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Licensed Child Care in Washington State: 1996

Executive Summary

Washington State Department of Social and Health Services (DSHS) subsidized care for about 37,000 children in each month during 1996. These children are from low-income families with parents who are working, going to school, homeless, or in some other DSHS programs.

DSHS pays a maximum rate for a subsidized child, according to the child's age, the time in care (full time or part time), and the provider type (child care center, licensed family home, and provider at child's own home). The Department also varies its rates by geographical locations organized into six administrative regions. Providers charge DSHS their usual and customary rates or the DSHS rates, whichever is less.

Although federal grants for child care programs no longer directly link DSHS rates to the child care market rates, DSHS remains committed to market-based rates for its child care subsidy programs. Further, proposed regulations for the federal Child Care Development Fund would require states to base rates on surveys conducted every two years. For this purpose, we conducted the fifth survey of Washington State child care market in the Spring of 1996.

Areas of Analysis
Based on a telephone interview of approximately 2,723 child care providers (1,379 child care centers and 1,344 licensed family child care homes), this report covers the following characteristics of the Washington State licensed child care market in 1996:

• General view of child care industry in the State of Washington.
• Child care population, and distribution of children in child care by age group, location, and provider type.
• Child care rates charged for different age groups, for full- and part-time care in child care centers and licensed family homes.
• Factors associated with higher or lower child care rates.
• Capacity and vacancy rates of licensed child care providers.
• Provider operating hours.
• Provider characteristics, such as salaries, education, and business costs.
• DSHS-subsidized child care, including the distribution of DSHS children, limits set by centers on their enrollment, and the effect of DSHS rates on their enrollment.
• Trends in the child care industry over time.

Major Findings:
Findings About Child Care Rates

• Between 1994 and 1996 the average monthly rate for all full-time children at licensed child care centers increased from $374 to $417. This was an increase of 11.5 percent. Over the same time period, the Consumer Price Index increased by 5.9 percent.
• Between 1994 and 1996 the average monthly rate for full-time children at licensed child care family homes increased from $353 to $381, an increase of 7.9 percent.
• Child care rates vary by geographical areas and the age of the child.
• On average, centers charge more than homes.
• In centers, rates tended to be higher when salary levels for teachers and aides were higher.
• In homes, rates tended to be higher if the provider had course work in early childhood education, and if the provider had a college degree.

Findings About Centers

• 99,499 children were enrolled in licensed centers at the time of the survey.
• 52 percent of children in centers received full-time care..
• 66 percent of centers had vacancies; overall, the vacancy rate in centers was 15.5 percent.
• Pay for teachers at centers averaged $7.17 per hour. Aides averaged $6.07 per hour. After adjusting for inflation, there has been no increase in average wages since 1992.
• Only nine percent of centers were open during non-standard hours (hours before 6am and after 6pm). Only one percent of centers were open on weekends.

Findings About Family Homes

• 58,027 children were enrolled in licensed family homes at the time of the survey.
• 36 percent of children in homes were preschoolers, and 6 percent were infants.
• 55 percent of children in homes received full-time care.
• 39 percent of family homes had vacancies; overall, the vacancy rate was 14 percent.
• Assistants in family homes earned $5.87 per hour on average.
• Ten percent of homes operated before or after normal business hours; four percent were open on weekends.

Findings About DSHS-subsidized Child Care

• 91,046 children received DSHS-subsidized child care in 1996.
• 24,790 children received DSHS-subsidized care from licensed providers (centers and family homes).
• 16 percent of children in centers and 16 percent of children in family homes received care subsidized by DSHS. 8
• 4 percent of centers cared for at least one DSHS-subsidized child in 1996. This is a significant increase from 76 percent in 1994.
• 39 percent of family homes cared for at least one DSHS-subsidized child.
• 92 percent of family home providers said they would be willing to serve DSHS-subsidized families.

  

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Modified: Thursday November 17 2005

For more ways to get in touch with the Department of Social and Health Services, go to the DSHS Contact Information Web page. Technical Site Comments: DSHS Webmaster. Copyright 2004 Washington State Department of Social and Health Services.