SECTION 10. CHILD CARE * --------------------------------------------------------------------------- * The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 changed this program; see appendix L for details. --------------------------------------------------------------------------- CONTENTS Introduction Employment and Marital Status Child Care Arrangements Used by Working Mothers Child Care Costs Supply of Child Care Providers Child Care Standards The Federal Role 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 State Dependent Care Planning and Development Grants Child and Adult Care Food Program Head Start Child Care Tables References INTRODUCTION Child care has become 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 new 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. Issues currently receiving attention include questions about how the new programs are being implemented at the Federal and State levels, what effect the programs are having on improving the availability of child care, and how Federal child care programs can be coordinated with each other and with State and local programs. Most recently, the welfare debate has focused interest on both the child care needs of families transitioning off welfare and of other low-income families that are at risk of going on welfare. 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 10-1, 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 1995, 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 by 1995, over 60 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 12 percent of families with children were headed by a single mother, compared with almost 27 percent of families with children in 1994. Perhaps the most telling statistic about female-headed families is that while 2-parent families with children remained at about 26 million between 1970 and 1994, female-headed families with children exploded from 3.4 million to 10 million. These 10 million families headed by mothers were a major source of growth in the demand for child care (U.S. Bureau of the Census, 1995, p. 61, table 71). Mothers' attachment to the labor force differs depending on the age of their youngest child and marital status, as tables 10-2 and 10-3 show. Table 10-2 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 10-1.--LABOR FORCE PARTICIPATION RATES OF WOMEN, BY PRESENCE AND AGE OF YOUNGEST CHILD, SELECTED YEARS, 1947-95 ---------------------------------------------------------------------------------------------------------------- With children under age 18 No -------------------------------------------- children Age 6 Under age 6 under 18 Total to 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 1981............................................... 48.7 58.1 65.5 48.9 44.3 42.0 March 1982............................................... 48.6 58.5 65.8 49.9 45.6 43.3 March 1983............................................... 48.7 58.9 66.3 50.5 46.0 44.5 March 1984............................................... 49.3 60.5 68.1 52.1 47.6 46.4 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 ---------------------------------------------------------------------------------------------------------------- \1\ Includes mothers in the Armed Forces. NA--Not available. Note.--Data for 1994 and 1995 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 10-2.--LABOR FORCE PARTICIPATION RATES OF WOMEN WITH CHILDREN, BY MARITAL STATUS AND AGE OF YOUNGEST CHILD FOR SELECTED YEARS, 1960-95 -------------------------------------------------------------------------------------------------------------------------------------------------------- Percent 1960 1970 1980 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 increase, 1970-95 -------------------------------------------------------------------------------------------------------------------------------------------------------- All women............................ \1\ 30 .4 \1\ 52 .9 56.6 62.8 64.7 65.0 65.7 66.7 66.6 67.2 66.9 68.4 69.7 31.8 Married women: Youngest < 6..................... 18.6 30.3 45.0 53.8 56.8 57.1 57.4 58.9 59.9 59.9 59.6 61.7 63.5 109.6 Youngest 6 or >.................. 39.0 49.2 61.8 68.4 70.6 72.5 73.4 73.6 73.6 75.4 74.9 76.0 76.2 54.9 Separated women: Youngest < 6..................... NA 45.4 52.2 57.4 55.1 53.0 54.9 59.3 52.2 55.7 52.1 59.2 59.3 30.6 Youngest 6 or >.................. NA 60.6 66.6 70.6 72.6 69.3 68.0 75.0 74.7 71.6 71.6 70.7 71.5 18.0 Divorced women: Youngest < 6..................... NA 63.3 68.3 73.8 70.5 70.1 66.3 69.8 68.5 65.9 68.1 67.5 73.3 15.8 Youngest 6 or >.................. NA 82.4 82.3 84.7 84.5 83.9 85.7 85.9 84.6 85.9 83.6 84.9 85.2 3.4 Never-married women: Youngest < 6..................... NA NA 44.1 47.5 49.9 44.7 48.9 48.7 48.8 45.8 47.4 52.2 53.0 NA Youngest 6 or >.................. NA NA 67.6 65.9 64.1 67.1 69.0 69.7 64.8 67.2 70.2 67.5 67.0 NA -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Excludes never-married women. NA--Not available. Note.--Data for 1994 and 1995 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 10-3 provides a detailed breakdown of the labor force participation of women for March 1995, 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 10-3 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 nearly 80 percent of those whose youngest child is between 14 and 17 participate. TABLE 10-3.--LABOR FORCE PARTICIPATION RATES OF WOMEN WITH CHILDREN UNDER 18, MARCH 1995, BY MARITAL STATUS AND AGE OF YOUNGEST CHILD ---------------------------------------------------------------------------------------------------------------- Age of youngest child ------------------------------------------------ Marital status Under Under Under 3 to 6 to 6 to 14 to 3 6 18 5 13 17 17 ---------------------------------------------------------------------------------------------------------------- All women with child under 18.................................. 58.7 62.3 69.7 67.1 75.1 76.4 79.5 Married, spouse present........................................ 60.9 63.5 70.2 67.2 74.9 76.2 79.6 Divorced....................................................... 65.8 73.3 82.0 77.8 83.7 85.2 88.6 Separated...................................................... 57.2 59.3 66.1 61.3 70.9 71.5 73.1 Widowed........................................................ 45.3 58.9 61.2 65.1 62.5 61.7 61.0 Never married.................................................. 48.7 53.0 57.5 61.7 67.3 67.0 65.4 ---------------------------------------------------------------------------------------------------------------- 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 1995, table 10-4 shows 46 percent worked full time and 19 percent worked part time (less than 35 hours per week). Another 5 percent were actively seeking a job. Thirty- eight percent of mothers with children under age 6 worked full time, and 19 percent worked part time. As the table 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 64 percent of all divorced mothers worked full time; 50 percent of divorced mothers with children under 6 worked full time. Only 35 percent of never-married mothers worked full time, and 13 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. TABLE 10-4.--PERCENT OF MOTHERS BY FULL- OR PART-TIME EMPLOYMENT STATUS, MARCH 1995 \1\ ------------------------------------------------------------------------ With children With children Marital status under 18 under 6 ------------------------------------------------------------------------ All mothers: Employed full time.................. 46 38 Employed part time.................. 19 19 Married, spouse present: Employed full time.................. 45 39 Employed part time.................. 22 21 Divorced: Employed full time.................. 64 50 Employed part time.................. 13 17 Never married: Employed full time.................. 35 29 Employed part time.................. 13 14 ------------------------------------------------------------------------ \1\ Full-time workers work 35 hours or more per week. Source: U.S. Department of Labor, Bureau of Labor Statistics. 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 1993. 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 10-5 shows the distribution of primary child care arrangements provided for preschoolers (children under age 5) and school-age children (children ages 5 to 14 years), by marital status and mother's work schedule. ``Primary'' child care arrangement refers to the arrangement used most frequently during a typical work week. Families of preschoolers with working mothers rely more on care provided in an organized child care facility (31 percent) than on family day care (care in another home by nonrelative; 17 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 (22 percent), especially care by fathers (16 percent). Only 5 percent of families rely on care provided in the child's home by a nonrelative. TABLE 10-5.--PRIMARY CHILD CARE ARRANGEMENTS OF CHILDREN UNDER 15 WITH AN EMPLOYED MOTHER, BY MARITAL AND EMPLOYMENT STATUS OF THE MOTHER, FALL 1993 [In percent] ---------------------------------------------------------------------------------------------------------------- Mothers with children Mothers with children 5 to under 5 years 14 years -------------------------------------------------------- Age of child and type of arrangement Employed Employed Employed Employed Total full part Total full part time time time time ---------------------------------------------------------------------------------------------------------------- ALL MARITAL STATUSES -------------------------------------------------------- Children of employed mothers (in thousands)............ 9,937 6,410 3,527 22,276 15,056 7,220 Care in child's home................................... 14.8 14.2 15.9 5.0 4.9 5.1 By grandparent..................................... 6.5 6.1 7.3 1.6 1.5 1.9 By other relative.................................. 3.3 3.4 3.1 2.4 2.5 2.2 By nonrelative..................................... 5.0 4.7 5.4 1.0 0.9 1.1 Care in another home................................... 32.0 34.9 26.9 3.9 3.8 4.2 By grandparent..................................... 10.0 10.8 8.6 1.4 1.5 1.3 By other relative.................................. 5.5 6.0 4.6 0.7 0.7 0.8 By nonrelative \1\................................. 16.6 18.1 13.7 1.8 1.6 2.1 Organized child care facilities........................ 30.9 35.7 22.0 76.3 78.2 72.4 Day/group care center.............................. 18.3 22.0 11.7 1.6 1.9 1.0 Nursery school/preschool........................... 11.6 12.6 9.7 0.7 0.8 0.7 Kindergarten/grade school.......................... 1.0 1.2 0.6 74.0 75.6 70.7 School-based activity.............................. 0.2 0.1 0.3 3.0 3.1 3.0 Parental care.......................................... 22.1 15.1 34.9 8.9 6.6 13.7 By father.......................................... 16.0 10.6 25.7 7.2 5.3 11.1 By mother at work \2\.............................. 6.2 4.5 9.2 1.7 1.3 2.5 Child cares for self................................... ...... ........ ........ 2.8 3.3 1.6 -------------------------------------------------------- MARRIED, HUSBAND PRESENT -------------------------------------------------------- Children of employed mothers (in thousands)............ 7,841 5,038 2,083 16,882 10,907 5,975 Care in child's home................................... 12.2 12.1 16.6 3.7 3.6 3.8 By grandparent..................................... 4.8 4.4 7.5 1.0 0.9 1.2 By other relative.................................. 