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Parents and the High Price of Child Care

2009 Update


About This Report Parents and the High Price of Child Care: 2009 Update presents data on child care prices collected from a nationwide survey of State Child Care Resource and Referral Networks and local Child Care Resource and Referral agencies (CCR&Rs). CCR&Rs and State Networks provide a set of core services to help parents and communities meet child care needs­– including maintaining data on the rates charged by child care providers. CCR&Rs collect price data for legally-operating care that is provided in child care centers as well as care that takes place in a child care provider’s place of residence – known as a family child care (FCC) home. In January 2009, NACCRRA asked State Networks in each state to report average annual fees for centerbased child care and for family child care homes for an infant, a 4-year-old child, and for before-and-after school care for a school-age child in 2008.


Table of Contents Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Child care is still expensive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Child care prices are high relative to other household expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Family Child Care Homes may be more affordable, but many providers are unlicensed . . . . . . . . . . . . . . . 11 School-age care, although part-time, is just as expensive as full-time care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Urban care is more expensive than rural care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Accredited programs cost even more . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Child care is particularly unaffordable for single parents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Poor families are not the only families who struggle with child care prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Appendix 1:

2008 Average Annual Price of Full-Time Care by State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Appendix 1a: Average Annual Price & Percentage Change of Full-Time Care by State . . . . . . . . . . . . . . . . . . . . . . . . 24 Appendix 2: 2008 Ranking of Affordability of Child Care for an Infant in a Center . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Appendix 3: 2008 Ranking of Affordability for Child Care for a 4-Year-Old in a Center . . . . . . . . . . . . . . . . . . 28 Appendix 4: 2008 Average Monthly Child Care Center Prices and Median Monthly Housing Costs by State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Appendix 5: 2008 Average Annual Prices of Full-Time Child Care Center and Public College Tuition and Fees by State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Appendix 6: 2008 Ranking of Affordability for Child Care for a School-Age Child in a Center . . . . . . . . . . . . . . . . 34 Appendix 7: Urban and Rural Costs for Infants and 4-Year-Olds in a Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Appendix 8: 2008 Average Annual Price of Full-Time Care for an Infant in a Center . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Appendix 9: 2008 Average Annual Price of Full-Time Care for a 4-Year-Old in a Center. . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Appendix 10: 2008 Ranking of Affordability of Center Care for Single Parents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Appendix 11: 2008 Price of Care as a Percent of 2008 Federal Poverty Levels for a Family of Three . . . . . . . . . . .41 Appendix 12: Licensing Thresholds for Children in Family Child Homes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43


List of Figures and Tables List of Figures Figure 1: 2008 Prices for an Infant in Centered-Based Care as a Percentage of Two-Parent Median Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Figure 2: 2008 Prices for a 4-year-old in Center-Based Care as a Percentage of Two-Parent Median Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Figure 3: 2008 Monthly Child Care Prices and Household Expenditures by Region. . . . . . . . . . . . . . . . . . . . . .9

List of Tables Table 1:

Top 10 Least Affordable States for Infant Care in a Center in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Table 2: Top 10 Least Affordable States for a 4-Year-Old in a Center in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Table 3: Comparison of Annual Child Care Prices for 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Table 4: Top 10 Least Affordable States for a School-Age Child in a Center . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Table 5: Percentage Difference Between the Cost of Urban Care and Rural Care for an Infant in a Center in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Table 6: Percentage Difference Between the Cost of Urban Care and Rural Care for a 4-Year-Old in a Center in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Table 7: Average Annual Price of Full-Time Care for an Infant in a Center in 2008 . . . . . . . . . . . . . . . . . . . . . 14 Table 8: Average Annual Price of Care for a 4-Year-Old in a Center in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Table 9: Least Affordable States for Single Parents: Center care for Two Children in 2008 . . . . . . . . . . . . . 16 Table 10: 2008 Child Care Cost for Family of Three as a Percent of Income Based on 2008 Federal Poverty Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17


Executive Summary offers recommendations states and the federal government should take to improve the affordability and quality of child care.

Parents and the High Price of Child Care: 2009 Update presents 2008 data on child care costs collected from a nationwide survey of State Child Care Resource and Referral Networks and local Child Care Resource and Referral agencies (CCR&Rs). This report provides an update with the most recent price data from a survey of State Child Care Resource and Referral Networks conducted in January 2009.

This report is an annual update, providing child care price data in the context of other common household expenses for 2008. While the main findings of the 2009 Update remain consistent with previous reports, proving that the cost of child care in the U.S. is steadily increasing, this update found:

For millions of American families with young children, child care is part of their daily routine. Working parents rely on child care to work to support their families and, more importantly, to ensure that their children are well-cared for in safe environments. Quality child care­– care that provides a safe, stable, developmentally appropriate and stimulating environment – both protects children and promotes their healthy development, which increases the likelihood that children enter school ready to succeed.

❖❖ Child care is still expensive, and prices are still rising. A family in the United States with one infant faced average prices in 2008 of $4,560 to $15,895 a year for center-based child care (compared to a range of $4,542 to $14,591 in 2007 reported in the 2008 Update). Parents of a 4-year old child encountered average prices of $4,055 to $11,680♦ a year in child care fees in 2008 (compared to $3,380 to $10,787 in last year’s report). In 37 states and the District of Columbia, care for an infant in a child care center exceeded 10 percent of the median income for a two-parent family; in 12 states, the price of care for a 4-year-old in a center also exceeded 10 percent of two-parent median income.

Although child care is a necessity, it’s also very expensive. The high price of child care strains household budgets and forces parents to make many sacrifices – often in the quality of care their children receive. During this current recession, with more than 13 million Americans unemployed (as of March 2009)1 and another 9 million working part-time because they cannot find full-time work, child care becomes even more difficult for parents to afford. Children of these parents may find themselves in informal, patch-work arrangements as their parents look for jobs, work part-time or work reduced hours at multiple jobs to make ends meet.

❖❖ Child care prices are higher than other household expenses. In every region of the United States, average child care fees for an infant were higher than the average amount that families spent on food. In every state, monthly child care fees for two children at any age exceeded the median rent cost, and were nearly as high as, or even higher than, the average monthly mortgage payment. In 39 states and the District of Columbia, the average annual price for child care for an infant in a child care center was higher than a year’s tuition at a four-year public college.

Parents and the High Price of Child Care: 2009 Update highlights the economic challenges working American families face in paying for child care and

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Source: U.S. Bureau of Labor Statistics, March 2009 Employment Situation. Available at: www.bls.gov/new.release/pdf/empsit.pdf

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❖❖ Parents of school-age children often pay just as much for part-time child care as parents of infants and 4-year-olds. Parents often pay more than 10 percent of their income for the before and after school care of their school-age children. In Hawaii, the most expensive state for schoolage care, parents, on average, pay $10,720♦ per year for the before and after school care of one school-age child.

Child care is a major part of family life and a critical support for working parents, particularly for single working parents. Parents recognize that child care has a major influence on their children’s lives and it is crucial that children are safe and child care settings promote their healthy development. Unfortunately, as the cost of child care continues to increase, and millions of Americans are unemployed, or their work hours are reduced, the price of child care presents an ever greater challenge for parents. Some parents have responded to the current economy by unenrolling their children from organized child care programs or licensed settings. This means that more children may be in unregulated settings where providers have not had a background check or training in health and safety practices, such as first aid or CPR, let alone training in child development to ensure age-appropriate activities to promote the social, emotional, physical and cognitive development of children.

❖❖ Child care is particularly unaffordable for single parents. The average annual price of care for two children (one infant and one 4-year-old child) ranged from 48 percent to 103 percent of the state median income for single parents. In 32 states, the average price of care for two children (one 4-year-old child and one infant) exceeded 60 percent of the median household income for single parents. ❖❖ The price of child care is rising faster than inflation. Overall, states reported increases in child care fees from 2007 to 2008. For infant and 4-year-old care in a center, states reported an overall average increase of 4.8 and 6.2 percent, respectively, in fees charged from 2007 to 2008, outstripping increases in the inflation rate of 3.8 percent for the same period (U.S. Bureau of Labor Statistics).

NACCRRA is concerned about a potential for an increase in use of unregulated child care because children may not be safe or being cared for by adults who want them. Research shows that brain development is the greatest during the early years of birth to age five. There could be a long-term impact in children’s academic success and emotional security.

❖❖ The price of child care is often dramatically higher in urban areas. The price of care in urban areas was generally higher than the price of care in rural areas, with urban parents often paying $1,600 more for an infant in a center, and $1,100 more for a 4-year old in a center.

Particularly with the current economy, it is essential that the federal government and the states assist more families to afford the cost of quality child care so families do not have to resort to using unregulated care options. Working families earning low incomes have very few choices without assistance. But, many families are struggling with the high cost of child care, not just working poor families. It is time for the federal government to design a system to underwrite the cost of child care so that all families, and not just wealthy families, can afford the cost of quality child care.

❖❖ Quality child care is even more expensive. Among the 35 states, which reported data, full-time accredited2 care for an infant in a center ranged from $4,560 to $16,835 per year. Accredited care can cost over 30 percent more.

♦ 2

Rounded to the nearest 5 or 0. Accreditation represents a mark of high quality in early childhood education. To achieve accreditation, early childhood programs are assessed on an array of quality standards and criteria by a nationally-recognized accrediting body.  State licensing standards very greatly, but in general are much lower than accreditation standards.

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3


4


Introduction Child care is still expensive.

For millions of American families with young children, child care is part of their daily routine. Working parents rely on child care to work to support their families and, more importantly, to ensure that their children are well-cared for in safe environments. Quality child care­– care that provides a safe, stable, developmentally appropriate and stimulating environment – both protects children and promotes their healthy development. This increases the likelihood that children enter school ready to succeed.

The 2008 average annual price of full-time care for an infant in a center ranged from $4,560 in Mississippi to an astonishing $15,895 in Massachusetts (Detail Table 1). These fees comprise a large portion of household incomes. To better understand the impact of child care costs, NACCRRA compared the average price of full-time care for an infant, a 4-year-old child and a school-age child in a center with the state median income for two-parent families and for single parents. The average cost of care was calculated as a percentage of median income (American Community Survey 2007, U.S. Census Bureau) and the states were ranked from least affordable to most affordable. This does not mean that the least affordable state had the most expensive child care. Instead, the least affordable state had the highest child care cost as compared to the state median income of two-parent families.

Although child care is a necessity, it’s also very expensive. In a national telephone poll of parents conducted in November 2008,3 9 in 10 parents cited affordable child care as an important factor in helping working families survive in today’s tumultuous economy, yet child care continues to be unaffordable, or barely affordable, for many families. Parents and the High Price of Child Care: 2009 Update presents 2008 data on child care prices collected from a nationwide survey of State Child Care Resource and Referral Networks and local Child Care Resource and Referral agencies (CCR&Rs). In January 2009, NACCRRA asked State Networks in each state to report average annual fees for centerbased child care and for family child care homes for an infant, a 4-year-old child, and a school-age child in 2008. This report presents the information collected in that survey.

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In New York, the least affordable state for infant care in a center, this cost was as much as 16.2 percent of the median household income for a twoparent family (Table 1 and Detail Table 2 for listing of all states). Single parents faced a larger dilemma: how to pay for child care for their infants in a center where costs could make up 50 percent or more of their household income. In 2008, 126.8 million Americans in 14 states and the District of Columbia, confronted average prices for center-based infant care exceeding $10,000 a year (U.S. Census, July 2008 Population Estimates).

