SECTION 9. CHILD CARE

                                CONTENTS

 Introduction
 Employment and Marital Status of Mothers
Child Care Arrangements Used by Working Mothers
Child Care Costs
Supply and Characteristics of Child Care Providers
  Supply of Providers
  Wages of Child Care Center Staff
  Staff Turnover
  Employing Welfare Recipients as Child Care Workers
Child Care Standards and Quality
  Regulation and Licensing
  Research on Child Care Quality
The Federal Role
  Background and Overview
  Major Day Care Programs
  Child Care and Development Block Grant
Child Care Tables
  Child Care and Development Fund
  Families and Children Served, Type of Care, and Payment Type
  State Income Eligibility Limits
  Trends in Child Care Expenditures
  State CCDF Allocations
References

                              INTRODUCTION

    Child care is an issue of significant public interest for
several reasons. The dramatic increase in the labor force
participation of mothers is the most important factor affecting
the demand for child care in the last quarter century.
Currently, in a majority of American families with children--
even those with very young children--the mother is in the paid
labor force. Similarly, an increasingly significant trend
affecting the demand for child care is the proportion of
mothers who are the sole or primary financial supporters of
their children, either because of divorce or because they never
married. In addition, child care has been a significant issue
in recent debates over how to move welfare recipients toward
employment and self-sufficiency; mothers on welfare may have
difficulty 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 (CCDBG) and the At-Risk Child Care
Program--were enacted as part of the Omnibus Budget
Reconciliation Act of 1990 (Public Law 101-508). These programs
were preceded by enactment of a major welfare reform
initiative, the Family Support Act of 1988 (Public Law 100-
485), which authorized expanded child care assistance for
welfare families and families leaving welfare. In 1996, as part
of welfare reform legislation (the Personal Responsibility and
Work Opportunity Reconciliation Act, Public Law 104-193), these
programs were consolidated into an expanded Child Care and
Development Block Grant (sometimes referred to as the Child
Care and Development Fund), which provides increased Federal
funding and serves both low-income working families and
families attempting to transition off welfare through work.
    This chapter provides background information on the major
indicators of the demand for and supply of child care, the role
of standards and quality in child care, a summary description
of the major Federal programs that fund child care services,
and reported data from the largest of those sources of funding,
the Child Care and Development Fund (CCDF).

                EMPLOYMENT AND MARITAL STATUS OF MOTHERS

    The dramatic increase in the labor force participation of
mothers is commonly regarded as the most significant factor
fueling the increased demand for child care services. A person
is defined as participating in the labor force if she is
working or seeking work. As shown in table 9-1, in 1947, just
following World War II, slightly over one-fourth of all mothers
with children between the ages of 6 and 17 were in the labor
force. By contrast, in 1999 over three-quarters of such mothers
were labor force participants. The increased labor force
participation of mothers with younger children has also been
dramatic. In 1947, it was unusual to find mothers with a
preschool-age child in the labor force--only about 12 percent
of mothers with children under the age of 6 were in the labor
force. But in 1999, over 64 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, 60
percent 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, 11
percent of families with children were headed by a single
mother, compared with 26 percent of families with children in
1998. While the number of two-parent families with children did
not fluctuate much between 1970 and 1998 (25.8 and 25.7 million
respectively), the number of female-headed families with
children almost tripled, increasing from 3.4 million families
in 1970 to 9.8 million in 1998. These families headed by
mothers were a major source of growth in the demand for child
care.

  TABLE 9-1.--LABOR FORCE PARTICIPATION RATES OF WOMEN, BY PRESENCE AND AGE OF YOUNGEST CHILD, SELECTED YEARS,
                                                     1947-99
----------------------------------------------------------------------------------------------------------------
                                                                              With children under age 18
                                                              No    --------------------------------------------
                                                           children            Age 6-         Under age 6
                                                           under 18   Total   17 only --------------------------
                                                                                        Total   Under 3  Under 2
----------------------------------------------------------------------------------------------------------------
April 1947...............................................      29.8     18.6     27.3     12.0       NA       NA
April 1950...............................................      31.4     21.6     32.8     13.6       NA       NA
April 1955...............................................      33.9     27.0     38.4     18.2       NA       NA
March 1960...............................................      35.0     30.4     42.5     20.2       NA       NA
March 1965...............................................      36.5     35.0     45.7     25.3     21.4       NA
March 1970...............................................      42.8     42.4     51.6     32.2     27.3       NA
March 1975...............................................      45.1     47.3     54.8     38.8     34.1     31.5
March 1980...............................................      48.1     56.6     64.3     46.8     41.9     39.2
March 1985...............................................      50.4     62.1     69.9     53.5     49.5     48.0
March 1986...............................................      50.5     62.8     70.4     54.4     50.8     49.2
March 1987...............................................      50.5     64.7     72.0     56.7     52.9     51.9
March 1988...............................................      51.2     65.0     73.3     56.1     52.5     50.8
March 1989...............................................      51.9     65.7     74.2     56.7     52.4     51.7
March 1990...............................................      52.3     66.7     74.7     58.2     53.6     52.1
March 1991...............................................      52.0     66.6     74.4     58.4     54.5     53.8
March 1992...............................................      52.3     67.2     75.9     58.0     54.5     54.3
March 1993...............................................      52.1     66.9     75.4     57.9     53.9     54.2
March 1994...............................................      53.1     68.4     76.0     60.3     57.1  \1\ 56.
                                                                                                               7
March 1995...............................................      52.9     69.7     76.4     62.3     58.7  \1\ 57.
                                                                                                               9
March 1996...............................................      53.0     70.2     77.2     62.3     59.0     57.9
March 1997...............................................      53.6     72.1     78.1     65.0     61.8     59.9
March 1998...............................................      54.1     72.3     78.4     65.2     62.2     62.1
March 1999...............................................      54.3     72.1     78.5     64.4     60.7     60.6
----------------------------------------------------------------------------------------------------------------
\1\ Includes mothers in the Armed Forces.

NA--Not available.

Note.--Data for 1994 and beyond are not directly comparable with data for 1993 and earlier years because of
  introduction of a major redesign in the Current Population Survey (household survey) questionnaire and
  collection methodology and the introduction of 1990 census-based population controls, adjusted for the
  estimated undercount (Polivka & Rothgeb, 1993).

Source: U.S. Department of Labor, Bureau of Labor Statistics.

    Mothers' attachment to the labor force differs depending on
the age of their youngest child and marital status, as tables
9-2 and 9-3 show. Table 9-2 exhibits the labor force
participation rates of various demographic groups of mothers
with youngest child over or under age 6. The table provides
graphic evidence of the exploding rate of working mothers,
especially working mothers with preschool children.

        TABLE 9-2.--LABOR FORCE PARTICIPATION RATES OF WOMEN WITH CHILDREN, BY MARITAL STATUS AND AGE OF YOUNGEST CHILD, SELECTED YEARS, 1970-99
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                Percent
                                                   1970    1980    1987   1988   1990   1992   1993   1994   1995   1996   1997   1998   1999  increase,
                                                                                                                                                1980-99
--------------------------------------------------------------------------------------------------------------------------------------------------------
Married women:
    Youngest under 6............................    30.3    45.0   56.8   57.1   58.9   59.9   59.6   61.7   63.5   62.7   63.3   63.7   61.8       37.3
    Youngest 6 or older.........................    49.2    61.8   70.6   72.5   73.6   75.4   74.9   76.0   76.2   76.7   77.6   76.8   77.1       24.8
Separated women:
    Youngest under 6............................    45.4    52.2   55.1   53.0   59.3   55.7   52.1   59.2   59.3   63.1   70.2   70.7   75.7       45.0
    Youngest 6 or older.........................    60.6    66.6   72.6   69.3   75.0   71.6   71.6   70.7   71.5   73.3   76.1   79.6   78.5       17.9
Divorced women:
    Youngest under 6............................    63.3    68.3   70.5   70.1   69.8   65.9   68.1   67.5   73.3   76.5   78.7   74.7   80.5       17.9
    Youngest 6 or older.........................    82.4    82.3   84.5   83.9   85.9   85.9   83.6   84.9   85.2   85.5   85.1   85.5   85.0        3.3
Never-married women:
    Youngest under 6............................      NA    44.1   49.9   44.7   48.7   45.8   47.4   52.2   53.0   55.1   65.1   66.3   68.1       54.4
    Youngest 6 or older.........................      NA    67.6   64.1   67.1   69.7   67.2   70.2   67.5   67.0   71.8   74.0   81.2   82.7       22.3
                                                 -------------------------------------------------------------------------------------------------------
        All women...............................  \1\ 52    56.6   64.7   65.0   66.7   67.2   66.9   68.4   69.7   70.2   72.1   72.3   72.1       27.4
                                                      .9
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Excludes never-married women.

NA--Not available.

Note.--Data for 1994 and beyond are not directly comparable with data for 1993 and earlier years because of introduction of a major redesign in the
  Current Population Survey (household survey) questionnaire and collection methodology and the introduction of 1990 census-based population controls,
  adjusted for the estimated undercount (Polivka & Rothgeb, 1993).

Source: U.S. Department of Labor, Bureau of Labor Statistics.

    TABLE 9-3.--LABOR FORCE PARTICIPATION RATES OF WOMEN WITH CHILDREN UNDER 18, BY MARITAL STATUS AND AGE OF
                                           YOUNGEST CHILD, MARCH 1999
----------------------------------------------------------------------------------------------------------------
                                                                              Age of youngest child
                                                                ------------------------------------------------
                         Marital status                          Under  Under  Under
                                                                   3      6      18    3-5    6-13   6-17  14-17
----------------------------------------------------------------------------------------------------------------
Married, spouse present........................................   59.2   61.8   70.1   63.5   76.4   77.1   78.7
Divorced.......................................................   81.5   80.5   84.0   80.5   86.3   85.0   82.2
Separated......................................................   69.3   75.7   77.3   80.4   77.8   78.5   80.6
Widowed........................................................   48.1   50.4   63.1   51.8   67.2   65.5   62.5
Never married..................................................   62.3   68.1   73.4   77.5   84.0   82.7   76.0
                                                                ------------------------------------------------
    All women with children under 18...........................   60.7   64.4   72.1   69.5   78.3   78.5   78.9
----------------------------------------------------------------------------------------------------------------
Note.--Labor force participation rates include nonworking mothers who are actively looking for work.

Source: U.S. Department of Labor, Bureau of Labor Statistics.

    Table 9-3 provides a detailed breakdown of the labor force
participation of women for March 1999 by marital status and the
age of the youngest child. Among those with children under 18,
divorced women have the highest labor force participation rate
(84.0 percent), followed by separated women (77.3 percent). The
labor force participation rate for never-married mothers with
children under 18 grew to over 73 percent in 1999, a 21 percent
increase over the 1996 rate. In 1996, never-married mothers
trailed all other marital status groups (with children under
18) in labor force participation, but by 1999, the
participation rate for never-married mothers surpassed married
women (70 percent) and widowed mothers (63 percent).
    As table 9-3 illustrates, labor force participation rates
tend to increase regardless of the marital status of the mother
as the age of the youngest child increases. Among all women
with children under 18, 61 percent of those with a child under
3 participate, 70 percent of those whose youngest child is
between 3 and 5 participate, and 79 percent of those whose
youngest child is between 14 and 17 participate.
    While there has been a substantial increase in the
proportion of mothers in the labor force, the data can be
misleading without examining employment status. Although 72
percent of mothers participated in the labor force in 1999,
table 9-4 shows 50 percent worked full time and 18 percent
worked part time (less than 35 hours per week). Therefore, in
1999, about 30 percent of mothers were actively looking for
work, but not employed. Forty-one percent of mothers with
children under age 6 worked full time, and 19 percent worked
part time.
    Table 9-4 reveals that how much mothers' work differs
according to their marital status and the age of their
children. It also indicates that changes have occurred between
1996 and 1999. The 1996 welfare reform law's new emphasis on
work is likely to have affected the employment status of the
never-married mother subgroup most significantly, and that is
reflected in the table. Overall, the percent of all mothers
(with children under 18) employed full time grew from slightly
over 47 percent in 1996 to just over 50 percent in 1999. Within
the subgroup of never-married mothers, the 3 year period was
accompanied by a larger increase in full-time employment. In
1996, about 35 percent of never-married mothers with children
under 18 were employed full time. By 1999, the figure had
increased to over 48 percent. The percent of never-married
mothers working full time with children under age 6 had grown
comparably, increasing from almost 29 percent in 1996 to over
41 percent in 1999. Within the divorced mothers subgroup, there
were increases between the years, but the differences are not
nearly as large as within the never-married subgroup. In 1999,
the percent of all divorced mothers employed full time with
children under 18 had reached almost 69 percent, a 2 percentage
point increase since 1996. For those with children under 6,
over 60 percent worked full time in 1999. The employment status
of married mothers is shown to have changed little or not at
all since 1996, depending on full- or part-time status, and age
of children.

 TABLE 9-4.--PERCENT OF MOTHERS BY FULL- OR PART-TIME EMPLOYMENT STATUS,
                         MARCH 1996 \1\ and 1999
------------------------------------------------------------------------
                                     With children       With children
                                       under 18             under 6
         Marital status          ---------------------------------------
                                    1996      1999      1996      1999
------------------------------------------------------------------------
Married, spouse present:
    Employed full time..........      46.3      48.0      39.4      39.4
    Employed part time..........      21.3      20.0      20.9      20.2
Divorced:
    Employed full time..........      66.2      68.5      56.5      60.6
    Employed part time..........      12.6      11.9      12.9      13.3
Never married:
    Employed full time..........      35.5      48.6      28.8      41.4
    Employed part time..........      13.8      16.1      15.1      17.5
                                 ---------------------------------------
    All mothers:
        Employed full time......      47.5      50.4      39.0      41.1
        Employed part time......      19.0      18.4      19.1      19.3
------------------------------------------------------------------------
\1\ Full-time workers work 35 hours or more per week.

Source: U.S. Department of Labor, Bureau of Labor Statistics.

            CHILD CARE ARRANGEMENTS USED BY WORKING MOTHERS

    Data are collected periodically by the U.S. Census Bureau
on the types of child care arrangements used by families with
working mothers. The most recent U.S. Census Bureau statistics
available on child care arrangements are based on data
collected by the Survey of Income and Program Participation
(SIPP) for the fall of 1995 (although the Census Bureau has not
published a report with these data, the data are available on
their Website at www.census.gov/DES/www/welcome.htm). 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, or
care by a sibling.
    The 1995 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 (full- or part-time), marital status, and family
income. Table 9-5 shows the distribution of primary child care
arrangements provided for preschoolers (children under age 5),
by marital status and mother's work schedule. In the 1995 SIPP
survey, parents were asked to estimate the number of hours a
child spends in any of several care arrangements during a week,
rather than to identify the child's ``primary'' care
arrangement while the mother worked. In tables 9-5 and 9-6, the
primary child care arrangement is based on the arrangement in
which a child spends the most hours in a typical week. In the
case of a child who spends equal time between arrangements, the
child would have more than one primary arrangement.

 TABLE 9-5.--PRIMARY CHILD CARE ARRANGEMENTS OF CHILDREN UNDER 5 WITH AN
  EMPLOYED MOTHER, BY MARITAL AND EMPLOYMENT STATUS OF THE MOTHER, FALL
                                  1995
                              [In percent]
------------------------------------------------------------------------
                                    Mothers with children under 5 years
                                  --------------------------------------
       Type of arrangement                        Employed     Employed
                                      Total      full time    part time
------------------------------------------------------------------------
                                            All marital statuses
                                  --------------------------------------
Care in child's home:
    By grandparent...............          5.9          5.4          6.5
    By sibling age 15 or older...          0.7          0.5          1.1
    By sibling under age 15......          0.3          0.3          0.3
    By other relative............          1.5          2.3          3.1
    By nonrelative...............          5.0          4.6          5.4
                                  --------------------------------------
        Total....................         13.5         13.1         16.4
                                  ======================================
Care in another home:
    By grandparent...............         10.0          9.1         11.1
    By other relative............          2.9          3.0          2.4
    By family day care provider           15.7         18.9          9.6
     \1\.........................
    By nonrelative...............          7.9          9.0          5.8
                                  --------------------------------------
        Total....................         36.5         40.1         29.0
                                  ======================================
Organized child care facility:
    Day/group care center........         17.8         20.2         13.1
    Nursery school/preschool.....          5.9          6.3          5.2
    Kindergarten/grade school....          0.7          0.6          0.7
    Head Start Program...........          1.5          1.4          1.6
                                  --------------------------------------
        Total....................         25.8         28.5         20.8
                                  ======================================
Parental care:
    By father....................         16.6         12.8         22.7
    By mother at work \2\........          5.4          3.6          8.3
    Child cares for self.........          0.1          0.1          0.0
                                  --------------------------------------
        Total....................         22.1         16.6         31.0
                                  ======================================
        Total children of               10,022        6,336        3,601
         employed mothers (in
         thousands)..............
                                  --------------------------------------
                                          Married, husband present
                                  --------------------------------------
Care in child's home:
    By grandparent...............          5.0          5.1          4.6
    By sibling age 15 or older...          0.7          0.6          0.9
    By sibling under age 15......          0.3          0.3          0.4
    By other relative............          1.0          0.8          1.4
    By nonrelative...............          5.9          5.3          6.9
                                  --------------------------------------
        Total....................         13.0         12.1         14.2
                                  ======================================
Care in another home:
    By grandparent...............          9.3          8.5         10.6
    By other relative............          2.8          2.8          2.6
    By family day care provider..         16.3         20.6          9.3
    By nonrelative \1\...........          7.2          8.1          5.7
                                  --------------------------------------
        Total....................         35.6         40.1         28.2
                                  ======================================
Organized child care facility:
    Day/group care center........         16.7         19.6         11.9
    Nursery school/preschool.....          5.9          6.4          5.1
    Kindergarten/grade school....          0.5          0.4          0.6
    Head Start Program...........          0.7          0.5          1.0
                                  --------------------------------------
        Total....................         23.7         26.9         18.7
                                  ======================================
Parental care:
    By father....................         18.8         14.7         25.5
    By mother at work \2\........          6.3          4.2          9.9
    Child cares for self.........          0.1          0.1          0.0
                                  --------------------------------------
        Total....................         25.2         19.0         35.4
                                  ======================================
        Total children of                7,582        4,702        2,809
         employed mothers (in
         thousands)..............
                                  --------------------------------------
                                       All other marital statuses \3\
                                  --------------------------------------
Care in child's home:
    By grandparent...............          8.4          6.2         12.9
    By sibling age 15 or older...          0.8          0.3          1.8
    By sibling under age 15......          0.3          0.5          0.0
    By other relative............          3.0          3.1          2.9
    By nonrelative...............          2.2          2.8          1.1
                                  --------------------------------------
        Total....................         14.8         12.9         18.7
                                  ======================================
Care in another home:
    By grandparent...............         12.0         11.1         13.3
    By other relative............          3.1          3.6          2.1
    By family day care provider           14.0         15.0         11.4
     \1\.........................
    By nonrelative...............          9.9         11.7          6.5
                                  --------------------------------------
        Total....................         39.0         41.5         33.2
                                  ======================================
Organized child care facility:
    Day/group care center........         20.9         22.5         17.9
    Nursery school/preschool.....          6.1          6.2          5.9
    Kindergarten/grade school....          1.2          1.1          1.3
    Head Start Program...........          3.9          4.0          3.7
                                  --------------------------------------
        Total....................         32.0         33.9         28.8
                                  ======================================
Parental care:
    By father....................         10.3          8.1         14.9
    By mother at work \2\........          2.8          2.3          3.7
    Child cares for self.........          0.0          0.0          0.0
                                  --------------------------------------
        Total....................         13.1         10.4         18.6
                                  ======================================
        Total children of                2,368        1,627          741
         employed mothers (in
         thousands)..............
------------------------------------------------------------------------
\1\ Family day care providers provide care outside the home for more
  than one child.
\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, U.S. Census Bureau,
  U.S. Department of Commerce.