2.3 2.6 2.6 2.1 2.1 2.1 By nonrelative..................................... 5.0 5.1 6.5 0.5 0.5 0.5 Care in another home................................... 30.5 33.7 33.4 2.8 2.8 2.6 By grandparent..................................... 9.6 10.1 11.7 0.9 0.9 0.8 By other relative.................................. 4.6 5.4 4.3 0.4 0.4 0.4 By nonrelative \1\................................. 16.3 18.3 17.4 1.4 1.4 1.4 Organized child care facilities........................ 31.1 36.1 29.6 80.1 82.2 76.4 Day/group care center.............................. 18.2 22.2 14.9 1.5 1.7 1.1 Nursery school/preschool........................... 11.8 12.8 13.3 0.8 0.8 0.8 Kindergarten/grade school.......................... 1.0 1.1 0.9 74.8 76.7 71.4 School-based activity.............................. 0.1 0.0 0.4 3.1 3.0 3.1 Parental care.......................................... 26.2 18.1 54.9 11.1 8.5 15.8 By father.......................................... 19.3 13.1 41.0 9.2 7.1 13.0 By mother at work \2\.............................. 6.9 5.0 14.0 1.9 1.4 2.8 Child cares for self................................... ...... ........ ........ 2.4 2.9 1.3 -------------------------------------------------------- ALL OTHER MARITAL STATUSES \3\ -------------------------------------------------------- Children of employed mothers (in thousands)........... 2,096 1,372 724 5,393 4,149 1,244 Care in child's home................................... 24.6 21.9 29.6 9.1 8.5 11.3 By grandparent..................................... 12.9 12.3 14.0 3.4 3.0 4.8 By other relative.................................. 6.9 6.4 7.9 3.3 3.5 2.6 By nonrelative..................................... 4.7 3.1 7.7 2.4 2.0 3.9 Care in another home................................... 37.8 39.2 35.1 7.6 6.3 11.8 By grandparent..................................... 11.7 13.4 8.6 3.1 2.9 3.6 By other relative.................................. 8.7 8.2 9.8 1.7 1.4 2.7 By nonrelative \1\................................. 17.3 17.6 16.7 2.8 2.0 5.5 Organized child care facilities........................ 30.7 34.6 23.3 77.1 79.2 70.3 Day/group care center.............................. 18.8 21.1 14.2 2.0 2.5 0.5 Nursery school/preschool........................... 10.7 11.7 8.8 0.7 0.8 0.2 Kindergarten/grade school.......................... 1.0 1.3 0.3 71.4 72.7 67.2 School-based activity.............................. 0.3 0.4 0.0 3.0 3.2 2.4 Parental care.......................................... 6.9 4.2 12.2 2.0 1.7 3.3 By father.......................................... 3.4 1.4 7.2 0.9 0.5 2.1 By mother at work \2\.............................. 3.5 2.8 5.0 1.2 1.2 1.2 Child cares for self................................... ...... ........ ........ 4.1 4.4 3.2 ---------------------------------------------------------------------------------------------------------------- \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. 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 10-5 under the heading ``All Other Marital Statuses,'' are much more likely to be cared for by a relative than children of married mothers. Table 10-5 also illustrates that 74 percent of school-age children are in grade school or kindergarten during most of the hours their mothers work. Though not generally regarded as a form of child care, school is included in this table because it is the ``primary'' activity of these children during their mothers' working hours. Although the remaining 26 percent of school-age children attended school, their school hours did not overlap with the majority of hours worked by their mothers because of night and evening work shifts. Table 10-6 shows the types of after school arrangements used 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 10-6.--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............................. 2,535 11.4 By grandparent............................... 779 3.5 By other relative............................ 1,209 5.4 By nonrelative............................... 547 2.5 Care in another home............................. 2,645 11.9 By grandparent............................... 949 4.3 By other relative............................ 517 2.3 By nonrelative \1\........................... 1,179 5.3 Organized child care facilities.................. 2,455 11.0 Day/group care center........................ 1,071 4.8 Nursery school/preschool..................... 167 0.8 School-based activity........................ 1,217 5.5 Parental care.................................... 3,203 14.4 By father.................................... 2,587 11.6 By mother at work \2\........................ 616 2.8 Child cares for self......................... 1,202 5.4 No care mentioned................................ 10,236 48.0 ---------------------- 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 10-7 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 (36 percent 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 (32 percent versus 21 percent). Children in nonpoor families rely more on family day care provided by nonrelatives than do children living in poverty (17 percent versus 12 percent). TABLE 10-7.--PRIMARY CHILD CARE ARRANGEMENTS USED BY EMPLOYED MOTHERS FOR CHILDREN UNDER 5, BY POVERTY STATUS OF THE MOTHERS, FALL 1993 ------------------------------------------------------------------------ All marital statuses Total Poor \1\ Not poor ------------------------------------------------------------------------ Total children of employed mothers (in thousands)............................ 9,897 1,068 8,829 Percent................................ 100.0 100.0 100.0 Care in child's home................... 14.7 20.9 14.0 By grandparent..................... 6.5 8.2 6.3 By other relative.................. 3.3 6.1 3.0 By nonrelative..................... 4.9 6.6 4.7 Care in another home................... 32.0 33.8 31.8 By grandparent..................... 10.0 11.8 9.8 By other relative.................. 5.5 9.7 5.0 By nonrelative \2\................. 16.5 12.3 17.1 Organized child care facilities........ 31.1 21.0 32.3 Day/group care center.............. 18.4 12.0 19.2 Nursery school/preschool........... 11.6 7.8 12.1 Kindergarten/grade school.......... 1.0 1.2 0.9 School-based activity.............. 0.2 0.0 0.2 Parental care.......................... 22.2 24.3 21.9 By father.......................... 16.0 16.2 16.0 By mother at work \3\.............. 6.1 8.1 5.9 Child cares for self............... ......... ......... ......... ------------------------------------------------------------------------ \1\ Below the poverty threshold, which was $14,350 annually or $1,196 monthly during the 1993 interview period for a family of four. \2\ Care in another home by a nonrelative is known as ``family day care.'' \3\ 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 10-8 shows the primary arrangements used by working mothers for their preschool-aged children from June 1977 through the fall of 1993. 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 1993, from 13 percent to 30 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, although the proportion of children cared for by fathers dropped between 1991 and 1993. The share of children cared for by their mothers at work decreased from 1977 to 1993, 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 1993. TABLE 10-8.--PERCENT OF CHILDREN UNDER 5 IN SELECTED CHILD CARE ARRANGEMENTS, 1977-93 ---------------------------------------------------------------------------------------------------------------- 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 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 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 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, 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 in 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 10-9, 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. As indicated in table 10-9, 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 10-9 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 $69 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 a year old to $56 for 3-year-olds and $59 for 4- year-olds. Child care costs have increased in recent years. Chart 10-1 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. TABLE 10-9.--AVERAGE WEEKLY CHILD CARE EXPENDITURES FOR PRESCHOOLERS AND PERCENTAGE OF INCOME SPENT ON CARE, BY POVERTY STATUS AND FAMILY INCOME ------------------------------------------------------------------------ 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 to $2,999............. 49 60.16 12.0 $3,000 to $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). CHART 10-1. WEEKLY COST OF CHILD CARE \1\ [In constant 1993 dollars. Limited to families with a preschooler.] <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> \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. 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. They estimate 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. It 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 10-10, centers are distributed across regions in urban/rural areas approximately in proportion to the population of children under age 5. TABLE 10-10.--DISTRIBUTION OF PRESCHOOL CHILDREN, EARLY CHILDHOOD PROGRAMS, AND PROGRAM SPACES BY REGION AND URBANICITY [In percent] ---------------------------------------------------------------------------------------------------------------- Spaces in Children Spaces regulated younger Centers in Regulated home-based home- than 5 centers programs based \1\ 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 is not proportional to the number of young children in those regions (table 10-10). 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 has four full-time vacancies and that the average regulated family day care home has one full-time vacancy. For centers, the study reports that vacancies are concentrated in fewer than half of all centers and that two-thirds to three-fourths of all centers reported having no vacancies. Vacancies are 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 are in family day care and that the average number of children per home ranges from 3 to 6, Kisker et al. estimate that there are from 550,000 to 1.1 million unlicensed providers. Based on this estimate, the number of regulated family day care homes (118,000) represents 10 to 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 10-11 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. Research in 1990 estimated that between 82 and 90 percent of family child care is unregulated. THE FEDERAL ROLE 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. Most recently, four new Federal child care programs were enacted in 1988 and 1990 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 new programs 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. These programs were administered by the Departments of Agriculture, Education, Health and Human Services, Housing and Urban Development, Interior, Labor, and Treasury, the Appalachian Regional Commission, the Corporation for National Service, and the Small Business Administration. CRS noted that some of these programs are not primarily child care programs; rather, they are programs designed for some other major purpose that included some type of child care or related assistance. Moreover, a majority of the programs are small, with 32 of the 46 providing less than $50 million in annual funding. TABLE 10-11.