Improve Early Grade-Level Reading

Improve Access to Child Care

Market forces alone cannot ensure the availability of high-quality, affordable care for low-income families in their own communities. [1] Poor and rural areas are less likely to have an adequate supply of licensed care. [2] Child care subsidy and licensing policies are two critical levers to improve the quality and supply of care for low-income families. Supply and quality are especially critical to at-risk children, and policies can make sure that children at highest risk (children known to the child welfare system, special health care needs, developmental delays, exposure to HIV/AIDS or drugs, etc.) are given priority for enrollment in early care and education opportunities.  These children need early opportunities and their families are least likely to enroll them without assistance.

What Can Policymakers Do?

• Guarantee child care assistance to low-income families. Studies show that child care subsidies enable families to access higher quality center-based care, and lessen their dependence on unregulated care. [3]  Rhode Island law entitles child care assistance to families at or below 180 percent FPL. There are no waiting lists for subsidies and no time limits on assistance.
• Set provider reimbursement rates to be at or above the federally recommended 75^th percentile of the market rate (measured every 2 years). Below-market rates create a disincentive for providers to accept subsidies when they can earn more from families who will pay the market rate. [4]  Rates in Arkansas and Maine in 2007 met 75 percent of 2006 rates. [5]
• Offer higher reimbursement rates, wage supplements, scholarships, technical assistance, and other resources to promote and reward higher quality.Oklahoma is one of several states to set tiered subsidy reimbursement levels that are linked to successively higher levels of quality. In North Carolina,  the Governor successfully championed T.E.A.C.H.® scholarships and the Child Care WAGE$ ® wage supplement program that encourage and reward attainment of higher levels of education and training. [6]Both states also developed a Quality Rating System that assigns a rating (e.g., one to five stars) to communicate a program’s quality level to parents. Washington gave family child care providers serving low-income children access to affordable health insurance through health care benefits .
• Use contracts with child care providers to encourage the provision of higher quality care and to meet the needs of special populations.
• Raise child care licensing standards, increase monitoring, and provide technical assistance opportunities to providers. State program standards vary widely. Evidence is clear that group size and adult: child ratios are important quality factors. More frequent inspections by qualified licensing staff are associated with higher rates of regulatory compliance. North Dakota's standards for child care centers set group size for 4-year-olds at 20 and the adult:child ratio at 1:10; and group size for toddlers at eight and the adult:child ratio at 1:4. Hawaii inspects all licensed child care centers, small family child care homes and large/group family child care homes annually.