    Table 9-5 shows that over 36 percent of families of
preschoolers with working mothers in 1995 primarily relied on
care in another home by a relative, family day care provider,
or other nonrelative, compared to almost 26 percent of families
whose primary arrangement was an organized child care facility.
These data mark a change from the fall 1994 survey results,
which revealed that over 30 percent of families used organized
child care as their primary arrangement. However, some of the
decline in the use of organized child care facilities and
increase in care out of another's home may reflect a change in
the 1995 survey, which more clearly defined care types, by
asking specifically about family day care providers (providers
caring for more than one child outside the child's home), as
distinct from organized group day care. Relative care, either
in the child's home or the relative's home, was used by 21
percent of families of preschool children with employed
mothers. Over one-fifth of families with young children did not
rely on others for help with child care arrangements while the
mother worked, but instead used parental care (22 percent),
especially care by fathers (almost 17 percent). Only 5 percent
of families relied on care provided in the child's home by a
nonrelative.
    Preschool children of part-time employed mothers were much
more likely to be cared for by a parent (31 percent), than by
an organized child care facility (21 percent), and also more
likely to be cared for by a relative, family provider, or
nonrelative in another home (29 percent). Mothers employed full
time were more likely to use family day care providers (19
percent) and organized day care centers (20 percent) than any
other form of care. Care by grandparents, either in or out of
the child's home, was the next most utilized category for full-
time (14 percent), and part-time employed mothers (18 percent).
    Table 9-6 shows the types of afterschool arrangements used
in 1995 for school-age children by working mothers, as well as
cases in which there were no arrangements used at all. The 1995
survey asked more questions about arrangements than in earlier
years (for instance, it specifically asked about care by a
sibling), and this may account for some of the increase in the
``care in child's home'' category. In 1993, 11 percent of
children age 5-14 were being cared for afterschool in the
child's home, whereas in 1995 this figure had increased to
almost 20 percent. Of those children age 5-14 with employed
mothers in 1995, over 10 percent were cared for by a sibling
(over 3 percent by a sibling under age 15). Afterschool care by
fathers also increased substantially from 1993 to 1995. In
1993, just over 11 percent of children were primarily cared for
by fathers during afterschool time, compared to 21 percent in
1995. A total of 2.5 million school-age children (11.6 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. Regardless, the
1995 survey instrument appears to have been more effective in
identifying types of child care arrangements, since only 1.6
percent of children reportedly fall in the ``no care
mentioned'' category, a sharp decline from 46 percent in the
1993 survey.
    Table 9-7 shows the types of child care arrangements used
in 1995 for children under 5 by the economic well-being of the
family. The 9.2 percent of poor children being cared for in the
child's home by a relative or nonrelative in 1995 represents a
marked decrease from over 18 percent reported in 1994. The
percent of nonpoor children in this category remained unchanged
at 14 percent. Nonpoor children in 1995 were more likely than
poor children to be cared for in another home by either a
relative, family day care provider, or other nonrelative. Poor
families were more likely than nonpoor families to not mention
any regular arrangement (10 percent versus 1 percent).

TABLE 9-6.--AFTERSCHOOL CHILD CARE ARRANGEMENTS USED BY EMPLOYED MOTHERS
                      FOR CHILDREN 5-14, FALL 1995
------------------------------------------------------------------------
                                                   Number (in
               Type of arrangement                 thousands)   Percent
------------------------------------------------------------------------
Care in child's home:
    By grandparent...............................         795        3.7
    By sibling age 15 or older...................       1,452        6.8
    By sibling under age 15......................         750        3.5
    By other relative............................         426        2.0
    By nonrelative...............................         733        3.4
                                                  ----------------------
        Total....................................       4,157       19.4
                                                  ======================
Care in another home:
    By grandparent...............................       1,469        6.8
    By other relative............................         515        2.4
    By family day care provider \1\..............       1,239        5.8
    By nonrelative...............................         890        4.1
                                                  ----------------------
        Total....................................       4,113       19.2
                                                  ======================
Organized child care facility:
    Day/group care center........................         405        1.9
    Nursery school/preschool.....................         200        0.9
    After/before school program..................       1,065        5.0
                                                  ----------------------
        Total....................................       1,669        7.8
                                                  ======================
Parental care:
    By father....................................       4,515       21.0
    By mother at work \2\........................         981        4.6
    Child cares for self.........................       2,496       11.6
                                                  ----------------------
        Total....................................       7,992       37.2
                                                  ======================
No care mentioned................................         349        1.6
                                                  ----------------------
        Total children...........................      19,506      100.0
------------------------------------------------------------------------
\1\ Family day care providers provide care outside the child's home for
  more than one child.
\2\ Includes women working at home or away from home.

Source: Table prepared by the Congressional Research Service based on
  data from the Survey of Income and Program Participation, U.S. Census
  Bureau, U.S. Department of Commerce.

    Table 9-8 shows the primary arrangements used by working
mothers for their preschool-aged children from June 1977
through

TABLE 9-7.--PRIMARY CHILD CARE ARRANGEMENTS USED BY EMPLOYED MOTHERS FOR
      CHILDREN UNDER 5, BY POVERTY STATUS OF THE MOTHER, FALL 1995
                              [In percent]
------------------------------------------------------------------------
          Type of arrangement            Total \1\   Poor \2\   Not poor
------------------------------------------------------------------------
Care in child's home:
    By grandparent.....................        5.9        4.7        6.1
    By sibling age 15 or older.........        0.7        2.4        0.5
    By sibling under age 15............        0.3        0.0        0.4
    By other relative..................        1.5        0.8        1.6
    By nonrelative.....................        5.0        1.3        5.4
                                        --------------------------------
        Total..........................       13.5        9.2       14.0
                                        ================================
Care in another home:
    By grandparent.....................       10.0       11.5        9.7
    By other relative..................        2.9        2.6        2.9
    By family day care provider \3\....       15.7       10.0       16.3
    By nonrelative.....................        7.9        5.3        8.2
                                        --------------------------------
        Total..........................       36.5       29.4       37.2
                                        ================================
Organized child care facility:
    Day/group care center..............       17.8       16.5       18.0
    Nursery school/preschool...........        5.9        6.8        5.8
    Kindergarten/grade school..........        0.7        2.1        0.5
    Head Start Program.................        1.5        2.8        1.3
                                        --------------------------------
        Total..........................       25.8       28.2       25.6
                                        ================================
Parental care:
    By father..........................       16.6       17.9       16.5
    By mother at work \4\..............        5.4        5.0        5.4
    Child cares for self...............        0.1        0.0        0.1
                                        --------------------------------
        Total..........................       22.1       22.9       22.0
                                        ================================
No regular arrangement mentioned.......        2.2       10.3        1.2
                                        --------------------------------
        Total children of employed          10,022        988      9,034
         mothers (in thousands)........
------------------------------------------------------------------------
\1\ Includes children for which no poverty estimates were available.
\2\ Below the poverty threshold, which was $15,569 annually or $1,297
  monthly in 1995 for a family of four.
\3\ Family day care providers provide care outside the child's home for
  more than one child.
\4\ Includes women working at home or away from home.

Source: Table prepared by the Congressional Research Service based on
  data from the Survey of Income and Program Participation, U.S. Census
  Bureau, U.S. Department of Commerce.

       TABLE 9-8.--PERCENT OF CHILDREN UNDER 5 IN SELECTED CHILD CARE ARRANGEMENTS, SELECTED YEARS 1977-95
----------------------------------------------------------------------------------------------------------------
                                                                 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 1995..................................      16.6         5.4        15.9      \3\ 23.6           23.7
    Fall 1994..................................      18.4         5.5        16.3          15.4           29.4
    Fall 1993..................................      15.9         6.2        16.5          16.6           29.9
    Fall 1991..................................      20.0         8.7        15.8          17.9           23.0
    Fall 1990..................................      16.5         6.4        14.3          20.1           27.5
    Fall 1988..................................      15.1         7.6        13.9          23.6           25.8
    Fall 1987..................................      15.3         8.9        13.8          22.3           24.4
    Fall 1986..................................      14.5         7.4        15.7          24.0           22.4
    Winter 1985................................      15.7         8.1        15.9          22.3           23.1
    June 1977..................................      14.4        11.4          NA          22.4           13.0
Married couples:
    Fall 1995..................................      18.8         6.3        14.3          23.5           22.6
    Fall 1994..................................      22.3         6.3        13.5          15.7           29.0
    Fall 1993..................................      19.3         6.9        14.4          16.4           30.0
    Fall 1991..................................      22.9         9.8        13.7          17.1           22.7
    Fall 1990..................................      19.8         7.8        13.0          19.7           26.8
    Fall 1988..................................      17.9         8.7        11.8          23.7           25.4
    Fall 1987..................................      18.2        10.1        12.2          22.2           23.4
    Fall 1986..................................      17.9         8.3        14.1          24.4           20.3
    Winter 1985................................      18.8         9.2        13.9          21.8           22.3
    June 1977..................................      17.1        12.9          NA          22.6           11.6
Single mothers:
    Fall 1995..................................      10.3         2.8        20.4          23.9           27.0
    Fall 1994..................................       5.4         2.5        25.4          14.6           30.5
    Fall 1993..................................       3.4         3.5        24.6          17.3           29.5
    Fall 1991..................................       7.0         3.7        24.8          21.3           24.5
    Fall 1990..................................       3.2         0.7        20.0          27.8           30.4
    Fall 1988..................................       1.5         2.4        23.9          22.8           27.8
    Fall 1987..................................       2.3         3.4        20.8          22.3           28.3
    Fall 1986..................................       1.4         3.8        20.3          22.4           30.2
    Winter 1985................................       2.2         3.5        24.5          24.4           26.7
    June 1977..................................       0.8         4.4          NA          21.8           19.1
----------------------------------------------------------------------------------------------------------------
\1\ Includes mothers working at home or away from home.
\2\ Children cared for in another home by nonrelatives.
\3\ The 1995 survey asked specifically about ``family day care providers,'' caring for more than one child. This
  figure includes these providers as well as nonrelatives caring for one child outside the child's home.

NA--Not available.

Note.--Data are the principal arrangement used by mothers during most of their hours at work. Single mothers
  include women never married, widowed, divorced, and separated.

Source: Survey of Income and Program Participation and the June 1977 Current Population Survey and Casper et al.
  (1994).

 the fall of 1995. 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. As
mentioned above, the increase in family day care in 1995 (to
23.6 percent) may be due in part to a change in the survey
instrument, clarifying use of the term ``family day care.''
    The U.S. Census Bureau data discussed above reflect child
care arrangements in the fall of 1995. More recently, data from
the 1997 National Survey of America's Families (NSAF),
collected by the Urban Institute, can be used to examine
primary child care arrangements used by children under 5 with
employed mothers nationally, and across 12 individual States.
Table 9-9 shows that nationwide, 41 percent of preschool
children with employed mothers are in care for 35 or more hours
per week (Capizzano & Adams, 2000a). One-quarter are in care
for 15-34 hours per week, 16 percent for 1-14 hours per week,
and 18 percent spend no hours in nonparental child care. For
preschool children with mothers employed full time, the number
of children in full-time care (35 or more hours) increases to
52 percent. Children that are 3 and 4 years old are slightly
more likely to be in full-time care than younger preschoolers
(44 percent versus 39 percent). Children in high-income
families are almost equally as likely to spend 35 or more hours
a week in child care as low-income children (42 percent versus
40 percent), although high-income children are more likely than
low-income children to be in part-time care (42 percent versus
37 percent). Twenty-three percent of low-income children are
reported to spend no hours in nonparental care, compared to 16
percent of high-income children.

   TABLE 9-9.--PERCENT OF CHILDREN UNDER FIVE WITH EMPLOYED MOTHERS IN
    DIFFERENT HOURS OF NONPARENTAL CARE, BY SELECTED CHARACTERISTICS
------------------------------------------------------------------------
                                                 Hours in care
                                     -----------------------------------
                                        None     1-14    15-34     35+
------------------------------------------------------------------------
All children........................       18       16       25       41
Mothers working full time...........       17       12       18       52
Child's age:
     Under 3 years..................       21       17       23       39
     3-4 years......................       13       14       28       44
Family income:
     200 percent of poverty and            23       16       21       40
     below..........................
     Above 200 percent of poverty...       16       15       27       42
------------------------------------------------------------------------
Source: Urban Institute calculations from the 1997 National Survey of
  America's Families.

    According to the 1997 NSAF (table 9-10), 32 percent of
preschool children use center-based child care as their primary
arrangement, while about half that number (16 percent) are in
family child care (Capizzano, Adams, & Sonenstein, 2000). About
6 percent are primarily cared for in the child's home by a
babysitter or nanny. Twenty-three percent of children under 5
are cared for primarily by a relative, either inside or outside
the child's home, while almost a quarter (24 percent) of
children are in the care of a parent. The analysis of
individual States revealed that there is considerable State
variation in the use of specific primary child care
arrangements.

     TABLE 9-10.--PRIMARY CHILD CARE ARRANGEMENTS FOR CHILDREN UNDER FIVE WITH EMPLOYED MOTHERS, BY SELECTED
                                                 CHARACTERISTICS
                                                  [In percent]
----------------------------------------------------------------------------------------------------------------
                                                                 Center-  Family
                                                                  based    child  Relative   Parent     Nanny/
                                                                   care    care     care    care \1\  babysitter
----------------------------------------------------------------------------------------------------------------
All children...................................................       32      16       23        24          6
Child's age:
    Under 3 years..............................................       22      17       27        27          7
    3-4 years..................................................       45      14       17        18          6
Family income:
    200 percent of poverty and below...........................       26      14       28        28          4
    Above 200 percent of poverty...............................       35      17       20        21          7
----------------------------------------------------------------------------------------------------------------
\1\ The NSAF's questions focused on nonparental arrangements and did not include questions about care provided
  by another parent, care for the child while the parent was at work, or care for the child at home by a self-
  employed parent. Those respondents not reporting a child care arrangement are assumed to be in one of these
  forms of care and are coded into the parent care category.

Source: Urban Institute calculations from the 1997 National Survey of America's Families.

    The Urban Institute's analysis also examined how child care
arrangements vary according to both age of child and family
income. The survey data indicate that nationally, infants and
toddlers are more likely to be cared for by relatives (27
percent) and parents (27 percent) than to be in center-based
care (22 percent) or family child care (17 percent). As
preschoolers grow older (age 3 and 4), use of relative and
parent care decreases (17 and 18 percent respectively), and
center-based care becomes the most commonly used primary
arrangement (45 percent). Use of family child care remains
relatively steady at 14 percent for 3- and 4-year-olds.
    At the national level, children under age 5 in families
below 200 percent of poverty are less likely than high-income
children to use center-based care as a primary arrangement (26
percent versus 35 percent). Relative care and parent care are
used equally by low-income families (28 percent each), and more
often than by high-income families, of which 20 percent use
relative care and 21 percent parent care. Low- and high-income
children are almost equally likely to use family child care as
their primary arrangement (14 and 17 percent respectively).
    In addition to looking at the primary child care
arrangements for children under 5, Urban Institute researchers
used the 1997 NSAF to examine the number of arrangements used
to care for a child, and the hours that are spent in each type
of arrangement. As shown in table 9-11, nationally, 38 percent
of children under 5 combine more than one child care
arrangement each week (Capizzano & Adams, 2000b). Of those, 8
percent combine three or more arrangements. The remaining 62
percent have only one child care arrangement. Children under
age 3 are less likely to have multiple child care arrangements
than 3- and 4-year-olds (34 percent versus 44 percent).
Children aged 3 and 4 are three times as likely to be in three
or more care arrangements. Of the children in multiple
arrangements, most use a combination of formal and informal
care, regardless of age or income. Children from low- and high-
income families are almost equally likely to be in multiple
child care arrangements (37 and 40 percent respectively). As
seen with primary arrangements, there is considerable State
variation in the use of multiple arrangements.

