child care in cook county - Illinois Action for Children

I. Family Dilemma: Child Care AffordabilityFigure I-2. What Families Need to Spend on Infant Center CareChange from June 2005 to June 2009, Family Size of 428%26%24%22%20%18%16%14%12%10%8%6%4%2%0June 2005Percent of Family Income$10,000$15,000$20,000$25,000$30,000$34,584$40,000$45,000Family Income$50,000$55,000$60,000$65,000$70,000June 2009Median Family Income 2008:$61,306 (latest available)Median Family Income 2005:$54,719each income level that is measuredon the horizontal axis. The chart isrealistic in the sense that it includesthe effect of receiving CCAP support,which is available to a familyof low income if all present parentsare employed. 8Figure I-1 shows Cook Countyparents can pay less than five (5)percent of family income (for informalneighbor child care) and asmuch as 25 percent (for infantcenter care) for one child, dependingon their level of income, the ageof the child and type of care theyuse. Note that Figure I-1 buildsupon average rates of care such asthose in Tables I-1 and I-2. Someparents might have to pay a higherrate than the average, while otherswill pay below the average. Placingmore children in care, moreover, willcost parents more.Beginning with a family with almostno income on the left and movingup to a family income of about$40,000, we see that a family offour would spend between 3 percentand 16 percent of its incomefor full-time care for one child,depending on the age of the childand type of care. It is CCAP alonethat makes it possible for child careto cost this little for working familieswith these low incomes. If theworking family’s income rises a littleabove $42,000, the family ceasesto be eligible for CCAP and mostchild care costs shoot up to a prohibitivelyhigh percentage of thefamily’s income (from 15 percentto almost 26 percent). This isknown as the “cliff effect.”Only unregulated family, friend, andneighbor care changes little as apercentage of income and remainsaffordable for families earning justover $42,000. Consider the exampleof 10-percent-of-income we usedearlier in this section to discussaffordability. Once a family’s incomerises above $42,000 and the family11becomes ineligible for Child CareAssistance, it takes an income of$68,300 before licensed home carefor a two-year-old returns to 10 percentof the family’s income. It takesan income of $114,680 before thecost of infant care in a center returnsto ten percent of the family’s income.Again, for a family earning less than$68,300, only informal family, friendor neighbor child care is affordableat 10 percent of family income.These higher incomes, needlessto say, are substantially above thetypical family income in Illinois.Trend in AffordabilityOver the years, the State of Illinoishas made a series of improvementsto CCAP, extending eligibility to abroader range of families and makingchild care more affordable formany other families.Figure I-2 illustrates this. The dottedline shows the affordability of child