National Association of Child Care Resource & Referral Agencies. (2009). Parents’ Perceptions of Child Care in the United States: NACCRRA’s National Parent Poll: November 2008. Retrieved February 8, 2009 from www.naccrra.org/policy/recent_reports/parent_poll.php

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Table 1

Top 10 Least Affordable States for Infant Care in a Center in 2008* (Ranked by Care Cost as Percentage of Two-Parent Family Income)

State

Average Annual Price of Full-Time Infant Care

Percentage Change (+/-) in Average Annual Price of FullTime Infant Care Over Previous Year*

Child Care as a Percentage of Median Single Parent Family Income

Child Care as a Percentage of Median TwoParent Family Income

Difference in Fees as a Percentage of Two-Parent Family Income in 2008 Compared to 2007

Rank (based on percentage of twoparent family income)

New York

$13,630

NA

55.9%

16.2%

NA

1

Massachusetts

$15,895

8.9%

59.6%

15.6%

0.4%

2

Minnesota

$12,800

4.1%

48.5%

15.1%

No Change**

3

Colorado

$11,767

NA

45.5%

15.0%

NA

4

California

$11,580

NA

42.5%

14.7%

NA

5

Hawaii

$11,496

10.4%

38.0%

14.1%

1.1%

6

Oregon

$9,936

10.5%

44.1%

13.9%

0.6%

7

Illinois

$11,025

4.5%

42.5%

13.7%

0.2%

8

Wisconsin

$10,400

NA

44.2%

13.5%

NA

9

Indiana

$9,590

6.5%

42.5%

13.5%

0.5%

9

* See Detail Table 2 for complete listing of rankings. NA: Due to changes in data sources or unavailability of data, prices from these states cannot be compared. ** While the price of care for an infant in a center in Minnesota increased from $12,300 to $12,800, an increase in median two-parent income from 2007 to 2008 resulted in no increase in the percentage of care as a portion of family income.

Figure 1

2008 Prices for an Infant in Center-Based Care as a Percentage of Two-Parent Median Income

Least Expensive States Third Tier Expensive Second Tier Expensive Most Expensive States

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Figure 1 shows the most and least expensive states for infant care in a center.

4-year-old child in a center, 12 states exceeded 10 percent of median household income for twoparent families (Detail Table 3).

Average annual fees for a 4-year-old child were slightly lower. The cost of providing care for 4-year-old children in most states was less because licensing standards permit a higher child-to-staff ratio. Even so, the average annual price of care for one 4-year-old child in a center ranged from $4,055 in Mississippi to as high as $11,680♌ in Massachusetts (Detail Table 1), where cost in Massachusetts is 11.4 percent of the median household income for a two-parent family (Table 2 below and Detail Table 3 for listing of all states).

Figure 2 shows the most and least expensive states for the care of a 4-year-old in a center. The survey also found that in many states the price of child care in a center outpaced inflation. Data for multi-year comparison were available in 42 states. In 33 of these states and the District of Columbia, the price of care for an infant in a child care center rose between 2007 and 2008, and in 20 of those jurisdictions, the rate of increase was above the annual inflation rate of 3.8 percent (U.S. Bureau of Labor Statistics). In 35 states and the District of Columbia the price of care for 4-year-olds in a center increased, and in 26 jurisdictions those

In 38 states and the District of Columbia, the average annual cost of infant care in a center exceeded 10 percent of median household income for two-parent families (Detail Table 2). For a

Table 2

Top 10 Least Affordable States for a 4-Year-Old Care in a Center in 2008* (Ranked by percentage of two-parent family income)

State

Average Annual Price of Full-Time 4-year old Care

Percentage Change (+/-) in Average Annual Price of Full-Time 4-year old Care Over Previous Year*

Child Care as a Percentage of Median Single Parent Family Income

Child Care as a Percentage of Median TwoParent Family Income

Difference in Fees as a Percentage of Two-Parent Family Income in 2008 Compared to 2007

Rank (based on percentage of two-parent family income)

$10,541 $9,067 $9,700 $11,678 $8,424 $7,228 $7,500 $8,234 $8,060 $6,467

NA NA 3.7% 8.3% NA 3.0% 15.7% NA 18.5% 2.7%

43.2% 35.1% 36.7% 43.8% 35.8% 33.1% 33.3% 30.2% 34.3% 37.5%

12.5% 11.5% 11.4% 11.4% 11.0% 10.6% 10.5% 10.4% 10.3% 10.3%

NA NA No Change** 0.2% NA 0.0% 0.9% NA 1.3% -0.4%

1 2 3 3 5 6 7 8 9 9

New York Colorado Minnesota Massachusetts Wisconsin Maine Oregon California Pennsylvania Montana

* See Detail Table 3 for complete listing of rankings. NA: Due to changes in data sources or unavailability of data, prices from these states cannot be compared. ** While the price of care for a 4-year old in a center increased in Minnesota from $9350 to $9,700, an increase in median two-parent income from 2007 to 2008 resulted in no increase in the percentage of care as a portion of family income.

♌

Rounded to the nearest 5 or 0.

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Figure 2

2008 Prices for a 4-Year-Old in Center-Based Care as a Percentage of Two-Parent Median Income

Least Expensive States Third Tier Expensive Second Tier Expensive Most Expensive States

❖❖ In the South, the Northeast, and West, fees for caring for two children comprised the second most expensive monthly bill, exceeded only by the median cost of the monthly mortgage (Detail Table 4).

increases outpaced inflation, often by a wide margin. For infant and 4-year-old care in a center, states reported an overall average increase of 4.8 and 6.2 percent, respectively, in fees charged from 2007 to 2008, outstripping increases in the inflation rate of 3.8 percent for the same period (see Detail Table 1a for changes from 2007 to 2008 in specific states).

❖❖ In 39 states and the District of Columbia, the average annual price for child care for an infant in a child care center was higher than a year’s tuition and fees at a four-year public college.

Child care prices are high relative to other household expenses.

❖❖ In Massachusetts, the annual price for an infant in center-based care exceeded the price of a year’s tuition at a public college by $7,711.

Child care fees consume a large portion of the household budget. Figure 3 compares average prices for center care to other average monthly household expenses. Among the findings:

❖❖ In California, the average annual price for an infant in center-based care, at $11,580, was more than double the average price of college tuition, at just $5,346. (Detail Table 5).

❖❖ In every region of the United States, average child care fees for an infant were higher than the average amount that families spent on food. ❖❖ Child care fees for two children (an infant and a 4-year-old) were the most costly monthly expense in the Midwest, surpassing even the median rent and mortgage payments. 8


Figure 3

2008 Monthly Child Care Prices and Household Expenditures by Region

Northeast Region $2,000

Midwest Region

◊ Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont.

$1,500

$1,200

◊ Midwest: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin.

$1,500 $900 $1,000 $600

$500 $300

$0

$0

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Fo Ut od il Tr C itie an lo s t sp hi o ng Pe rs He rtat on al io al th n Co Ins Car lle ura e ge nc Tu e iti on

Fo Ut od ili Tr Cl ties an ot sp hin Pe o g rs He rta on al tio t h n a Co l Ins Car lle ur e ge an Tu ce iti on

e t ar are are ren ge n t c l C e C ild tga Re n o h r g fa o In sch ol-A r 2 C Mo e ho fo r P Sc re Ca

South Region

West Region

◊ South: Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia.

$1200

$1000

$2000

◊ West: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming.

$1500

$800

$1000

$600

$400 $500 $200

$0

$0

re re re en ge nt ca l Ca Ca ildr tga Re t n oo ge Ch or fa M In sch ol-A r 2 e ho fo r P Sc re Ca

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Notes: Average monthly child care prices based on care in a center and care for two children based on one infant and one 4-year-old child in a center. Regional averages of prices are not adjusted for cost of living, type of area, or by any other factors. Mortgage and rent based on median monthly rent and mortgage payments are from the American Community Survey, U.S. Census Bureau, 2007. College tuition costs based on one year’s tuition and fees at a public four-year college, “Trends in College Pricing,” College Board, 2007-2008. Other monthly household expenses (adjusted for inflation) are from the Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, 2006-2007. ftp://ftp.bls.gov/pub/special.requests/ce/region/y0607/region.txt

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10


Family Child Care Homes may be more affordable, but many providers are unlicensed.

requirements. Unlicensed care is not inspected; therefore, the health and safety of children in this type of home cannot be evaluated and is unknown. The price of care varies by the setting and quality of the program. Average annual prices for family child care homes, for example, are generally lower than those for child care centers—ranging from $3,582 to $10,324 for an infant and $3,380 to $9,805 for a 4-year- old child. The average annual price of care for two children – an infant and one 4-year- old child - in a family child care home ranges from $7,280 in Mississippi to $20,129 in Massachusetts, the most expensive state for both family child care and center-based care (Detail Table 1).

Although the price of care in family child care homes is less expensive than child care in a center, the quality of care in many family child care homes is unknown. Licensing requirements vary widely from state to state (Detail Table 12). Currently, 24 states allow providers to care for five or more children before a license is required.4 South Dakota allows the largest number of children per family child care home without any health and safety standards or oversight, setting the licensing threshold at 13, so that providers in South Dakota may provide care for 12 children without a license. Louisiana, Ohio and Virginia set the threshold at seven. Family child care homes that do not trigger state licensing requirements are not required to meet the most basic standards, such as health and safety standards, background checks and training

The price difference between care in a family child care home and center-based care for two children can be as much as $11,627 a year or $969 per month. In 10 states, the difference exceeds $5,000 per year, or $417 per month.

Table 3

Comparison of Annual Child Care Prices for 2008 One Child in Care Type of Care

Infant

Two Children in Care

4-year-old Child

One Infant and One 4-year old Child

Two Pre-School Age Children (Using 4-Year-Old Price)

Low

High

Low

High

Low

High

Low

High

Family Child Care Home

$3,582*

$10,324

$3,380

$9,805

$7,280*

$20,129

$6,760

$19,610

Child Care Center

$4,560

$15,895

$4,056

$11,678

$8,616

$27,573

$8,112

$23,356

* Massachusetts has the highest average prices for all four categories examined in Table 3; Mississippi has the lowest average price in three of the categories, but South Carolina has the lowest average price for an infant in a center. Mississippi has the least expensive average price for one infant and one 4-year-old in a family child care home at $7,280.

4

In general the licensing threshold is established by each state, which means that the states determine how many children are allowed to be cared for in a family child care home before a state requires a license. For the purposes of this report, NACCRRA added one child if the state does not include the provider’s own children in establishing the licensing threshold and one for each family exempted before licensing begins. For example, if a state does not require licensing until children from a second unrelated family are in care, the state was given a threshold of 2.

11


School-age care, although parttime, is just as expensive as full-time care.

Urban care is more expensive than rural care. Parents in urban areas pay dramatically more for care than parents in rural areas. Comparative data for urban and rural costs were gathered for 31 states in the 2009 survey (Detail Table 7). For infant care in a center, the average cost for urban care is generally $1,600 more than the average costs for rural care. Parents with a 4-year-old in a center will generally pay an average additional cost of $1,100. Virginia reported the widest cost disparity between urban and rural care for both an infant and a 4-yearold child in a center. Indeed, parents in urban areas in Virginia can expect to pay more than double than parents in rural areas; an additional $6,864 for infants (Table 5) and an additional $5,356 for 4-yearolds (Table 6).

Parents of school-age children can pay just as much for child care as parents of infants or 4-year-old children – and school-age children are in care parttime (Detail Table 1). Child care continues to consume a large portion of a two-parent family income (Table 4, below). Hawaii, at $10,720♦ was the least affordable state for school-age care in a child care center, comprising 13.2 percent of a two-parent family income (Detail Table 6 for rankings of all states).

Table 4

Top 10 Least Affordable States for a School-Age Child in a Center* (1 = Highest; 50 = Lowest)

Average Annual Price of Care

Median Income for Two Parents**

Price of Care as a Percentage of Median Two-Parent Family Income

Rank (based on percentage of twoparent family income)

Hawaii

$10,719

$81,505

13.2%

1

Wisconsin

$8,008

$76,869

10.4%

2

Indiana

$6,341

$71,172

8.9%

3

Michigan

$6,656

$76,117

8.7%

4

Ohio

$6,459

$75,352

8.6%

5

Rhode Island

$7,020

$84,949

8.3%

6

Arizona

$5,889

$71,471

8.2%

7

Iowa

$5,663

$72,086

7.9%

8

New Mexico

$4,782

$61,537

7.8%

9

Kentucky

$5,018

$66,410

7.6%

10

State

* Minnesota, North Carolina, North Dakota, Nebraska, New York, Pennsylvania, South Dakota and Texas did not report cost for school-age care in a center for 2008. ** American Community Survey 2007, U.S. Census Bureau

Rounded to the nearest 5 or 0.