   TABLE 9-11.--NUMBER OF NONPARENTAL CHILD CARE ARRANGEMENTS USED BY
 CHILDREN UNDER FIVE WITH EMPLOYED MOTHERS, BY SELECTED CHARACTERISTICS
                              [In percent]
------------------------------------------------------------------------
                                                              Three or
                                     One           Two          more
                                 arrangement  arrangements  arrangements
------------------------------------------------------------------------
All children...................         62            30             8
Child's age:
     Under 3 years.............         65            30             4
     3-4 years.................         56            31            13
Family income:
     200 percent of poverty and         63            30             7
     below.....................
     Above 200 percent of               60            31             9
     poverty...................
------------------------------------------------------------------------
Source: Urban Institute calculations from the 1997 National Survey of
  America's Families.

                            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 status.
    The most recent data on child care expenditures by families
are from the Survey of Income and Program Participation for the
fall of 1995. These data show that 64 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, 73 percent paid for child care, compared to 50
percent of families with mothers employed part time. Likewise,
as shown in table 9-12, families with higher incomes were more
likely to purchase care than families with lower incomes, with
the exception of families with monthly incomes between $1,200
and $3,000. For example, 71 percent of families with monthly
incomes of $4,500 or more purchased child care in the fall of
1995, while only 60 percent of families with monthly incomes of
less than $1,200 purchased care.
    Average weekly costs per family for all preschool-aged
children were $83 in 1995 for those families that purchased
care (table 9-12). Married-couple families devoted a smaller
percentage of their

TABLE 9-12.--AVERAGE WEEKLY CHILD CARE EXPENDITURES FOR PRESCHOOLERS AND
PERCENTAGE OF INCOME SPENT ON CARE, BY POVERTY STATUS AND FAMILY INCOME,
                                FALL 1995
------------------------------------------------------------------------
                                                                 Percent
                                            Percent    Average      of
                                             paying    weekly     family
                                              for      cost of    income
                                              care      care      spent
                                                                 on care
------------------------------------------------------------------------
All families:
  Poverty status:
    Below poverty.........................       54      $59.22     35.7
     Above poverty........................       66       84.75     10.3
  Monthly family income:
     Less than $1,200.....................       60       60.32     36.7
     $1,200-$2,999........................       57       69.25     15.2
     $3,000-$4,499........................       65       75.95      9.4
     $4,500 and over......................       71      101.09      6.8
                                           -----------------------------
      Total...............................       64       82.74     12.3
                                           =============================
Married-couple families:
  Poverty status:
     Below poverty........................       32       72.72     26.9
     Above poverty........................       66       87.08      8.8
  Monthly family income:
     Less than $1,200.....................       31       54.72     23.7
     $1,200-$2,999........................       53       66.02     13.1
     $3,000-$4,499........................       66       76.06      9.4
    $4,500 and over.......................       72      103.04      6.9
                                           -----------------------------
      Total...............................       65       86.84      9.1
                                           =============================
Families with an absent father:
  Poverty status:
     Below poverty........................       62       56.59     37.5
     Above poverty........................       65       75.35     16.3
  Monthly family income:
     Less than $1,200.....................       66       60.91     38.1
     $1,200-$2,999........................       64       73.59     18.0
     $3,000-$4,499........................       55       75.00      9.0
     $4,500 and over......................       68       78.78      5.9
                                           -----------------------------
      Total...............................       64       70.41    21.7
------------------------------------------------------------------------
Note.--Data are for all child care arrangements used by working mothers.
  Estimates are not consistent with prior year's Green Book data, which
  represented the principal arrangement used by mothers during most of
  their hours at work.

Source: Table prepared by the Congressional Research Service based on an
  analysis of U.S. Census Bureau data from the Survey of Income and
  Program Participation, 1993 panel, wave 9.

income to child care (9 percent) than single-parent families
(22 percent), but their child care expenditures were
nonetheless greater ($87 per week) than those of single-parent
families (about $70 per week).
    Table 9-12 also shows that, while poor families spend fewer
dollars for child care than higher income families, they spend
a much greater percentage of their family income for child
care. Thus, poor families spent only $60 per week, but this
amount represented 36 percent of their income. By contrast,
nonpoor families spent $85 per week on care, but this amount
was only 10 percent of their income. A December 1997 survey of
the cost of child care for a 4-year-old in urban child care
centers across the country, conducted by the Children's Defense
Fund (Adams & Schulman, 1998) found that in every State, the
average child care tuition exceeds $3,000 per child, and is
over $5,000 per child in 17 States.

           SUPPLY AND CHARACTERISTICS OF CHILD CARE PROVIDERS

                           Supply of Providers

    The variety of child care arrangements used by families has
been discussed above, however, the studies of arrangements do
not include estimates of the number of available providers. A
comprehensive study of licensed centers, 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 has not been conducted since the U.S. Department of
Education's Profile of Child Care Settings Study was released
in 1991. That study reported that approximately 80,000 center-
based early education and care programs were providing services
in the United States at the beginning of 1990 (Kisker,
Hofferth, Phillips, & Farquhar, 1991).
    A less extensive, but more recent study, focusing only on
regulated child care centers, was released by the Children's
Foundation in January 2000. The study reported that the number
of regulated child care centers in the 50 States, the District
of Columbia, Puerto Rico, and the Virgin Islands totals 106,246
(Children's Foundation, 2000). This is a 3.5 percent increase
from the Foundation's 1999 study's total, and nearly a 19
percent increase from the total published by the Children's
Foundation's first study of centers in 1991. The 2000 study
notes that the definition of regulated child care center varies
by State or territory. In 28 States, the number of regulated
child care centers includes nursery schools, preschools,
prekindergartens and religiously affiliated centers. In the
remaining States and territories, the definition is less
inclusive. For example, some States exclude nursery schools or
religiously affiliated centers in their count.
    The Children's Foundation also conducts studies on family
child care providers (as opposed to centers). Their 1999 report
indicates that there are 290,667 regulated family child care
homes, of which 249,622 are family day care homes (caring for
up to 6 children) and 41,045 large group child care homes (in
which providers generally care for 7-12 children). 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. At the time of the aforementioned Profile of Child
Care Settings Study of 1991, the number of regulated family day
care homes represented an estimated 10-18 percent of the total
number of family day care providers.
    The U.S. Census Bureau also collects data on the number of
child care businesses in the United States. For a historical
look at child care businesses in the early 1990s, a 1998 report
used Census of Service Industries (CSI) data to provide
information on the number and characteristics of child care
businesses in 1992 (Casper & O'Connell, 1998). ``Child care
businesses'' are defined as organized establishments engaged
primarily in the care of infants or children, or providing
prekindergarten education, where medical care or delinquency
correction is not a major component. Not included in this
definition are babysitting services or Head Start Programs that
are coordinated with elementary schools. Based on the Census of
Service Industries data, the number of incorporated child care
centers doubled from 25,000 in 1977 to 51,000 in 1992.

                    Wages of Child Care Center Staff

    No single data source provides comprehensive information on
wages of child care workers. However, occupational data
collected by the Department of Labor, when complemented by
survey information gathered by organizations interested in
child care issues, begin to paint a picture of the status of
child care wages in the United States.
    The Bureau of Labor Statistics (BLS) collects wage data for
764 occupations, as surveyed by the Occupational Employment
Statistics (OES) Program. However, readers should be aware that
the occupational categories create a misleading division in the
child care work force. Center-based child care staff are
described by the OES survey as either ``preschoolteacher'' or
``child care worker,'' distinguishing the former as an
individual who instructs children up to age 5 in developmental
activities within a day care center, child development
facility, or preschool, and the latter as a person who performs
tasks such as dressing, feeding, bathing, and overseeing play
of children. This division of tasks does not necessarily occur
in actual child care settings, and therefore the survey's
occupational group assignments, and wage distinctions made
between those groups, should be interpreted with some caution.
Nevertheless, the OES survey provides a general sense of wages
within the child care field. Based on BLS data and OES survey
results from 1997, the median hourly wage of a center-based
``child care worker'' was $7.03, and a ``preschoolteacher,''
$9.09. Both these wages are considerably higher than the median
hourly wage for family child providers, who, based on 1997
Current Population Survey data, earn an estimated median wage
of $4.69 per hour [based on a 55-hour week, which the Center
for Child Care Workforce (1999) reports is the typical work
week for U.S. family child care providers].
    The National Child Care Staffing Study (NCCSS), originally
launched in 1988, and most recently updated in 1997, provides
additional information on child care center staff (Whitebook,
Howes, & Phillips, 1998). Information on wages and
characteristics of center staff was collected from 158 full-
day, full-year, State licensed child care centers in five
metropolitan areas around the country. Table 9-13 shows the
study's findings on trends in hourly wages for center-based
child care staff. Over the 10 year period of the study, wages
of child care center workers have remained relatively stagnant.

                      TABLE 9-13.--TRENDS IN HOURLY WAGES FOR CENTER-BASED CHILD CARE STAFF
----------------------------------------------------------------------------------------------------------------
                                                                                      Real
                                                                                     change       Real change
                    Staff position                        1988     1992     1997    between    between 1988 and
                                                          Wage     Wage     Wage    1992 and         1997
                                                                                      1997
----------------------------------------------------------------------------------------------------------------
Lowest-paid assistant.................................    $5.99    $5.91    $6.00       +1.5               +0.17
                                                                                               (+$0.01 per hour)
Highest-paid assistant................................     6.96     7.03     7.00       -0.4               +0.57
                                                                                               (+$0.04 per hour)
Lowest-paid teacher...................................     7.38     7.55     7.50       -0.7                +1.6
                                                                                               (+$0.12 per hour)
Highest-paid teacher..................................     9.53    10.33    10.85       +5.0               +13.9
                                                                                               (+$1.32 per hour)
----------------------------------------------------------------------------------------------------------------
Note.--All wages, and the 1988-97 trends, are in 1997 dollars. Each category reflects average wages for the
  position.

Source: Whitebook et al., 1998.

                             Staff Turnover

    Like many low-wage industries, turnover among the child
care work force has been historically high. The NCCSS has
tracked worker turnover and stability beginning with its
initial study in 1988. In 1988, center directors in the sample
reported a 41 percent average rate of annual turnover of
teaching staff. In 1992, they reported average annual turnover
of 26 percent for the year prior to the survey interview. By
1997, the rate had risen to 31 percent for all teaching staff,
and one-fifth of centers reported losing half or more of their
teaching staff in the previous year. The 10 percentage point
decrease in turnover rates between 1988 and 1997 should be
analyzed with caution, however, as the sample size of the NCCSS
study dropped from 227 to 158. According to the study
directors, a disproportionate number of the centers reporting
the highest turnover in 1988 had closed by the time of the 1997
survey, leaving a sample of centers with potentially lower than
average turnover rates for their areas. The issue of stability
among centers themselves is not specifically addressed in the
NCCSS study, however its authors do mention increasing reports
of centers closing due to an insufficient supply of trained
teachers. Better job opportunities and higher wages in other
fields, due to a strong economy, have been identified as recent
major causes of turnover. Ninety-three percent of directors
reported taking more than 2 weeks to find replacements for
departing teaching staff and over one-third (37 percent)
reported taking over a month to do so. The effect of staff
turnover on children is one of several topics that continues to
receive attention during ever-growing discussions of how to
measure child care quality.

           Employing Welfare Recipients as Child Care Workers

    Passage of welfare reform legislation in 1996, and its
emphasis on moving recipients into work, created expectations
of an increase in demand for child care, and recipients
themselves were identified by some as a potential new source of
child care workers. The 1997 NCCSS therefore gathered
information from child care directors regarding the employment
of welfare recipients (recipients of Temporary Assistance for
Needy Families) as center staff. The study found that
approximately one-third (35 percent) of the child care centers
in the sample employ Temporary Assistance for Needy Families
(TANF) recipients, that those centers employing TANF recipients
are more likely to pay lower wages across all positions, and
that those centers experience higher teaching staff turnover.
While the median wage reported for TANF workers is $5.50 per
hour (in 1997) compared to the $6 per hour for all entry-level
teaching assistants, 60 percent of centers pay TANF workers the
same as their lowest-paid assistants, 23 percent pay them more,
and 18 percent pay them less. Almost half (48 percent) of the
centers employing TANF recipients report providing on-site
training for TANF employees, 18 percent use community-based
training programs, and 16 percent of the programs offer college
credit-bearing training.

                    CHILD CARE STANDARDS AND QUALITY

                        Regulation and Licensing

    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). Licensing and regulation serves as a means of defining
and enforcing minimum requirements for the legal operation of
child care environments in which children will be safe from
harm. There is no uniform way in which States and/or
territories regulate child care centers, preschools, nursery
schools, prekindergartens, and/or religiously affiliated child
care centers. All States and territories do, however, require
these center-based types of care (as opposed to family child
care providers) to be regulated through licensing or
registration. In the case of family day care providers, most
States exempt certain providers--typically those serving
smaller numbers of children from licensing or regulation. As
mentioned in the earlier discussion of child care supply, the
Children's Foundation survey found that there were 290,667
regulated family child care providers in the States and
territories in 1999. If estimates from the 1990 child care
settings study are applied, this number may represent only 10-
18 percent of family child care, with the remaining facilities
being unregulated. The count of centers that are regulated
(meaning licensed or certified) totals 106,246 according to the
Children's Foundation 2000 study.
    Table 9-14 presents information on State licensing
standards for child care centers, as collected by the
Children's Foundation (2000). The table shows the number of
States for which a select requirement or standard for child
care centers applies, and in turn, how licensing standards vary
across States. Note that all State variations in policy are not
reflected in the table, and therefore totals by category will
vary. Licensing standards are just one area that researchers
continue to focus on when examining child care quality to
determine whether higher licensing standards are associated
with higher quality child care and better child outcomes.

    TABLE 9-14.--NUMBER OF STATES WITH SELECTED CHILD CARE LICENSING
              REQUIREMENTS FOR REGULATED CHILD CARE CENTERS
------------------------------------------------------------------------
                                                               Number of
                             Item                                States
------------------------------------------------------------------------
Fee for licensing:
    No fee...................................................         23
    Fixed fee................................................         21
    Assessed fee based on number of children cared for by              9
     provider................................................
Frequency of required license renewal:
    Annually.................................................         23
    Every 2 years............................................         18
    Every 3 years or nonexpiring.............................         12
Required testing for asbestos, lead, radon, or other
 material:
    Yes......................................................         20
    No.......................................................         30
Inspection visits:
    All unannounced..........................................          9
    Unannounced, annually (at minimum), and upon complaint...         19
    Unannounced, 2-4 per year................................          9
    Unannounced upon complaint; other visits announced.......          7
    All announced............................................          1
Staff/child ratios:
    Infants, birth to 1 year:
        1 : 3 \1\............................................          4
        1 : 4................................................         31
    Young toddlers, age 1-2:
        1 : 3 \1\............................................          1
        1 : 4................................................         15
    Older toddlers, age 2-3:
        1 : 4-5 \1\..........................................          7
    Preschoolers, age 3-5:
        1 : 6-7 \1\..........................................          1
Group size definitions:
    Yes......................................................         34
    No.......................................................         19
Regulation of ``drop-in'' child care.........................         36
Smoking policy:
    Prohibited...............................................         35
    Permitted in designated areas and with restrictions......         17
    Permitted................................................          1
Required preservice training:
    CPR/first aid............................................         23
    Combined education and experience required:
        Head/lead teacher....................................         41
        Other teaching staff.................................         29
    None:
        Head/lead teacher....................................         12
        Other teaching staff.................................         22
Inservice training requirements for all teaching staff:
    4-6 hours (annually).....................................          6
    7-13 hours (annually)....................................         19
    15-30 hours (annually)...................................         16
    None.....................................................          5
------------------------------------------------------------------------
\1\ National Health and Safety Standard recommended ratios, developed by
  American Public Health Association and American Academy of Pediatrics.

Note.--All State variations in policy are not reflected in the table,
  and therefore totals by category will vary.

Source: The Children's Foundation, 2000 Child Care Center Licensing
  Study, Washington, DC, February, 2000.

