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Child Care

Cost And Financing



The need for child care in the United States increased dramatically in the last two decades of the twentieth century–a direct result of a large increase in the percentage of mothers in the workforce. In 1965 only 17 percent of mothers who had children under the age of one were in the labor force. By 1991, however, 53 percent of this group were working outside the home.



The Quality Counts 2002 report, published in Education Week, estimated that 11.9 million children, or six in ten children under the age of five, were enrolled in some form of child care during the previous year. In the United States, families are not offered extensive parental leave following the birth of a child, and often, due to financial constraints, mothers or both parents must return to work soon after a new baby is born, generally within six to eight weeks. More than half of all mothers return to work within the first year after a baby's birth.

The Cost Of Care

Many of the families who need child care also require some financial assistance. Child care comes in many forms, and there is not a standard arrangement or fee based on the age of a child or a family's circumstance. The cost of care may be associated with the type of care provided, such as infant care, toddler care, preschool care, or care for children who have special needs or those who are considered at risk due to environmental or other factors.

Infant care and toddler care are usually more expensive than care for a preschooler or a school-age child, due to the number of adults required per child. In general, younger children require more adults to provide care. Rates may also vary from provider to provider based on location (rural or urban), reputation, hours of operation, population served, and requirements for teachers. However, there is no way to equate the quality of care a child receives with the costs associated with that care.

The expenses of child care can impact a budget significantly, regardless of who is paying for the service. A 1994 Carnegie Corporation report states that $120 billion to $240 billion are spent annually on goods and services devoted to the care and education of young children. The average cost for care for one child can range from $40 to $200 per week, not counting application fees, activity fees, transportation fees, late pickup fees, care for special holidays, or days a program is closed and alternate care must be arranged.

The Carnegie Corporation report further states that families who have incomes below $15,000 annually spend 23 percent of their income on child care, while families who have incomes of around $50,000 spend approximately 6 percent of their income on care. It is obvious that the lower-income family is affected more significantly when funding child care. In the United States, nearly one-quarter of the families who have children under the age of three live in poverty, and many are single-parent families. For these families, quality child care at an affordable cost is difficult to find.

The burden of the costs of child care is primarily the responsibility of families. Overall, families pay approximately 60 percent of child care, with the government paying 39 percent and the private sector 1 percent, according to statistics from the Quality Counts 2002 report.

Effects Of Quality Child Care

There is ample research available in the field of early childhood education and child development that supports the importance of enriching and stimulating early experiences in promoting healthy development. The first three years of life are considered crucial, with brain development occurring most rapidly during this period. Parents are often left scrambling to make decisions on what environment is best for their child, and struggling to meet the high price of programs that claim to support these positive early developmental experiences. While there are a growing number of pre–K programs for preschoolers paid for by state dollars, most of the costs are funded by parents. It is not uncommon for a more elite academic preschool to cost between $3,000 and $10,000 annually.

Research from the Carolina Abecedarian Project underlines the need for high-quality preschool experiences for young children from low-income environments. Of the 100 children studied, half attended preschool and half did not. The children were studied until they reached the age of twenty-one. The children who attended preschool from infancy to age five scored higher on reading measures at age eight, and consistently until age twenty-one, than those children who did not attend preschool. The summary from a 1999 cost, quality, and outcome study conducted by researchers from four major universities confirms the benefits of high-quality early child care for children. In this study, high quality child care was directly linked to later school performance and success in social development throughout the early school years, especially for low-income children.

Funding Options

With more emphasis on quality child-care experiences coupled with the growing need for child care due to the increase in working mothers, options for funding child care are expanding, and creative ways to support the growing need are being explored. The Quality Counts 2002 report discusses how states are seeking new sources of funding for child-care initiatives, including taxing beer and cigarettes or utilizing proceeds from state lotteries.

Some businesses offer employees a form of corporate child care or a flexible work plan to accommodate child-care issues. Benefits are being extended for fathers of newborns, so leave is not exclusively for mothers. This allows families more flexibility in how they coordinate the first few months after a baby is born. Corporations are discovering that on-site child care gives employees peace of mind, allowing for more satisfaction in the work environment and more long-term retention of employees.

In 1996 welfare reform legislation was passed, providing almost $3 billion annually in the form of block grants to the states for low-income families. This money is designed to provide some financial support to single parents in the welfare-to-work program. Single parents (generally mothers) who are enrolled in a full-time work or school program are eligible to apply for these funds to help supplement their income for child-care costs.

Federal welfare funds distributed through the Child Care and Development Fund (CCDF) exceeded $4 billion in 2001. Additionally, $5 billion was utilized for child-care assistance through the Temporary Assistance for Needy Families program in 2000. As stated in the Quality Counts 2002 report, the subsidy from the federal welfare monies has had the biggest impact in the growth of state programs. Other programs supported through the federal government include Head Start, Title I, and the Individuals with Disabilities Education Act. These programs offer financial assistance for child care to children from low-income homes or to children who have special needs.

Many states are offering state-funded preschool programs in the early twenty-first century. While these programs are not accessible to every child, they are targeting the population that is most in need of state-funded school-based programs. Some states are moving toward the concept of universal pre-school. Every state provides at least some funding for kindergarten.

States struggle to piece together systems of funding that will at least support the neediest populations–those who would not be able to afford pre-school experiences without subsidies. Individual programs scramble to compete for available funding sources, often supplementing the cost of child care through grants from agencies (such as United Way), private corporations, or foundations.

Some agencies, due to budgetary constraints, are not capable of offering sliding fee scales or accepting state child-care certificates or scholarships for children who meet income eligibility. Many agencies work with the U.S. Department of Agriculture to procure reimbursement for children who meet income eligibility for free or reduced meals. At best, this is a patchwork system for parents, providers, government, and unfortunately all too often, for the children.

The benefits of high-quality care have been proven. In analyzing the system of child care and the funding associated with it, there is a need to further equate quality with expectations for qualified persons caring for young children. People who work in this field in the early twenty-first century are compensated at rates equivalent to people who work in fast-food restaurants and other nonprofessional positions. Teachers are responsible for helping shape the future and enhancing a child's early development. The quality of the environments young children are placed in, and the quality of the people caring for them, can influence their future. If quality is equated to dollars, quality care will only be accessible to the wealthy. Because child care is not locally accessible to all, some children will not receive the advantage of high-quality care. Families and other stakeholders that understand both the need and value of high-quality care will seek these programs for their children.

INTERNET RESOURCES

CARNEGIE CORPORATION OF NEW YORK. 1994. "The Quiet Crisis." <www.carnegie.org/starting_points/startpt1.html>

CARNEGIE CORPORATION OF NEW YORK. 2002. "Guarantee Quality Child Care Choices." <www.carnegie.org/starting_points/startpt1.html>

EDUCATION WEEK. 2002. "Quality Counts 2002 Executive Summary–In Early Childhood Education Care: Quality Counts." Education Week 17:8–9. <www.edweek.org/sreports/qc02/>

WELFARE INFORMATION NETWORK. 1998. "Financial Resources for Child Care." <www.welfareinfo.org/Issuechild.htm>

AMY HARRIS-SOLOMON

Additional topics

Education - Free Encyclopedia Search EngineEducation Encyclopedia: AACSB International - Program to Septima Poinsette Clark (1898–1987)Child Care - AVAILABILITY AND QUALITY, COST AND FINANCING