12


Table 5

Percentage Difference Between the Cost of Urban* Care and Rural Care for an Infant in a Center in 2008

State

Virginia Oregon Pennsylvania Georgia Minnesota**

Average Annual Price for Urban Care

Average Annual Price for Rural Care

Dollar Difference Between Urban Care and Rural Care

Difference in Price of Urban Care As Percentage of Rural Care

$12,064 $10,752 $10,920 $7,550 $14,300

$5,200 $5,028 $6,136 $4,569 $8,950

$6,864 $5,724 $4,784 $2,981 $5,350

132.0% 113.8% 78.0% 65.2% 59.8%

Maryland

$12,163

$7,613

$4,550

59.8%

Ohio Indiana Nevada Tennessee

$10,321 $10,016 $9,484 $6,867

$6,491 $7,032 $6,749 $4,899

$3,830 $2,984 $2,734 $1,968

59.0% 42.4% 40.5% 40.2%

* ”Urban Area” is defined as a population cluster of 50,000 or more people, based upon the U.S. Census definition of “Urban Area or Urban Cluster.” ** Minnesota’s urban prices are based on the St. Paul/Minneapolis metro area.

Table 6

Percentage Difference Between the Cost of Urban* Care and Rural Care for a 4-Year-Old in a Center in 2008 Average Annual Price for Urban Care

Average Annual Price for Rural Care

Dollar Difference Between Urban and Rural Care

Difference in Price of Urban Care As Percentage of Rural Care

$9,932 $8,220 $6,411 $8,036 $10,600 $5,931 $8,580

$4,576 $4,320 $4,174 $5,465 $7,350 $4,218 $6,136

$5,356 $3,900 $2,237 $2,571 $3,250 $1,713 $2,444

117.0% 90.3% 53.6% 47.0% 44.2% 40.6% 39.8%

Maryland

$7,927

$5,780

$2,147

37.1%

Missouri Indiana

$6,052 $7,293

$4,494 $5,445

$1,558 $1,848

34.7% 33.9%

State

Virginia Oregon Georgia Ohio Minnesota** New Mexico Pennsylvania

* ”Urban Area” is defined as a cluster of 50,000 or more people, based upon the U.S. Census definition of “Urban Area or Urban Cluster.” ** Minnesota’s urban prices are based on the St. Paul/Minneapolis metro area.

13


Accredited programs cost even more

Among the 35 states which reported data, full-time accredited care for an infant in a center ranged from $4,560 to $16,835 per year. Accredited care can cost over 30 percent more (Detail Table 8). This percentage may be even higher, as the overall price averages include the price of accredited care. But, because accredited care is only a small portion of available child care, the overall price mainly represents the price of unaccredited care. Comparing percentages, Idaho leads the nation in the cost disparity between accredited and unaccredited care. In raw dollar terms, the least affordable state for accredited care in a center for infants is Hawaii, where parents pay at least $4,104 more per year for accredited care (Table 7).

As challenging as it is to afford child care, paying for high-quality care (child care accredited by a national organization) is even more difficult. Accreditation represents a mark of high quality in early childhood education. To achieve accreditation, early childhood programs are assessed on an array of quality standards and criteria by a nationallyrecognized accrediting body. State licensing standards very greatly, but in general are much lower than accreditation standards. Accredited care requires higher levels of staff training and education, and lower child-to-staff ratios. Studies show that group size is related to quality because caregivers have more frequent and better interaction with the children, and caregivers with higher levels of training in child development provide higher quality care. As a result, however, personnel costs are higher.

For 4-year-old children, full-time accredited care – for the 35 states which reported data - range from $4,056 to $11,960 per year (Detail Table 9). The difference in price for accredited care for 4-year-old children as a percentage of overall price are highest in Nevada and Oklahoma, where parents pay at least $1,737 (24%) and $1,129 (23%) more per year respectively (Table 8).

Table 7

Average Annual Price of Full-Time Care for an Infant in a Center in 2008 Overall Price of Care vs. Price of Accredited Care*

Average Annual Price of Care

Average Annual Price of Accredited Care

Difference in Price

Percent Price Increase for Accredited Care

Idaho

$5,817

$7,995

$2,179

37.5%

Hawaii

$11,496

$15,600

$4,104

35.7%

Missouri

$6,632

$8,609

$1,977

29.8%

Georgia

$6,954

$8,461

$1,507

21.7%

Nevada

$9,012

$10,853

$1,841

20.4%

Oklahoma

$6,595

$7,898

$1,304

19.8%

Minnesota

$12,800

$15,250

$2,450

19.1%

Wisconsin

$10,400

$12,220

$1,820

17.5%

Maryland

$11,962

$13,981

$2,019

16.9%

West Virginia

$6,000

$6,960

$960

16.0%

State

* Only states which reported accredited care costs are listed

14


Table 8

Average Annual Price of Full-Time Care for a 4-Year-Old in a Center in 2008 Overall Price of Care vs. Price of Accredited Care*

Average Annual Price of Care

Average Annual Price of Accredited Care

Difference in Price

Percent Price Increase for Accredited Care

Nevada

$7,133

$8,870

$1,737

24.4%

Oklahoma

$4,881

$6,010

$1,129

23.1%

Utah

$5,580

$6,780

$1,200

21.6%

West Virginia

$4,560

$5,520

$960

21.1%

Idaho

$5,360

$6,355

$994

18.6%

Georgia

$5,973

$7,057

$1,084

18.1%

Minnesota

$9,700

$11,400

$1,700

17.6%

New Hampshire

$8,035

$9,357

$1,322

16.5%

Maryland

$7,821

$9,076

$1,255

16.0%

Wisconsin

$8,424

$9,724

$1,300

15.4%

State

* Only states which reported accredited care costs are listed

15


Child care is particularly unaffordable for single parents.

Poor families are not the only families who struggle with child care prices.

Single parents struggle to pay child care costs. In many cases, the average price of care is far out of reach for a single parent, especially for those with two or more children. As a portion of state median income for single parents, the average annual price of care in a center for two children (one infant and one 4-year-old child) ranged from 48 percent in Alaska to as high as 103 percent in Massachusetts.

Parents earning below the poverty level set by the federal government ($17,600 in 2008 for a family of three for most states5) struggle to pay for child care, paying, on average, 49.6 percent of their income for the care of one infant in a center; and paying 39.6 percent of their income for the care of a 4-year-old in a center, on average (see Table 10). Although, these parents qualify for publicly-funded child care subsidy payments, only a small percentage of those eligible are served.

Table 9 below shows the 10 least affordable states for a single parent seeking care for two children. However, child care is an enormous challenge for single parents nationwide. In 46 states and the District of Columbia, the average price of care for two children (one infant and one 4-year-old child) was greater than 50 percent of the median household income for single parents, and in 11 states, the price for two children in care exceeded 75 percent of a single parent’s income (Detail Table 10).

Parents earning at 200 percent ($35,200 in 2008 for a family of 3 in most states) to 300 percent ($52,800 in 2008 for a family of 3 in most states) of the federal poverty level (FPL)6 are particularly vulnerable because in most states they do not qualify for any child care assistance. These parents, on average, could pay between 24.9 percent (200 percent of FPL) and 16.6 percent (300 percent of

Table 9

Least Affordable States for Single Parents: Center Care for Two Children in 2008 Median Family Income for Single Parents*

Average Annual Price for Two Children in a Center**

Percent of Median Single Parent Family Income

Rank (based on percentage of single parent family income)

Massachusetts

$26,680

$27,573

103.3%

1

New York

$24,379

$24,171

99.1%

2

District of Columbia

$26,771

$24,627

92.0%

3

Minnesota

$26,418

$22,500

85.2%

4

Colorado

$25,863

$20,834

80.6%

5

Wisconsin

$23,552

$18,824

79.9%

6

Rhode Island

$21,772

$17,264

79.3%

7

Montana

$17,229

$13,645

79.2%

8

Ohio

$21,284

$16,724

78.6%

9

Oregon

$22,540

$17,436

77.4%

10

State

* American Community Survey 2007, U.S. Census Bureau ** Based upon one infant and one 4-year-old child

The 2008 federal poverty level for a family of three in Alaska is $22,000 and for Hawaii it is $20,240. Source: Federal Register, Vol. 73, No. 15, January 23, 2008, pp. 3971–3972 6 In Alaska the income range is $44,000 to $66,000 and in Hawaii it is $40,480 and $60,720. 5

16


FPL) of their income for the care of an infant in a center. For the care of a 4-year-old in a center, these parents could pay, on average, between 19.8 percent (200 percent of FPL) and 13.2 percent (300 percent of FPL) of their income (see Table 10). Detail Table 11 shows state-by-state the percentage of income two-parent families earning at FPL, and at 200 percent and 300 percent of FPL would pay for the care of one infant and one 4-year-old in a center. After paying taxes and child care, these parents have very little left to pay for housing, food and other crucial expenses. In addition, the reality is that many families with young children often have more than one young child, and for these families their child care costs can account for almost half their incomes. There is no public help available for these parents, and, as the data show, making ends meet can be a constant struggle for these parents. These are the families who are most likely to be pushed to informal care arrangements because without any fee assistance, they simply cannot afford the market rate in their communities for licensed child care given their other monthly expenses.

Table 10

2008 Child Care Cost for Family of Three as a Percent of Income Based on 2008 Federal Poverty Levels Two-Parents Earning at the Federal Poverty Level

Two-Parents Earning at 200% of the Federal Poverty Level

Two-Parents Earning at 300% of the Federal Poverty Level

Average percent of income paid

49.7%

24.9%

16.6%

Median percent of income paid

48.3%

24.2%

16.1%

Minimum percent of income paid

26.0%

13.0%

9.0%

Maximum percent of income paid

90.0%

45.0%

30.0%

Average percent of income paid

39.6%

19.8%

13.2%

Median percent of income paid

38.7%

19.3%

12.9%

Minimum percent of income paid

23.0%

12.0%

8.0%

Maximum percent of income paid

66.0%

33.0%

22.0%

State

Full-time Care for one Infant in a Center

Full-time Care for one 4-Year-Old in a Center

17


18


Conclusion The high price of child care forces parents to make difficult decisions. Parents want quality child care for their children. They know the importance of safe, stable, stimulating environments to support their children’s development. Yet many parents cannot afford the price tag of child care. Especially during the current recession, with more than 12 million Americans unemployed and another 9 million working part-time because they cannot find fulltime work, child care becomes even more difficult for parents to afford. While family child care homes are more affordable than center care, many of these providers are not licensed, which means the quality of care is unknown. Quality care comes at a price and many parents have to compromise on quality in order to make ends meet.

Parents and the High Price of Child Care: 2009 Update highlights the economic challenges working American families face in paying for child care and offers recommendations for states and the federal government to improve the affordability and quality of child care. In principle, this update recommends what NACCRRA highlighted in the original 2006 report. Parents and the High Price of Child Care: 2009 Update illustrates that prices will continue to rise and as a result, parents will have fewer choices among affordable, quality care. NACCRRA is concerned about a potential for an increase in use of unregulated care because children may not be safe or being cared for by adults who want them. Research shows that brain development is the greatest during the early years of birth to age five. There could be a long-term impact in children’s academic success and emotional security.

Child care is a major part of family life and a critical support for working parents, particularly for single working parents. Parents recognize that child care has a major influence on their children’s lives. It is crucial that children are safe and that child care settings promote their healthy development. Unfortunately, as the cost of child care continues to increase, and millions of Americans remain unemployed, or their work hours are reduced, the price of child care presents an ever greater challenge for parents.

Particularly with the current economy, it is essential that the federal government and the states assist more families with affording the cost of quality child care so more families do not have to resort to using unregulated care options. Working families earning low incomes have very few choices without assistance. But, many families are struggling with the high cost of child care, not just working poor families. It is time for the federal government to design a system to underwrite the cost of child care so that all families, and not just wealthy families, can afford the cost of quality child care.