                     Research on Child Care Quality

    As women's labor force participation has grown over the
past several decades, concerns about child care quality have
increased. Highly publicized research on early brain
development in infants and young children (under age 3) has
drawn attention to what role child care may play in children's
cognitive and social development. The relationship between
quality of child care and outcomes for children is of
increasing interest to parents, researchers, and policymakers.
A growing body of research examines questions such as how to
define the elements that correspond to quality child care, how
to measure those elements, and ultimately, their effects on
children both in the short- and long-term.
    One comprehensive study of connections between child care
and early childhood development is part of an ongoing project
conducted by a team of researchers supported by the National
Institute of Child Health and Human Development (NICHD, 1999),
of the National Institutes of Health. The broad goal of the
NICHD study, started in 1991, is to collect data on an ongoing
basis from a sample of children and their families (located in
10 areas across the United States) to answer a range of
questions about the relationship between child care
characteristics and experiences, and children's developmental
outcomes. The children and families in the study's sample vary
in socioeconomic background, race, family structure, and type
of child care used. The study design takes into account
characteristics of the family and its environment to gain a
more complete picture of the contribution that child care
characteristics and experiences themselves make to children's
development, above and beyond the contribution of the family
environment. Even so, not all characteristics are observed, and
the ability to completely disentangle all of the
characteristics (both of the parents and the child) is
difficult, if not impossible, in such a study. Children in the
study are not randomly assigned to child care settings of
varying degrees of quality, but are instead placed in settings
of their parents' selection. The selection of care in and of
itself may reflect contributing variables--characteristics of
the parents, children, and environment--that are not fully
observed in the study. Likewise, a child's developmental
outcomes in a particular setting may reflect the child's
characteristics as much as the setting's quality. Although the
NICHD study attempts to distinguish among some of these
factors, the ability to interpret the results is somewhat
constrained by selection bias.
    The findings showed that in general, family characteristics
and the quality of the mother's relationship with her child
were stronger predictors of the child's development than were
the characteristics of child care. The family characteristics
such as income and mother's education were strong predictors of
children's outcomes, for both children cared for solely by
their mothers and children in extensive nonparental child care.
The study did find a modest but consistent association between
quality of nonparental child care over the first 3 years of
life and children's cognitive and language development,
regardless of family background. In this case, quality child
care was defined as positive care giving and language
stimulation; i.e., how often providers spoke to children, asked
questions, and responded to children's questions.
    The NICHD researchers also analyzed the more structural
elements of child care in centers--elements that are generally
regulated by the States (see table 9-14), but to varying
degrees, such as child-staff ratio, group size, and teacher
training and education. The researchers used recommended
guidelines developed jointly by the American Public Health
Association and the American Academy of Pediatrics to evaluate
the degree to which standards were being met by centers used by
families in the study. Twelve percent of the study's children
were enrolled in child care centers at 6 months, and 38 percent
at age 3. Findings indicate that the children in the centers
that met some or all of the guidelines had better language
comprehension and school readiness than the children who were
in centers that did not meet the guidelines. There were also
fewer behavioral problems for children age 2 and 3 in the
centers that met the guidelines.
    The researchers have continued to follow the children in
the sample, and will release findings from the assessment of
the children at 54 months of age, and again in first grade.
Like other studies that examine the relationship between child
care and developmental outcomes, the NICHD research aims to
determine not just whether there are concurrent and short-term
effects of child care on children's development, but long-term
effects as well.
    The study did not attempt to measure the quality of care
offered by family child care providers or relatives according
to the same set of guidelines used for center-based care. The
most recent indepth observational study of family child care
and relative care was published in 1994 by the Families and
Work Institute. The study examined the care offered by 226
providers in 3 different communities in California, Texas, and
North Carolina (Galinsky et al., 1994). Nonregulated family
care providers may be nonregulated because they care for few
enough children to be exempt from State regulation
requirements, or, as the 1994 study found in their sample, 81
percent of the 54 nonregulated providers were illegally
nonregulated, due to the fact that they were actually providing
care for a number of children over their State's limit. The
quality of all types of family and relative care was determined
according to measurements such as the setting's safety and the
sensitivity and responsiveness of providers to the children.
The study found that only 9 percent of the homes in the study
sample were rated as good quality, while 56 percent were rated
as adequate, and 35 percent inadequate. The researchers found
that quality appeared to be higher when providers were trained
and when they were caring for three to six children rather than
one or two. As important, if not more so, in determining
quality was whether the provider was committed to taking care
of children, and had a sense that their work was important;
participated in family child care training; thought ahead about
the children's activities; was regulated; and followed standard
business and safety practices. In the case of relative care, an
important factor in the quality of the child's experience was
whether the relative caring for the children did so out of
desire, necessity, or both.
    The Cost, Quality, and Child Outcomes (1995, 1999) in Child
Care Centers study conducted by researchers from four
universities beginning in 1993, analyzes the influence of
``typical'' center-based child care on children's development
during their preschool years and into elementary school. The
``typical'' centers were represented by a random sample of 401
full-day child care centers, half of them for-profit, half
nonprofit, in regions of 4 States: California, Colorado,
Connecticut, and North Carolina. Data on the quality and cost
of services were collected, as well as data on the
developmental progress of a sample of children in the selected
centers.
    Findings from the first phase of the study were released in
1995, and indicated that the quality of child care offered in
over three-quarters of these ``typical'' centers in the United
States did not meet ``high standards'' according to the Early
Childhood Environment Rating Scale, which ranges from 1 (``low
quality'') to 7 (``high quality''). Eleven percent of centers
in the sample scored below 3 (``minimally acceptable''). The
researchers found that the quality of child care is primarily
related to higher staff-to-child ratios, staff education, and
administrators' previous experience. Teacher wages and
education were also generally higher in higher quality centers.
Like the NICHD study, the 1995 Cost, Quality, and Child
Outcomes Study also found that centers meeting higher licensing
standards provided higher quality care.
    In addition to examining the status of quality in the
centers, the researchers wanted to determine what effects, if
any, the quality of care had on children's development. The
study's initial findings in 1995 indicated that children's
cognitive and social development are positively related to the
quality of their child care experience. This proved to be the
case even after taking into account factors related to family
background and associated with children's development (such as
maternal education); the children in the low-quality care still
scored lower on measures of cognitive and social development.
     The findings from the second phase of the study, released
in 1999, indicate that there are long-term effects of child
care quality on children's development. Similar to the NICHD
results, this study indicated that the impact of child care
quality on children's development was modest, but consistent,
and applied even after taking into account child and family
characteristics.
    The extent to which the effects of quality child care and
other early childhood program experiences ``fade out'' over
time has long been an area of interest for researchers studying
the connection between child care programs and children's
development. One of the longest-running research studies in
this area is known as the Abecedarian Project, which began in
the early 1970s. The project design consisted of a controlled
study in which 57 infants, all from low-income families in
North Carolina, were randomly assigned to an experimental group
that would receive year-round, all-day educational child care/
preschool emphasizing cognitive, language, and adaptive
behavior skills (Burchinal et al., 1997; Campbell & Ramey,
1995). The control group of 54 infants received nutritional
supplements and supportive social services (as did the
experimental group), but did not receive the educational
intervention emphasizing language, cognitive, and social
development. The Abecedarian Project began in early infancy,
and the children received the educational ``treatment'' for 5
years, a longer period than other programs. This study also
differs from those discussed earlier in that it focuses solely
on disadvantaged, low-income children.
    Early findings of the project showed that from the age of
18 months through age 5 (the end of the program), children in
the treatment group had higher scores on mental tests than
children in the control group. In the primary grades through
middle adolescence, children from the treatment group scored
significantly higher on reading and math tests. Through age 15,
the treatment group continued to score higher on mental tests,
although the gap between the two groups had narrowed.
    Most recently, the project's researchers completed a
followup study of the project's participants (104 of the
original 111) at age 21 (Campbell, 1999). Results showed that
the 21-year-olds who had been in the treatment group had
significantly higher mental test scores than those from the
control group. Likewise, reading and math scores were higher
for the treatment group, as had been the case since
toddlerhood. Due to the longevity of the project, researchers
were also able to look for differences in areas such as college
enrollment and employment rates. The followup interviews
revealed that about 35 percent of the young adults in the
treatment group had either graduated from or were attending a 4
year college or university at the time of the assessment,
compared to 14 percent of the control group.
    A team of researchers from RAND evaluated the results of
nine early childhood intervention programs, including the
Abecedarian Project (Karoly et al., 1998). The RAND team
determined that the nine early intervention programs evaluated
in their study provided benefits for the participating
disadvantaged children and their families. However, the Rand
team pointed out that expanding model, resource-intensive
programs like the Abecedarian Project to a larger scale may not
necessarily result in the same developmental benefits.

                            THE FEDERAL ROLE

                        Background and Overview

    The Federal Government entered the child care business
during the New Deal of the 1930s when federally funded nursery
schools were established for poor children. The motivation for
creating these nursery schools was not specifically to provide
child care for working families. Rather, the schools were
designed primarily to create jobs for unemployed teachers,
nurses, and others, and also to provide a wholesome environment
for children in poverty. However, when mothers began to enter
the work force in large numbers during World War II, many of
these nursery schools were continued and expanded. Federal
funding for child care, and other community facilities, was
available during the war years under the Lanham Act, which
financed child care for an estimated 550,000-600,000 children
before it was terminated in 1946.
    The end of the war brought the expectation that mothers
would return home to care for their children. However, many
women chose to remain at work and the labor force participation
of women has increased steadily ever since. The appropriate
Federal role in supporting child care, including the extent to
which the Federal Government should establish standards for
federally funded child care, has been an ongoing topic of
debate. In 1988 and 1990, four Federal child care programs were
enacted providing child care for families receiving Aid to
Families with Dependent Children (AFDC), families that formerly
received AFDC, low-income working families at risk of becoming
dependent on AFDC, and low-income working families generally.
    The establishment of these programs was the culmination of
a lengthy, and often contentious debate, about what role the
Federal Government should play in child care. Lasting nearly 4
years, the debate centered on questions about the type of
Federal subsidies that should be made available and for whom,
whether the Federal Government should set national child care
standards, conditions under which religious child care
providers could receive Federal funds, and how best to assure
optimal choice for parents in selecting child care arrangements
for their children, including options that would allow a mother
to stay home. Differences stemming from philosophical and
partisan views, as well as jurisdictional concerns, were
reflected throughout the debate.
    Though the programs created in 1988 and 1990 represented a
significant expansion of Federal support for child care, they
joined a large number of existing Federal programs providing
early childhood services, administered by numerous Federal
agencies and overseen by several congressional committees. The
U.S. General Accounting Office (GAO; 1994) 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. The Congressional Research
Service (CRS), in a memo to the House Committee on Ways and
Means (Forman, 1994), identified 46 Federal programs related to
child care operating in fiscal year 1994, administered by 10
different Federal agencies. However, CRS noted that some of
these programs were not primarily child care programs; rather,
they were designed for some other major purpose but included
some type of child care or related assistance. Moreover, a
majority of the programs were small, with 32 of the 46
providing less than $50 million in annual funding. A more
recent GAO (1998a) report identified 22 key child care
programs, of which 5 accounted for more than 80 percent of
total child care spending in fiscal year 1997.
    In 1996, the 104th Congress passed a major restructuring of
Federal welfare programs, including a consolidation of major
Federal child care programs into an expanded Child Care and
Development Block Grant (CCDBG) (Public Law 104-103). The child
care provisions in the new law were developed to achieve
several purposes. As a component of welfare reform, the child
care provisions are intended to support the overall goal of
promoting self-sufficiency through work. However, separate from
the context of welfare reform, the legislation attempts to
address concerns about the effectiveness and efficiency of
child care programs. The four separate child care programs that
were enacted in 1988 and 1990 had different rules regarding
eligibility, time limits on the receipt of assistance, and work
requirements. Consistent with other block grant proposals
considered in the 104th Congress, the child care provisions in
Public Law 104-193 are intended to streamline the Federal role,
reduce the number of Federal programs and conflicting rules,
and increase the flexibility provided to States.
    Under the new amendments, the CCDBG is now the primary
child care subsidy program operated by the Federal Government,
and replaces previous child care programs for welfare and
working families (i.e., child care for recipients of Aid to
Families with Dependent Children, Transitional Child Care
Assistance, and the At-Risk Child Care Program). The new law
makes available to States almost $20 billion over a 6-year
period (1997-2002) in a combination of entitlement and
discretionary funding for child care, which is approximately $4
billion above the level that would have been available under
the previous programs.
     Despite this increase in Federal resources, concerns
persist about the adequacy and quality of child care in the era
of welfare reform. Although welfare caseloads have declined,
freeing up potential funds from the Temporary Assistance for
Needy Families Block Grant for use for child care, the
Administration for Children and Families (ACF) estimates that
in an average month in 1998 only 15 percent of children
eligible for Child Care and Development Fund (CCDF) subsidies
received them, raising questions of whether total child care
funding is adequate (CCDF or otherwise). It should be noted,
however, that eligibility figures do not necessarily reflect
consumer demand for child care, leaving the issue of whether
adequate child care funding exists open to debate. Nonetheless,
child care spending has unarguably been increasing every year
(as shown in detail in tables 9-26 through 9-29). In 1998,
States drew down all available Federal mandatory CCDF funding
and transferred $652 million in Federal TANF dollars in that
year to CCDF Programs. If, as many suspect, demand for child
care increases alongside dropping welfare rolls and heightened
work requirements for welfare recipients, proposals for
additional child care funding are likely to be made in the
years ahead.
    Increased demand and Federal resources for child care could
cause growth in the supply of child care providers. In May
1997, the U.S. General Accounting Office reported that gaps
existed between the demand for child care and the ``known''
supply (i.e., providers that are regulated by or otherwise
known to the States), based on research at four sites. These
gaps were larger in poor areas and for certain types of care,
such as infant and school-aged care. However, since many
parents rely on informal care givers, such as relatives and
neighbors, who may not be known to State agencies, linking
supply and demand for child care can be difficult. A later GAO
study reviewed efforts in seven States to expand child care
programs (U.S. General Accounting Office, 1998b). The seven
States did not know whether their efforts to expand the supply
of providers would be sufficient to meet the increased demand
expected to result from welfare reform. States' efforts
included new provider recruitment; fiscal incentives for
providers and businesses to establish or expand child care
facilities; and initiatives to increase the use of early
childhood development and education programs, such as Head
Start and prekindergarten programs.

                        Major Day Care Programs

    Table 9-15 provides a brief description of the major
Federal programs that currently support child care and related
activities. 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 include the CCDBG, the Social Services Block Grant
under title XX of the Social Security Act, the Temporary
Assistance for Needy Families Block Grant, 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, can also be 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. Assuming that about $1.9
billion will be spent from TANF either directly or by transfer
to the CCDBG Block Grant, assuming that 13 percent of the title
XX block grant is spent on child care, and counting the tax
loss from the dependent care credit as spending, we can
estimate that the Federal Government will spend over $15
billion on child care and Head Start in 2000.

                 Child Care and Development Block Grant

    The Child Care and Development Block Grant (CCDBG) was
originally authorized as an amendment to the Omnibus Budget
Reconciliation Act of 1990, and in 1996 was reauthorized
(through 2002) and amended by the Personal Responsibility and
Work Opportunity Reconciliation Act (Public Law 104-193). The
program provides funding for child care services for low-income
families, as

                                            TABLE 9-15.--OVERVIEW OF FEDERAL PROGRAMS THAT SUPPORT CHILD CARE
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         Program
                               -------------------------------------------------------------------------------------------------------------------------
                                                       Child Care and                             Title XX Social
                                  Dependent Care     Development Block     Child and Adult Care    Services Block       Head Start            TANF
                                      Credit               Grant               Food Program            Grant
--------------------------------------------------------------------------------------------------------------------------------------------------------
Budgetary classification......  Nonrefundable tax  Discretionary          Authorized             Authorized         Discretionary      Preappropriation
                                 credit.            authorization and      entitlement.           entitlement.       authorization.     (through 2002)
                                                    authorized
                                                    entitlement.
Statutory authority...........  Internal Revenue   Omnibus Budget         Richard B. Russell     Social Security    Omnibus Budget     Personal
                                 Code.              Reconciliation Act     National School        Act.               Reconciliation     Responsibility
                                                    of 1990 and Personal   Lunch Act.                                Act of 1981.       and Work
                                                    Responsibility and                                                                  Opportunity
                                                    Work Opportunity                                                                    Reconciliation
                                                    Reconciliation Act                                                                  Act of 1996
                                                    of 1996.
Federal administration........  U.S. Department    DHHS, ACF \1\........  U.S. Department of     DHHS, ACF \1\....  DHHS, ACF \1\....  DHHS, ACF \1\
                                 of Treasury,                              Agriculture, Food
                                 Internal Revenue                          and Nutrition
                                 Service.                                  Service.
Federal funding support.......  NA...............  Funding ceiling, 100   Open-ended, 100        Funding ceiling,   Funding ceiling,   TANF Block Grant,
                                                    percent Federal        percent Federal        100 percent        80 percent         100 percent
                                                    funding for            funding.               Federal funding.   Federal funding.   Federal funding
                                                    discretionary and                                                                   (with State MOE
                                                    part of entitlement                                                                 requirements)
                                                    funding; balance at
                                                    Medicaid match rate.
Fiscal year 2000 funding (in    $2,200 \3\.......  $1,183--discretionary  $1,690 \4\...........  Total is $1,775    $5,267 \6\.......  Total is $16,500
 millions) \2\.                                     , $2,367--mandatory.                          \5\.                                  \7\
Target population.............  Taxpayers who      Families with incomes  Children,              State discretion.  Low-income         Needy families
                                 need dependent     at or below 85         particularly                              children and       with minor
                                 care in order to   percent of State       children from low-                        families.          children; needy
                                 accept or          median income, with    income families, in                                          pregnant women.
                                 maintain           parents engaged in     child care centers,
                                 employment.        work or education/     day care homes, and
                                                    training.              afterschool programs.
Eligible children.............  Children under     Children under age 13  Children younger than  State discretion.  Children from      Needy children as
                                 age 13 6.          (unless incapable of   13 (through age 18                        poor families      determined by
                                                    self-care or under     in the afterschool                        who have not       the State.
                                                    court supervision).    programs); migrant                        reached the age
                                                                           children younger                          of compulsory
                                                                           than 16; disabled                         school
                                                                           children.                                 attendance.
Provider requirements.........  Centers only must  Must meet applicable   Must meet Federal      Must meet          Must meet          NA (however, any
                                 meet applicable    State and local        nutrition standards;   applicable State   federally          transferred
                                 State and local    standards (including   must meet applicable   and local          established        funds are
                                 standards.         relatives). With       State/local            standards.         standards with     subject to CCDBG
                                                    exception of           licensing approval                        respect to         rules).
                                                    relatives, must also   standards (or,                            health,
                                                    meet certain health    certain alternate                         education,
                                                    and safety standards.  approval standards                        parental
                                                                           if licensing/                             involvement,
                                                                           approval not                              nutrition, and
                                                                           required).                                social services.
Reimbursement rates to          NA...............  No limit.............  Providers receive      No limit.........  No limit.........  NA (however, any
 providers.                                                                inflation-indexed                                            transferred
                                                                           per meal subsidies                                           funds are
                                                                           that are fixed by                                            subject to CCDBG
                                                                           law and varied by                                            rules).
                                                                           children's family
                                                                           income; provider
                                                                           sponsors receive
                                                                           limited
                                                                           administrative
                                                                           payments for
                                                                           administrative costs.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ U.S. Department of Health and Human Services (DHHS), Administration for Children and Families.
\2\ Amounts reflect appropriation levels except where noted otherwise.
\3\ Estimated revenue loss, Joint Committee on Taxation.
\4\ Estimated obligations.
\5\ States used almost 13 percent of Social Services Block Grant funds for child day care in fiscal year 1997.
\6\ Of the $5.267 billion, $3.867 billion is available for fiscal year 2000, and $1.4 billion is available for fiscal year 2001.
\7\ The 1996 welfare reform law allows States to use TANF funds for child care associated with the TANF Program, and also allows States to transfer a
  maximum of 30 percent of TANF funds to the CCDBG for use under the CCDBG's program rules. In fiscal year 1999 alone, States expended $1.14 billion on
  child care from Federal TANF funds and funds countable toward the TANF maintenance-of-effort (MOE) requirement (excluding State expenditures that are
  made under CCDF). Through the first 3 years of Federal TANF grants (fiscal years 1997-99), States transferred $3.6 billion (representing 8 percent of
  total TANF grants) to the CCDBG.

