Understanding the costs of child care is crucial for families, providers, and policymakers alike. In Illinois, like many other states, the Child Care Assistance Program (CCAP) plays a vital role in helping low-income families access quality care. To ensure this assistance is effective, it’s essential to regularly assess the market rates for child care services. This article delves into the 2018 market rates for licensed family child care group home programs in Illinois, drawing insights from an official market rate survey. We will explore the costs families were facing, how these rates varied across the state, and how they compare to the state’s child care assistance program. This information is vital for understanding the landscape of child care affordability and accessibility in Illinois.
Understanding the Illinois Child Care Market in 2018
In 2018, the Illinois child care market was structured around several key factors that influenced pricing and accessibility. To effectively analyze market rates, it’s important to understand these defining elements:
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Geographic Market Tiers: Illinois was divided into three distinct reimbursement groups for the CCAP, reflecting varying costs of living and market conditions across the state.
- Group IA: Representing the most urban and typically higher-cost counties, including Cook, DeKalb, DuPage, Kane, Kendall, Lake, and McHenry.
- Group IB: Comprising counties with at least one urban area but generally lower costs than Group IA. This included 16 counties such as Boone, Champaign, Kankakee, and others.
- Group II: Encompassing primarily rural counties with the lowest cost of living and, consequently, the lowest reimbursement rates.
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Child Age Categories: Child care costs are not uniform across age groups. Younger children, particularly infants and toddlers, typically require more intensive care and thus command higher rates. The age categories considered were:
- Infants and Toddlers (6 weeks to 23 months)
- Twos (24 to 35 months)
- Preschool (36 to 71 months)
- School-age (6 to 12 years) – although this article focuses on the younger age groups primarily served by group homes.
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Types of Child Care: Illinois recognizes various types of licensed child care arrangements, each with its own operational structure and cost profiles:
- Licensed Child Care Centers: Larger, center-based facilities often offering structured programs.
- Licensed Family Child Care Homes: Care provided in a private home setting by a licensed provider, typically with smaller group sizes.
- Licensed Family Child Care Group Homes: A larger home-based setting, licensed to care for more children than family child care homes, often with an assistant provider. This article primarily focuses on this category.
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Licensing Status: Rates can also differ based on whether a provider is licensed or license-exempt, although the market rate survey focused on licensed providers to ensure a baseline of quality and regulation.
Understanding these market factors is essential for interpreting the market rate data and its implications for families seeking child care in Illinois. The following sections will delve into the specific market rates observed for licensed family child care group homes in 2018.
Key Findings: Market Rates for Licensed Family Child Care Group Homes
Licensed family child care group homes offer a unique blend of home-based care with the capacity to serve more children than standard family child care homes. This section focuses on the full-time daily rates for these providers in Illinois during 2018, broken down by age group and geographic reimbursement tier.
Daily Rates for Infants and Toddlers (6 Weeks to 23 Months)
Caring for infants and toddlers is typically the most expensive form of child care due to the high level of individual attention and specialized care required. Table 13b from the original report provides a detailed breakdown of these rates for licensed family child care group homes.
| Geographic (County) CCAP Reimbursement Group | Number of Providers | Number of Slots | Mean Daily Rate | 25th Percentile | Median Rate | 75th Percentile |
|---|---|---|---|---|---|---|
| Group IA | 267 | 825 | $39.38 | $35.00 | $35.30 | $45.00 |
| Group IB | 96 | 298 | $33.83 | $30.00 | $33.00 | $37.00 |
| Group II | 65 | 207 | $27.50 | $25.00 | $27.00 | $30.00 |
Key Observations:
- Significant Geographic Variation: Infant and toddler care rates in group homes clearly reflect the geographic cost tiers. Group IA, representing urban areas, had the highest mean daily rate at $39.38. Group II, primarily rural counties, had the lowest mean rate at $27.50. This difference highlights the varying economic realities across Illinois.
- Rate Range Within Groups: Even within each reimbursement group, there is a range of rates, as shown by the 25th and 75th percentiles. For example, in Group IA, while the median rate is around $35.30, 25% of providers charged at or below $35.00, and 75% charged at or below $45.00, indicating rate variability even within urban areas.
- Median vs. Mean: Note that in Group IA, the mean rate ($39.38) is higher than the median rate ($35.30). This suggests that while a typical rate is around $35.30, the average is pulled upwards by some higher-priced providers in the urban market.
Daily Rates for Twos (24 to 35 Months)
As children transition into their “two-year-old” stage, some child care programs may adjust rates, often reflecting a slight decrease from infant/toddler care but still typically higher than preschool rates.
| Geographic (County) CCAP Reimbursement Group | Number of Providers | Number of Slots | Mean Daily Rate | 25th Percentile | Median Rate | 75th Percentile |
|---|---|---|---|---|---|---|
| Group IA | 252 | 471 | $37.82 | $32.89 | $34.00 | $44.00 |
| Group IB | 85 | 190 | $32.27 | $29.00 | $32.00 | $35.00 |
| Group II | 55 | 117 | $25.36 | $23.00 | $26.00 | $27.00 |
Key Observations:
- Continued Geographic Trend: The pattern of higher rates in Group IA and lower rates in Group II persists for two-year-olds. The mean daily rate in Group IA is $37.82, decreasing to $25.36 in Group II.