Some parents have responded to the current economy by un-enrolling their children from organized child care programs or licensed settings. This means that more children may be in informal settings where providers have not had a background check or training in health and safety practices, such as first aid or CPR, let alone training in child development to ensure age-appropriate activities to promote the social, emotional, physical and cognitive development of children.

There are several initiatives states and the federal government can undertake to help make child care more affordable for working parents.

19


❖❖ Ensuring that public pre-kindergarten programs and Head Start are designed to meet the child care needs of working families by offering full day, year-round services.

NACCRRA has proposed leveraging a mixture of public and private investment to raise the bar of quality child care for all children and increase fee assistance to families who need it most. These recommendations include:

❖❖ Designing a system to help underwrite the cost of child care so that all families, not just wealthy families, can afford the cost of quality child care.

❖❖ Increasing federal and state investments in child care fee assistance and quality improvement efforts. ❖❖ Providing resources for planning and developing child care capacity to increase the availability of child care options for working families.

❖❖ Improving federal and state tax codes to help families at all income levels pay for care. ❖❖ Requiring the Department of Health and Human Services in conjunction with with the National Academy of Sciences to determine the cost of quality child care and report back to Congress.

❖❖ Reducing barriers in the subsidy administration process that prevent families from accessing assistance, such as making the re-certification process less time-consuming and cumbersome for working families using technology and other strategies.

When it comes to child care, families should no longer have to sacrifice quality for affordability. High-quality child care should be accessible and available for all children.

20


Appendix

21


Appendix 1

2008 Average Annual Price of Full-Time Care by State   State

Child Care Center

Family Child Care Home

Infant

4-year-old

School-Age

Infant

4-year-old

School-Age

Alabama

$5,460

$4,992

$4,628

$4,498

$4,342

$4,134

Alaska

$8,220

$7,000

$4,104

$7,060

$6,068

$3,532

Arizona

$8,505

$6,626

$5,889

$6,533

$6,129

$6,659

Arkansas

$5,345

$4,536

$4,213

$4,642

$4,246

$3,954

California

$11,580

$8,234

$5,245

$7,937

$7,180

$5,200

Colorado

$11,767

$9,067

$5,000

$8,050

$7,403

$4,203

Connecticut

$12,180

$9,832

$5,080

$9,055

$8,659

$4,120

Delaware

$8,769

$6,899

$5,223

$6,558

$5,740

$4,420

District of Columbia

$13,967

$10,660

$7,800

$7,280

$5,720

$5,200

Florida

$7,584

$6,033

$3,387

$6,883

$5,835

$3,605

Georgia

$6,954

$5,973

$3,372

$5,440

$4,920

$2,737

Hawaii

$11,496

$7,536

$10,719

$7,056

$6,888

$6,961

Idaho

$5,817

$5,360

$4,351

$5,087

$4,692

$4,354

Illinois

$11,025

$8,117

$4,688

$6,651

$6,099

$3,933

Indiana

$9,590

$6,990

$6,341

$5,627

$4,938

$4,559

Iowa

$8,273

$7,062

$5,663

$6,266

$6,001

$5,247

Kansas

$9,139

$6,526

$4,019

$6,012

$5,215

$2,946

Kentucky

$6,240

$5,720

$5,018

$5,720

$5,200

$4,730

Louisiana

$5,096

$4,610

$2,513

$4,247

$3,987

$2,870

Maine

$8,632

$7,228

$4,516

$6,448

$5,772

$3,792

Maryland

$11,962

$7,821

$4,699

$8,553

$6,882

$4,334

Massachusetts

$15,895

$11,678

$4,880

$10,324

$9,805

NA

Michigan

$8,996

$7,540

$6,656

$6,708

$6,448

$6,032

Minnesota

$12,800

$9,700

NA

$7,150

$6,400

NA

Mississippi

$4,560

$4,056

$2,160

$3,900

$3,380

$1,820

Missouri

$6,632

$4,532

$3,904

$4,828

$4,267

$3,770

Montana

$7,178

$6,467

$3,012

$6,413

$6,040

$2,790

Nebraska

$8,216

$6,760

N/A

$6,500

$5,200

NA

Nevada

$9,012

$7,133

$4,430

$8,118

$7,514

$3,969

New Hampshire

$10,088

$8,035

$5,590

$7,939

$7,143

$5,730

New Jersey

$10,365

$8,400

$4,757

$8,127

$7,101

$5,071

New Mexico

$6,832

$5,931

$4,782

$6,412

$5,874

$4,592

New York

$13,630

$10,541

NA

$9,737

$9,155

NA

North Carolina

$8,148

$6,804

NA

$6,264

$5,376

NA

North Dakota

$6,743

$5,966

NA

$5,690

$5,357

NA

Ohio

$9,340

$7,384

$6,459

$7,106

$6,425

$5,907

Oklahoma

$6,595

$4,881

$4,140

$5,478

$4,873

$4,137

Oregon

$9,936

$7,500

$3,936

$5,700

$5,400

$3,816

Pennsylvania

$9,880

$8,060

NA

$6,500

$5,564

NA

Rhode Island

$9,464

$7,800

$7,020

$7,800

$7,800

$7,020

22


Appendix 1

2008 Average Annual Price of Full-Time Care by State   State

Child Care Center

Family Child Care Home

Infant

4-year-old

School-Age

Infant

4-year-old

School-Age

South Carolina

$5,690

$4,756

$3,582

$3,582

$3,852

NA

South Dakota

$7,410

$6,500

NA

$5,785

$5,330

NA

Tennessee

$6,996

$5,934

$2,971

$4,998

$4,614

$2,931

Texas

$7,176

$6,084

NA

$5,824

$5,824

NA

Utah

$7,440

$5,580

$3,960

$5,520

$4,800

$3,720

Vermont

$8,107

$7,485

$4,252

$6,812

$6,322

$3,489

Virginia

$10,426

$8,268

$6,604

$8,086

$7,098

$5,824

Washington

$10,140

$7,800

$4,368

$7,800

$6,504

$3,552

West Virginia

$6,000

$4,560

$3,480

$4,080

$3,600

$3,600

Wisconsin

$10,400

$8,424

$8,008

$8,372

$7,384

$7,124

Wyoming

$7,800

$6,500

$3,338

$6,705

$6,468

$3,110

NA: States did not report price data for some categories of care. Source: NACCRRA’s January 2009 survey of Child Care Resource & Referral State Networks.

23


Appendix 1a

Average Annual Price & Percentage Change of Full-Time Care by State  Child Care Center Average Annual Price for Infant in 2008

Average Annual Price for Infant in 2007

Infant Percentage Change (+/-)

Average Annual Price for 4-year-old Child in 2008

Average Annual Price for 4-year-old Child in 2007

Preschool-Age Percentage Change (+/-)

Alabama

$5,460

NA

NA

$4,992

NA

NA

Alaska

$8,220

NA

NA

$7,000

NA

NA

Arizona

$8,505

$7,974

6.7%

$6,626

$6,390

3.7%

Arkansas

$5,345

$5,231

2.2%

$4,536

$4,475

1.4%

California

$11,580

NA

NA

$8,234

NA

NA

Colorado

$11,767

NA

NA

$9,067

NA

NA

Connecticut

$12,180

$11,274

8.0%

$9,832

$9,111

7.9%

Delaware

$8,769

$8,476

3.5%

$6,899

$6,656

3.7%

District of Columbia

$13,967

$10,400

34.3%

$10,660

$7,800

36.7%

State

Florida

$7,584

$7,336

3.4%

$6,033

$5,871

2.8%

Georgia

$6,954

$6,845

1.6%

$5,973

$5,674

5.3%

Hawaii

$11,496

$10,411

10.4%

$7,536

$6,480

16.3%

Idaho

$5,817

$5,736

1.4%

$5,360

$5,004

7.1%

Illinois

$11,025

$10,550

4.5%

$8,117

$7,802

4.0%

Indiana

$9,590

$9,005

6.5%

$6,990

$7,001

-0.2%

Iowa

$8,273

$7,360

12.4%

$7,062

$5,939

18.9%

Kansas

$9,139

$8,917

2.5%

$6,526

$6,292

3.7%

Kentucky

$6,240

NA

NA

$5,720

NA

NA

Louisiana

$5,096

NA

NA

$4,610

NA

NA

Maine

$8,632

$8,424

2.5%

$7,228

$7,020

3.0%

Maryland

$11,962

$11,329

5.6%

$7,821

$7,380

6.0%

Massachusetts

$15,895

$14,591

8.9%

$11,678

$10,787

8.3%

Michigan

$8,996

$9,294

-3.2%

$7,540

$7,025

7.3%

Minnesota

$12,800

$12,300

4.1%

$9,700

$9,350

3.7%

Mississippi

$4,560

$4,542

0.4%

$4,056

$3,380

20.0%

Missouri

$6,632

$6,539

1.4%

$4,532

$4,836

-6.3%

Montana

$7,178

$7,560

-5.1%

$6,467

$6,300

2.7%

Nebraska

$8,216

NA

NA

$6,760

NA

NA

Nevada

$9,012

$8,391

7.4%

$7,133

$6,707

6.4%

New Hampshire

$10,088

$9,776

3.2%

$8,035

$7,540

6.6%

New Jersey

$10,365

$10,095

2.7%

$8,400

$7,985

5.2%

New Mexico

$6,832

$6,228

9.7%

$5,931

$5,382

10.2%

New York

$13,630

NA

NA

$10,541

NA

NA

North Carolina

$8,148

$7,800

4.5%

$6,804

$6,756

0.7%

North Dakota

$6,743

$6,559

2.8%

$5,966

$5,742

3.9%

Ohio

$9,340

$8,946

4.4%

$7,384

$7,071

4.4%

Oklahoma

$6,595

$6,219

6.0%

$4,881

$5,277

-7.5%

24


Appendix 1a

Average Annual Price & Percentage Change of Full-Time Care by State  Child Care Center Average Annual Price for Infant in 2008

Average Annual Price for Infant in 2007

Infant Percentage Change (+/-)

Average Annual Price for 4-year-old Child in 2008

Average Annual Price for 4-year-old Child in 2007

Preschool-Age Percentage Change (+/-)

Oregon

$9,936

$8,988

10.5%

$7,500

$6,480

15.7%

Pennsylvania

$9,880

$11,200

-11.8%

$8,060

$6,800

18.5%

Rhode Island

$9,464

$9,464

No Change

$7,800

$7,800

No Change

South Carolina

$5,690

$6,032

-5.7%

$4,756

$5,460

-12.9%

South Dakota

$7,410

$7,488

-1.0%

$6,500

$6,240

4.2%

Tennessee

State

$6,996

$6,173

13.3%

$5,934

$5,436

9.2%

Texas

$7,176

$7,440

-3.5%

$6,084

$5,799

4.9%

Utah

$7,440

$6,768

9.9%

$5,580

$5,400

3.3%

Vermont

$8,107

$7,475

8.5%

$7,485

$7,056

6.1%

Virginia

$10,426

$9,100

14.6%

$8,268

$7,176

15.2%

Washington

$10,140

$9,624

5.4%

$7,800

$7,284

7.1%

West Virginia

$6,000

$6,000

No Change

$4,560

$4,560

No Change

Wisconsin

$10,400

$12,350

NA

$8,424

$10,524

NA

Wyoming

$7,800

$7,160

8.9%

$6,500

$6,248

4.0%

NA: Due to changes in data sources or unavailability of data, prices from these states cannot be compared. Source: NACCRRA’s January 2009 survey of Child Care Resource & Referral State Networks.