NA--Not applicable.

Source: Table prepared by the Congressional Research Service.

well as for activities intended to improve the overall quality
and supply of child care for families in general.
 Financing
    Under the original CCDBG Act, discretionary funds were
authorized, subject to the annual appropriations process. As
amended by the 1996 welfare reform law, the program is funded
by a combination of discretionary and entitlement amounts. The
combined total of funds is sometimes referred to as the Child
Care and Development Fund. The discretionary funds are
authorized at $1 billion annually. However, appropriations
surpassed the authorized level in both fiscal years 1999 and
2000, at $1.183 billion. These funds are allocated among States
according to the same formula contained in the original CCDBG
Act, which is based on each State's share of children under age
5, the State's share of children receiving free or reduced-
price lunches, and State per capita income. Half of 1 percent
of appropriated funds is reserved for the territories, and
between 1 and 2 percent is reserved for payments to Indian
tribes and tribal organizations. States are not required to
match these discretionary funds. Funds must be obligated in the
year they are received or in the subsequent fiscal year, and
the law authorizes the Secretary to reallocate unused funds.
    The welfare reform law also provided entitlement funding to
States for child care under the CCDBG. The annual amounts of
entitlement funding were $1.967 billion in fiscal year 1997;
$2.067 billion in fiscal year 1998; $2.167 billion in fiscal
year 1999; $2.367 billion in fiscal year 2000; $2.567 billion
in fiscal year 2001; and $2.717 billion in fiscal year 2002.
    The Secretary must reserve between 1 and 2 percent of
entitlement funds for payments to Indian tribes and tribal
organizations. After this amount is reserved, remaining
entitlement funds are allocated to States in two components.
First, each State receives a fixed amount each year, equal to
the funding received by the State under the three child care
programs previously authorized under AFDC in fiscal year 1994
or fiscal year 1995, or the average of fiscal years 1992-94,
whichever is greater. This amount, totals approximately $1.2
billion each year, is sometimes referred to as ``mandatory''
funds. No State match is required for these funds, which may
remain available for expenditure by States with no fiscal year
limitation. Although no State match is required, to receive
their full TANF allotment, States must maintain at least 80
percent of their previous welfare expenditures (referred to as
their ``maintenance-of-effort'' requirements), including
previous expenditures for welfare-related child care, in fiscal
year 1994.
    After the guaranteed amount is distributed, remaining
entitlement funds are distributed to States according to each
State's share of children under age 13. States must meet
maintenance-of-effort and matching requirements to receive
these funds. Specifically, States must spend all of their
``guaranteed'' Federal entitlement funds for child care, plus
100 percent of the amount they spent of their own funds in
fiscal year 1994 or fiscal year 1995, whichever is higher,
under the previous AFDC-related child care programs. Further,
States must provide matching funds at the fiscal year 1995
Medicaid matching rate to receive these additional entitlement
funds for child care. If the Secretary determines that a State
will not spend its entire allotment for a given fiscal year,
then the unused amounts may be redistributed among other States
according to those States' share of children under age 13.
    In addition to amounts provided to States for child care,
States may transfer up to 30 percent of their TANF Block Grant
into their CCDBG or Social Services Block Grant Programs. Funds
transferred into child care must be spent according to the
CCDBG rules. However, States also may use TANF funds for child
care without formally transferring them to the CCDBG.
 Eligibility and target population groups
    Children eligible for services under the revised CCDBG are
those whose family income does not exceed 85 percent of the
State median. States may adopt income eligibility limits below
those in Federal law. Because child care funding is not an
entitlement for individuals, States are not required to aid
families even if their incomes fall below the State-determined
eligibility threshold. Federal law does require States to give
priority to families defined in their plans as ``very low
income.'' Table 9-25 provides the CCDF income eligibility
limits across the States and territories for families of three
and four. To be eligible for CCDBG funds, children must be less
than 13 years old and be living with parents who are working or
enrolled in school or training, or be in need of protective
services. States must use at least 70 percent of their total
entitlement funds for child care services for families that are
trying to become independent of TANF through work activities
and families that are at risk of becoming dependent on public
assistance. In their State plans, States must explain how they
will meet the specific child care needs of these families. Of
remaining child care funds (including discretionary amounts),
States must ensure that a substantial portion is used for child
care services to eligible families other than welfare
recipients or families at risk of welfare dependency.
 Use of funds
    CCDBG funds may be used for child care services provided on
a sliding fee scale basis; however, Federal regulations allow
States to waive child care fees for families with incomes at or
below the poverty line. Funds also may be used for activities
to improve the quality or availability of child care. States
are required to spend no less than 4 percent of their child
care allotments (discretionary and entitlement) for activities
to provide comprehensive consumer education to parents and the
public, activities that increase parental choice, and
activities designed to improve the quality and availability of
child care (such as resource and referral services).
    Child care providers receiving Federal assistance must meet
all licensing or regulatory requirements applicable under State
or local law. States must have in effect licensing requirements
applicable to child care; however, Federal law does not dictate
what these licensing requirements should be or what types of
providers they should cover. States must establish minimum
health and safety standards that cover prevention and control
of infectious diseases (including immunizations); building and
physical premises safety; and health and safety training; and
that apply to child care providers receiving block grant
assistance (except relative providers).
    Parents of children eligible to receive subsidized child
care must be given maximum choice in selecting a child care
provider. Parents must be offered the option to enroll their
child with a provider that has a grant or contract with the
State to provide such services, or parents may receive a
certificate (also sometimes referred to as a voucher) that can
be used to purchase child care from a provider of the parents'
choice. Child care certificates can be used only to pay for
child care services from eligible providers, which can include
sectarian child care providers. Eligible providers also can
include individuals, age 18 or older, who provide child care
for their grandchildren, great grandchildren, nieces or
nephews, or siblings (if the provider lives in a separate
residence). Table 9-24 shows the percent of CCDF recipient
children served by each form of payment type, by State, in
fiscal year 1998. Certificates were overwhelmingly the form of
payment most used, serving over 83 percent of CCDF children
nationally. States must establish payment rates for child care
services that are sufficient to ensure equal access for
eligible children to comparable services provided to children
whose parents are not eligible for subsidies.
    The CCDBG contains specific requirements with regard to the
use of funds for religious activities. Under the program, a
provider that receives operating assistance through a direct
grant or contract with a government agency may not use these
funds for any sectarian purpose or activity, including
religious worship and instruction. However, a sectarian
provider that receives a child care certificate from an
eligible parent is not so restricted in the use of funds.
 Administration and data collection
    At the Federal level, the CCDBG is administered by the
Administration for Children and Families of the U.S. Department
of Health and Human Services (DHHS). The Secretary is required
to coordinate all child care activities within the agency and
with similar activities in other Federal agencies. States are
required to designate a lead agency to administer the CCDBG,
and may use no more than 5 percent of their Federal child care
allotment for administrative costs. States must submit
disaggregated data on children and families receiving
subsidized child care to DHHS every quarter, and aggregate data
twice a year. The Secretary is required to submit a report to
Congress once every 2 years. The most recent available data
from DHHS as submitted by the States is from fiscal year 1998.

                           CHILD CARE TABLES

                    Child Care and Development Fund

    Tables 9-16 through 9-30 provide extensive information
about the Child Care and Development Fund (CCDF) as reported by
States to DHHS. Because the tables reflect funding from both
the discretionary and mandatory portions of the child care
funding pool, the term CCDF is used in the titles of the
tables. The reader should note, however, that as mentioned in
earlier parts of this chapter, all discretionary and mandatory
child care funding referenced here is subject to the rules of
the CCDBG.

      Families and Children Served, Type of Care, and Payment Type

    The average monthly number of families and children served
by the CCDF in the last half of fiscal year 1998 is shown, by
State, in table 9-16. Tables 9-17 and 9-18 reveal the
percentage of children served nationwide by reason for care and
by age of child respectively. The number of providers, by State
and type, are displayed in table 9-19. The percentage of CCDF
children served by each type of care, by State, follows in
table 9-20. Tables 9-21 through 9-23 reveal State-by-State
information on the breakdowns between type of care used by CCDF
recipients, regulated and nonregulated care used, and relative
and nonrelative care used. Table 9-24 shows the percentage of
CCDF children served by each form of payment type.

 TABLE 9-16.--CHILD CARE AND DEVELOPMENT FUND--AVERAGE MONTHLY NUMBER OF
           FAMILIES AND CHILDREN SERVED, APRIL-SEPTEMBER 1998
------------------------------------------------------------------------
                                        Number of          Number of
          State/territory                families           children
------------------------------------------------------------------------
Alabama...........................             11,914             20,526
Alaska \1\........................              2,862              5,083
American Samoa....................                 82                234
Arizona...........................             19,586             33,095
Arkansas..........................              5,464              9,244
California \1\....................             70,673             99,922
Colorado..........................             11,035             20,172
Connecticut.......................              6,646             11,912
Delaware..........................              3,527              6,138
District of Columbia \1\ \2\......              2,707              4,245
Florida...........................             26,825             44,867
Georgia...........................             26,488             47,205
Guam..............................                189                374
Hawaii \1\........................              4,292              6,673
Idaho.............................              3,811              6,546
Illinois..........................             46,186             88,333
Indiana \3\ \4\...................              7,153             12,673
Iowa \1\..........................              7,367             11,805
Kansas............................              5,553             10,238
Kentucky..........................             14,237             25,002
Louisiana \1\.....................             19,986             35,194
Maine.............................              (\5\)              (\5\)
Maryland..........................             13,720             21,383
Massachusetts \1\.................             30,813             46,009
Michigan..........................             49,502             92,062
Minnesota \1\.....................             15,168             25,525
Mississippi \2\ \3\ \4\...........              5,510              8,471
Missouri..........................             35,174             43,445
Montana...........................              3,135              5,528
Nebraska..........................              5,349              9,348
Nevada \2\........................              2,986              5,084
New Hampshire.....................              4,238              6,394
New Jersey........................             22,132             32,496
New Mexico........................              8,782             14,983
New York \1\......................             98,667            158,605
North Carolina \1\................             41,221             74,245
North Dakota......................              2,641              4,160
Northern Marianas.................              (\5\)              (\5\)
Ohio \2\..........................             33,165             59,357
Oklahoma \2\......................             21,882             36,029
Oregon............................              7,965             15,043
Pennsylvania \1\..................             39,985             72,683
Puerto Rico \4\...................                200                256
Rhode Island......................              3,998              6,326
South Carolina....................             12,779             21,733
South Dakota......................              2,042              3,529
Tennessee.........................             29,765             55,419
Texas.............................             46,017             78,955
Utah..............................              6,703             12,552
Vermont...........................              3,121              4,736
Virginia \1\......................             15,377             23,876
Virgin Islands....................                214                360
Washington \1\ \4\................             25,243             36,883
West Virginia \1\.................              8,033             13,186
Wisconsin.........................             13,361             23,867
Wyoming...........................              1,870              3,088
                                   -------------------------------------
      Total.......................            907,351         1,515,107
------------------------------------------------------------------------
\1\ Average monthly number of children served is extrapolated from
  sample data provided by the State based on the ratio of children to
  families in the sample.
\2\ Number of children and families reported are based on less than 6
  months of data.
\3\ The reliability of the data provided is highly questionable due to
  serious information system problems during the reporting period.
\4\ Reporting problems caused an underestimate of average children
  served monthly during fiscal year 1998.
\5\ Unable to report any ACF-801 case-level data.

Source: U.S. Department of Health and Human Services, Federal Child Care
  Information System.

TABLE 9-17.--CHILD CARE AND DEVELOPMENT FUND--PERCENT OF CHILDREN SERVED
                BY REASON FOR CARE, APRIL-SEPTEMBER, 1998
------------------------------------------------------------------------
                                                            Percent of
                     Reason for care                         children
                                                              served
------------------------------------------------------------------------
Employment..............................................              73
Training/education......................................              12
Both employment and training/education..................               6
Protective services.....................................               2
Other...................................................               7
------------------------------------------------------------------------
Source: U.S. Department of Health and Human Services.

TABLE 9-18.--CHILD CARE AND DEVELOPMENT FUND--PERCENT OF CHILDREN SERVED
                   BY AGE GROUP, APRIL-SEPTEMBER, 1998
------------------------------------------------------------------------
                                                            Percent of
                        Age group                            children
                                                              served
------------------------------------------------------------------------
0-11 months.............................................               6
12-23 months............................................              10
24-35 months............................................              12
36-47 months............................................              13
48-59 months............................................              13
60-71 months............................................              11
6-12 years..............................................              35
13+ years...............................................             0.4
------------------------------------------------------------------------
Source: U.S. Department of Health and Human Services.

 TABLE 9-19.--CHILD CARE AND DEVELOPMENT FUND--NUMBER OF CHILD CARE PROVIDERS RECEIVING CCDF FUNDS, FISCAL YEAR
                                                      1998
----------------------------------------------------------------------------------------------------------------
                                                                                   Family     Group
                         State/territory                           Child's home     home       home      Center
----------------------------------------------------------------------------------------------------------------
Alabama..........................................................            32      3,247        287      1,601
Alaska...........................................................           362      3,317         43        379
American Samoa...................................................         (\1\)          1      (\1\)         14
Arizona..........................................................           538      4,976        326      1,910
Arkansas.........................................................         (\1\)        538      (\1\)        856
California.......................................................         4,538     13,911      3,455      7,689
Colorado.........................................................         2,444      6,219      (\1\)      1,213
Connecticut......................................................        20,331      1,645         58      1,107
Delaware.........................................................           384      1,360         22        278
District of Columbia.............................................             1          1      (\1\)         10
Florida..........................................................           704      9,840      (\1\)     19,155
Georgia..........................................................         1,683      8,102        314      4,643
Guam.............................................................            73        164         30         45
Hawaii...........................................................           208      5,462      (\1\)        774
Idaho............................................................            89      2,461        358        431
Illinois.........................................................        46,723     40,852        465      4,767
Indiana..........................................................         2,343     13,940      (\1\)      1,929
Iowa.............................................................           422      9,296        826        905
Kansas...........................................................           768      1,298      1,910        666
Kentucky.........................................................           283      7,894         67      1,376
Louisiana........................................................        13,890      4,560      (\1\)      1,081
Maine............................................................            33      1,746      (\1\)        332
Maryland.........................................................         7,091      8,237      (\1\)      1,371
Massachusetts....................................................         7,392      4,206         58      1,151
Michigan.........................................................        33,824     39,293      2,647      2,304
Minnesota........................................................         1,584     15,258      (\1\)      6,294
Mississippi......................................................         1,951      2,388         21      1,138
Missouri.........................................................            42     22,218        161      1,750
Montana..........................................................            12      1,638        469        237
Nebraska.........................................................         (\1\)      1,305        209        452
Nevada...........................................................           131        436         10        400
New Hampshire....................................................         (\2\)      (\2\)      (\2\)      (\2\)
New Jersey.......................................................           640      7,474      (\1\)      2,061
New Mexico.......................................................            49      7,204        153        448
New York.........................................................         6,357     24,180      1,459      3,399
North Carolina...................................................           594      8,195        240      5,394
North Dakota.....................................................           115      1,775        660        122
Northern Marianas................................................            98         38      (\1\)          8
Ohio.............................................................             8      9,059         71      2,594
Oklahoma.........................................................           116      3,147      (\1\)      3,317
Oregon...........................................................         3,145     14,361         98        760
Pennsylvania.....................................................            19      3,196        502      3,633
Puerto Rico......................................................            79        747        898        486
Rhode Island.....................................................           860      1,462          7        254
South Carolina...................................................           486      2,680        167      1,426
South Dakota.....................................................           315      1,496         43        107
Tennessee........................................................         7,540        500      1,633      (\1\)
Texas............................................................         6,929      8,928        835      5,424
Utah.............................................................           743      4,503        183        282
Vermont..........................................................           355      1,110      (\1\)        333
Virginia.........................................................         (\2\)      (\2\)      (\2\)      (\2\)
Virgin Islands...................................................            16        150         21         87
Washington.......................................................        17,855     11,588      (\1\)      1,382
West Virginia....................................................            61      5,511      (\1\)        323
Wisconsin........................................................            80      5,247      (\1\)      1,490
Wyoming..........................................................           157        679      (\1\)         88
                                                                  ----------------------------------------------
      Total providers............................................       194,493    359,039     18,706     99,676
----------------------------------------------------------------------------------------------------------------
\1\ Reported figure is 0 or not reported.
\2\ New Hampshire and Virginia did not report the number of providers by setting type.

Source: U.S. Department of Health and Human Services, Federal Child Care Information System.