--NUMBER OF STATES WITH SELECTED CHILD CARE LICENSING REQUIREMENTS, FOR CHILD CARE CENTERS AND FAMILY DAY CARE HOMES ------------------------------------------------------------------------ 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. Table 10-12 provides a brief description of the major Federal programs that 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 four newest programs mentioned above, 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, 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. Numerous other Federal programs provide assistance for child care services, training for child care providers, and related activities. Most of these programs are not child care programs per se, but support child care as a component of other activities, such as job training, housing assistance, education, food stamps, and other kinds of services. For example, under various Federal student financial aid programs, students can count a certain portion of child care expenses as part of the total cost of postsecondary education and thereby receive Federal student aid to help cover these costs. Another example is the Job Training Partnership Act, under which funds are designated for supportive services that can include child care services for program participants. During congressional consideration of child care legislation in the late 1980s, concerns were often raised that the Federal role in this area lacked coordination and focus. Some argue that the new child care programs--with their different eligibility rules, standards, requirements, applications, and reports, as well as different Federal and State administering agencies--have exacerbated this concern, and that there is need for coordination and streamlining in Federal child care policy. For example, the GAO reported in 1994 that different requirements of the major programs, combined with resource constraints in the States, have caused gaps in child care service delivery to low-income families. In particular, GAO found that, primarily because of a shortage of resources, substantial numbers of nonwelfare working poor families who were eligible for child care subsidies by virtue of their income were denied benefits and placed on waiting lists in five out of six States visited (U.S. General Accounting Office, 1994b). Though Congress requires the States and HHS to collect and compile information on child care services funded and families served by the major Federal child care programs, little information is actually available to make assessments about the impact of the recent expansions in Federal child care assistance. For example, there is virtually no information readily available on the types of child care providers serving subsidized families with respect to their level of quality or regulation. There is also little information about the total number of families served, the degree of choice they have in selecting care, and whether choice is inhibited by payment rates or other factors. TABLE 10-12.--OVERVIEW OF FEDERAL PROGRAMS THAT SUPPORT CHILD CARE -------------------------------------------------------------------------------------------------------------------------------------------------------- Fiscal year 1995 outlays Program Budgetary Statutory authority Federal Federal funding (in millions)\1\ classification administration support -------------------------------------------------------------------------------------------------------------------------------------------------------- Dependent care credit............. Nonrefundable tax Internal Revenue U.S. Department of NA.................. $2,746 \2\ credit. Code. Treasury, Internal Revenue Service. Child care for AFDC recipients.... Authorized Social Security Act. HHS, ACF \3\........ Open-ended, Federal 633 entitlement. match at Medicaid rate. Transitional child care assistance Authorized Social Security Act. HHS, ACF \3\........ Open-ended, Federal 192 (TCC). entitlement. match at Medicaid rate. At-risk child care................ Authorized Social Security Act. HHS, ACF \3\........ Funding ceiling, 279 entitlement. Federal match at Medicaid rate. Child care and development block Discretionary Omnibus Budget HHS, ACF \3\........ Funding ceiling, 100 933 grant. authorization. Reconciliation Act percent Federal of 1990. funding. Child and adult care food program. Authorized National School U.S. Department of Open-ended, 100 1,461 \4\ entitlement. Lunch Act of 1946. Agriculture, Food percent Federal and Nutrition funding. Service. Title XX social services block Authorized Social Security Act. HHS, ACF \3\........ Funding ceiling, 100 448 \5\ grant. entitlement. percent Federal funding. Head start........................ Discretionary Omnibus Budget HHS, ACF \3\........ Funding ceiling, 80 3,393 authorization. Reconciliation Act percent Federal of 1981. funding. -------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- Provider Reimbursement Program Target population Eligible children requirements rates to providers ---------------------------------------------------------------------------------------------------------------- Dependent care credit........... Taxpayers who need Children under age Centers only must NA dependent care in 13. meet applicable order to accept State and local or maintain standards. employment. Child care for AFDC recipients.. AFDC recipients Children under age Must meet Cost up to $200 who need 13 (unless applicable State per month (< 2), dependent care to incapable of self- and local and $175 per accept or care or under standards. month (2 or maintain court older). Not more employment, or to supervision). than the 75th participate in percentile of State-approved local market education/ rate. training. Transitional child care Families that lose Children under age Must meet Same as AFDC. assistance (TCC). AFDC eligibility 13. applicable State due to employment and local (increase in standards. income or hours worked). At-risk child care.............. Low-income Children under age Must meet Same as AFDC. families not 13. applicable State receiving AFDC and local who need child standards or, if care to work, and not regulated and are at risk of with the welfare exception of eligibility if relatives, be care not provided. registered. Child care and development block Families with Children under age Must meet No limit. grant. incomes at or 13 (unless applicable State below 75 percent incapable of self- and local of State median care or under standards or be income, with court registered parents engaged supervision). (including in work or relatives). With education/ exception of training. relatives, must also meet certain health and safety standards. Child and adult care food NA................ Children < 13; Must meet Meal rates are program. migrant children applicable State indexed to < 16. and local inflation, rates standards. vary by family income. Title XX social services block State discretion.. State discretion.. Must meet No limit. grant. applicable State and local standards. Head start...................... Low-income Children from poor Must meet No limit. children and families who have federally families. not reached the established age of compulsory standards with school attendance. respect to health, education, parental involvement, nutrition, and social services. ---------------------------------------------------------------------------------------------------------------- \1\ Source: Congressional Budget Office for Programs, Joint Committee on Taxation for tax expenditures. \2\ Preliminary 1995 IRS return data. Data is tax expenditures, not outlays. \3\ U.S. Department of Health and Human Services, Administration for Children and Families. \4\ Obligations. \5\ Estimate based on reports from 23 States submitting data for fiscal year 1990 to the American Public Welfare Association. NA--Not applicable. Source: Compiled by Committee on Ways and Means staff. 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. 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. More detailed information on the dependent care tax credit is provided in section 14. CHILD CARE PROGRAMS UNDER TITLE IV-A OF THE SOCIAL SECURITY ACT Title IV-A of the Social Security Act, under which the Aid to Families with Dependent Children (AFDC) Program is established, contains authorities for three different child care programs. These programs fund child care services for low- income families, though each target a different low-income population. One program funds child care services for AFDC families who are working or participating in an approved work, education, or training program. A second program funds care for families for up to 1 year after they leave AFDC. A third program funds care for families who are ``at risk'' of becoming eligible for AFDC. Each of the title IV-A child care programs is described briefly below. Child Care for AFDC Recipients Under the AFDC Program, the Federal Government requires States to ``guarantee'' child care to recipients of AFDC if the care is needed for individuals to accept employment or remain employed. Child care also must be guaranteed to AFDC recipients who are 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 is funded by an open-ended entitlement. The Federal share of a State's child care payments is based on the Medicaid matching rate, which varies by State and is inversely related to a State's per capita income. The program is 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 is intended to prevent long-term welfare dependency by providing needy families with education, training, and employment. All AFDC recipients not otherwise exempt by law are required to participate in JOBS. The parent of a child under age 6 may be required to participate only if child care is guaranteed and if participation is limited to no more than 20 hours per week. A parent of a child under age 3 is exempt from participation, unless required to participate at State option. More detailed information on the AFDC JOBS Program is provided in section 8. --------------------------------------------------------------------------- State welfare agencies are responsible for administering the program at the State level and must inform AFDC applicants and recipients of the availability of child care assistance and the types and locations of child care services. The State agencies can 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 can 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 must 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 cannot 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 must meet applicable standards of State and local law. In addition, States must ensure that center-based child care is subject to State and local health and safety requirements, including fire safety protections. States must also 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 has reported, on the basis of a nationwide survey, that about three-fourths of State JOBS Programs have been 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 requires States to ``guarantee'' child care to a family who loses 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 is necessary for an individual to accept or retain employment. To be eligible for transitional child care (TCC), families must 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 is limited to a period of 12 months after the last month for which the family received AFDC benefits. The