B.TRENDS IN CHILDCARE RATESLike most expenses, <strong>child</strong> <strong>care</strong> coststend to rise every year. But the costof center <strong>care</strong> has risen more rapidlythan consumer prices nationally.Table I-3 presents the aggregaterate <strong>in</strong>creases of centers and family<strong>child</strong> <strong>care</strong> homes <strong>for</strong> Chicago andsuburban Cook County. The dollarcolumns show the most recent rates<strong>for</strong> each age group. Next to eachrate is a column that presents thepercent <strong>in</strong>crease over the n<strong>in</strong>e yearsfrom June 2000 to June 2009.Increases ranged from 13 percent to65 percent. Over the same periodof time, all consumer prices roseabout 25 percent nationally. 1 Whilemost licensed home rates <strong>in</strong>creasednear or below this average <strong>in</strong>flationrate, center rates <strong>for</strong> almost all agegroups far exceeded it.It appears, then, that Cook Countyparents—or those parents who canaf<strong>for</strong>d to pay <strong>for</strong> <strong>care</strong>—have a demand<strong>for</strong> center <strong>care</strong> grow<strong>in</strong>g faster thantheir demand <strong>for</strong> home <strong>care</strong>, especially<strong>in</strong> the ages above toddler.Two important exceptions wherehome rates have outpaced those ofcenters are <strong>in</strong>fant and toddler <strong>care</strong><strong>in</strong> Chicago and be<strong>for</strong>e- and afterschool<strong>care</strong> <strong>in</strong> both Chicago andsuburban Cook County.While suburban <strong>child</strong> <strong>care</strong> costs moreon average than <strong>care</strong> <strong>in</strong> Chicago,Chicago has experienced more rapidrate <strong>in</strong>creases over the last n<strong>in</strong>eyears than has suburban CookCounty. This is the case <strong>for</strong> both centerand home <strong>care</strong> <strong>for</strong> all age groupsexcept <strong>in</strong>fant and toddler center <strong>care</strong>.Across age groups, the slowest ris<strong>in</strong>gcenter costs were that of <strong>in</strong>fant andtoddler <strong>care</strong>, particularly <strong>in</strong> Chicagocenters where the average cost of<strong>in</strong>fant and toddler <strong>care</strong> <strong>in</strong>creased 20percent and 21 percent respectivelyover the last n<strong>in</strong>e years. Still, <strong>in</strong>fantand toddler <strong>care</strong> rema<strong>in</strong>s the mostexpensive of all age groups.The fastest-ris<strong>in</strong>g costs were those ofbe<strong>for</strong>e- and after-school <strong>care</strong>, ris<strong>in</strong>gmore quickly <strong>in</strong> Chicago than <strong>in</strong> thesuburbs. The average cost of be<strong>for</strong>eandafter-school <strong>care</strong> rose by 65percent <strong>in</strong> Chicago licensed homesand 61 percent <strong>in</strong> Chicago centers.C.WHAT PERCENT OFINCOME IS REASONABLETO SPEND ON CHILD CARE?The numbers are clear; <strong>child</strong> <strong>care</strong>is an <strong>in</strong>creas<strong>in</strong>gly burdensomef<strong>in</strong>ancial responsibility <strong>for</strong> families.Accord<strong>in</strong>g to the U.S. Census, thetypical (median) <strong>in</strong>come <strong>for</strong> familieswith <strong>child</strong>ren under 18 <strong>in</strong> CookCounty was $61,306 be<strong>for</strong>e taxes<strong>in</strong> 2008, and even lower <strong>for</strong> Chicagofamilies at $46,069. 2 Care <strong>for</strong> one<strong>in</strong>fant <strong>in</strong> a Chicago <strong>child</strong> <strong>care</strong> center,at an average cost of $210 perweek, or $10,500 over a fifty-weekyear, costs 23 percent of a typicalChicago family’s pre-tax <strong>in</strong>come.At $10,000 per year, toddler <strong>care</strong>takes up 22 percent. Licensed home<strong>care</strong> <strong>for</strong> an <strong>in</strong>fant or toddler is moreaf<strong>for</strong>dable at $6,800 to $6,950 peryear, but even this is 15 percent ofa Chicago family’s <strong>in</strong>come.Table I-3. 2009 Average Weekly Market Rates, and Rate Increases S<strong>in</strong>ce 2000Source: Ill<strong>in</strong>ois <strong>Action</strong> <strong>for</strong> <strong>Children</strong> Resource and Referral Program. Rounded to the nearest dollar or percent.Percent Percent Percent PercentGrowth Growth Suburban Growth Suburban GrowthChicago S<strong>in</strong>ce Chicago S<strong>in</strong>ce Cook S<strong>in</strong>ce Cook S<strong>in</strong>ceAge Centers 2000 Homes 2000 Centers 2000 Homes 2000Infant $210 20% $139 26% $239 32% $154 17%Toddler $200 21% $136 28% $220 34% $150 18%2-year-old $173 52% $132 27% $196 41% $146 17%3- to 4-year-old $153 44% $127 27% $176 39% $142 16%5-year-old $150 42% $123 26% $171 36% $136 13%Be<strong>for</strong>e & After School $105 61% $100 65% $116 45% $100 46%School-Age Summer $131 51% $120 39% $160 34% $125 26%Percent growth <strong>in</strong> consumer prices nationwide s<strong>in</strong>ce 2000: 25%7