   TABLE 9-20.--CHILD CARE AND DEVELOPMENT FUND--PERCENT OF CHILDREN SERVED BY TYPES OF CARE, FISCAL YEAR 1998
----------------------------------------------------------------------------------------------------------------
                                                                                   Family     Group
                         State/territory                           Child's home     home       home      Center
----------------------------------------------------------------------------------------------------------------
Alabama..........................................................           0.1       20.2        5.6       74.1
Alaska...........................................................           5.2       57.1        3.2       34.5
American Samoa...................................................         (\1\)        0.9      (\1\)       99.1
Arizona..........................................................           2.0       20.4        4.5       73.0
Arkansas.........................................................         (\1\)       17.5      (\1\)       82.5
California.......................................................           6.2       17.8        5.6       70.5
Colorado.........................................................           9.4       33.3      (\1\)       57.3
Connecticut......................................................          56.6        6.4        0.4       36.6
Delaware.........................................................           4.1       39.5        1.5       54.9
District of Columbia.............................................           0.5        5.3      (\1\)       94.1
Florida..........................................................           1.0       14.2      (\1\)       84.8
Georgia..........................................................           3.5       19.1        1.5       75.9
Guam.............................................................          17.7       39.4        2.7       40.1
Hawaii...........................................................           6.8       65.2        0.4       27.7
Idaho............................................................           1.4       39.7       14.5       44.5
Illinois.........................................................          31.6       36.9        0.6       30.9
Indiana..........................................................          10.4       53.9      (\1\)       35.7
Iowa.............................................................           1.6       54.7       10.4       33.4
Kansas...........................................................           7.1       15.2       41.3       36.4
Kentucky.........................................................           1.4       36.8        0.9       61.0
Louisiana........................................................          36.0       15.1      (\1\)       49.0
Maine............................................................           0.8       34.7      (\1\)       29.0
Maryland.........................................................          22.7       42.4      (\1\)       34.9
Massachusetts....................................................          17.2        9.3       17.3       56.2
Michigan.........................................................          30.7       41.8        8.8       18.7
Minnesota........................................................           6.8       66.0      (\1\)       27.2
Mississippi......................................................          12.0       17.7        1.2       69.0
Missouri.........................................................           0.0       58.0        1.7       40.2
Montana..........................................................           0.2       36.3       33.6       30.0
Nebraska.........................................................         (\1\)       32.3        9.2       58.5
Nevada...........................................................           3.9       12.3        2.2       81.6
New Hampshire....................................................         (\1\)      (\1\)      (\1\)      (\1\)
New Jersey.......................................................           1.1       24.8      (\1\)       74.1
New Mexico.......................................................           4.4       47.9        4.4       43.3
New York.........................................................          10.1       42.3        7.0       40.6
North Carolina...................................................           0.8       17.0        1.4       80.8
North Dakota.....................................................           3.0       44.2       26.6       26.3
Northern Marianas................................................          58.2       30.8      (\1\)       11.0
Ohio.............................................................           0.0       34.6        0.8       64.6
Oklahoma.........................................................           0.3       18.9      (\1\)       80.9
Oregon...........................................................          13.7       64.8        0.8       20.6
Pennsylvania.....................................................          21.1       15.7        4.4       58.9
Puerto Rico......................................................           1.4       20.1       13.9       64.7
Rhode Island.....................................................           9.9       25.4        0.2       64.5
South Carolina...................................................           3.5       18.2        2.9       75.5
South Dakota.....................................................           6.0       61.0        6.2       26.9
Tennessee........................................................           0.8       21.8        4.8       72.6
Texas............................................................           7.4       10.3        3.3       79.0
Utah.............................................................           4.4       26.1        5.0       64.6
Vermont..........................................................           5.6       50.1      (\1\)       44.4
Virginia.........................................................           1.9       44.1      (\1\)       54.0
Virgin Islands...................................................           3.0       23.6        6.1       67.3
Washington.......................................................          24.7       34.0      (\1\)       41.2
West Virginia....................................................           0.4       59.9      (\1\)       39.8
Wisconsin........................................................           0.4       39.4      (\1\)       60.2
Wyoming..........................................................          13.4       55.4      (\1\)       31.2
                                                                  ----------------------------------------------
      National average percent...................................          10.8       29.7        3.6       55.4
----------------------------------------------------------------------------------------------------------------
\1\ Reported figure is 0 or not reported.

Note.--Row total(s) and column total(s) do not add up for the following reason(s): Adjusted figures are rounded.
  Errors in reports submitted by Maine and New Hampshire.

Source: U.S. Department of Health and Human Services, Federal Child Care Information System.

TABLE 9-21.--CHILD CARE AND DEVELOPMENT FUND--PERCENT OF CHILDREN SERVED
 IN REGULATED SETTINGS AND SETTINGS LEGALLY OPERATING WITHOUT REGULATION
------------------------------------------------------------------------
                                                                Legally
                                                   Licensed/   operating
                 State/territory                   regulated    without
                                                              regulation
------------------------------------------------------------------------
Alabama.........................................          74          26
Alaska..........................................          54          46
American Samoa..................................         100       (\1\)
Arizona.........................................          88          12
Arkansas........................................         100       (\1\)
California......................................          82          18
Colorado........................................          76          24
Connecticut.....................................          43          57
Delaware........................................          83          17
District of Columbia............................          98           2
Florida.........................................          87          13
Georgia.........................................          85          15
Guam............................................          39          61
Hawaii..........................................          31          69
Idaho...........................................          59          41
Illinois........................................          41          59
Indiana.........................................          46          54
Iowa............................................          67          33
Kansas..........................................          86          14
Kentucky........................................          67          33
Louisiana.......................................          49          51
Maine...........................................          57           7
Maryland........................................          65          35
Massachusetts...................................          80          20
Michigan........................................          39          61
Minnesota.......................................          66          34
Mississippi.....................................          70          30
Missouri........................................          54          46
Montana.........................................          85          15
Nebraska........................................         100       (\1\)
Nevada..........................................          76          24
New Hampshire...................................       (\1\)       (\1\)
New Jersey......................................          85          15
New Mexico......................................          52          48
New York........................................          59          41
North Carolina..................................          94           6
North Dakota....................................          97           3
Northern Marianas...............................         100       (\1\)
Ohio............................................         100       (\1\)
Oklahoma........................................         100       (\1\)
Oregon..........................................          38          62
Pennsylvania....................................          71          29
Puerto Rico.....................................          65          35
Rhode Island....................................          72          28
South Carolina..................................          83          17
South Dakota....................................          77          23
Tennessee.......................................          84          16
Texas...........................................          85          15
Utah............................................          79          21
Vermont.........................................          94           6
Virginia........................................          80          20
Virgin Islands..................................          68          32
Washington......................................          64          36
West Virginia...................................          89          11
Wisconsin.......................................         100       (\1\)
Wyoming.........................................          55          45
                                                 -----------------------
      National average percent..................          72          28
------------------------------------------------------------------------
\1\ Reported figure is 0 or not reported.

Note.--Row total(s) and column total(s) do not add up for the following
  reason(s): Errors in reports submitted by Maine and New Hampshire.
  Adjusted figures are rounded.

Source: U.S. Department of Health and Human Services, Federal Child Care
  Information System.

TABLE 9-22.--CHILD CARE AND DEVELOPMENT FUND--PERCENT OF CHILDREN SERVED
   IN SETTINGS LEGALLY OPERATING WITHOUT REGULATION, BY RELATIVES AND
                     NONRELATIVES, FISCAL YEAR 1998
------------------------------------------------------------------------
                 State/territory                   Relative  Nonrelative
------------------------------------------------------------------------
Alabama.........................................         39          61
Alaska..........................................         27          73
American Samoa..................................      (\1\)       (\1\)
Arizona.........................................        100       (\1\)
Arkansas........................................      (\1\)       (\1\)
California......................................         62          38
Colorado........................................         44          56
Connecticut.....................................         71          29
Delaware........................................         54          46
District of Columbia............................         70          30
Florida.........................................         23          77
Georgia.........................................         29          71
Guam............................................         91           9
Hawaii..........................................         69          31
Idaho...........................................         44          56
Illinois........................................         56          44
Indiana.........................................         39          61
Iowa............................................         31          69
Kansas..........................................         71          29
Kentucky........................................         29          71
Louisiana.......................................         48          52
Maine...........................................         32          68
Maryland........................................         78          22
Massachusetts...................................         42          58
Michigan........................................         72          28
Minnesota.......................................         42          58
Mississippi.....................................         64          36
Missouri........................................         46          54
Montana.........................................         10          90
Nebraska........................................      (\1\)       (\1\)
Nevada..........................................         16          84
New Hampshire...................................      (\1\)       (\1\)
New Jersey......................................         31          69
New Mexico......................................         57          43
New York........................................         40          60
North Carolina..................................         81          19
North Dakota....................................        100       (\1\)
Northern Marianas...............................      (\1\)       (\1\)
Ohio............................................      (\1\)       (\1\)
Oklahoma........................................      (\1\)       (\1\)
Oregon..........................................         29          71
Pennsylvania....................................         22          78
Puerto Rico.....................................         54          46
Rhode Island....................................         78          22
South Carolina..................................      (\1\)         100
South Dakota....................................         79          21
Tennessee.......................................         12          88
Texas...........................................        100       (\1\)
Utah............................................         37          63
Vermont.........................................          1          99
Virginia........................................         83          17
Virgin Islands..................................         58          42
Washington......................................         65          35
West Virginia...................................         91           9
Wisconsin.......................................      (\1\)       (\1\)
Wyoming.........................................         52          48
                                                 -----------------------
      National average percent..................         53          47
------------------------------------------------------------------------
\1\ Reported figure is 0 or not reported.

Source: U.S. Department of Health and Human Services, Federal Child Care
  Information System.

                     TABLE 9-23.--CHILD CARE AND DEVELOPMENT FUND--PERCENT OF CHILDREN SERVED IN ALL TYPES OF CARE, FISCAL YEAR 1998
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Licensed regulated providers                    Providers legally operating without regulation
                                       -----------------------------------------------------------------------------------------------------------------
            State/territory                                                      Child's home           Family home             Group home
                                        Child's   Family   Group    Center ---------------------------------------------------------------------  Center
                                          home     home     home            Relative  Nonrelative  Relative  Nonrelative  Relative  Nonrelative
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama...............................    (\1\)       10        6       59       0.1        0.1          10        0.1       (\1\)      (\1\)         15
Alaska................................     0.01       16        3       35         2          3          11         30       (\1\)      (\1\)      (\1\)
American Samoa........................    (\1\)        1    (\1\)       99     (\1\)      (\1\)       (\1\)      (\1\)       (\1\)      (\1\)      (\1\)
Arizona...............................      0.5       10        4       73         2      (\1\)          10      (\1\)       (\1\)      (\1\)      (\1\)

Arkansas..............................    (\1\)       18    (\1\)       82     (\1\)      (\1\)       (\1\)      (\1\)       (\1\)      (\1\)      (\1\)
California............................    (\1\)        7        6       70         5          2           6          4       (\1\)      (\1\)          1
Colorado..............................    (\1\)       19    (\1\)       57         2          7           8          6       (\1\)      (\1\)          0
Connecticut...........................    (\1\)        6    (\1\)       36        41         16       (\1\)      (\1\)       (\1\)      (\1\)          1

Delaware..............................    (\1\)       34        1       48         4      (\1\)           5      (\1\)       (\1\)      (\1\)          7
District of Columbia..................    (\1\)        4    (\1\)       94     (\1\)          1           1      (\1\)       (\1\)      (\1\)      (\1\)
Florida...............................    (\1\)        8    (\1\)       80         1      (\1\)           2          4       (\1\)      (\1\)          5
Georgia...............................    (\1\)        7        2       76         1          3           4          8       (\1\)      (\1\)      (\1\)

Guam..................................    (\1\)    (\1\)    (\1\)       39        18      (\1\)          37          2           1          2          1
Hawaii................................    (\1\)        8    (\1\)       22         3          3          45         12       (\1\)      (\1\)          5
Idaho.................................    (\1\)    (\1\)       14       44     (\1\)          1          17         22       (\1\)      (\1\)      (\1\)
Illinois..............................    (\1\)       11        1       29        11         21          22          4       (\1\)      (\1\)          2

Indiana...............................      2.2       14    (\1\)       30         5          3          16         23       (\1\)      (\1\)          6
Iowa..................................    (\1\)       23       10       33         1          1          10         22       (\1\)      (\1\)      (\1\)
Kansas................................    (\1\)        9       41       36         3          4           6      (\1\)       (\1\)      (\1\)      (\1\)
Kentucky..............................    (\1\)        5        1       61         1          1           9         23       (\1\)      (\1\)      (\1\)

Louisiana.............................    (\1\)    (\1\)    (\1\)       49        22         14           2         13       (\1\)      (\1\)      (\1\)
Maine.................................    (\1\)       28    (\1\)       29     (\1\)      (\1\)           2          5       (\1\)      (\1\)      (\1\)
Maryland..............................    (\1\)       31    (\1\)       34        16          7          12      (\1\)       (\1\)      (\1\)          0
Massachusetts.........................    (\1\)        6       17       56         5         12           3      (\1\)       (\1\)      (\1\)      (\1\)

Michigan..............................    (\1\)       11        9       19        14         17          30      (\1\)       (\1\)      (\1\)          0
Minnesota.............................    (\1\)       42    (\1\)       24         4          3          10         14       (\1\)      (\1\)          3
Mississippi...........................    (\1\)    (\1\)        1       69         9          3          10          8       (\1\)      (\1\)      (\1\)
Missouri..............................    (\1\)       15        2       37     (\1\)      (\1\)          21         22       (\1\)          3

Montana...............................     0.02       21       34       30     (\1\)      (\1\)           1         14       (\1\)      (\1\)      (\1\)
Nebraska..............................    (\1\)       32        9       58     (\1\)      (\1\)       (\1\)      (\1\)       (\1\)      (\1\)      (\1\)
Nevada................................    (\1\)        3        2       70         2          2           2          7       (\1\)      (\1\)         11
New Hampshire.........................    (\1\)    (\1\)    (\1\)    (\1\)     (\1\)      (\1\)       (\1\)      (\1\)       (\1\)      (\1\)      (\1\)

New Jersey............................    (\1\)       10    (\1\)       74         1      (\1\)           4         10       (\1\)      (\1\)      (\1\)
New Mexico............................    (\1\)        5        4       43         2          2          25         18       (\1\)      (\1\)      (\1\)
New York..............................    (\1\)       11        7       41         5          5          11         19       (\1\)      (\1\)      (\1\)
North Carolina........................    (\1\)       11        1       81         1      (\1\)           5          1       (\1\)      (\1\)        0.1

North Dakota..........................    (\1\)       44       27       26         3      (\1\)       (\1\)      (\1\)       (\1\)      (\1\)      (\1\)
Northern Marianas.....................     58.2       31    (\1\)       11     (\1\)      (\1\)       (\1\)      (\1\)       (\1\)      (\1\)      (\1\)
Ohio..................................     0.01       35        1       65     (\1\)      (\1\)       (\1\)      (\1\)       (\1\)      (\1\)      (\1\)
Oklahoma..............................     0.26       19    (\1\)       81     (\1\)      (\1\)       (\1\)      (\1\)       (\1\)      (\1\)      (\1\)

Oregon................................     0.22       21        1       16         5          9          14         30       (\1\)        0.1          5
Pennsylvania..........................    (\1\)        7        4       59         5         16           1          7       (\1\)      (\1\)      (\1\)
Puerto Rico...........................    (\1\)    (\1\)    (\1\)       65         1      (\1\)          12          8           6          8      (\1\)
Rhode Island..........................    (\1\)        8    (\1\)       64         4          6          18      (\1\)       (\1\)      (\1\)        0.3

South Carolina........................    (\1\)        5        3       76     (\1\)          3       (\1\)         13       (\1\)      (\1\)      (\1\)
South Dakota..........................    (\1\)       44        6       27         4          2          14          3       (\1\)      (\1\)      (\1\)
Tennessee.............................    (\1\)        7        5       73         1      (\1\)           1         14       (\1\)      (\1\)      (\1\)
Texas.................................    (\1\)        3        3       79         7      (\1\)           7      (\1\)       (\1\)      (\1\)      (\1\)

Utah..................................    (\1\)        9        5       65         2          2           6         11       (\1\)      (\1\)      (\1\)
Vermont...............................    (\1\)       50    (\1\)       44         0          6       (\1\)      (\1\)       (\1\)      (\1\)      (\1\)
Virginia..............................     0.20       26    (\1\)       54         2      (\1\)          15          3       (\1\)      (\1\)          0
Virgin Islands........................    (\1\)    (\1\)        6       62         3      (\1\)          16          8       (\1\)      (\1\)          5

Washington............................    (\1\)       23    (\1\)       41        12         12          11      (\1\)       (\1\)      (\1\)      (\1\)
West Virginia.........................    (\1\)       50    (\1\)       39     (\1\)      (\1\)          10      (\1\)       (\1\)      (\1\)          1
Wisconsin.............................     0.38       39    (\1\)       60     (\1\)      (\1\)       (\1\)      (\1\)       (\1\)      (\1\)      (\1\)
Wyoming...............................    (\1\)       24    (\1\)       31         8          6          16         16       (\1\)      (\1\)      (\1\)
                                       -----------------------------------------------------------------------------------------------------------------
      National average percent........      0.1       13        3       55         6          6           9          6        0.02       0.03          1
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Reported figure is 0 or not reported.

Note.--Select row total(s) and column total(s) do not add up for the following reason: Errors in reports submitted by Maine and New Hampshire.

Source: U.S. Department of Health and Human Services, Federal Child Care Information System.