25


Appendix 2

2008 Ranking of Affordability of Child Care for an Infant in a Center (1 = Highest; 50 = Lowest) Average Annual Price of Infant Care*

Median Family Income for Single Parent**

Price of Care as a Percentage of Median Single Parent Income

Median Family Income for Two Parents**

Price of Care as a Percentage of Median TwoParent Family Income

Rank (based on percentage of two-parent family income)

New York

$13,630

$24,379.00

55.9%

$84,054.00

16.2%

1

Massachusetts

$15,895

$26,680.00

59.6%

$102,090.00

15.6%

2

Minnesota

$12,800

$26,418.00

48.5%

$84,788.00

15.1%

3

Colorado

$11,767

$25,863.00

45.5%

$78,682.00

15.0%

4

State

California

$11,580

$27,273.00

42.5%

$78,948.00

14.7%

5

Hawaii

$11,496

$30,289.00

38.0%

$81,505.00

14.1%

6

Oregon

$9,936

$22,540.00

44.1%

$71,286.00

13.9%

7

Illinois

$11,025

$25,912.00

42.5%

$80,675.00

13.7%

8

Wisconsin

$10,400

$23,552.00

44.2%

$76,869.00

13.5%

9

Indiana

$9,590

$22,542.00

42.5%

$71,172.00

13.5%

9

Kansas

$9,139

$25,020.00

36.5%

$71,933.00

12.7%

11

Pennsylvania

$9,880

$23,492.00

42.1%

$77,944.00

12.7%

11

Washington

$10,140

$25,088.00

40.4%

$80,106.00

12.7%

11

Maine

$8,632

$21,823.00

39.6%

$68,452.00

12.6%

14

Ohio

$9,340

$21,284.00

43.9%

$75,352.00

12.4%

15

District of Columbia

$13,967

$26,771.00

52.2%

$112,852.00

12.4%

15

Arizona

$8,505

$25,911.00

32.8%

$71,471.00

11.9%

17

Nevada

$9,012

$28,841.00

31.2%

$75,768.00

11.9%

17

Connecticut

$12,180

$30,036.00

40.6%

$102,958.00

11.8%

19

Michigan

$8,996

$22,259.00

40.4%

$76,117.00

11.8%

19

Virginia

$10,426

$27,337.00

38.1%

$88,264.00

11.8%

19

Nebraska

$8,216

$22,126.00

37.1%

$70,709.00

11.6%

22

North Carolina

$8,148

$21,507.00

37.9%

$70,150.00

11.6%

22

Maryland

$11,962

$34,803.00

34.4%

$103,439.00

11.6%

22

Iowa

$8,273

$22,942.00

36.1%

$72,086.00

11.5%

25

Montana

$7,178

$17,229.00

41.7%

$62,629.00

11.5%

25

New Hampshire

$10,088

$30,001.00

33.6%

$90,310.00

11.2%

27

Rhode Island

$9,464

$21,772.00

43.5%

$84,949.00

11.1%

28

New Mexico

$6,832

$19,020.00

35.9%

$61,537.00

11.1%

28

South Dakota

$7,410

$22,652.00

32.7%

$67,111.00

11.0%

30

Vermont

$8,107

$23,561.00

34.4%

$74,414.00

10.9%

31

Oklahoma

$6,595

$18,460.00

35.7%

$61,202.00

10.8%

32

$7,176

$22,152.00

32.4%

$66,653.00

10.8%

32

Tennessee

$6,996

$20,295.00

34.5%

$66,242.00

10.6%

34

Utah

$7,440

$26,607.00

28.0%

$70,049.00

10.6%

34

Florida

$7,584

$25,660.00

29.6%

$71,660.00

10.6%

34

Texas

Delaware

$8,769

$27,653.00

31.7%

$83,624.00

10.5%

37

West Virginia

$6,000

$16,684.00

36.0%

$59,084.00

10.2%

38

26


Appendix 2

2008 Ranking of Affordability of Child Care for an Infant in a Center (1 = Highest; 50 = Lowest) Average Annual Price of Infant Care*

Median Family Income for Single Parent**

Price of Care as a Percentage of Median Single Parent Income

Median Family Income for Two Parents**

Price of Care as a Percentage of Median TwoParent Family Income

Rank (based on percentage of two-parent family income)

New Jersey

$10,365

$32,159.00

32.2%

$101,979.00

10.2%

38

Wyoming

$7,800

$26,285.00

29.7%

$78,220.00

10.0%

40

Alaska

$8,220

$31,524.00

26.1%

$85,684.00

9.6%

41

North Dakota

$6,743

$22,127.00

30.5%

$71,375.00

9.4%

42

State

Missouri

$6,632

$21,993.00

30.2%

$70,550.00

9.4%

42

Kentucky

$6,240

$18,306.00

34.1%

$66,410.00

9.4%

42

Georgia

$6,954

$23,383.00

29.7%

$74,364.00

9.4%

42

Idaho

$5,817

$22,369.00

26.0%

$62,809.00

9.3%

46

Arkansas

$5,345

$16,984.00

31.5%

$58,737.00

9.1%

47

South Carolina

$5,690

$21,165.00

26.9%

$70,104.00

8.1%

48

Alabama

$5,460

$17,620.00

31.0%

$67,460.00

8.1%

48

Mississippi

$4,560

$16,547.00

27.6%

$62,895.00

7.3%

50

Louisiana

$5,096

$16,692.00

30.5%

$71,682.00

7.1%

51

* Source: NACCRRA’s January 2009 survey of Child Care Resource & Referral State Networks. ** Source: American Community Survey 2007, U.S. Census Bureau.

27


Appendix 3

2008 Ranking of Affordability for Child Care for a 4-Year-Old in a Center (1 = Highest; 50 = Lowest)

Median Income for Two Parents**

Price of Care as a Percentage of Median TwoParent Family Income

Rank (based on percentage of twoparent family income)

Average Annual Price of Care*

Median Income for Single Parents**

Price of Care as a Percentage of Median Single Parent Income

New York

$10,541

$24,379.00

43.2%

$84,054.00

12.5%

1

Colorado

$9,067

$25,863.00

35.1%

$78,682.00

11.5%

2

Minnesota

$9,700

$26,418.00

36.7%

$84,788.00

11.4%

3

State

Massachusetts

$11,678

$26,680.00

43.8%

$102,090.00

11.4%

3

Wisconsin

$8,424

$23,552.00

35.8%

$76,869.00

11.0%

5

Maine

$7,228

$21,823.00

33.1%

$68,452.00

10.6%

6

Oregon

$7,500

$22,540.00

33.3%

$71,286.00

10.5%

7

California

$8,234

$27,273.00

30.2%

$78,948.00

10.4%

8

Pennsylvania

$8,060

$23,492.00

34.3%

$77,944.00

10.3%

9

Montana

$6,467

$17,229.00

37.5%

$62,629.00

10.3%

9

Illinois

$8,117

$25,912.00

31.3%

$80,675.00

10.1%

11

Vermont

$7,485

$23,561.00

31.8%

$74,414.00

10.1%

11

Michigan

$7,540

$22,259.00

33.9%

$76,117.00

9.9%

13

Indiana

$6,990

$22,542.00

31.0%

$71,172.00

9.8%

14

Ohio

$7,384

$21,284.00

34.7%

$75,352.00

9.8%

14

Iowa

$7,062

$22,942.00

30.8%

$72,086.00

9.8%

14

Washington

$7,800

$25,088.00

31.1%

$80,106.00

9.7%

17

North Carolina

$6,804

$21,507.00

31.6%

$70,150.00

9.7%

17

South Dakota

$6,500

$22,652.00

28.7%

$67,111.00

9.7%

17

New Mexico

$5,931

$19,020.00

31.2%

$61,537.00

9.6%

20

Nebraska

$6,760

$22,126.00

30.6%

$70,709.00

9.6%

20

Connecticut

$9,832

$30,036.00

32.7%

$102,958.00

9.5%

22

District of Columbia

$10,660

$26,771.00

39.8%

$112,852.00

9.4%

23

Nevada

$7,133

$28,841.00

24.7%

$75,768.00

9.4%

23

Virginia

$8,268

$27,337.00

30.2%

$88,264.00

9.4%

23

Arizona

$6,626

$25,911.00

25.6%

$71,471.00

9.3%

26

Hawaii

$7,536

$30,289.00

24.9%

$81,505.00

9.2%

27

Rhode Island

$7,800

$21,772.00

35.8%

$84,949.00

9.2%

27

Texas

$6,084

$22,152.00

27.5%

$66,653.00

9.1%

29

Kansas

$6,526

$25,020.00

26.1%

$71,933.00

9.1%

29

Tennessee

$5,934

$20,295.00

29.2%

$66,242.00

9.0%

31

New Hampshire

$8,035

$30,001.00

26.8%

$90,310.00

8.9%

32

Kentucky

$5,720

$18,306.00

31.2%

$66,410.00

8.6%

33

Idaho

$5,360

$22,369.00

24.0%

$62,809.00

8.5%

34

Florida

$6,033

$25,660.00

23.5%

$71,660.00

8.4%

35

North Dakota

$5,966

$22,127.00

27.0%

$71,375.00

8.4%

35

Wyoming

$6,500

$26,285.00

24.7%

$78,220.00

8.3%

37

28


Appendix 3

2008 Ranking of Affordability for Child Care for a 4-Year-Old in a Center (1 = Highest; 50 = Lowest)

Median Income for Two Parents**

Price of Care as a Percentage of Median TwoParent Family Income

Rank (based on percentage of twoparent family income)

Average Annual Price of Care*

Median Income for Single Parents**

Price of Care as a Percentage of Median Single Parent Income

Delaware

$6,899

$27,653.00

24.9%

$83,624.00

8.3%

37

Alaska

$7,000

$31,524.00

22.2%

$85,684.00

8.2%

39

New Jersey

$8,400

$32,159.00

26.1%

$101,979.00

8.2%

39

State

Georgia

$5,973

$23,383.00

25.5%

$74,364.00

8.0%

41

Oklahoma

$4,881

$18,460.00

26.4%

$61,202.00

8.0%

41

Utah

$5,580

$26,607.00

21.0%

$70,049.00

8.0%

41

Arkansas

$4,536

$16,984.00

26.7%

$58,737.00

7.7%

44

West Virginia

$4,560

$16,684.00

27.3%

$59,084.00

7.7%

44

Maryland

$7,821

$34,803.00

22.5%

$103,439.00

7.6%

46

Alabama

$4,992

$17,620.00

28.3%

$67,460.00

7.4%

47

South Carolina

$4,756

$21,165.00

22.5%

$70,104.00

6.8%

48

Mississippi

$4,056

$16,547.00

24.5%

$62,895.00

6.4%

49

Louisiana

$4,610

$16,692.00

27.6%

$71,682.00

6.4%

49

Missouri

$4,532

$21,993.00

20.6%

$70,550.00

6.4%

49

* Source: NACCRRA’s January 2009 survey of Child Care Resource & Referral State Networks. ** Source: American Community Survey 2007, U.S. Census Bureau.

