Child Care State Reports . III. Gaps in Child Care Supply [8]


  • Not all providers in Michigan accept children who receive subsidies. Of the providers listed in a statewide child care resource and referral agency database, only 47 percent of centers, 54 percent of family child care homes, and 53 percent of group child care homes accept subsidies.
    • According to the state plan for 1997-1999, the state of Michigan calculates different maximum CCDF reimbursement rates, set at the 75th percentile of the local market rate, for six regions in the state. Providers may be unwilling to accept subsidized children, or may limit their enrollment, when the state reimbursement rates are lower than their prices (see the example in section II). As a result, families receiving subsidies may have limited choices of caregivers.
  • A report written by the Michigan 4C Association, a statewide child care resource and referral agency, finds a critical shortage in the supply of licensed, non-relative care. The report concludes that statewide there are only enough child care slots to serve 80 percent of the children needing licensed, non-relative care. Staff from the statewide agency, and from resource and referral agencies serving Lansing and Detroit, report shortages in the supply of infant/toddler care, care during odd hours, and care for children who have special needs or are ill. Specifically:
    • Parents of infants and toddlers often call the state administrator, as well as resource and referral agencies serving Lansing and Detroit, for additional child care referrals. Vacancy checks by the agencies reveal few available slots for infants and toddlers.
    • Care for sick children is not permitted in licensed/regulated facilities in Michigan. In a study conducted by Public Sector Consultants (February 1999), 42 percent of parents surveyed in Michigan reported having trouble finding care when their child was ill.
    • Among parents of children with special needs in Michigan, the Public Sector Consultants report found 35 percent have trouble finding care for their special needs children.