    TABLE 9-24.--CHILD CARE AND DEVELOPMENT FUND--PERCENT OF CHILDREN
               SERVED, BY PAYMENT METHOD, FISCAL YEAR 1998
------------------------------------------------------------------------
                                        Grants/                  Cash to
           State/territory             contracts  Certificates   parents
------------------------------------------------------------------------
Alabama..............................       45.4        53.7         0.9
Alaska...............................      (\1\)        99.3         0.7
American Samoa.......................      (\1\)       100.0       (\1\)
Arizona..............................      (\1\)       100.0       (\1\)
Arkansas.............................      (\1\)       100.0       (\1\)
California...........................       58.3        33.8         7.9
Colorado.............................        0.4        99.5         0.1
Connecticut..........................       24.0        76.0       (\1\)
Delaware.............................      (\1\)       100.0       (\1\)
District of Columbia.................       59.6        40.4       (\1\)
Florida..............................       72.6        20.1         7.3
Georgia..............................        4.6        95.4       (\1\)
Guam.................................      (\1\)       100.0       (\1\)
Hawaii...............................      (\1\)       (\1\)       100.0
Idaho................................      (\1\)       100.0       (\1\)
Illinois.............................       14.1        85.9       (\1\)
Indiana..............................        1.0        99.0       (\1\)
Iowa.................................      (\1\)       100.0       (\1\)
Kansas...............................      (\1\)        92.9         7.1
Kentucky.............................      (\1\)       100.0       (\1\)
Louisiana............................      (\1\)        65.3        34.7
Maine................................       23.5        75.9         0.6
Maryland.............................      (\1\)       100.0       (\1\)
Massachusetts........................       27.6        72.4       (\1\)
Michigan.............................      (\1\)       100.0       (\1\)
Minnesota............................      (\1\)       100.0       (\1\)
Mississippi..........................       27.1        72.9       (\1\)
Missouri.............................      (\1\)       100.0       (\1\)
Montana..............................      (\1\)        96.4         3.6
Nebraska.............................      (\1\)       100.0       (\1\)
Nevada...............................        6.1        93.9       (\1\)
New Hampshire........................      (\1\)       100.0       (\1\)
New Jersey...........................       26.7        73.3       (\1\)
New Mexico...........................        1.3        98.7       (\1\)
New York.............................       23.1        76.9       (\1\)
North Carolina.......................      (\1\)       100.0       (\1\)
North Dakota.........................        4.0        96.0       (\1\)
Northern Marianas....................      (\1\)       (\1\)       100.0
Ohio.................................      (\1\)       100.0       (\1\)
Oklahoma.............................      (\1\)       100.0       (\1\)
Oregon...............................       11.0        89.0       (\1\)
Pennsylvania.........................      (\1\)        56.4        43.6
Puerto Rico..........................       57.5        42.5       (\1\)
Rhode Island.........................      (\1\)       100.0       (\1\)
South Carolina.......................       12.0        88.0       (\1\)
South Dakota.........................      (\1\)       100.0       (\1\)
Tennessee............................      (\1\)       100.0       (\1\)
Texas................................      (\1\)        83.1        16.9
Utah.................................      (\1\)       (\1\)       100.0
Vermont..............................        0.4        99.6       (\1\)
Virginia.............................        1.1       100.0       (\1\)
Virgin Islands.......................        2.4        97.6       (\1\)
Washington...........................      (\1\)        64.4        35.6
West Virginia........................      (\1\)       100.0       (\1\)
Wisconsin............................      (\1\)       100.0       (\1\)
Wyoming..............................      (\1\)       100.0       (\1\)
                                      ----------------------------------
      National average percent.......        9.8        83.5         6.6
------------------------------------------------------------------------
\1\ Reported figure is 0 or not reported.

Note.--Row total(s) and column total(s) do not add up for the following
  reason(s): Errors in report submitted by Virginia. Adjusted figures
  are rounded.

Source: U.S. Department of Health and Human Services, Federal Child Care
  Information System.

                    State Income Eligibility Limits

    States' income eligibility limits for families of three and
four receiving Child Care and Development Fund (CCDF)
subsidies, as submitted in the latest available State CCDF
plans, are displayed in table 9-25.

                   Trends in Child Care Expenditures

    Tables 9-26 through 9-29 contain information about trends
in child care expenditures under the CCDF and its predecessor
programs (i.e., AFDC child care programs). All figures reflect
expenditures made in the year indicated, as opposed to
expenditures made from a given year's appropriation. Table 9-26
provides a summary of discretionary and mandatory expenditures
on child care from fiscal years 1992 through 1998. Table 9-27
gives the mandatory fund expenditure trends from fiscal years
1992 through 1998, and the total expenditures (mandatory and
discretionary) are shown by State in table 9-28. A detailed
breakdown of CCDF expenditures made in fiscal year 1998 (the
latest year available) by State is displayed in table 9-29.

                         State CCDF Allocations

    Table 9-30 shows actual State allotments for discretionary
and entitlement (mandatory and matching) funding for fiscal
year 1999.

                                       TABLE 9-25.--CCDF INCOME ELIGIBILITY LIMITS FOR FAMILIES OF THREE AND FOUR
                                                                    [Monthly income]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         85 percent of        CCDF income       Very low income    CCDF income limit    Very low income
                                                         State median      eligibility limit    limit (priority     as a percent of   limit as a percent
                                                            income       --------------------   for child care)      State median       of State median
                   State/territory                   --------------------                    --------------------       income              income
                                                                           Family    Family                      ---------------------------------------
                                                       Family    Family   of three   of four   Family    Family    Family    Family    Family    Family
                                                      of three   of four                      of three   of four  of three   of four  of three   of four
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama.............................................    $2,870    $3,417    $1,504    $1,809    $1,503    $1,808        45        45        45        45
Alaska..............................................     3,694     4,397     3,694     4,397     1,423     1,714        85        85        33        33
American Samoa \1\..................................       474       632       474       632       237       316        85        85        43        43
Arizona.............................................     2,804     3,339     1,905     2,217     1,157     1,392        58        56        35        35
Arkansas............................................     2,172     5,586     1,533     1,825     1,022     1,217        60        28        40        19
California..........................................     3,197     3,552     2,821     3,134     1,881     2,090        75        75        50        50
Colorado............................................     3,510     4,178     2,139     2,574     1,504     1,810        52        52        36        37
Connecticut \1\.....................................     3,698     4,403     3,264     3,885     1,088     1,295        75        75        25        25
Delaware............................................     3,371     4,014     2,314     2,784       867     1,044        58        59        22        22
District of Columbia................................     3,169     3,772     2,326     2,576     1,585     1,886        62        58        43        42
Florida.............................................     2,667     3,175     1,706     2,056     2,104     2,536        54        55        67        68
Georgia.............................................     2,817     3,130     2,817     3,130     2,023     2,248        85        85        61        61
Guam................................................     (\2\)     (\2\)     2,463     2,963     1,331     1,601     (\2\)     (\2\)     (\2\)     (\2\)
Hawaii..............................................     3,257     3,878     2,874     3,422     1,278     1,538        75        75        33        34
Idaho...............................................     2,684     2,982     1,706     2,056     1,705     2,055        54        59        54        59
Illinois............................................     3,440     4,095     1,818     2,165     1,214     1,445        45        45        30        30
Indiana.............................................     3,149     3,795     2,161     2,605     1,628     1,962        58        58        44        44
Iowa................................................     3,081     3,668     1,793     2,157     1,619     1,948        49        50        45        45
Kansas..............................................     3,114     3,747     3,114     3,747     1,832     2,204        85        85        50        50
Kentucky............................................     2,739     3,261     1,851     2,227     1,851     2,227        57        58        57        58
Louisiana...........................................     2,742     3,265     2,420     2,880     1,157     1,392        75        75        36        36
Maine \1\...........................................     2,708     3,223     2,708     3,223     1,101     1,329        85        85        35        35
Maryland............................................     3,957     4,711     1,870     2,226       767       913        40        40        16        16
Massachusetts \1\...................................     3,522     4,193     2,771     3,299     1,931     2,299        67        67        47        47
Michigan............................................     3,342     3,979     2,172     2,586       809       940        55        55        21        20
Minnesota...........................................     3,604     4,290     3,181     3,787     3,180     3,786        75        75        75        75
Mississippi.........................................     2,333     2,750     2,333     2,750     1,416     1,667        85        85        52        52
Missouri............................................     2,772     3,696     1,482     1,764       674       802        45        41        21        18
Montana.............................................     2,592     3,085     1,735     2,088       469       564        57        58        15        16
Nebraska............................................     2,707     3,323     2,105     2,535     1,121     1,350        66        65        35        35
Nevada..............................................     3,171     3,776     2,798     3,331     1,532     1,793        75        75        41        40
New Hampshire \1\...................................     3,064     3,647     1,784     2,147     1,556     1,873        49        50        43        44
New Jersey..........................................     3,959     4,770     1,735     2,088     2,892     3,479        37        37        62        62
New Mexico \1\......................................     2,212     2,633     1,951     2,323     1,465     1,742        75        75        56        56
New York............................................     3,326     3,960     2,338     2,783     (\3\)     (\3\)        60        60     (\3\)     (\3\)
North Carolina......................................     3,082     3,668     2,719     3,237     2,719     3,237        75        75        75        75
North Dakota........................................     2,445     2,910     2,445     2,910       288       342        85        85        10        10
Northern Marianas...................................     1,273     1,498     1,157     1,392     1,157     1,392        77        79        77        79
Ohio................................................     3,084     3,672     2,105     2,536       700       843        58        59        19        20
Oklahoma............................................     2,635     3,137     1,936     1,936     1,933     1,934        62        52        62        52
Oregon..............................................     3,226     3,841     2,088     2,290     1,157     1,392        55        51        30        31
Pennsylvania........................................     3,201     3,811     2,139     2,574     1,156     1,391        57        57        31        31
Puerto Rico.........................................     1,279     1,523     1,279     1,523       753     1,039        85        85        50        58
Rhode Island........................................     3,067     3,407     2,602     3,131     1,278     1,438        72        78        35        36
South Carolina......................................     2,954     3,518     1,446     1,740     1,157     1,392        42        42        33        34
South Dakota........................................     2,786     3,317     2,140     2,575     1,157     1,392        65        66        35        36
Tennessee...........................................     2,871     3,418     2,027     2,413     1,478     1,528        60        60        44        38
Texas...............................................     2,856     3,400     1,735     2,088     1,157     1,392        52        52        34        35
Utah................................................     2,724     3,242     1,794     2,136     1,138     1,371        56        56        36        36
Vermont.............................................     2,664     3,209     2,586     3,115     1,157     1,392        83        83        37        37
Virginia \1\........................................     2,977     3,544     2,977     3,544     1,111     1,338        85        85        32        32
Virgin Islands \1\..................................     1,364     1,557     1,364     1,557     1,111     1,338        85        85        69        73
Washington..........................................     3,194     3,803     2,024     2,435       856     1,030        54        54        23        23
West Virginia.......................................     2,457     2,925     1,735     2,087       463       557        60        61        16        16
Wisconsin...........................................     (\4\)     3,586     1,909     2,297        NA        NA        NA        54        NA        NA
Wyoming.............................................     2,881     3,430     1,539     1,852     1,273     1,532        45        46        38        38
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Income eligibility limits for this State reflect figures submitted in its initial 1997 State plan.
\2\ Guam is using 185 percent of the Federal poverty income guidelines for Hawaii to limit eligibility. There is no current median income established
  for Guam.
\3\ Local social services districts define the income level, which constitutes ``very low income'' in their districts. It must be established at or
  below 200 percent of the State income standard. Currently, levels at which districts have established ``very low income'' range from 100-200 percent
  of the State income standard.
\4\ In the Wisconsin State plan, 85 percent State median income figure is available only for a family of four.

NA--Not available.

Source: Table prepared by the Congressional Research Service based on information from CCDF State plans submitted by the States to the U.S. Department
  of Health and Human Services.

   TABLE 9-26.--SUMMARY OF DISCRETIONARY AND MANDATORY CHILD CARE AND DEVELOPMENT FUND AND PREDECESSOR PROGRAM
                                       EXPENDITURES, FISCAL YEARS 1992-98
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                          Mandatory funds \2\                          Percent
                                                   --------------------------------                   change in
                                     Discretionary                                                      total
            Fiscal year                  funds                                           Total      expenditures
                                     (Federal) \1\      Federal          State                          from
                                                                                                      previous
                                                                                                        year
----------------------------------------------------------------------------------------------------------------
1992..............................        $332,159        $801,289        $615,552      $1,749,000           NA
1993..............................         675,229         889,592         662,184       2,227,005         27.3
1994..............................         835,014       1,054,893         797,745       2,687,652         20.7
1995..............................         832,009       1,235,233         949,821       3,017,063         12.3
1996..............................         850,122       1,280,212         994,275       3,124,608          3.6
1997..............................       1,010,068       1,518,905       1,357,515       3,886,488         24.4
1998..............................       1,403,230       2,078,421       1,713,933       5,195,584         33.7
----------------------------------------------------------------------------------------------------------------
\1\ Discretionary funds are from appropriations and are authorized under the Child Care and Development Block
  Grant (CCDBG) of 1990. For fiscal years 1997 and 1998, discretionary funds include those expenditures financed
  through transfers from the Temporary Assistance for Needy Families Block Grant.
\2\ Mandatory funds are Federal funds provided under title IV-A of the Social Security Act and State funds
  required to obtain these Federal funds. For fiscal years 1992-96, mandatory child care funds were for
  individuals who received cash welfare (Aid to Families with Dependent Children), in transition from cash
  welfare, or ``at risk'' of cash welfare receipt. For fiscal years 1997 and 1998, mandatory funds were those
  provided under section 418 of the Social Security Act and transferred to the CCDF, as well as State funds
  expended either as the maintenance-of-effort (MOE) or State match for CCDF matching funds.

NA--Not applicable.

Note.--All figures reflect expenditures made in the year indicated, as opposed to expenditures made only from a
  given year's appropriation. The Federal share of fiscal year 1992-96 mandatory funds from the program for
  those ``at risk'' of welfare might be overstated, as it reflects expenditures reported by the States
  multiplied by the Medicaid matching rate. For some States, this computed Federal share might be greater than
  the cap on Federal funding for the State under the ``at risk'' program.

Source: Congressional Research Service based on data from the U.S. Department of Health and Human Services.

                                 TABLE 9-27.--FEDERAL MANDATORY CHILD CARE EXPENDITURES, BY STATE, FISCAL YEARS 1992-98
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                           Percentage
                                                                                                                                             change
                         State                            1992      1993       1994        1995        1996        1997        1998    -----------------
                                                                                                                                        1992-98  1996-98
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama...............................................   $12,100   $15,147     $17,480     $17,626     $17,734     $27,539     $28,847      138       63
Alaska................................................     3,242     2,740       3,096       3,983       3,599       5,063       6,468      100       80
Arizona...............................................    15,730    13,876      16,591      20,998      24,993      31,034      32,258      105       29
Arkansas..............................................     2,073     3,668       3,867       5,300       4,009       3,938      17,326      736      332

California............................................    98,097    47,592     111,360      90,347      97,454     101,077     212,855      117      118
Colorado..............................................     8,432    10,339       9,653      10,498      10,486      11,926      23,275      176      122
Connecticut...........................................     9,816    10,893      15,206      18,738      25,122      27,298      28,676      192       14
Delaware..............................................     2,811     3,620       4,226       5,292       5,217       6,718       6,807      142       30

District of Columbia..................................     3,730     3,769       3,730       4,721       4,455       5,703       6,823       83       53
Florida...............................................    40,379    37,581      40,848      48,743      54,008      62,220     102,098      153       89
Georgia...............................................    26,000    31,520      37,081      39,088      49,040      40,876      65,599      152       34
Hawaii................................................     1,097     1,309       3,211       5,221       4,562       8,406       8,924      714       96

Idaho.................................................     1,768     2,857       3,136       3,062       2,357       3,809       5,689      222      141
Illinois..............................................    18,689    29,156      35,860      60,275      78,690      92,635      95,625      412       22
Indiana...............................................     3,903     9,604      21,298      28,640      29,777      32,515      43,371     1011       46
Iowa..................................................     7,099     5,860       6,693       9,219       7,089      11,182      19,622      176      177

Kansas................................................    12,113     9,265      11,497      10,044      11,632      15,598      18,007       49       55
Kentucky..............................................    13,153    16,101      17,293      17,230      17,490      22,112      32,584      148       86
Louisiana.............................................     6,912     9,705      11,492      14,539      13,895      15,058      29,498      327      112
Maine.................................................       980     2,725       3,137       3,036       3,456       6,015       6,897      604      100

Maryland..............................................    18,326    22,126      25,141      24,367      23,575      26,356      46,759      155       98
Massachusetts.........................................    29,688    34,745      39,730      46,798      52,211      60,350      62,620      111       20
Michigan..............................................    15,527    29,589      23,702      32,082      30,340      38,803      65,828      324      117
Minnesota.............................................    16,589    19,301      21,934      23,368      26,089      28,796      33,639      103       29

Mississippi...........................................     2,909     3,800       4,689       6,682       6,787       4,892      19,032      554      180
Missouri..............................................    15,491    19,764      21,560      25,390      26,805      37,505      42,753      176       59
Montana...............................................     2,109     2,023       2,972       3,191       3,451       2,968       8,476      302      146
Nebraska..............................................     9,863    10,402      11,653      10,072       8,786      15,878      15,822       60       80

Nevada................................................     1,823     2,975       2,489       2,873       3,122       2,897       7,375      305      136
New Hampshire.........................................     3,828     3,961       4,407       5,139       4,387       7,900       8,383      119       91
New Jersey............................................    25,997    26,331      31,253      40,031      49,494      51,121      39,311       51      -21
New Mexico............................................     3,777     6,900      10,170       4,174       9,174      13,916      14,342      280       56