program is operated under the same rules as those that apply to the Child Care Program for eligible AFDC recipients, except that families must contribute to the cost of the care in accordance with a State-established sliding fee scale. It is also administered by ACF at the Federal level. At-Risk Child Care Program The At-Risk Child Care Program authorized by the Omnibus Budget Reconciliation Act of 1990 (Public Law 101-508) entitles States to Federal matching funds for child care services for low-income families who are not receiving AFDC, need child care in order to work, and are ``at risk'' of becoming eligible for welfare if child care were not provided. The program is permanently authorized as a ``capped entitlement'' at $300 million annually. It is administered by ACF. States are entitled to matching funds for child care expenditures up to State allocation limits determined by a formula in the law. State allocations are 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 is less than its full allocation limit in one year, the difference can 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 is based on the Medicaid matching rate, which varies by State. The At-Risk Program is similar to the AFDC Child Care Programs with regard to the flexibility States are afforded in providing care. The requirements for reimbursement rates also are similar. Like the TCC Program, families are required to make some contribution to the cost of care, based on a State- designed sliding fee scale. At-Risk child care must 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) must be registered by the State. The At-Risk Program is administered on the State level by the State welfare agency. Beginning in fiscal year 1993, States were required to report annually to the Federal Government on how they used program funds. Reports are to include information on the number of children served, the average cost of care, eligibility rules, child care licensing and regulatory requirements, and enforcement policies. The Secretary of HHS is required to report to Congress annually on the State reports. CHILD CARE AND DEVELOPMENT BLOCK GRANT The Child Care and Development Block Grant Program was authorized as an amendment to the Omnibus Budget Reconciliation Act of 1990, and provides child care services for low-income families, as well as for activities to improve the overall quality and supply of child care for families in general. Appropriated funds are distributed to States, territories, and tribes (grantees) based on a formula in law. No match is required. The formula reserves up to 0.5 percent for the territories and up to 3 percent for Indian tribes and tribal organizations. Remaining funds are allocated to the States based on the States' proportion of children under age 5 and the number of children receiving free or reduced-priced school lunches, as well as the States' per capita income. The program was authorized for 5 years, through fiscal year 1995, although it continued to operate in fiscal year 1996 under continuing resolutions. The authorization level began at $750 million in fiscal year 1991 and rose to $925 million in fiscal year 1993. ``Such sums as necessary'' were authorized for fiscal years 1994 and 1995. Actual appropriations for the CCDBG were $732 million in fiscal year 1991 and rose to $935 million in fiscal years 1995 and 1996. Table 10-22 provides State allocations for fiscal years 1994 and 1995, and estimates for fiscal year 1996. The law requires States to use 25 percent of their allotments for activities to improve the quality of child care and to increase the availability of early childhood development and before- and after-school child care services. The remaining 75 percent is for child care services and for activities to improve the quality and availability of child care. States must use at least 75 percent of the 25 percent share (18.75 percent of a State's total allotment) to establish, expand, or operate, through grants or contracts, early childhood development or before- and after-school child care programs or both. Twenty percent (5 percent of total funds) must be used for at least one or more of the following quality improvement activities: providing assistance to resource and referral programs; providing grants or loans to assist providers in meeting applicable State and local child care standards; monitoring the compliance and enforcement of State and local regulatory requirements; providing training and technical assistance in relevant child care areas, such as health and safety, nutrition, first aid, child abuse detection and prevention; and improving salaries of child care workers. States can use the remaining 5 percent (1.25 percent) for any of the activities allowed under the 25 percent share. With regard to the 75 percent of funds, regulations provide that 90 percent must be used for services, and up to 10 percent can be used for activities to improve child care quality and availability and administrative costs. Grantees can spend more on administrative costs associated with setting up voucher programs if granted permission by HHS. Children under age 13 who come from families with incomes at or below 75 percent of the State median income and reside with parents (or a parent) who are working, attending school, or in a job training program are eligible for services. Children also are eligible if they are receiving or need to receive protective services. Priority is to be given to serving children in very low-income families and children with special needs. Child care providers receiving block grant assistance must meet all licensing or regulatory requirements, including registration requirements, applicable under State or local law. Providers who are 18 years of age or older who care only for grandchildren, nieces, or nephews must be registered and comply only with any State requirements that govern relative care. Providers that are not required by State or local law to be licensed or regulated must be registered with the State as a condition of funding. Registration procedures must be designed to facilitate payment and permit the State to inform providers of the availability of health and safety training, technical assistance, and other information. States must establish minimum health and safety standards, applicable to child care providers receiving block grant assistance (except grandparents, aunts and uncles). The standards must cover: prevention and control of infectious diseases (including immunization); building and physical premises safety; and minimum health and safety training appropriate to the provider setting (i.e., center, family home, etc.). States have the option of imposing more stringent standards and requirements on child care providers funded under the program than those imposed on other providers in the State. Any reductions that are made in child care standards must be reported and explained to HHS in the State's annual report on the program. In addition, States are required to conduct a one- time review of their child care licensing and regulatory requirements and policies. The requirement is to be waived if such a review was conducted in the last 3 years. States are required to give eligible families the option of (1) enrolling their children with an eligible provider that has a grant from or contract with the State's block grant program or (2) receiving a child care certificate with which they can purchase child care. This option only applies to funding for child care services from the 75 percent portion of the State's allocation. Certificates are not an option in providing early childhood development and before- and after-school care under the 25 percent set-aside. Child care certificates can be used only to pay for child care services from eligible providers, including sectarian child care providers. Certificates must be issued directly to the parent and must be worth amounts that are commensurate with contract/grant values. States are directed by the regulations to make the certificate option available to all families offered services under the program. Certificates can be checks or other disbursements at the discretion of the State. Payment rates for child care funded by the block grant must be sufficient to ensure equal access for eligible children to comparable child care in the State or substate area that is provided to children not eligible for Federal or State child care subsidies. In addition, the payment rates must take into account variations in the cost of child care due to setting, age of children, and special needs of children. The block grant program contains specific requirements with regard to the use of funds for religious activities. Under the program, a provider that receives operating assistance as a result of a direct grant from, or contract with, a government agency may not use the assistance 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. States are required to report annually to the Secretary of HHS on how they used their funds. Reports are to include information on the number of children served, types and number of providers assisted, child care staff salaries and compensation, improvements made in child care quality and availability, and descriptions of health and safety standards. States must also conduct program audits and submit reports to the State legislature and the Secretary of HHS. The Secretary of HHS must report to Congress annually on the State reports. At the Federal level, the program is administered by the Administration for Children and Families, HHS. HHS is required to coordinate all child care activities within the agency and with similar activities in other Federal agencies. HHS is also required to publish a list of State child care standards at least once every 3 years, give technical assistance to the States in operating their block grant programs, and monitor State compliance with program requirements. 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, beginning in fiscal year 1990. For fiscal year 1996 only, the entitlement ceiling and appropriation for title XX was reduced to $2.381 billion. 