subtotal...................... 899,807 18,642 =================================== Territories......................... 4,662 96 Tribes.............................. 27,973 382 Discretionary....................... 2,200 ................ ----------------------------------- Total......................... 934,642 19,120 \1\ ------------------------------------------------------------------------ \1\ Of the $956 million appropriated in fiscal year 1997, $19 million will be obligated immediately to support resource and referral programs and before and after school services. The remaining $937 million was advance appropriated for fiscal year 1998. Source: Administration for Children and Families, U.S. Department of Health and Human Services. REFERENCES Adams, G. (1995, October). How safe? The status of State efforts to protect children in day care. Washington, DC: Children's Defense Fund. Casper, L. (1995, September). What does it cost to mind our preschoolers? Current Population Reports (Series P70- 52). Washington, DC: U.S. Bureau of the Census. Forman, M.R. (1994, October 20). Federal funding for child care (Memorandum to the House Committee on Ways and Means). Washington, DC: Congressional Research Service. Joint Committee on taxation. (1996). Estimates of Federal tax expenditures for fiscal years 1997-2001 (JCS-11-96). Washington, DC: U.S. Government Printing Office. Kisker, E.E., Hofferth, S.L., Phillips, D.A., & Farquhar, E. (1991). A profile of child care settings: Early education and care in 1990. (Prepared under contract for the U.S. Department of Education by Mathematica Policy Research, Inc.). Washington, DC: U.S. Department of Health and Human Services. National Association for the Education of Young Children. (1991). The demand and supply of child care in 1990, joint findings from the national child care survey, 1990 and the profile of child care settings. Washington, DC: Author. U.S. Bureau of the Census. (1995). Statistical abstract of the United States: 1995 (115th ed.). Washington, DC: U.S. Government Printing Office. U.S. General Accounting Office. (1994a). Early childhood programs: Multiple programs and overlapping target groups (GAO/HEHS-95-4FS). Washington, DC: Author. U.S. General Accounting Office. (1994b). Child care: Working poor and welfare recipients face service gaps (GAO/ HEHS-94-87). Washington, DC: Author. U.S. General Accounting Office. (1995). Welfare to work: Child care assistance limited; Welfare reform may expand needs (GAO/HEHS-95-220). Washington, DC: Author. U.S. General Accounting Office. (1997). Welfare reform: Implications of increased work participation for child care (GAO/HEHS-97-75). Washington, DC: Author. U.S. General Accounting Office. (1998). Child care: Federal funding for fiscal year 1997 (GAO/HEHS-98-70R). Washington, DC: Author.