New York..............................................    67,010    76,568      65,787     108,871      71,877      69,409     173,957      160      142
North Carolina........................................    28,838    48,070      62,072      71,708      63,320      84,934      95,048      230       50
North Dakota..........................................     1,941     2,665       2,506       2,188       1,895       1,531       5,288      173      179
Ohio..................................................    38,649    55,079      53,159      71,195      66,526      95,211     109,039      182       64

Oklahoma..............................................    22,068    20,869      22,132      25,638      26,638      33,905      35,324       60       33
Oregon................................................    13,591    13,141      19,065      20,288      26,515      27,598      28,981      113        9
Pennsylvania..........................................    41,419    37,667      45,351      55,355      55,822      76,285      82,810      100       48
Rhode Island..........................................     4,273     4,707       5,773       6,695       6,856       8,884       9,794      129       43

South Carolina........................................     6,543     8,195       5,893       9,967      12,457      16,796      22,509      244       81
South Dakota..........................................     1,318     1,607       1,713       1,753       1,742       3,125       4,781      263      174
Tennessee.............................................    14,207    21,135      33,972      39,566      43,192      51,259      53,621      277       24
Texas.................................................    50,258    62,222      59,880      63,995      72,750      64,857     121,168      141       67

Utah..................................................     8,928    12,467      12,998      13,019      14,450      19,428      20,605      131       43
Vermont...............................................     2,589     3,003       4,386       3,737       3,841       5,667       5,687      120       48
Virginia..............................................    16,032    17,272      17,002      21,364      18,716      34,148      30,333       89       62
Washington............................................    25,180    29,219      36,459      41,948      43,218      52,091      63,917      154       48

West Virginia.........................................     3,233     6,807       8,904       8,834       9,837      12,973      13,561      319       38
Wisconsin.............................................    18,656    17,085      18,572      25,715      28,995      35,850      42,977      130       48
Wyoming...............................................     2,507     2,567       2,815       2,631       2,277       2,851       3,431       37       51
                                                       -------------------------------------------------------------------------------------------------
      Total...........................................   801,289   889,592   1,054,893   1,235,233   1,280,212   1,518,905   2,078,421      159       62
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note.--All figures reflect expenditures made in the year indicated, as opposed to expenditures made only from a given year's appropriation. Mandatory
  funds are Federal funds provided under title IV-A of the Social Security Act and State funds required to obtain these Federal funds. For fiscal years
  1992-96, mandatory child care funds are for individuals who received cash welfare (Aid to Families with Dependent Children), in transition from cash
  welfare, or ``at risk'' of cash welfare receipt. For fiscal years 1997 and 1998, mandatory funds are those provided under section 418 of the Social
  Security Act and transferred to the CCDF. The Federal share of fiscal year 1992-96, mandatory funds from the program for those ``at risk'' of welfare
  might be overstated, as it reflects expenditures reported by the States multiplied by the Medicaid matching rate. For some States, this computed
  Federal share might be greater than the cap on Federal funding for the State under the ``at risk'' program.

Source: Congressional Research Service based on data from the U.S. Department of Health and Human Services.

                 TABLE 9-28.--TOTAL CHILD CARE AND DEVELOPMENT FUND AND PREDECESSOR PROGRAM EXPENDITURES, BY STATE, FISCAL YEARS 1992-98
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                       Percentage change
                      State                          1992        1993        1994        1995        1996        1997        1998    -------------------
                                                                                                                                       1992-98   1996-98
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama.........................................     $29,490     $37,892     $39,133     $45,166     $46,612     $52,411     $60,689       106        30
Alaska..........................................       5,161       6,851       6,624       9,183       6,525      13,123      16,660       223       155
Arizona.........................................      27,055      33,404      38,600      44,690      51,305      61,200      81,923       203        60
Arkansas........................................       7,918      13,441      12,888      12,720      16,436      16,370      23,333       195        42
California......................................     134,248     131,165     265,531     250,940     286,913     368,789     586,143       337       104
Colorado........................................      13,518      22,480      29,810      29,043      23,342      32,909      45,449       236        95
Connecticut.....................................      19,683      24,041      26,068      46,096      55,540      58,668      71,601       264        29
Delaware........................................       5,957       7,914       9,505      11,570      11,396      17,487      24,409       310       114
District of Columbia............................       7,940       8,479       8,852      10,204      10,021      13,604      20,154       154       101
Florida.........................................      82,247      92,867      97,543     118,142     136,035     157,347     222,576       171        64
Georgia.........................................      53,234      70,596      82,240      88,069     101,717     131,264     162,139       205        59
Hawaii..........................................       1,311       5,016       7,768      11,540      10,399      20,335      30,770      2247       196
Idaho...........................................       3,976       6,631      11,780       5,552       5,535       9,127      16,022       303       189
Illinois........................................      40,401      73,846      91,971     148,557     178,373     236,029     300,808       645        69
Indiana.........................................       6,071      26,100      47,329      60,247      63,782      78,288      96,576      1491        51
Iowa............................................      14,645      15,797      14,794      20,845      19,830      20,130      49,489       238       150
Kansas..........................................      23,632      21,006      25,763      23,022      25,370      35,108      45,693        93        80
Kentucky........................................      21,417      40,950      38,150      39,877      41,912      51,609      83,939       292       100
Louisiana.......................................      13,035      31,726      33,840      38,756      40,111      47,367      62,341       378        55
Maine...........................................       2,928       8,179       6,856       4,925      11,444      15,436      10,847       270        -5
Maryland........................................      37,864      47,157      55,672      54,799      53,032      58,365     104,766       177        98
Massachusetts...................................      63,113      74,331      85,598      87,370     110,469     243,113     216,503       243        96
Michigan........................................      48,892      69,409      54,593      78,554      56,481     122,046     295,723       505       424
Minnesota.......................................      30,959      40,306      46,784      52,321      57,896      69,637      87,929       184        52
Mississippi.....................................       7,699       5,597      36,326      11,062      17,399      48,388      32,494       322        87
Missouri........................................      32,786      44,233      48,520      55,428      58,917      79,879      89,283       172        52
Montana.........................................       4,670       5,570       6,982       6,794       7,952       8,272      14,114       202        77
Nebraska........................................      17,485      15,861      27,212      20,324      18,014      27,170      40,892       134       127
Nevada..........................................       4,018       6,386       5,874       8,055       7,273      13,020      18,020       348       148
New Hampshire...................................       7,725       8,481       7,553      12,335       9,787      16,177      17,988       133        84
New Jersey......................................      46,865      41,713      63,979      97,526      98,877     105,672      93,805       100        -5
New Mexico......................................       8,529      17,394      22,219      13,956      20,709      29,483      38,875       356        88
New York........................................     117,129     174,006     167,235     236,714     180,514     236,240     393,261       236       118
North Carolina..................................      40,988      88,657     137,160     132,261      95,981     169,501     224,494       448       134
North Dakota....................................       4,267       5,932       5,502       5,014       3,753       5,130       9,040       112       141
Ohio............................................      72,069     108,544     115,799     132,215     136,752     191,298     198,768       176        45
Oklahoma........................................      38,415      41,169      44,756      48,920      51,198      57,553      71,542        86        40
Oregon..........................................      18,814      32,011      37,885      39,559      49,598      53,278      56,280       199        13
Pennsylvania....................................      59,809      85,238     101,849     123,618     128,740     183,408     179,692       200        40
Rhode Island....................................       8,724      10,374      12,545      13,761      14,368      18,713      25,788       196        79
South Carolina..................................       9,843      18,060      17,733      29,603      37,000      28,466      66,987       581        81
South Dakota....................................       2,925       4,458       5,408       5,647       2,512       6,327      10,676       265       325
Tennessee.......................................      26,030      45,040      66,777      76,320      80,708     107,875     136,666       425        69
Texas...........................................     116,364     158,555     159,691     181,988     182,971     217,999     274,659       136        50
Utah............................................      17,307      16,858      29,960      24,758      28,700      28,414      39,635       129        38
Vermont.........................................       5,046       5,918       8,396      10,052      10,040      15,508      17,484       246        74
Virginia........................................      29,825      48,681      36,430      48,874      50,583      85,645      87,823       194        74
Washington......................................      49,744      61,173      76,153      89,337      94,775     116,631     172,423       247        82
West Virginia...................................       7,678      14,614      17,351      17,088      15,176      24,062      35,704       365       135
Wisconsin.......................................      29,996      42,683      40,341      52,990      59,441      76,883     124,609       315       110
Wyoming.........................................       3,874       5,067       5,178       5,853       5,627       5,735       8,102       109        44
                                                 -------------------------------------------------------------------------------------------------------
      Total.....................................   1,483,319   2,021,857   2,442,504   2,792,241   2,887,844   3,886,488   5,195,584       250        80
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note.--All figures reflect expenditures made in the year indicated, as opposed to expenditures made only from a given year's appropriation.
  Discretionary funds are from appropriations and are authorized under the Child Care and Development Block Grant of 1990. For fiscal years 1997 and
  1998, discretionary funds include those expenditures financed through transfers from the Temporary Assistance for Needy Families Block Grant.
  Mandatory funds are Federal funds provided under title IV-A of the Social Security Act and State funds required to obtain these Federal funds. For
  1992-96, mandatory child care funds are for individuals who received cash welfare (Aid to Families with Dependent Children), in transition from cash
  welfare, or ``at risk'' of cash welfare receipt. For 1997 and 1998 mandatory funds are those provided under section 418 of the Social Security Act and
  transferred to the CCDF, as well as State funds expended either as the maintenance-of-effort or State match for CCDF matching funds. The Federal share
  of fiscal year 1992-96 mandatory funds from the program for those ``at risk'' of welfare might be overstated, as it reflects expenditures reported by
  the States multiplied by the Medicaid matching rate. For some States, this computed Federal share might be greater than the cap on Federal funding for
  the State under the ``at risk'' program.

Source: Congressional Research Service based on data from the U.S. Department of Health and Human Services.

                   TABLE 9-29.--FISCAL YEAR 1998 CHILD CARE AND DEVELOPMENT FUND EXPENDITURES
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                     Federal     State
                                                         Mandatory   share of   share of  Maintenance
                  State                   Discretionary    block     matching   matching   of effort     Total
                                                           grant       fund       fund       (MOE)
----------------------------------------------------------------------------------------------------------------
Alabama.................................      $19,455      $16,442    $12,405     $5,490      $6,896     $60,689
Alaska..................................        4,613        3,545      2,924      2,034       3,545      16,660
Arizona.................................       33,075       19,827     12,431      6,557      10,033      81,923
Arkansas................................            0        6,091     11,234      4,077       1,931      23,333
California..............................      174,693       95,050    117,805    113,001      85,593     586,143
Colorado................................          346        9,295     13,980     12,842       8,986      45,449
Connecticut.............................        6,739       18,738      9,937      9,937      26,249      71,601
Delaware................................        1,671        4,642      2,166      2,166      13,765      24,409
District of Columbia....................        7,687        4,609      2,213      1,077       4,567      20,154
Florida.................................       40,323       43,027     59,071     46,739      33,416     222,576
Georgia.................................       55,988       41,765     23,835     15,341      25,210     162,139
Hawaii..................................       13,060        5,110      3,814      3,814       4,972      30,770
Idaho...................................        7,925        2,868      2,821      1,233       1,176      16,022
Illinois................................       37,777       56,874     38,752     38,752     128,655     300,808
Indiana.................................       26,587       25,451     17,920     11,261      15,357      96,576
Iowa....................................        8,048        8,508     11,114      6,461      15,357      49,489
Kansas..................................       15,341        9,708      8,299      5,600       6,745      45,693
Kentucky................................       37,613       17,370     15,214      6,467       7,275      83,939
Louisiana...............................       21,526       13,865     15,634      6,097       5,219      62,341
Maine...................................          189        3,019      3,878      2,011       1,750      10,847
Maryland................................       11,248       23,301     23,457     23,457      23,301     104,766
Massachusetts...........................       91,263       44,973     17,647     17,647      44,973     216,503
Michigan................................      178,334       32,082     33,746     27,150      24,411     295,723
Minnesota...............................       21,482       19,398     14,241     13,118      19,690      87,929
Mississippi.............................        8,183        7,220     11,813      3,409       1,870      32,494
Missouri................................       18,230       24,669     18,084     11,751      16,549      89,283
Montana.................................        2,999        5,296      3,180      1,324       1,314      14,114
Nebraska................................       11,045       10,595      5,227      3,318      10,707      40,892
Nevada..................................        3,269        2,580      4,795      4,795       2,580      18,020
New Hampshire...........................        1,222        4,582      3,801      3,801       4,582      17,988
New Jersey..............................       15,184       26,374     12,937     12,937      26,374      93,805
New Mexico..............................       19,362        8,308      6,035      2,276       2,895      38,875
New York................................       26,398       83,035     90,922     90,922     101,984     393,261
North Carolina..........................       50,816       72,571     22,477     13,150      65,480     224,494
North Dakota............................        1,758        2,988      2,299        977       1,017       9,040
Ohio....................................       19,758       74,918     34,122     24,567      45,404     198,768
Oklahoma................................       21,233       24,910     10,414      4,355      10,630      71,542
Oregon..................................        9,519       19,309      9,672      6,065      11,715      56,280
Pennsylvania............................       26,125       55,173     27,637     24,128      46,629     179,692
Rhode Island............................        2,240        6,909      2,885      2,541      11,212      25,788
South Carolina..........................       35,063        9,867     12,641      5,331       4,085      66,987
South Dakota............................        3,635        1,711      3,070      1,457         803      10,676
Tennessee...............................       54,863       37,702     15,919      9,206      18,976     136,666
Texas...................................       92,050       76,595     44,573     26,759      34,681     274,659
Utah....................................       11,527       12,592      8,014      3,027       4,475      39,635
Vermont.................................        8,070        3,945      1,743      1,060       2,666      17,484
Virginia................................       27,433       21,329      9,004      8,728      21,329      87,823
Washington..............................       44,768       41,883     22,034     20,248      43,490     172,423
West Virginia...........................       17,444        8,727      4,834      1,728       2,971      35,704
Wisconsin...............................       53,713       26,579     16,398     11,471      16,449     124,609
Wyoming.................................        2,340        2,108      1,323        777       1,554       8,102
                                         -----------------------------------------------------------------------
      Total.............................    1,403,230    1,198,031    880,391    682,439   1,031,494   5,195,584

----------------------------------------------------------------------------------------------------------------
Note.--All figures reflect expenditures made in fiscal year 1998, as opposed to expenditures made only from the
  fiscal year 1998 appropriation.

Source: Congressional Research Service based on data from the U.S. Department of Health and Human Services.

 TABLE 9-30.--CHILD CARE AND DEVELOPMENT FUND--STATE ALLOCATIONS, FISCAL
                                YEAR 1999
                        [In thousands of dollars]
------------------------------------------------------------------------
                                   Child care entitlement
              State               ------------------------      CCDBG
                                    Mandatory   Matching   discretionary
------------------------------------------------------------------------
Alabama..........................     $16,442     $14,250       $20,585
Alaska...........................       3,545       2,548         2,103
Arizona..........................      19,827      17,599        20,529
Arkansas.........................       5,300       8,748        12,073
California.......................      85,593     125,636       121,446
Colorado.........................      10,174      13,578        10,761
Connecticut......................      18,738      10,909         7,192
Delaware.........................       5,179       2,415         1,960
District of Columbia.............       4,567       1,552         1,888
Florida..........................      43,027      47,400        51,390
Georgia..........................      36,548      26,963        32,685
Hawaii...........................       4,972       4,171         3,940
Idaho............................       2,868       4,548         5,263
Illinois.........................      56,874      43,250        37,520
Indiana..........................      26,182      19,900        18,189
Iowa.............................       8,508       9,386         9,248
Kansas...........................       9,812       9,042         8,916
Kentucky.........................      16,702      12,630        17,830
Louisiana........................      13,865      15,605        25,619
Maine............................       3,019       3,860         3,870
Maryland.........................      23,301      17,397        13,201
Massachusetts....................      44,973      19,988        13,674
Michigan.........................      32,082      33,425        28,187
Minnesota........................      23,368      16,446        13,348
Mississippi......................       6,293       9,888        16,954
Missouri.........................      24,669      18,624        18,448
Montana..........................       3,191       2,925         3,156
Nebraska.........................      10,595       5,811         5,659
Nevada...........................       2,580       6,136         4,741
New Hampshire....................       4,582       3,962         2,478
New Jersey.......................      26,374      27,404        18,739
New Mexico.......................       8,308       6,647         9,410
New York.........................     101,984      63,144        56,936
North Carolina...................      69,639      25,539        28,290
North Dakota.....................       2,506       2,115         2,302
Ohio.............................      70,125      37,712        33,633
Oklahoma.........................      24,910      11,485        15,151
Oregon...........................      19,409      10,700        10,088
Pennsylvania.....................      55,337      38,181        32,313
Rhode Island.....................       6,634       3,172         2,601
South Carolina...................       9,867      12,796        17,999
South Dakota.....................       1,711       2,544         3,162
Tennessee........................      37,702      17,738        20,442
Texas............................      59,844      75,736        94,329
Utah.............................      12,592       9,082         9,767
Vermont..........................       3,945       1,902         1,684
Virginia.........................      21,329      22,317        19,414
Washington.......................      41,883      19,418        16,431
West Virginia....................       8,727       5,264         7,618
Wisconsin........................      24,511      17,577        14,810
Wyoming..........................       2,815       1,652         1,667
                                  --------------------------------------
       Subtotal..................   1,177,525     940,718       949,640
                                  ======================================
Tribes...........................      43,340          NA        19,995
                                  --------------------------------------
      Total States/territories/     1,220,865          NA       997,501
       tribes....................
                                  ======================================
Technical assistance.............       5,355          NA         2,473
                                  --------------------------------------
      Total resources............   1,226,220     940,718       999,974
------------------------------------------------------------------------
NA--Not applicable.

Source: U.S. Department of Health and Human Services.

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