The 2010 Report of Child Care <strong>in</strong> Cook CountyWHICH FAMILIES ARE ELIGIBLE TO RECEIVECHILD CARE ASSISTANCE?GABRIELLE AND SHAWN HARRIS:WORKING PARENTS WITH ANINFANT AND A TODDLER.INCOME IS $89,400 A YEAR.The maximum <strong>in</strong>come a family of fourcan earn to be eligible <strong>for</strong> CCAP is$42,408 per year. Gabrielle andShawn earn double this amount andare not eligible. Nevertheless , theyfeel they cannot af<strong>for</strong>d to pay <strong>for</strong>quality <strong>child</strong> <strong>care</strong>.CANDACE THOMAS: WORKINGMOTHER WITH THREE CHILDREN.INCOME IS $44,800 A YEAR.Candace’s <strong>in</strong>come exceeds theCCAP limit of $42,408 <strong>for</strong> a familyof four. She is not eligible <strong>for</strong> theassistance unless she lowers her<strong>in</strong>come by $200 a month.The median rent <strong>in</strong> Chicago <strong>in</strong>2008 was $10,356, accord<strong>in</strong>g tothe same U.S. Census report. Bythis measure, <strong>in</strong>fant and toddler<strong>care</strong> <strong>in</strong> Chicago centers is justas expensive as rent <strong>for</strong> the typicalChicago family. Similarly, <strong>child</strong> <strong>care</strong>is more expensive than averagefees and tuition at State collegesand universities <strong>in</strong> Ill<strong>in</strong>ois. At$9,452, these average fees andtuition cover 90 percent of the costof <strong>in</strong>fant <strong>care</strong> <strong>in</strong> Chicago centersand only 79 percent of the costof <strong>in</strong>fant <strong>care</strong> <strong>in</strong> suburban Cookcenters. 3Is 15 percent or 23 percent of afamily’s <strong>in</strong>come too much to pay <strong>for</strong>an <strong>in</strong>fant’s <strong>child</strong> <strong>care</strong>? Is 30 percenttoo much to pay <strong>for</strong> an <strong>in</strong>fant and aALBERTA REYES: WORKINGMOTHER WITH A PRESCHOOLER.INCOME IS $16,138 A YEAR.Alberta is eligible <strong>for</strong> CCAP. Thisopens more options to her, <strong>in</strong>clud<strong>in</strong>gthe more costly <strong>care</strong> <strong>in</strong> <strong>child</strong> <strong>care</strong>centers or licensed family <strong>child</strong> <strong>care</strong>homes. Alberta will need to pay aco-payment of $25 per week. If shechooses a <strong>child</strong> <strong>care</strong> provider whocharges more than what CCAP pays,she may have to make additionalpayments. If she f<strong>in</strong>ds that her copaymentis too high, she may look <strong>for</strong>a provider, perhaps a relative orfriend, will<strong>in</strong>g to waive part of her copaymentor to be more flexible withwhen she has to make her copayments.toddler? What is the proper proportionbetween <strong>child</strong> <strong>care</strong> expensesand <strong>in</strong>come? There is no generallyaccepted level that everyone agreesis the “proper” percentage to pay.Most national studies s<strong>in</strong>ce the1990s have found that averagetwo-parent middle-<strong>in</strong>come familiespaid between 6 percent and 10percent of their <strong>in</strong>come <strong>for</strong> <strong>child</strong><strong>care</strong>. 4 If we pick the higher 10 percentlevel as a rule of thumb <strong>for</strong>af<strong>for</strong>dability, a family <strong>in</strong> 2009 wouldhave to earn $105,000 <strong>for</strong> <strong>in</strong>fant<strong>care</strong> <strong>in</strong> a Chicago <strong>child</strong> <strong>care</strong> centerto be af<strong>for</strong>dable. This family wouldneed to earn $181,800 to placean <strong>in</strong>fant and a four-year-old <strong>in</strong> aChicago center and keep their <strong>child</strong><strong>care</strong> costs with<strong>in</strong> 10 percent oftheir <strong>in</strong>come. To meet the 10 percentrule of thumb <strong>in</strong> suburbanCook County centers, a familypay<strong>in</strong>g <strong>for</strong> <strong>in</strong>fant <strong>care</strong> would requirean <strong>in</strong>come of $119,600, while center<strong>care</strong> <strong>for</strong> both an <strong>in</strong>fant and afour-year-old would require an<strong>in</strong>come of $207,700. 5D.HELPING PARENTSMEET THE COSTOF CHILD CARESeveral government-fundedresources exist to help familiespay <strong>for</strong> their <strong>child</strong> <strong>care</strong> costs, and<strong>child</strong> <strong>care</strong> providers themselvesoften have tuition policies to assistfamilies who struggle to pay.The ma<strong>in</strong> source of f<strong>in</strong>ancial assistanceto help Ill<strong>in</strong>ois parents with<strong>child</strong> <strong>care</strong> costs is the Ill<strong>in</strong>ois ChildCare Assistance Program (CCAP).A family eligible <strong>for</strong> this programchooses a <strong>child</strong> <strong>care</strong> provider andthe State reimburses this provider<strong>for</strong> his or her services. Parentspay a portion of the cost of <strong>care</strong>,a co-payment, which depends onthe family’s size and <strong>in</strong>come. CCAPis available to families that earn ator below 200 percent of the federalpoverty level, or $42,408 <strong>for</strong> afamily of four <strong>in</strong> 2009. 6 Parentsmust work or participate <strong>in</strong> anapproved school or tra<strong>in</strong><strong>in</strong>g programto be eligible. CCAP is primarilya voucher system adm<strong>in</strong>istered <strong>in</strong>Cook County by Ill<strong>in</strong>ois <strong>Action</strong> <strong>for</strong><strong>Children</strong> under contract with theIll<strong>in</strong>ois Department of HumanServices (IDHS). Some <strong>child</strong> <strong>care</strong>centers, however, have directcontracts with IDHS to serve familieseligible <strong>for</strong> CCAP.8