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. Another source of data on title XX is the Voluntary Cooperative Information System (VCIS) of the American Public Welfare Association funded by HHS. VCIS is a national data base comprised of aggregate State program statistics. The VCIS found that, based on data from 23 States, child care services accounted for 16 percent of fiscal year 1990 title XX expenditures. In addition, expenditures for child care services accounted for 22 percent of expenditures for services for children among 14 States. VCIS data from 25 States provide information on eligibility rules States use for title XX services in fiscal year 1990. Twenty of those States determine eligibility for child care services based on income standards. AFDC recipients are eligible for title XX child care in 16 States. Individuals can be eligible for title XX child care in 15 States without regard to income. More information on title XX, including State allocations, is provided in section 11. STATE DEPENDENT CARE PLANNING AND DEVELOPMENT GRANTS The State dependent care grant program provides Federal matching funds to States to plan, develop, establish, expand, improve, or operate before- and after-school child care programs for school-age children and resource and referral systems that provide information on dependent care services. Funds are allotted to States based on State total population compared to the United States' total population, except that no State can receive less than $50,000 in each fiscal year. The program is administered at the Federal level by ACF, HHS. The program was authorized through fiscal year 1994 by the Augustus F. Hawkins Human Services Reauthorization Act of 1990 (Public Law 101-501), and was extended through fiscal year 1995 by the Human Services Amendments of 1994 (Public Law 103-252). For fiscal year 1995, $13 million was both authorized and appropriated. No funds are provided in fiscal year 1996. States are required to use 40 percent of their grants on resource and referral systems for services for children and/or the elderly and 60 percent on school-age child care programs and services. These percentage requirements may be waived if States request it. Resource and referral information services funded by the program cannot include dependent care services that are out of compliance with State and local laws. Funds for school-age child care services must be targeted to low-income families. Such services must meet State and local child care licensing laws and regulations. States cannot use funds to make cash payments to intended program recipients of dependent care services, including child care services. Public Law 101-501 required States to collect information on the number of children who participate in program-funded school-age child care, characteristics of these children, salary levels of child care program employees, and the number of clients served by resource and referral programs funded by the program. HHS has never compiled this information. 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 and family or group day care homes. \3\ Federal assistance is made up overwhelmingly of cash subsidies paid out based on the number of meals/snacks served; less than 2 percent is in the form of federally donated commodities. CACFP subsidies to participating centers and homes are available for meals/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. With spending estimated at $1.578 billion in fiscal year 1996 (up from $1.467 billion in 1995 and $1.355 billion in 1994), the CACFP is the single largest source of direct financial assistance for child care. In fiscal year 1995, average daily attendance in CACFP-subsidized centers and homes totaled 2.3 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 1,500 sites serving some 40,000 persons in fiscal year 1995), and Federal spending for them is a minor fraction of the total cost of the CACFP (just over $20 million in fiscal year 1995, or about 1.5 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. State agencies, in turn, approve, oversee, and provide payments to (1) child care centers (some 13,000 facilities with over 30,000 sites in fiscal year 1995) and (2) in the case of family or group day care homes, their sponsoring organizations (some 1,200 sponsors with more than 190,000 homes in fiscal year 1995). 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 after-school 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 from receiving free or reduced-price meals and snacks). --------------------------------------------------------------------------- In general, day care centers may receive daily subsidies for up to two meals and one snack (or one meal and two snacks) for each child; but, where a child is in day care for more than 8 hours a day, centers may receive subsidies for up to three meals and one snack (or two meals and two snacks). 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/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 1995 through June 1996, these subsidies are 49.25 cents for each snack, 99.75 cents for each breakfast, and $1.795 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 1995 through June 1996, these are 24.75 cents for each snack, 69.75 cents for each breakfast, and $1.395 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/snacks: for July 1995 through June 1996, these are 4.5 cents for snacks, 19.5 cents for breakfasts, and 17.25 cents for lunches and suppers. CACFP-subsidized family and group day care homes serve an average of 4-6 children, and 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 they are responsible for. Also unlike centers, meal and snack subsidies for homes are not varied by children's family income, although they are annually indexed and differ by type of meal. \6\ For July 1995 through June 1996, all snacks are subsidized at 45.75 cents, all breakfasts at 84.5 cents, and all lunches/suppers at $1.5375. Payments are provided for no more than two meals and one snack (or one meal and two snacks), regardless of the length of time a child is in care. --------------------------------------------------------------------------- \6\ Children of day care home operators may not receive federally subsidized meals/snacks unless their family income is below 185 percent of the poverty guidelines. --------------------------------------------------------------------------- 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 $3.5 billion in fiscal year 1995, Head Start served an estimated 750,700 children. (For more information on Head Start, see section 17.) CHILD CARE TABLES Tables 10-13 through 10-23 provide extensive information about selected Federal child care programs, especially 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 10-13 provides data on Federal payments to States for AFDC child care and TCC for fiscal years 1991 through 1997. Table 10-14 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 10-15 provides data on Federal payments to States for At-Risk child care for fiscal years 1991 through 1997. Table 10-16 provides State-specific information on child care options under the At-Risk Child Care Program, based on biennial State ``supportive services'' plans. The most current State-by-State data on the number of JOBS participants who receive title IV-A child care subsidies are shown in table 10-17. The types of child care arrangements used by the JOBS participants' children is provided in table 10-18. The number of families not in JOBS who receive title IV-A child care assistance is shown in table 10-19. The type of care used by AFDC families not in JOBS who receive title IV-A child care assistance is shown in table 10-20. Current data on the number of children receiving TCC subsidies and the type of care arrangements used by their families are found in table 10-21. TABLE 10-13.--FEDERAL PAYMENTS TO STATES FOR AFDC CHILD CARE AND TRANSITIONAL CHILD CARE, FISCAL YEARS 1991-97 [Fiscal year in thousands] -------------------------------------------------------------------------------------------------------------------------------------------------------- 1996 estimated 1997 estimated States 1991 1992 1993 \1\ 1994 actual 1995 actual \2\ \2\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama..................................................... $2,820 $5,981 $9,050 $13,586 $11,115 $13,900 $14,915 Alaska...................................................... 445 1,329 1,262 1,756 2,221 2,776 2,980 Arizona..................................................... 2,354 5,998 8,462 11,025 15,846 19,817 21,262 Arkansas.................................................... 4,348 1,940 1,268 1,525 2,142 2,679 2,875 California.................................................. 11,331 16,655 34,401 30,586 48,205 60,283 64,681 Colorado.................................................... 3,649 4,082 5,315 5,763 5,342 6,681 7,168 Connecticut................................................. 5,301 6,563 7,061 9,916 13,987 17,491 18,767 Delaware.................................................... 1,300 1,787 3,016 3,350 4,445 5,558 5,964 District of Columbia........................................ 2,799 4,284 1,855 4,668 3,187 3,986 4,276 Florida..................................................... 20,678 17,506 20,136 20,457 31,313 39,159 42,016 Georgia..................................................... 13,231 16,060 25,247 36,240 36,599 45,769 49,109 Guam........................................................ 9 22 4 1 3 3 4 Hawaii...................................................... 249 70 273 1,084 1,667 2,085 2,237 Idaho....................................................... 756 775 1,069 1,468 1,307 1,635 1,754 Illinois.................................................... 8,468 4,455 11,949 22,237 42,870 53,611 57,523 Indiana..................................................... 12,828 4,640 7,101 5,763 22,696 28,382 30,453 Iowa........................................................ 2,204 1,730 2,409 3,227 6,402 8,005 8,590 Kansas...................................................... 3,233 5,388 6,677 7,836 5,442 6,806 7,302 Kentucky.................................................... 5,027 9,188 10,450 13,484 11,948 14,942 16,032 Louisiana................................................... 12,741 10,955 15,512 11,233 12,088 15,117 16,220 Maine....................................................... 1,354 361 1,083 953 1,935 2,420 2,596 Maryland.................................................... 9,509 10,027 13,912 17,192 19,187 23,994 25,745 Massachusetts............................................... 24,889 24,933 23,991 36,003 48,401 60,527 64,944 Michigan.................................................... 14,467 15,727 13,597 17,866 12,514 15,649 16,791 Minnestoa................................................... 11,342 9,918 12,415 19,911 16,328 20,419 21,909 Mississippi................................................. 574 2,577 3,230 3,660 5,782 7,230 7,758 Missouri.................................................... 1,196 8,624 14,348 14,201 17,528 21,920 23,519 Montana..................................................... 1,144 2,943 1,988 2,127 1,908 2,386 2,560 Nebraska.................................................... 5,152 5,630 7,455 9,936 8,787 10,988 11,790 Nevada...................................................... 1,057 435 1,032 1,029 1,228 1,535 1,647 New Hampshire............................................... 1,621 2,013 2,495 2,955 3,670 4,589 4,924 New Jersey.................................................. 2,195 6,653 9,309 9,096 11,921 14,908 15,996 New Mexico.................................................. 2,026 1,745 3,994 6,475 3,657 4,573 4,907 New York.................................................... 29,289 36,303 57,988 60,215 46,171 57,739 61,952 North Carolina.............................................. 7,306 24,423 35,163 56,868 61,151 76,472 82,051 North Dakota................................................ 1,554 1,725 1,709 1,841 1,513 1,892 2,030 Ohio........................................................ 9,394 18,407 34,071 46,630 54,665 68,361 73,349 Oklahoma.................................................... 7,983 18,925 22,950 19,460 16,828 21,045 22,580 Oregon...................................................... 6,260 5,392 8,768 15,007 15,937 19,930 21,384 Pennsylvania................................................ (100) 28,647 31,105 32,473 40,964 51,227 54,965 Puerto Rico................................................. 223 2,901 0 0 0 0 0 Rhode Island................................................ 1,821 2,154 4,310 3,980 5,957 7,449 7,993 South Carolina.............................................. 541 1,040 4,294 3,673 4,910 6,140 6,588 South Dakota................................................ 