29


Appendix 4

2008 Average Monthly Child Care Center Prices and Median Monthly Housing Costs by State   State

Average Child Care Prices*

Median Housing Costs**

Infant

4-year-old

School-Age

Two Children***

Mortgage

Rent

Alabama

$5,460

$4,992

$4,628

$10,452

$1,049

$601

Alaska

$8,220

$7,000

$4,104

$15,220

$1,711

$918

Arizona

$8,505

$6,626

$5,889

$15,131

$1,464

$819

Arkansas

$5,345

$4,536

$4,213

$9,881

$920

$573

California

$11,580

$8,234

$5,245

$19,814

$2,314

$1,078

Colorado

$11,767

$9,067

$5,000

$20,834

$1,569

$788

Connecticut

$12,180

$9,832

$5,080

$22,012

$1,971

$931

Delaware

$8,769

$6,899

$5,223

$15,668

$1,478

$910

District of Columbia

$13,967

$10,660

$7,800

$24,627

$2,094

$934

Florida

$7,584

$6,033

$3,387

$13,617

$1,577

$925

Georgia

$6,954

$5,973

$3,372

$12,927

$1,343

$768

Hawaii

$11,496

$7,536

$10,719

$19,032

$2,099

$1,194

Idaho

$5,817

$5,360

$4,351

$11,177

$1,162

$654

Illinois

$11,025

$8,117

$4,688

$19,142

$1,625

$783

Indiana

$9,590

$6,990

$6,341

$16,580

$1,098

$638

Iowa

$8,273

$7,062

$5,663

$15,335

$1,100

$567

Kansas

$9,139

$6,526

$4,019

$15,665

$1,169

$623

Kentucky

$6,240

$5,720

$5,018

$11,960

$1,021

$563

Louisiana

$5,096

$4,610

$2,513

$9,706

$1,074

$651

Maine

$8,632

$7,228

$4,516

$15,860

$1,249

$650

Maryland

$11,962

$7,821

$4,699

$19,783

$1,881

$1,000

Massachusetts

$15,895

$11,678

$4,880

$27,573

$2,021

$946

Michigan

$8,996

$7,540

$6,656

$16,536

$1,332

$683

Minnesota

$12,800

$9,700

NA

$22,500

$1,500

$711

Mississippi

$4,560

$4,056

$2,160

$8,616

$956

$609

Missouri

$6,632

$4,532

$3,904

$11,164

$1,152

$618

Montana

$7,178

$6,467

$3,012

$13,645

$1,141

$579

Nebraska

$8,216

$6,760

NA

$14,976

$1,199

$614

Nevada

$9,012

$7,133

$4,430

$16,145

$1,779

$980

New Hampshire

$10,088

$8,035

$5,590

$18,123

$1,830

$892

New Jersey

$10,365

$8,400

$4,757

$18,765

$2,278

$1,026

New Mexico

$6,832

$5,931

$4,782

$12,763

$1,130

$637

New York

$13,630

$10,541

NA

$24,171

$1,865

$907

North Carolina

$8,148

$6,804

NA

$14,952

$1,189

$678

North Dakota

$6,743

$5,966

NA

$12,709

$1,093

$516

Ohio

$9,340

$7,384

$6,459

$16,724

$1,242

$643

Oklahoma

$6,595

$4,881

$4,140

$11,475

$1,015

$588

Oregon

$9,936

$7,500

$3,936

$17,436

$1,508

$743

Pennsylvania

$9,880

$8,060

NA

$17,940

$1,324

$685

30


Appendix 4

2008 Average Monthly Child Care Center Prices and Median Monthly Housing Costs by State   State

Average Child Care Prices*

Median Housing Costs**

Infant

4-year-old

School-Age

Two Children***

Mortgage

Rent

Rhode Island

$9,464

$7,800

$7,020

$17,264

$1,788

$830

South Carolina

$5,690

$4,756

$3,582

$10,446

$1,117

$645

South Dakota

$7,410

$6,500

NA

$13,910

$1,104

$526

Tennessee

$6,996

$5,934

$2,971

$12,930

$1,105

$634

Texas

$7,176

$6,084

NA

$13,260

$1,342

$734

Utah

$7,440

$5,580

$3,960

$13,020

$1,358

$733

Vermont

$8,107

$7,485

$4,252

$15,592

$1,391

$756

Virginia

$10,426

$8,268

$6,604

$18,694

$1,655

$892

Washington

$10,140

$7,800

$4,368

$17,940

$1,675

$816

West Virginia

$6,000

$4,560

$3,480

$10,560

$881

$525

Wisconsin

$10,400

$8,424

$8,008

$18,824

$1,374

$673

Wyoming

$7,800

$6,500

$3,338

$14,300

$1,162

$636

* Source: NACCRRA’s January 2009 survey of Child Care Resource & Referral State Networks. ** Source: American Community Survey 2007, U.S. Census Bureau. ***One infant and one preschool-age child. NA No data available.

31


Appendix 5

2008 Average Annual Prices of Full-Time Child Care Center and Public College Tuition and Fees by State Average Child Care Prices*   State

Infant

4-year-old

School-Age

Average Tuition and Fees at a Public College**

Alabama

$5,460

$4,992

$4,628

$5,925

Alaska

$8,220

$7,000

$4,104

$4,642

Arizona

$8,505

$6,626

$5,889

$5,577

Arkansas

$5,345

$4,536

$4,213

$5,928

California

$11,580

$8,234

$5,245

$5,346

Colorado

$11,767

$9,067

$5,000

$5,916

Connecticut

$12,180

$9,832

$5,080

$8,035

Delaware

$8,769

$6,899

$5,223

$8,276

District of Columbia

$13,967

$10,660

$7,800

$3,770

Florida

$7,584

$6,033

$3,387

$3,792

Georgia

$6,954

$5,973

$3,372

$4,464

Hawaii

$11,496

$7,536

$10,719

$5,842

Idaho

$5,817

$5,360

$4,351

$4,613

Illinois

$11,025

$8,117

$4,688

$10,014

Indiana

$9,590

$6,990

$6,341

$7,223

Iowa

$8,273

$7,062

$5,663

$6,435

Kansas

$9,139

$6,526

$4,019

$6,141

Kentucky

$6,240

$5,720

$5,018

$6,799

Louisiana

$5,096

$4,610

$2,513

$4,078

Maine

$8,632

$7,228

$4,516

$8,059

Maryland

$11,962

$7,821

$4,699

$7,395

Massachusetts

$15,895

$11,678

$4,880

$8,184

Michigan

$8,996

$7,540

$6,656

$9,079

Minnesota

$12,800

$9,700

NA

$8,251

Mississippi

$4,560

$4,056

$2,160

$4,936

Missouri

$6,632

$4,532

$3,904

$7,198

Montana

$7,178

$6,467

$3,012

$5,335

Nebraska

$8,216

$6,760

NA

$5,949

Nevada

$9,012

$7,133

$4,430

$4,395

New Hampshire

$10,088

$8,035

$5,590

$10,296

New Jersey

$10,365

$8,400

$4,757

$10,739

New Mexico

$6,832

$5,931

$4,782

$4,514

New York

$13,630

$10,541

NA

$5,126

North Carolina

$8,148

$6,804

NA

$4,416

North Dakota

$6,743

$5,966

NA

$6,110

Ohio

$9,340

$7,384

$6,459

$8,482

Oklahoma

$6,595

$4,881

$4,140

$5,618

32


Appendix 5

2008 Average Annual Prices of Full-Time Child Care Center and Public College Tuition and Fees by State Average Child Care Prices*   State

Infant

4-year-old

School-Age

Average Tuition and Fees at a Public College**

Oregon

$9,936

$7,500

$3,936

$6,238

Pennsylvania

$9,880

$8,060

NA

$10,328

Rhode Island

$9,464

$7,800

$7,020

$7,722

South Carolina

$5,690

$4,756

$3,582

$9,127

South Dakota

$7,410

$6,500

NA

$5,748

Tennessee

$6,996

$5,934

$2,971

$5,684

Texas

$7,176

$6,084

NA

$6,894

Utah

$7,440

$5,580

$3,960

$4,298

Vermont

$8,107

$7,485

$4,252

$11,341

Virginia

$10,426

$8,268

$6,604

$7,596

Washington

$10,140

$7,800

$4,368

$6,379

West Virginia

$6,000

$4,560

$3,480

$4,705

Wisconsin

$10,400

$8,424

$8,008

$6,800

Wyoming

$7,800

$6,500

$3,338

$3,621

* Source: NACCRRA’s January 2009 survey of Child Care Resource & Referral State Networks. ** Source: Average price of 2007-2008 full-time tuition and fees for public four-year colleges, College Board, Trends in College Pricing, 2007. NA No data available.

33


Appendix 6

2008 Ranking of Affordability for Child Care for a School-Age Child in a Center* (1 = Highest; 50 = Lowest)

Average Annual Price of Care*

Median Income for Two Parents**

Price of Care as a Percentage of Median Two Parent Family Income

Rank (based on percentage of two-parent family income)

Hawaii

$10,719

$81,505.00

13.2%

1

State

Wisconsin

$8,008

$76,869.00

10.4%

2

Indiana

$6,341

$71,172.00

8.9%

3

Michigan

$6,656

$76,117.00

8.7%

4

Ohio

$6,459

$75,352.00

8.6%

5

Rhode Island

$7,020

$84,949.00

8.3%

6

Arizona

$5,889

$71,471.00

8.2%

7

Iowa

$5,663

$72,086.00

7.9%

8

New Mexico

$4,782

$61,537.00

7.8%

9

Kentucky

$5,018

$66,410.00

7.6%

10

Virginia

$6,604

$88,264.00

7.5%

11

Arkansas

$4,213

$58,737.00

7.2%

12

Idaho

$4,351

$62,809.00

6.9%

13

District of Columbia

$7,800

$112,852.00

6.9%

13

Alabama

$4,628

$67,460.00

6.9%

13

Oklahoma

$4,140

$61,202.00

6.8%

16

California

$5,245

$78,948.00

6.6%

17

Maine

$4,516

$68,452.00

6.6%

17

Colorado

$5,000

$78,682.00

6.4%

19

Delaware

$5,223

$83,624.00

6.2%

20

New Hampshire

$5,590

$90,310.00

6.2%

20

West Virginia

$3,480

$59,084.00

5.9%

22

Nevada

$4,430

$75,768.00

5.8%

23

Illinois

$4,688

$80,675.00

5.8%

23

Vermont

$4,252

$74,414.00

5.7%

25

Utah

$3,960

$70,049.00

5.7%

25

Kansas

$4,019

$71,933.00

5.6%

27

Missouri

$3,904

$70,550.00

5.5%

28

Oregon

$3,936

$71,286.00

5.5%

28

Washington

$4,368

$80,106.00

5.5%

28

South Carolina

$3,582

$70,104.00

5.1%

31

Connecticut

$5,080

$102,958.00

4.9%

32

Montana

$3,012

$62,629.00

4.8%

33

Alaska

$4,104

$85,684.00

4.8%

33

Massachusetts

$4,880

$102,090.00

4.8%

33

Florida

$3,387

$71,660.00

4.7%

36

New Jersey

$4,757

$101,979.00

4.7%

36

Maryland

$4,699

$103,439.00

4.5%

38

34


Appendix 6

2008 Ranking of Affordability for Child Care for a School-Age Child in a Center* (1 = Highest; 50 = Lowest)

Average Annual Price of Care*

Median Income for Two Parents**

Price of Care as a Percentage of Median Two Parent Family Income

Rank (based on percentage of two-parent family income)

$3,372

$74,364.00

4.5%

38

Tennessee

$2,971

$66,242.00

4.5%

38

Wyoming

$3,338

$78,220.00

4.3%

41

Louisiana

$2,513

$71,682.00

3.5%

42

Mississippi

$2,160

$62,895.00

3.4%

43

State

Georgia

* Source: NACCRRA’s January 2009 survey of Child Care Resource & Referral State Networks. Minnesota, North Carolina, North Dakota, Nebraska, New York, Pennsylvania, South Dakota and Texas did not report cost for school-age care in a center for 2009. ** Source: American Community Survey 2007, U.S. Census Bureau.

