by John Pawasarat, Lois M. Quinn, Terry Howell and Dan Scullard, University of Wisconsin-Milwaukee Employment and Training Institute, July 1996
This report attempts to assess the current use and availability of child care as well as the potential demand for care under W-2. The analysis focuses on Milwaukee County and examines the challenges facing Milwaukee County agencies and community organizations as they seek to provide adequate child care for parents entering the labor force, expanding their work hours, or participating in mandatory community service activities.
To provide an analysis of current child care openings and capacity, the Employment and Training Institute conducted a survey of all regulated day care providers in Milwaukee County central city neighborhoods and a sample survey of the certified child care providers currently active with the Milwaukee County Department of Human Services. The Institute analyzed current usage in subsidized child care programs using data on all Milwaukee County child care payments for the month of February 1996 and all child care deductions taken for Milwaukee County children receiving AFDC or food stamps. Estimates of the current and potential demand for child care under W-2 were constructed using a database of all children and families on public assistance in Milwaukee County and U.S. Census data on employed low-income families in Milwaukee County not receiving public assistance.
|Anticipated Subsidy Costs for AFDC/Low-Income Employed Families Currently Using Child Care|
|CURRENT FAMILIES WITH CARE:||ESTIMATED ELIGIBLE W-2 CARE:|
|Monthly Cases||No. of Children||Annualized 1996 cost*||No. of Cases||No. of Children||Annualized 1997 Cost*|
|Low Income Subsidies||693||967||$5.02 mil||693||967||$ 5.2 million|
|Waiting List||0||0||0||2,748||4,122||22.2 million|
|Sub-Total||693||967||$5.02 mil||3,441||5,089||$27.4 million|
|AFDC/JOBS Subsidies||1,695||2,385||$17.64 mil||1,695||2,385||$18.4 million|
|Crisis Respite Care||391||1,332||$ 4.5 mil||391||1,332||$ 4.7 million|
|Child Care Deductions from Grant:|
|Total with Children Currently in Child Care||4,805||8,673||7,553||12,795||$72.0 million|
* Annualized 1996 cost based on February 1996 expenditures, estimated 1997 annualized cost
at 4 percent inflation. ** Maximum grant deductions are $175 for a child over 2 years and $200
for a child under 2; total cost of care is unknown.
This would leave only $8 million in Milwaukee County child care funds to serve the
residual W-2 population of 20,000 AFDC families not now employed but subject to W-2
work requirements. This population includes an estimated 42,000 children ages 12 and
In March 1996, licensed care providers reported 1,253 vacancies for child care in the
central city neighborhoods of Milwaukee County where 90 percent of the over 40,000
AFDC children ages 0-12 reside. These vacancies are in large part attributable to normal
client turnover rather than increased availability or expansions. Only 406 of these openings
were for infants under twelve months of age, and 251 for children ages 1-2 years.
This would leave only $8 million in Milwaukee County child care funds to serve the residual W-2 population of 20,000 AFDC families not now employed but subject to W-2 work requirements. This population includes an estimated 42,000 children ages 12 and under.
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