983 13,457 1,759 766 1,003 1,254 1,346 Tennessee................................................... 4,492 25,090 18,675 33,617 31,969 39,979 42,896 Texas....................................................... 20,803 6,544 33,737 39,014 43,929 54,935 58,943 Utah........................................................ 6,275 1,605 9,236 10,401 10,026 12,538 13,453 Vermont..................................................... 1,626 3 2,023 2,684 3,567 4,460 4,786 Virgin Islands.............................................. 11 11 11 4 1 1 1 Virginia.................................................... 4,320 15,439 8,328 11,009 16,386 20,491 21,986 Washington.................................................. 8,355 3,205 21,057 28,887 43,654 54,592 58,575 West Virginia............................................... 2,169 16,742 4,548 5,304 6,902 8,631 9,260 Wisconsin................................................... 8,242 2,300 12,390 10,281 15,209 19,019 20,407 Wyoming..................................................... 957 ........ 2,076 1,825 2,416 3,021 3,242 ------------------------------------------------------------------------------------------- Total................................................. 320,744 415,000 595,568 730,544 854,828 1,069,000 1,147,000 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Represents grant awards to States. \2\ Preliminary data. Source: Office of Financial Management, Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 10-14.--AFDC CHILD CARE AND TRANSITIONAL CHILD CARE (TCC)--SUMMARY OF STATE CHILD CARE OPTIONS -------------------------------------------------------------------------------------------------------------------------------------------------------- Statewide limit; Special State Method of providing Supplements dependent Method of providing needs care (if Child care provided AFDC child care \1\ care disregard TCC \1\ different) \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; No $1,555.00. 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; 1 month $2,067.12/$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; No $4,300.00. 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; 2 weeks/1 month $3,000.00. 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 weeks/1 month $2,500.00. Washington........................ 2, 7................. No................... 7.................... $616.00/$476.08; 1 month $1,206.15. 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 to the code: 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 two (2) weeks while participant is waiting to enter either approved education, training, or JOBS; OR for up to one (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 2/6/96. Child Care Bureau, U.S. Department of Health and Human Services. TABLE 10-15.--FEDERAL PAYMENTS TO STATES FOR AT-RISK CHILD CARE, FISCAL YEARS 1991-97 [In thousands] -------------------------------------------------------------------------------------------------------------------------------------------------------- 1996 estimate 1997 estimate States 1991 actual 1992 actual 1993 actual 1994 actual 1995 actual \1\ \1\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama................................. $4,935 $4,934 $4,692 $4,374 $4,978 $4,704 $4,545 Alaska.................................. 808 1,211 825 903 859 905 849 American Samoa 0 NA 0 145 72 NA NA Arizona................................. 1,151 9,210 4,624 4,709 4,769 5,004 5,004 Arkansas................................ 0 4,519 2,657 2,271 2,777 2,682 2,682 California.............................. 36,592 73,183 25,170 36,592 55,766 43,731 39,041 Colorado................................ 0 8,103 4,320 4,062 3,990 4,201 4,201 Connecticut............................. 3,455 3,455 3,485 4,574 3,448 3,474 3,474 Delaware................................ 777 776 770 771 778 763 763 District of Columbia.................... 677 677 648 537 527 543 543 Florida................................. 13,231 13,230 13,632 13,904 14,321 14,310 14,310 Georgia................................. 8,110 8,110 7,986 3,905 1,342 15,938 8,158 Guam.................................... 0 NA 0 0 0 391 195 Hawaii.................................. 0 1,361 929 1,318 1,334 1,340 1,340 Idaho................................... 1,392 2,088 879 1,439 1,396 1,402 1,402 Illinois................................ 6,833 13,666 16,007 13,426 14,876 13,363 13,363 Indiana................................. 6,538 6,537 6,538 6,539 7,433 7,474 6,224 Iowa.................................... 3,226 3,225 3,226 3,177 3,114 3,034 3,034 Kansas.................................. 3,070 3,070 3,052 5,162 2,972 2,974 2,948 Kentucky................................ 4,294 4,294 4,551 4,109 4,142 4,031 4,031 Louisiana............................... 0 5,903 0 0 5,346 8,382 5,221 Maine................................... 1,367 1,367 809 1,335 1,318 1,292 1,292 Maryland................................ 5,363 5,363 5,539 5,398 5,562 5,595 5,595 Massachusetts........................... 6,122 6,121 6,287 6,240 6,226 6,288 6,288 Michigan................................ 0 NA 0 11,522 8,242 10,813 10,813 Minnesota............................... 5,245 5,245 5,427 5,359 5,359 5,305 5,305 Mississippi............................. 0 NA 0 351 1,309 5,172 3,159 Missouri................................ 5,966 5,966 6,022 5,926 5,894 5,872 5,872 Montana................................. 0 843 568 84 857 1,211 989 Nebraska................................ 1,951 1,951 1,958 1,929 1,894 1,870 1,870 Nevada.................................. 0 3,262 1,589 1,352 1,713 1,911 1,667 New Hampshire........................... 1,280 1,280 1,290 1,261 1,259 1,271 1,271 New Jersey.............................. 8,290 8,290 8,000 8,272 8,363 8,441 8,441 New Mexico.............................. 0 3,401 2,580 1,943 1,375 3,074 2,138 New York................................ 19,931 19,930 19,699 19,647 19,697 19,785 19,785 North Carolina.......................... 7,333 7,333 9,681 7,274 7,411 7,573 7,573 North Dakota............................ 839 838 1,007 550 595 718 718 Ohio.................................... 12,734 12,733 12,598 12,334 12,598 12,149 12,149 Oklahoma................................ 3,909 3,656 3,762 3,734 2,616 3,729 3,729 Oregon.................................. 3,194 5,029 3,354 3,352 3,352 3,311 3,311 Pennsylvania............................ 0 25,616 12,681 12,502 12,485 12,429 12,429 Puerto Rico............................. 0 NA 0 0 0 10,302 5,131 Rhode Island............................ 1,057 1,056 1,046 923 821 1,056 1,051 South Carolina.......................... 4,294 4,294 4,174 4,797 5,728 4,068 4,068 South Dakota............................ 914 913 431 488 605 1,128 877 Tennessee............................... 0 NA 575 2,859 5,441 8,582 5,502 Texas................................... 8,923 37,103 26,480 19,601 18,623 28,602 23,021 Utah.................................... 2,995 2,995 2,732 2,826 1,730 2,797 2,797 Vermont................................. 646 646 650 637 628 623 623 Virgin Islands.......................... 0 NA 0 0 0 356 177 Virginia................................ 6,768 6,767 6,963 6,783 6,611 6,968 6,968 Washington.............................. 5,649 8,941 5,997 6,038 6,117 6,079 6,079 West Virginia........................... 0 2,001 1,762 1,802 1,761 1,724 1,724 Wisconsin............................... 5,755 5,754 5,892 5,402 5,782 5,699 5,699 Wyoming................................. 634 1,267 770 536 572 564 564 --------------------------------------------------------------------------------------------------------------- Total............................... 216,248 357,535 264,316 275,585 296,709 335,000 300,000 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Preliminary data. Numbers for 1996 assume States receive payment for full entitlement amount (1996 entitlement plus carryover from 1995 entitlement). NA--Not available. Source: Office of Financial Management, Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 10-16.--AT-RISK CHILD CARE--SUMMARY OF STATE CHILD CARE OPTIONS -------------------------------------------------------------------------------------------------------------------------------------------------------- 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 one 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 two (2) weeks while participant is waiting to enter either approved education, training, or JOBS; OR for up to one (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 10-17.--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.......................... 936 896 40 0 0 0 Arkansas......................... 598 572 0 0 0 26 California....................... 13,964 12,448 953 0 35 528 Colorado......................... 2,223 2,031 12 4 170 6 Connecticut...................... 4 4 0 0 0 0 Delaware......................... 87 86 0 0 1 0 District of Columbia............. 15 15 0 0 0 0 Florida.......................... 2,443 2,432 3 2 0 6 Georgia.......................... 5,024 4,256 16 9 743 0 Guam............................. (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Hawaii........................... 439 421 18 0 0 0 Idaho............................ 350 325 24 0 1 0 Illinois......................... 5,211 0 86 73 0 5,052 Indiana.......................... 3,742 3,624 113 0 5 0 Iowa............................. 1,573 1,451 97 0 19 6 Kansas........................... 128 107 0 0 21 0 Kentucky......................... 2,491 0 58 0 0 2,433 Louisiana........................ 3,166 3,048 30 0 88 0 Maine............................ 1,089 1,003 75 0 9 2 Maryland......................... 2,484 2,173 84 0 71 156 Massachusetts.................... 5,406 4,996 29 0 279 102 Michigan......................... 9,177 8,407 412 0 155 203 Minnesota........................ 2,737 2,517 156 0 64 0 Mississippi...................... 1,199 1,098 3 0 0 98 Missouri......................... 2,373 2,273 100 0 0 0 Montana.......................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Nebraska......................... 1,781 1,543 57 10 167 4 Nevada........................... 206 186 0 0 20 0 New Hampshire.................... 634 587 22 0 23 2 New Jersey....................... 2,969 2,675 36 0 258 0 New Mexico....................... 1,910 1,866 44 0 0 0 New York......................... 19,184 18,502 682 0 0 0 North Carolina................... 5,380 5,172 94 0 114 0 North Dakota..................... 792 756 36 0 0 0 Ohio............................. 564 564 0 0 0 0 Oklahoma......................... 2,330 2,321 9 0 0 0 Oregon........................... 504 466 24 0 14 0 Pennsylvania..................... 11,825 11,702 123 0 0 0 Puerto Rico...................... 342 342 0 0 0 0 Rhode Island..................... 2,034 1,988 16 0 27 3 South Carolina................... 301 301 0 0 0 0 South Dakota..................... 530 502 0 0 28 0 Tennessee........................ 2,458 2,321 52 4 81 0 Texas............................ 633 547 79 7 0 0 Utah............................. 2,099 2,071 10 0 0 18 Vermont.......................... 532 511 19 0 2 0 Virgin Islands................... (1) (1) (1) (1) (1) (1) Virginia......................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Washington....................... 6,735 5,759 964 0 0 12 West Virginia.................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Wisconsin........................ 2,089 1,759 219 0 111 0 Wyoming.......................... 