35


Appendix 7

2008 Urban** and Rural Costs for Infants and 4-Year-Olds in a Center Infant Care

4-Year-Old Difference in Price of Urban Care As Percentage of Rural Care

Urban Care Cost

Rural Care Cost

Dollar Difference Between Urban and Rural Care

Difference in Price of Urban Care As Percentage of Rural Care

Urban Care Cost

Rural Care Cost

Dollar Difference Between Urban and Rural Care

Alabama

$5,876

$4,680

$1,196

25.6%

$5,304

$4,316

$988

22.9%

Alaska

$8,744

$8,040

$704

8.8%

$7,324

$6,872

$452

6.6%

Califronia

$11,951

$10,515

$1,436

13.7%

$8,517

$7,422

$1,095

14.8%

Colorado

$12,243

$9,686

$2,557

26.4%

$9,286

$8,160

$1,126

13.8%

Florida

$7,659

$6,049

$1,610

26.6%

$6,075

$5,013

$1,062

21.2%

Georgia

$7,550

$4,569

$2,981

65.2%

$6,411

$4,174

$2,237

53.6%

Iowa

$9,017

$7,119

$1,898

26.7%

$7,462

$6,360

$1,102

17.3%

Illinois

$11,831

$10,616

$1,215

11.4%

$8,473

$7,895

$578

7.3%

Indiana

$10,016

$7,032

$2,984

42.4%

$7,293

$5,445

$1,848

33.9%

Kansas

$9,687

$8,777

$910

10.4%

$6,848

$6,359

$489

7.7%

Louisiana

$5,244

$4,185

$1,058

25.3%

$4,723

$4,001

$722

18.0%

Massachusetts

$15,821

$12,608

$3,213

25.5%

$11,180

$9,828

$1,352

13.8%

Maryland

$12,163

$7,613

$4,550

59.8%

$7,927

$5,780

$2,147

37.1%

Maine

$11,076

$8,580

$2,496

29.1%

$8,944

$7,176

$1,768

24.7%

Michigan

$9,464

$8,268

$1,196

14.5%

$7,696

$7,072

$624

8.8%

Minnesota***

$14,300

$8,950

$5,350

59.8%

$10,600

$7,350

$3,250

44.2%

Missouri

$8,275

$6,575

$1,700

25.9%

$6,052

$4,494

$1,558

34.7%

Montana

$7,813

$6,861

$952

13.9%

$6,663

$6,370

$293

4.6%

North Dakota

$7,272

$5,808

$1,464

25.2%

$6,270

$5,380

$890

16.5%

New Hampshire

$10,972

$9,920

$1,052

10.6%

$8,746

$7,995

$751

9.4%

New Mexico

$6,832

$5,388

$1,444

26.8%

$5,931

$4,218

$1,713

40.6%

Nevada

$9,484

$6,749

$2,734

40.5%

$7,392

$5,883

$1,509

25.6%

Ohio

$10,321

$6,491

$3,830

59.0%

$8,036

$5,465

$2,571

47.0%

Oklahoma

$7,323

$6,007

$1,316

21.9%

$5,155

$4,593

$563

12.3%

Oregon

$10,752

$5,028

$5,724

113.8%

$8,220

$4,320

$3,900

90.3%

Pennsylvania

$10,920

$6,136

$4,784

78.0%

$8,580

$6,136

$2,444

39.8%

Tennessee

$6,867

$4,899

$1,968

40.2%

$5,981

$4,678

$1,303

27.9%

State

Utah

$7,680

$6,180

$1,500

24.3%

$5,700

$5,220

$480

9.2%

Virginia

$12,064

$5,200

$6,864

132.0%

$9,932

$4,576

$5,356

117.0%

Wisconsin

$11,492

$10,400

$1,092

10.5%

$9,308

$8,424

$884

10.5%

Wyoming

$7,172

$7,438

-$266

-3.6%

$5,972

$6,630

-$658

-9.9%

* Source: NACCRRA’s January 2009 survey of Child Care Resource & Referral State Networks. Only states which reported costs are listed. ** ”Urban Area” is defined as a cluster of 50,000 or more people, based upon the U.S. Census definition of “Urban Area or Urban Cluster.” *** Minnesota’s urban prices are based on the St. Paul/Minneapolis metro area.

36


Appendix 8

2008 Average Annual Price of Full-Time Care for an Infant in a Center Overall Price of Care vs. Accredited Care* Average Annual Price of Care

Average Annual Price of Accredited Care

Difference in Price

Percent Price Increase for Accredited Care

Idaho

$5,817

$7,995

$2,179

37.5%

Hawaii

$11,496

$15,600

$4,104

35.7%

Missouri

$6,632

$8,609

$1,977

29.8%

Georgia

$6,954

$8,461

$1,507

21.7%

Nevada

$9,012

$10,853

$1,841

20.4%

Oklahoma

$6,595

$7,898

$1,304

19.8%

Minnesota

$12,800

$15,250

$2,450

19.1%

Wisconsin

$10,400

$12,220

$1,820

17.5%

Maryland

$11,962

$13,981

$2,019

16.9%

West Virginia

$6,000

$6,960

$960

16.0%

State

Iowa

$8,273

$9,590

$1,317

15.9%

Utah

$7,440

$8,580

$1,140

15.3%

Illinois

$11,025

$12,653

$1,628

14.8%

New Hampshire

$10,088

$11,492

$1,404

13.9%

New Jersey

$10,365

$11,697

$1,402

12.8%

New Mexico

$6,832

$7,669

$837

12.3%

Arizona

$8,505

$9,541

$1,036

12.2%

North Dakota

$6,743

$7,504

$761

11.3%

Florida

$7,584

$8,333

$749

9.9%

Michigan

$8,996

$9,828

$832

9.2%

Virginia

$10,426

$11,362

$936

9.0%

Indiana

$9,590

$10,225

$635

6.6%

Massachusetts

$15,895

$16,835

$940

5.9%

South Carolina

$5,690

$5,850

$160

2.8%

Kentucky

$6,240

$6,390

$150

2.4%

Maine

$8,632

$8,788

$156

1.8%

Colorado

$11,767

$11,933

$166

1.4%

District of Columbia

$13,967

$14,040

$73

0.5%

Alaska

$8,220

$8,220

No Difference

No Change

Mississippi

$4,560

$4,560

No Difference

No Change

Rhode Island

$9,464

$9,464

No Difference

No Change

Kansas

$9,139

$9,103

-$36

-0.4%

Wyoming

$7,800

$7,245

-$555

-7.1%

Arkansas

$5,345

$4,937

-$408

-7.6%

* Source: NACCRRA’s January 2009 survey of Child Care Resource & Referral State Networks. Only states which reported accredited care costs are listed.

37


Appendix 9

2008 Average Annual Price of Full-Time Care for a 4-Year-Old in a Center Overall Price of Care vs. Accredited Care* Average Annual Price of Care

Average Annual Price of Accredited Care

Difference in Price

Percent Price Increase for Accredited Care

Nevada

$7,133

$8,870

$1,737

24.4%

Oklahoma

$4,881

$6,010

$1,129

23.1%

Utah

$5,580

$6,780

$1,200

21.5%

West Virginia

$4,560

$5,520

$960

21.1%

Idaho

$5,360

$6,355

$994

18.5%

Georgia

$5,973

$7,057

$1,084

18.1%

Minnesota

$9,700

$11,400

$1,700

17.5%

New Hampshire

$8,035

$9,357

$1,322

16.5%

Maryland

$7,821

$9,076

$1,255

16.0%

Wisconsin

$8,424

$9,724

$1,300

15.4%

Hawaii

$7,536

$8,656

$1,120

14.9%

Illinois

$8,117

$9,285

$1,168

14.4%

Arizona

$6,626

$7,501

$875

13.2%

Missouri

$4,532

$5,113

$581

12.8%

New Jersey

$8,400

$9,403

$914

11.9%

North Dakota

$5,966

$6,603

$637

10.7%

Florida

$6,033

$6,629

$596

9.9%

Virginia

$8,268

$9,022

$754

9.1%

Michigan

$7,540

$8,216

$676

9.0%

Colorado

$9,067

$9,670

$603

6.7%

Indiana

$6,990

$7,413

$423

6.1%

Maine

$7,228

$7,488

$260

3.6%

South Carolina

$4,756

$4,890

$134

2.8%

Massachusetts

$11,678

$11,960

$282

2.4%

Iowa

$7,062

$7,231

$169

2.4%

Arkansas

$4,536

$4,635

$99

2.2%

Mississippi

$4,056

$4,056

No Difference

No Change

Alaska

$7,000

$7,000

No Difference

No Change

Rhode Island

$7,800

$7,800

No Difference

No Change

Kansas

$6,526

$6,466

-$60

-0.9%

Kentucky

$5,720

$5,440

-$280

-4.9%

Wyoming

$6,500

$6,102

-$398

-6.1%

New Mexico

$5,931

$5,532

-$399

-6.7%

$10,660

$8,320

-$2,340

-22.0%

State

District of Columbia

* Source: NACCRRA’s January 2009 survey of Child Care Resource & Referral State Networks. Only states which reported accredited care costs are listed.

38


Appendix 10

Ranking of Affordability of Center Care for Single Parents Infant Care State

Median Family Income for Single Parents

Two Children in Care**

4-year-old Care

School-Age Care

Average Annual Price

Percent of Median Single Parent Income*

Average Annual Price

Percent of Median Single Parent Income

Average Annual Price

Percent of Median Single Parent Income*

Average Annual Price

Percent of Median Single Parent Income

Rank (based on single parent family income)

Massachusetts

$26,680

$15,895

59.6%

$11,678

43.8%

$4,880

18.3%

$27,573

103.3%

1

New York

$24,379

$13,630

55.9%

$10,541

43.2%

N/A

N/A

$24,171

99.1%

2

District of Columbia

$26,771

$13,967

52.2%

$10,660

39.8%

$7,800

29.1%

$24,627

92.0%

3

Minnesota

$26,418

$12,800

48.5%

$9,700

36.7%

N/A

N/A

$22,500

85.2%

4

Colorado

$25,863

$11,767

45.5%

$9,067

35.1%

$5,000

19.3%

$20,834

80.6%

5

Wisconsin

$23,552

$10,400

44.2%

$8,424

35.8%

$8,008

34.0%

$18,824

79.9%

6

Rhode Island

$21,772

$9,464

43.5%

$7,800

35.8%

$7,020

32.2%

$17,264

79.3%

7

Montana

$17,229

$7,178

41.7%

$6,467

37.5%

$3,012

17.5%

$13,645

79.2%

8

Ohio

$21,284

$9,340

43.9%

$7,384

34.7%

$6,459

30.3%

$16,724

78.6%

9

Oregon

$22,540

$9,936

44.1%

$7,500

33.3%

$3,936

17.5%

$17,436

77.4%

10

Pennsylvania

$23,492

$9,880

42.1%

$8,060

34.3%

N/A

N/A

$17,940

76.4%

11

Michigan

$22,259

$8,996

40.4%

$7,540

33.9%

$6,656

29.9%

$16,536

74.3%

12

Illinois

$25,912

$11,025

42.5%

$8,117

31.3%

$4,688

18.1%

$19,142

73.9%

13

Indiana

$22,542

$9,590

42.5%

$6,990

31.0%

$6,341

28.1%

$16,580

73.6%

14

Connecticut

$30,036

$12,180

40.6%

$9,832

32.7%

$5,080

16.9%

$22,012

73.3%

15

Maine

$21,823

$8,632

39.6%

$7,228

33.1%

$4,516

20.7%

$15,860

72.7%

16

California

$27,273

$11,580

42.5%

$8,234

30.2%

$5,245

19.2%

$19,814

72.7%

16

Washington

$25,088

$10,140

40.4%

$7,800

31.1%

$4,368

17.4%

$17,940

71.5%

18

North Carolina

$21,507

$8,148

37.9%

$6,804

31.6%

N/A

N/A

$14,952

69.5%

19

Virginia

$27,337

$10,426

38.1%

$8,268

30.2%

$6,604

24.2%

$18,694

68.4%

20

Nebraska

$22,126

$8,216

37.1%

$6,760

30.6%

N/A

N/A

$14,976

67.7%

21

New Mexico

$19,020

$6,832

35.9%

$5,931

31.2%

$4,782

25.1%

$12,763

67.1%

22

Iowa

$22,942

$8,273

36.1%

$7,062

30.8%

$5,663

24.7%

$15,335

66.8%

23

Vermont

$23,561

$8,107

34.4%

$7,485

31.8%

$4,252

18.0%

$15,592

66.2%

24

Kentucky

$18,306

$6,240

34.1%

$5,720

31.2%

$5,018

27.4%

$11,960

65.3%

25

West Virginia

$16,684

$6,000

36.0%

$4,560

27.3%

$3,480

20.9%

$10,560

63.3%

26

Tennessee

$20,295

$6,996

34.5%

$5,934

29.2%

$2,971

14.6%

$12,930

63.7%

27

Hawaii

$30,289

$11,496

38.0%

$7,536

24.9%

$10,719

35.4%

$19,032

62.8%

28

Kansas

$25,020

$9,139

36.5%

$6,526

26.1%

$4,019

16.1%

$15,665

62.6%

29

Oklahoma

$18,460

$6,595

35.7%

$4,881

26.4%

$4,140

22.4%

$11,475

62.2%

30

South Dakota

$22,652

$7,410

32.7%

$6,500

28.7%

N/A

N/A

$13,910

61.4%

31

New Hampshire

$30,001

$10,088

33.6%

$8,035

26.8%

$5,590

18.6%

$18,123

60.4%

32

Texas

$22,152

$7,176

32.4%

$6,084

27.5%

N/A

N/A

$13,260

59.9%

33

Alabama

$17,620

$5,460

31.0%

$4,992

28.3%

$4,628

26.3%

$10,452

59.3%

34

39


Appendix 10

Ranking of Affordability of Center Care for Single Parents Infant Care State

Median Family Income for Single Parents

Two Children in Care**

4-year-old Care

School-Age Care

Average Annual Price

Percent of Median Single Parent Income*

Average Annual Price

Percent of Median Single Parent Income

Average Annual Price

Percent of Median Single Parent Income*

Average Annual Price

Percent of Median Single Parent Income

Rank (based on single parent family income)

