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A Briefing Paper

Executive Summary

Washington's welfare reform program, WorkFirst, became effective in November 1997. This program requires parents receiving welfare grants to work or engage in work-related activities. The Economic Services Administration (ESA) anticipated that the new work requirements would lead to an increase in the number of families using subsidies under the Working Connections Child Care program. The WorkFirst Division of ESA commissioned this study to determine: 1) whether the child care market had sufficient capacity and flexibility to accommodate an increase in the number of subsidized children, and 2) whether clients were getting the help they needed to access child care.

This report gathers together information from three telephone surveys:

1. a survey of every child care center in Washington
2. a survey of a stratified random sample of licensed family child care homes (where the provider cares for children in her own home), and
3. a survey of clients eligible for or receiving Working Connections subsidies.

A picture of the general child care market was derived from the first two surveys, which are conducted every two years, primarily for the purposes of setting subsidy rates. However, these two surveys also yield much information on child populations, capacity, vacancies, industry wages, and DSHS-subsidized children. The surveys were expanded in 1998 to include more questions about providers' willingness to serve the subsidized population, and their experience doing so. These two surveys answered questions about supply of care in the licensed market. 

The third survey of clients eligible for or receiving Working Connections subsidies dealt with issues of employment, child care choices, parent experiences finding and using child care, and the assistance they received in finding child care.

Major Characteristics of the 1998 Child Care Market

The number of families using Working Connections Child Care subsidy programs grew by 25% from January to June 1998. The licensed child care market has absorbed many of them.

• In the spring of 1998, licensed child care providers reported a total capacity of 167,000 slots and 172,000 children in their care. Capacity is the maximum number of children allowed at a given time. Because two or more part-time children may occupy one full-time slot, the total number of children may exceed capacity.

• 1,841 child care centers, with a total capacity of 110,000, were serving 118,200 children.
• 7,861 family child care homes, with capacity of 56,700, were serving 53,800 children.

• The number of licensed family child care homes decreased by 739 between 1996 and 1998.

• The child care market may be tightening. In 1998, providers reported a total of 21,100 vacancies, for an overall rate of 13%. The vacancy rate in centers was only 12%. In 1996, the overall vacancy rate was 15%; in centers it was 16%.

• Vacancies for infants may be scarce. Statewide, only 600 infant vacancies were reported in centers; 2,800 vacancies in homes could be filled by children under two years old.

• Few providers are open before 6 a.m. or after 7 p.m. Family homes are more likely than centers to be open during non-standard hours.

• Licensed providers reported serving 34,300 DSHS-subsidized children. This represents an increase of 38% since 1996.

• DSHS-subsidized children now represent 20% of all children in licensed child care.

• DSHS-subsidized children are served by a broad spectrum of child care providers. About 47% of family homes and 84% of child care centers served at least one subsidized child.

• Almost all providers said they would be willing to serve subsidized families.

• 90% of family child care homes, and
• 96% of child care centers said they would be willing to accept DSHS subsidies.

DSHS Clients and the Child Care Market: Results Of A Parent Survey

Parents in the survey sample had been eligible for subsidies in January 1998. Eighty percent of respondents had received child care subsidy in January 1998. The other 20% were apparently eligible for child care subsidies but were not receiving them. That is, in January, these families received a TANF grant, had earned income, had one or more children under 11 years old, but DSHS made no child care payments on behalf of these families.

Statistics cited here reflect their responses in July 1998.

• The vast majority of parents (94%) were working, in school or training, or looking for work.

• Although all families appeared eligible for child care subsidies in January, one third of them were not receiving child care subsidies in July. Of the 33% of families NOT receiving subsidies:

• 40% said someone cared for their children for free;
• 36% didn't think they qualified;
• 34% said DSHS wouldn't pay their provider;
• 30% said the DSHS subsidy was too much hassle or paperwork;
• 23% said they make too much money;
• 23% worried that child care subsidies would affect their 5-year limit on assistance. Note: This last reason represents a misconception. The laws limiting assistance to 5 years, or 60 months, apply to TANF only, not to child care subsidies.

• For many parents in the survey, child care responsibilities had limited their employment options. Because of child care responsibilities, in the past 12 months:

• 59% were unable to work certain shifts
• 29% worked fewer hours on a regular basis
• 21% had turned down a job offer
• 18% had quit a job or school/training
• 15% had turned down a higher paying job
•  14% had been unable to look for work. 

• Child care arrangements were related to a family's receipt of a subsidy. Parents were more than twice as likely to be using licensed care if they were receiving a subsidy.
• Child care arrangements were also related to parents' work schedules. Among employed parents, if the parent worked weekdays, her child was twice as likely to be in licensed care than children of parents who worked evenings, nights or weekends.

• On average, parents had made 2.2 new arrangements in the past year.

• Most parents (68%) said they had no problems finding child care. Those 32% of parents who DID have problems identified the following:

• 62% had difficulty finding a provider who shared her/his values
• 57% didn't feel good about providers
• 53% had an odd work schedule or shift.
• 51% said the available care was of poor quality.

• Parents who have children with long term physical, mental or behavioral conditions were more likely (54% compared to 32% of all parents) to have problems finding child care.

• The vast majority (over 90%) of parents reported that they were satisfied with their child care arrangements. Overall, 70% said they were very satisfied. In general, parent satisfaction was less if parents experienced problems finding child care or if they were not receiving a subsidy.

Challenges for DSHS

• The number of family home providers has decreased since 1996. These providers are more likely to be flexible with respect to hours open for business. Because many parents have non-standard work schedules, a drop in the number of homes may ultimately affect the availability of licensed care for subsidized families.

• Few child care centers had vacancies for infants. Likewise, some parents surveyed had difficulty finding care for infants.

• Clients need to understand that using child care subsidies will not affect the five-year limit on assistance.

• Parents most often (70%) cited family and friends as a source of help when looking for child care. Only 36% said they were helped by Child Care Re-source and Referral Agencies.

• Most parents (68%) said they had no trouble finding child care, but they had to contact on average 3.6 providers before they settled with their current providers.

• Parents of children with special needs were more likely to have trouble finding child care (54%).

• Having a DSHS subsidy actually was a barrier to some families (38% of families who reported problems finding child care)

Modified: Thursday November 17 2005

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