30 30 0 0 0 0 ------------------------------------------------------------------------------ U.S. total................... 132,721 116,654 4,795 109 2,506 8,657 ---------------------------------------------------------------------------------------------------------------- \1\ Data not reported by the State. Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 10-18.--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 (avg. monthly no.) --------------------------------------------- Care provided by a Care provided by Percent Percent Total nonrelative in a relative in children provided State Children --------------------------------------------- Unknown in by a Group Group center relative Center family In family In care care day child's day child's care home care home ---------------------------------------------------------------------------------------------------------------- Alabama..................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Alaska...................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Arizona..................... 1,639 1,222 99 13 258 42 5 74.6 18.3 Arkansas.................... 781 286 391 0 52 52 0 36.6 13.3 California.................. 22,374 5,777 9,252 0 7,136 0 209 25.8 31.9 Colorado.................... 3,506 2,252 637 43 366 208 0 64.2 16.4 Connecticut................. 4 0 0 0 0 0 4 0.0 0.0 Delaware.................... 138 97 40 0 0 0 1 70.3 0.0 District of Columbia........ 15 11 0 0 4 0 0 73.3 26.7 Florida..................... 3,906 3,617 176 29 28 23 33 92.6 1.3 Georgia..................... 7,689 4,204 899 249 1,379 958 0 54.7 30.4 Guam........................ (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Hawaii...................... 688 262 141 18 257 10 0 38.1 38.8 Idaho....................... 569 261 43 138 0 108 0 45.9 19.0 Illinois.................... 8,200 1,891 1,565 1,852 1,838 1,054 0 23.1 35.3 Indiana..................... 6,351 2,391 1,687 355 1,147 625 115 37.6 27.9 Iowa........................ 2,519 653 1,150 84 539 93 0 25.9 25.1 Kansas...................... 128 0 0 0 21 0 107 0.0 16.4 Kentucky.................... 4,002 1,345 510 590 0 675 882 33.6 16.9 Louisiana................... 5,081 2,296 119 487 187 1,992 0 45.2 42.9 Maine....................... 1,634 291 626 192 172 167 186 17.8 20.7 Maryland.................... 4,035 1,544 503 749 218 641 380 38.3 21.3 Massachusetts............... 7,995 5,688 199 0 780 1,328 0 71.1 26.4 Michigan.................... 14,755 3,677 1,821 2,179 2,569 2,867 1,335 24.9 36.8 Minnesota................... 4,062 1,999 1,485 100 330 60 88 49.2 9.6 Mississippi................. 1,700 790 276 133 365 133 3 46.5 29.3 Missouri.................... 3,870 1,632 797 526 724 123 0 42.2 21.9 Montana..................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Nebraska.................... 3,146 1,556 1,245 123 159 63 0 49.5 7.1 Nevada...................... 346 88 10 41 23 67 71 25.4 26.0 New Hampshire............... 973 373 188 141 132 84 55 38.3 22.2 New Jersey.................. 4,368 2,338 0 1,957 0 0 0 53.5 0.0 New Mexico.................. 3,284 999 619 318 626 722 0 30.4 41.0 New York.................... 31,152 5,106 15,106 3,575 4,374 1,696 266 16.4 19.5 North Carolina.............. 7,897 4,819 0 705 2,281 0 0 61.0 28.9 North Dakota................ 1,131 217 698 20 185 11 0 19.2 17.3 Ohio........................ 950 713 237 0 0 0 0 75.1 0.0 Oklahoma.................... 2,080 1,284 260 18 8 56 454 61.7 3.1 Oregon...................... 831 0 582 0 247 0 2 0.0 29.7 Pennsylvania................ 18,303 8,031 6,469 1,770 1,107 524 366 43.9 8.9 Puerto Rico................. 497 31 208 0 167 69 13 6.2 47.5 Rhode Island................ 3,079 1,612 136 150 610 480 21 52.4 35.4 South Carolina.............. 632 536 66 12 12 6 0 84.8 2.8 South Dakota................ 770 271 344 46 56 53 0 35.2 14.2 Tennessee................... 3,913 2,533 636 0 398 0 346 64.7 10.2 Texas....................... 1,346 0 0 0 0 0 0 0.0 0.0 Utah........................ 3,517 1,929 1,400 114 59 15 0 54.8 2.1 Vermont..................... 852 7 221 227 217 160 9 0.8 44.2 Virgin Islands.............. (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Virginia.................... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Washington.................. 9,980 4,479 2,311 1,045 1,014 956 113 44.9 19.7 West Virginia............... (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) (\1\) Wisconsin................... 2,887 2,013 464 10 74 10 316 69.7 2.9 Wyoming..................... 24 11 0 0 0 0 0 45.8 0.0 ----------------------------------------------------------------------------------- U.S. Totals................. 207,599 81,132 53,616 18,009 30,119 16,131 5,380 39.1 22.3 ---------------------------------------------------------------------------------------------------------------- \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 10-19.--NONJOBS 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.................................................... 1,523 (\3\) (\3\) (\4\) 1,523 0 0 (\4\) Alaska..................................................... 167 23 4 (\4\) 93 44 3 (\4\) Arizona.................................................... 3,784 1,900 0 0 1,847 37 0 0 Arkansas................................................... 386 173 1 0 120 92 0 0 California................................................. 21,666 16,504 895 (\4\) 1,602 2,528 138 (\4\) Colorado................................................... 603 (\3\) (\3\) (\3\) 603 (\4\) (\4\) (\4\) Connecticut................................................ 2,584 (\3\) (\3\) (\4\) 1,302 (\3\) (\3\) (\4\) Delaware................................................... 704 459 2 (\4\) 243 (\4\) (\4\) (\4\) District of Columbia....................................... 134 68 0 0 67 0 0 0 Florida.................................................... 9,583 3,803 11 (\4\) 5,769 0 0 (\4\) Georgia.................................................... 9,019 4,924 4 0 2,133 1,932 25 0 Guam....................................................... 0 0 0 0 0 0 0 0 Hawaii..................................................... 182 144 4 1 34 0 0 0 Idaho...................................................... 530 214 3 (\4\) 153 160 0 (\4\) Illinois................................................... 4,385 2,129 64 (\4\) 1,647 532 13 (\4\) Indiana.................................................... 4,024 255 4 (\4\) 1,034 2,684 47 (\4\) Iowa....................................................... 2,390 2,024 78 0 288 0 0 0 Kansas..................................................... (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) Kentucky................................................... 924 9 44 0 816 54 1 0 Louisiana.................................................. 2,475 111 1 0 1,952 434 1 0 Maine...................................................... 2,834 2,425 178 (\3\) 231 (\3\) (\3\) (\3\) Maryland................................................... 4,825 1,199 (\3\) (\4\) 701 2,924 (\3\) (\4\) Massachusetts.............................................. 3,502 1,165 24 50 2,264 (\3\) (\3\) (\3\) Michigan................................................... 1,018 (\3\) (\3\) 77 940 0 0 0 Minnesota.................................................. 2,844 395 5 (\4\) 1,545 834 65 (\4\) Mississippi................................................ 261 0 0 (\4\) 261 0 0 (\4\) Missouri................................................... 3,566 171 1 (\4\) 1,765 1,621 8 (\4\) Montana.................................................... 846 497 16 (\4\) 305 28 0 (\4\) Nebraska................................................... 1,528 580 13 2 405 517 10 1 Nevada..................................................... 476 202 0 (\4\) 273 0 0 (\4\) New Hampshire.............................................. 1,093 169 22 (\4\) 348 539 17 (\4\) New Jersey................................................. 5,215 (\3\) (\3\) (\3\) 1,313 (\3\) (\3\) (\3\) New Mexico................................................. 978 424 7 (\4\) 527 20 (\3\) (\4\) New York................................................... 6,402 4,326 42 (\4\) 2,034 (\4\) (\4\) (\4\) North Carolina............................................. 11,891 9,081 10 (\4\) 2,800 0 0 (\4\) North Dakota............................................... 411 7 1 (\4\) 283 119 1 (\4\) Ohio....................................................... 4,416 1,201 43 (\4\) 2,160 985 28 (\4\) Oklahoma................................................... 1,782 430 0 0 706 430 46 170 Oregon..................................................... 3,521 1,329 26 20 1,979 3 0 165 Pennsylvania............................................... 10,845 3,541 706 (\4\) 6,580 (\4\) (\4\) (\4\) Puerto Rico................................................ (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) Rhode Island............................................... 542 320 0 0 222 0 0 0 South Carolina............................................. 1,384 1,059 4 (\4\) 321 0 0 (\4\) South Dakota............................................... 698 224 0 0 333 140 0 0 Tennessee.................................................. 9,428 5,697 17 (\4\) 3,713 0 0 (\4\) Texas...................................................... 7,830 1,714 10 (\4\) 6,021 83 2 (\4\) Utah....................................................... 4,281 32 8 0 1,129 3,111 0 2 Vermont.................................................... 1,074 392 10 5 231 376 21 40 Virgin Islands............................................. 15 14 0 0 2 0 0 0 Virginia................................................... 3,094 493 2 (\4\) 1,593 957 5 (\4\) Washington................................................. 4,058 3,113 141 0 782 20 1 0 West Virginia.............................................. 1,262 475 35 (\4\) 347 384 22 (\4\) Wisconsin.................................................. 6,276 4,106 426 0 1,343 364 38 0 Wyoming.................................................... 1,099 574 4 (\4\) 167 344 2 (\4\) -------------------------------------------------------------------------------------------- U.S. totals............................................ 174,313 78,095 2,866 155 64,850 22,296 494 378 -------------------------------------------------------------------------------------------------------------------------------------------------------- \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 10-20.--NONJOBS 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................................................ 99 10 14 3 31 41 Arizona............................................... 1,929 20 122 4 200 1,583 Arkansas.............................................. 266 22 23 5 49 165 California............................................ 20,064 (\3\) (\3\) (\3\) (\3\) (\3\) Colorado.............................................. (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) Connecticut........................................... 1,282 (\3\) (\3\) (\3\) (\3\) (\3\) Delaware.............................................. 461 6 10 7 134 318 District of Columbia.................................. 68 (\3\) (\3\) (\3\) (\3\) (\3\) Florida............................................... 3,814 17 25 35 229 3,509 Georgia............................................... 6,885 607 713 462 293 4,810 Guam.................................................. 0 0 0 0 0 0 Hawaii................................................ 