New Jersey

$32,159

$10,365

32.2%

$8,400

26.1%

$4,757

14.8%

$18,765

58.4%

35

Arizona

$25,911

$8,505

32.8%

$6,626

25.6%

$5,889

22.7%

$15,131

58.4%

35

Arkansas

$16,984

$5,345

31.5%

$4,536

26.7%

$4,213

24.8%

$9,881

58.2%

37

Louisiana

$16,692

$5,096

30.5%

$4,610

27.6%

$2,513

15.1%

$9,706

58.1%

38

North Dakota

$22,127

$6,743

30.5%

$5,966

27.0%

N/A

N/A

$12,709

57.4%

39

Maryland

$34,803

$11,962

34.4%

$7,821

22.5%

$4,699

13.5%

$19,783

56.8%

40

Delaware

$27,653

$8,769

31.7%

$6,899

24.9%

$5,223

18.9%

$15,668

56.7%

41

Nevada

$28,841

$9,012

31.2%

$7,133

24.7%

$4,430

15.4%

$16,145

56.0%

42

Georgia

$23,383

$6,954

29.7%

$5,973

25.5%

$3,372

14.4%

$12,927

55.3%

43

Wyoming

$26,285

$7,800

29.7%

$6,500

24.7%

$3,338

12.7%

$14,300

54.4%

44

Florida

$25,660

$7,584

29.6%

$6,033

23.5%

$3,387

13.2%

$13,617

53.1%

45

Mississippi

$16,547

$4,560

27.6%

$4,056

24.5%

$2,160

13.1%

$8,616

52.1%

46

Missouri

$21,993

$6,632

30.2%

$4,532

20.6%

$3,904

17.8%

$11,164

50.8%

47

Idaho

$22,369

$5,817

26.0%

$5,360

24.0%

$4,351

19.5%

$11,177

50.0%

48

South Carolina

$21,165

$5,690

26.9%

$4,756

22.5%

$3,582

16.9%

$10,446

49.4%

49

Utah

$26,607

$7,440

28.0%

$5,580

21.0%

$3,960

14.9%

$13,020

48.9%

50

Alaska

$31,524

$8,220

26.1%

$7,000

22.2%

$4,104

13.0%

$15,220

48.3%

51

* American Community Survey 2006-2007, U.S. Census Bureau ** One infant and one preschool-age child N/A: Data not available for price or percentage calculation

40


Appendix 11

2008 Price of Care as a Percent of 2008 Federal Poverty Levels for a Family of Three Infant Care in a Center  State

Alabama

4-Year-Old Care in a Center

2008 Price*

Percent of 2008 FPL**

Percent of 200% of 2008 FPL

Percent of 300% of 2008 FPL

2008 Price*

Percent of 2008 FPL**

Percent of 200% of 2008 FPL

Percent of 300% of 2008 FPL

$5,460

31.0%

15.5%

10.3%

$4,992

28.4%

14.2%

9.5%

Alaska

$8,220

37.4%

18.7%

12.5%

$7,000

31.8%

15.9%

10.6%

Arizona

$8,505

48.3%

24.2%

16.1%

$6,626

37.6%

18.8%

12.5%

Arkansas

$5,345

30.4%

15.2%

10.1%

$4,536

25.8%

12.9%

8.6%

California

$11,580

65.8%

32.9%

21.9%

$8,234

46.8%

23.4%

15.6%

Colorado

$11,767

66.9%

33.4%

22.3%

$9,067

51.5%

25.8%

17.2%

Connecticut

$12,180

69.2%

34.6%

23.1%

$9,832

55.9%

27.9%

18.6%

Delaware

$8,769

49.8%

24.9%

16.6%

$6,899

39.2%

19.6%

13.1%

District of Columbia

$13,967

79.4%

39.7%

26.5%

$10,660

60.6%

30.3%

20.2%

Florida

$7,584

43.1%

21.5%

14.4%

$6,033

34.3%

17.1%

11.4%

Georgia

$6,954

39.5%

19.8%

13.2%

$5,973

33.9%

17.0%

11.3%

Hawaii

$11,496

56.8%

28.4%

18.9%

$7,536

37.2%

18.6%

12.4%

Idaho

$5,817

33.0%

16.5%

11.0%

$5,360

30.5%

15.2%

10.2%

Illinois

$11,025

62.6%

31.3%

20.9%

$8,117

46.1%

23.1%

15.4%

Indiana

$9,590

54.5%

27.2%

18.2%

$6,990

39.7%

19.9%

13.2%

Iowa

$8,273

47.0%

23.5%

15.7%

$7,062

40.1%

20.1%

13.4%

Kansas

$9,139

51.9%

26.0%

17.3%

$6,526

37.1%

18.5%

12.4%

Kentucky

$6,240

35.5%

17.7%

11.8%

$5,720

32.5%

16.3%

10.8%

Louisiana

$5,096

29.0%

14.5%

9.7%

$4,610

26.2%

13.1%

8.7%

Maine

$8,632

49.0%

24.5%

16.3%

$7,228

41.1%

20.5%

13.7%

Maryland

$11,962

68.0%

34.0%

22.7%

$7,821

44.4%

22.2%

14.8%

Massachusetts

$15,895

90.3%

45.2%

30.1%

$11,678

66.4%

33.2%

22.1%

Michigan

$8,996

51.1%

25.6%

17.0%

$7,540

42.8%

21.4%

14.3%

Minnesota

$12,800

72.7%

36.4%

24.2%

$9,700

55.1%

27.6%

18.4%

Mississippi

$4,560

25.9%

13.0%

8.6%

$4,056

23.0%

11.5%

7.7%

Missouri

$6,632

37.7%

18.8%

12.6%

$4,532

25.8%

12.9%

8.6%

Montana

$7,178

40.8%

20.4%

13.6%

$6,467

36.7%

18.4%

12.2%

Nebraska

$8,216

46.7%

23.3%

15.6%

$6,760

38.4%

19.2%

12.8%

Nevada

$9,012

51.2%

25.6%

17.1%

$7,133

40.5%

20.3%

13.5%

New Hampshire

$10,088

57.3%

28.7%

19.1%

$8,035

45.7%

22.8%

15.2%

New Jersey

$10,365

58.9%

29.4%

19.6%

$8,400

47.7%

23.9%

15.9%

New Mexico

$6,832

38.8%

19.4%

12.9%

$5,931

33.7%

16.8%

11.2%

New York

$13,630

77.4%

38.7%

25.8%

$10,541

59.9%

29.9%

20.0%

North Carolina

$8,148

46.3%

23.1%

15.4%

$6,804

38.7%

19.3%

12.9%

North Dakota

$6,743

38.3%

19.2%

12.8%

$5,966

33.9%

16.9%

11.3%

Ohio

$9,340

53.1%

26.5%

17.7%

$7,384

42.0%

21.0%

14.0%

Oklahoma

$6,595

37.5%

18.7%

12.5%

$4,881

27.7%

13.9%

9.2%

Oregon

$9,936

56.5%

28.2%

18.8%

$7,500

42.6%

21.3%

14.2%

41


Appendix 11

2008 Price of Care as a Percent of 2008 Federal Poverty Levels for a Family of Three Infant Care in a Center

4-Year-Old Care in a Center

2008 Price*

Percent of 2008 FPL**

Percent of 200% of 2008 FPL

Percent of 300% of 2008 FPL

2008 Price*

Percent of 2008 FPL**

Percent of 200% of 2008 FPL

Percent of 300% of 2008 FPL

$9,880

56.1%

28.1%

18.7%

$8,060

45.8%

22.9%

15.3%

Rhode Island

$9,464

53.8%

26.9%

17.9%

$7,800

44.3%

22.2%

14.8%

South Carolina

$5,690

32.3%

16.2%

10.8%

$4,756

27.0%

13.5%

9.0%

South Dakota

$7,410

42.1%

21.1%

14.0%

$6,500

36.9%

18.5%

12.3%

Tennessee

$6,996

39.8%

19.9%

13.3%

$5,934

33.7%

16.9%

11.2%

Texas

$7,176

40.8%

20.4%

13.6%

$6,084

34.6%

17.3%

11.5%

Utah

$7,440

42.3%

21.1%

14.1%

$5,580

31.7%

15.9%

10.6%

Vermont

$8,107

46.1%

23.0%

15.4%

$7,485

42.5%

21.3%

14.2%

Virginia

$10,426

59.2%

29.6%

19.7%

$8,268

47.0%

23.5%

15.7%

Washington

$10,140

57.6%

28.8%

19.2%

$7,800

44.3%

22.2%

14.8%

West Virginia

$6,000

34.1%

17.0%

11.4%

$4,560

25.9%

13.0%

8.6%

Wisconsin

$10,400

59.1%

29.5%

19.7%

$8,424

47.9%

23.9%

16.0%

Wyoming

$7,800

44.3%

22.2%

14.8%

$6,500

36.9%

18.5%

12.3%

 State

Pennsylvania

* Source: NACCRRA’s January 2009 survey of Child Care Resource & Referral State Networks. ** Source: Federal Register, Vol. 73, No. 15, January 23, 2008, pp. 3971–3972.

42


Appendix 12

Appendix 12

Licensing Thresholds* for Children in Family Child Care Homes

Licensing Thresholds* for Children in Family Child Care Homes

State Alabama

Licensing Threshold

State

Licensing Threshold

1

Montana

3

Alaska

5

Nebraska

5

Arizona

6

Nevada

6

Arkansas

6

New Hampshire

3

California

2

New Jersey

6

Colorado

2

New Mexico

5

Connecticut

1

New York

3

Delaware

1

North Carolina

4

District of Columbia

1

North Dakota

6

Florida

3

Ohio

7

Georgia

4

Oklahoma

1

Hawaii

3

Oregon

4

Idaho

Not Licensed

Pennsylvania

4

Illinois

4

Rhode Island

5

Indiana

6

South Carolina

1

Iowa

6

South Dakota

13

Kansas

1

Tennessee

5

Kentucky

5

Texas

5

Louisiana

7

Utah

6

Maine

4

Vermont

3

Maryland

1

Virginia

7

Massachusetts

1

Washington

1

Michigan

1

West Virginia

5

Minnesota

3

Wisconsin

5

Mississippi

6

Wyoming

4

Missouri

6

* In general the licensing threshold is established by each state, which means that the states determine how many children are allowed to be cared for in a family child care home before a state requires a license. For the purposes of this table, NACCRRA added one child if the state does not include the provider’s own children in establishing the licensing threshold and one for each family exempted before licensing begins. For example, if a state does not require licensing until children from a second unrelated family are in care, the state was given a threshold of 2.

43


44


National Association of Child Care Resource & Referral Agencies 3101 Wilson Boulevard, Suite 350, Arlington, VA 22201 Phone (703) 341-4100 Fax (703) 341-4101 www.naccrra.org Š 2009 NACCRRA 665-0410


Parents and the High Price of Child Care: 2009 Update