149 21 23 8 93 4 Idaho................................................. 377 18 83 23 163 103 Illinois.............................................. 2,738 369 775 621 474 500 Indiana............................................... 3,177 307 630 146 912 1,381 Iowa.................................................. 2,102 (\3\) (\3\) (\3\) (\3\) (\3\) Kansas................................................ (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) Kentucky.............................................. 133 12 37 15 19 52 Louisiana............................................. 548 56 98 14 196 183 Maine................................................. 2,782 304 341 536 629 954 Maryland.............................................. 4,124 208 173 90 1,819 1,833 Massachusetts......................................... 1,239 18 9 160 85 967 Michigan.............................................. (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) Minnesota............................................. 1,299 22 105 35 633 552 Mississippi........................................... 0 0 0 0 0 0 Missouri.............................................. 1,802 22 104 42 704 997 Montana............................................... 541 9 33 25 340 140 Nebraska.............................................. 1,123 24 64 53 498 484 Nevada................................................ 202 27 23 19 53 81 New Hampshire......................................... 746 60 110 88 196 321 New Jersey............................................ 3,902 (\3\) (\3\) (\3\) (\3\) (\3\) New Mexico............................................ 450 13 8 0 0 0 New York.............................................. 4,368 130 544 220 2,304 1,173 North Carolina........................................ 9,091 534 1,044 69 1,106 6,426 North Dakota.......................................... 128 2 98 1 26 7 Ohio.................................................. 2,256 0 83 1 941 1,232 Oklahoma.............................................. 1,076 0 3 1 164 907 Oregon................................................ 1,542 101 213 226 812 190 Pennsylvania.......................................... 4,247 (\3\) (\3\) (\3\) (\3\) (\3\) Puerto Rico........................................... (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) Rhode Island.......................................... 320 (\3\) (\3\) (\3\) (\3\) (\3\) South Carolina........................................ 1,063 (\3\) (\3\) (\3\) (\3\) (\3\) South Dakota.......................................... 365 41 51 36 167 91 Tennessee............................................. 5,714 112 225 46 556 4,777 Texas................................................. 91 2 7 0 7 76 Utah.................................................. 3,152 (\5\) (\5\) 128 1,242 1,782 Vermont............................................... 844 103 123 121 327 172 Virgin Islands........................................ 16 0 0 0 0 16 Virginia.............................................. 1,589 88 114 11 556 819 Washington............................................ 3,488 494 436 504 849 1,206 West Virginia......................................... 915 12 253 2 380 435 Wisconsin............................................. 4,933 201 544 153 2,016 2,019 Wyoming............................................... 924 63 138 32 333 358 --------------------------------------------------------- U.S. totals....................................... 108,424 4,055 7,399 3,942 19,446 40,664 ---------------------------------------------------------------------------------------------------------------- \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 10-21.--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........................................ 1,523 69 185 57 301 911 Alaska......................................... 123 3 10 5 50 60 Arizona........................................ 1,847 23 129 8 201 1,486 Arkansas....................................... 111 21 7 2 14 67 California..................................... 1,602 161 178 129 594 509 Colorado....................................... 670 (\2\) (\2\) (\2\) (\2\) (\2\) Connecticut.................................... 1,302 (\2\) (\2\) (\2\) (\2\) (\2\) Delaware....................................... 243 4 7 5 67 171 District of Columbia........................... 67 4 8 0 1 54 Florida........................................ 5,769 33 44 55 510 5,128 Georgia........................................ 2,133 188 401 165 143 1,237 Guam........................................... 0 0 0 0 0 0 Hawaii......................................... 34 0 5 0 29 1 Idaho.......................................... 153 5 33 9 69 53 Illinois....................................... 1,647 202 374 282 344 444 Indiana........................................ 1,074 105 224 59 373 377 Iowa........................................... 288 0 0 0 77 210 Kansas......................................... (\2\) (\2\) (\2\) (\2\) (\2\) (\2\) Kentucky....................................... 816 54 151 142 19 450 Louisiana...................................... 1,921 259 513 78 733 339 Maine.......................................... 231 16 28 24 81 84 Maryland....................................... 701 71 72 35 269 254 Massachusetts.................................. 2,264 0 0 178 93 1,993 Michigan....................................... 1,018 73 196 113 295 341 Minnesota...................................... 1,545 56 155 63 805 551 Mississippi.................................... 261 19 72 3 56 110 Missouri....................................... 1,765 27 186 64 685 877 Montana........................................ 305 5 15 13 191 79 Nebraska....................................... 405 11 32 20 205 136 Nevada......................................... 273 84 23 68 18 103 New Hampshire.................................. 348 26 45 41 91 152 New Jersey..................................... 1,313 (\2\) (\2\) (\2\) (\2\) (\2\) New Mexico..................................... 527 125 89 33 127 185 New York....................................... 2,034 12 143 10 750 1,118 North Carolina................................. 2,800 232 623 65 291 1,589 North Dakota................................... 282 3 81 5 160 38 Ohio........................................... 2,160 0 92 2 928 1,138 Oklahoma....................................... 706 1 5 2 116 583 Oregon......................................... 1,979 173 213 296 979 320 Pennsylvania................................... 6,580 (\2\) (\2\) (\2\) (\2\) (\2\) Puerto Rico.................................... (\3\) (\3\) (\3\) (\3\) (\3\) (\3\) Rhode Island................................... 222 11 34 5 20 159 South Carolina................................. 321 (\2\) (\2\) (\2\) (\2\) (\2\) South Dakota................................... 333 34 37 37 158 85 Tennessee...................................... 3,713 168 268 55 491 2,731 Texas.......................................... 6,021 339 254 3 272 5,254 Utah........................................... 1,129 (\4\) (\4\) 32 454 644 Vermont........................................ 238 23 20 21 120 53 Virgin Islands................................. 2 0 0 0 0 2 Virginia....................................... 1,738 144 170 26 599 799 Washington..................................... 820 92 90 85 221 331 West Virginia.................................. 353 3 104 0 130 158 Wisconsin...................................... 1,343 55 148 42 549 550 Wyoming........................................ 175 15 26 6 67 62 ---------------------------------------------------------------- U.S. totals................................ 65,228 2,949 5,490 2,343 12,746 31,976 ---------------------------------------------------------------------------------------------------------------- \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 10-22.--STATE ALLOCATIONS UNDER THE CHILD CARE AND DEVELOPMENT BLOCK GRANT, 1994-96 [By fiscal years, in thousands] ------------------------------------------------------------------------ 1966 1994 actual 1995 actual estimate ------------------------------------------------------------------------ Alabama.......................... 18,868 19,492 19,492 Alaska........................... 1,786 1,858 1,858 Arizona.......................... 16,114 17,416 17,416 Arkansas......................... 10,541 10,939 10,939 California....................... 101,826 110,790 110,790 Colorado......................... 9,808 10,014 10,014 Connecticut...................... 6,400 6,716 6,716 Delaware......................... 1,751 1,909 1,909 District of Columbia............. 1,700 1,829 1,829 Florida.......................... 43,796 46,165 46,165 Georgia.......................... 27,996 29,375 29,375 Hawaii........................... 3,092 3,315 3,315 Idaho............................ 4,475 4,675 4,675 Illinois......................... 33,067 34,452 34,452 Indiana.......................... 16,578 16,767 16,767 Iowa............................. 8,306 8,634 8,634 Kansas........................... 7,900 8,246 8,246 Kentucky......................... 16,167 16,666 16,666 Louisiana........................ 24,431 24,984 24,984 Maine............................ 3,570 3,681 3,681 Maryland......................... 11,433 12,307 12,307 Massachusetts.................... 12,335 13,354 13,354 Michigan......................... 26,502 26,871 26,871 Minnesota........................ 12,330 12,591 12,591 Mississippi...................... 16,080 16,287 16,287 Missouri......................... 16,212 16,872 16,872 Montana.......................... 2,936 3,074 3,074 Nebraska......................... 5,020 5,180 5,180 Nevada........................... 3,490 3,669 3,669 New Hampshire.................... 2,205 2,457 2,457 New Jersey....................... 16,314 17,068 17,068 New Mexico....................... 8,279 8,752 8,752 New York......................... 50,716 53,072 53,072 North Carolina................... 25,038 25,829 25,829 North Dakota..................... 2,241 2,230 2,230 Ohio............................. 32,436 32,864 32,864 Oklahoma......................... 13,521 14,170 14,170 Oregon........................... 8,952 9,104 9,104 Pennsylvania..................... 29,653 30,397 30,397 Rhode Island..................... 2,523 2,624 2,624 South Carolina................... 16,460 17,059 17,059 South Dakota..................... 3,073 3,010 3,010 Tennessee........................ 18,799 19,271 19,271 Texas............................ 77,734 84,744 84,744 Utah............................. 8,378 8,671 8,671 Vermont.......................... 1,521 1,598 1,598 Virginia......................... 16,565 17,662 17,662 Washington....................... 14,342 14,686 14,686 West Virginia.................... 6,865 6,993 6,993 Wisconsin........................ 13,790 14,007 14,007 Wyoming.......................... 1,594 1,527 1,527 Puerto Rico...................... 23,803 23,765 23,765 -------------------------------------- Subtotal................... 859,312 899,688 899,688 Territories...................... 4,452 4,662 4,662 Tribes........................... 26,714 27,970 27,970 Discretionary.................... 2,232 2,337 2,337 -------------------------------------- Total...................... 892,641 934,642 934,642 ------------------------------------------------------------------------ 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. 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.