- Slight Rate Decrease from Infants/Toddlers: Comparing to infant and toddler rates, there is a marginal decrease in mean rates across all groups, as expected, though the overall cost remains substantial.
- Narrower Rate Range in Lower Tiers: Observe that the rate range (difference between 25th and 75th percentile) seems to narrow slightly in Group II compared to Group IA, suggesting less rate variability in the more rural, lower-cost regions.
Daily Rates for Preschoolers (36 to 71 Months)
Preschool-aged children, often benefiting from more structured group activities and potentially lower staff-to-child ratios compared to younger age groups, tend to have the lowest daily rates within the 6 weeks to 5 years age range.
| Geographic (County) CCAP Reimbursement Group | Number of Providers | Number of Slots | Mean Daily Rate | 25th Percentile | Median Rate | 75th Percentile |
|---|---|---|---|---|---|---|
| Group IA | 273 | 1,146 | $35.36 | $29.92 | $31.21 | $40.00 |
| Group IB | 103 | 422 | $31.07 | $26.85 | $30.00 | $35.00 |
| Group II | 64 | 292 | $25.45 | $23.00 | $25.00 | $26.00 |
Key Observations:
- Lowest Rates in Age Range: As anticipated, preschooler rates are the lowest among the age categories presented for group homes. This is consistent with the general cost structure of child care.
- Group IA Still Highest, But Gap Narrowing: While Group IA still exhibits the highest mean rate ($35.36), the absolute difference in rates between Group IA and Group II is somewhat smaller compared to infant/toddler and two-year-old rates.
- Median and 75th Percentile Closer in Group II: In Group II, the median ($25.00) and 75th percentile ($26.00) are very close, indicating a tighter clustering of rates at the lower end of the spectrum in these rural areas.
Map of Illinois Child Care Resource & Referral Service Delivery Areas, illustrating the geographic regions used for market rate analysis.
How Illinois Child Care Assistance Program (CCAP) Rates Compare
Understanding the market rates is only part of the picture. It’s equally important to analyze how these rates compare to the Child Care Assistance Program (CCAP) maximum subsidies provided by the state. The goal of CCAP is to ensure that eligible families have access to a range of child care options. A key metric for evaluating this is the “CCAP Percentile,” which indicates the percentage of child care slots in a given market that are priced at or below the maximum CCAP reimbursement rate. A higher percentile suggests better coverage and greater choice for families using subsidies.
Tables 35-43 in the original report provide detailed CCAP percentile analyses. We will focus on Table 37, which specifically examines CCAP maximum subsidies compared to market rates for Licensed Family Child Care Group Home Providers, Children 6 weeks to 5 years old.
Selected CCAP Percentile Examples for Licensed Family Child Care Group Homes (from Table 37):
| County Group | County | Rates Age Group | CCAP Percentile |
|---|---|---|---|
| IA | Cook | Infants and Toddlers | 63.3 |
| IA | Cook | Twos | 56.4 |
| IA | Cook | Preschool | 48.8 |
| IB | Champaign | Infants and Toddlers | 29.7 |
| IB | Champaign | Twos | 37.9 |
| IB | Champaign | Preschool | 25.8 |
| II | Clinton | Infants and Toddlers | 100.0 |
| II | Clinton | Twos | 100.0 |
| II | Clinton | Preschool | 40.0 |
Key Observations on CCAP Percentiles:
- Subsidies Cover More Slots in Rural Areas (Group II): The CCAP percentiles are generally higher in Group II counties, particularly for infant and toddler care. For example, Clinton County (Group II) shows a 100% CCAP percentile for both infants/toddlers and twos, meaning the CCAP maximum rate could cover all available slots in group homes for these age groups in that county.
- Lower Coverage in Urban Areas (Group IA & IB): In contrast, the CCAP percentiles are considerably lower in Group IA and Group IB, especially for preschool and sometimes infant/toddler care. Cook County (Group IA) shows percentiles ranging from 48.8% to 63.3%, indicating that a significant portion of group home slots in this urban area were priced above the CCAP maximum.
- Percentile Decreases with Age in Some Areas: In some locations, like Champaign County (Group IB), the CCAP percentile tends to decrease as the child’s age increases (from infant/toddler to preschool). This suggests that the subsidy rates may be less adequate for covering preschool care in group homes in these areas compared to infant/toddler care.
- Ideal Coverage is 75th Percentile: It’s important to recall that the CCDF (Child Care and Development Fund) recommends that states aim to set subsidies at the 75th percentile of market rate. Based on these 2018 figures for group homes, Illinois CCAP rates frequently fall below this benchmark, particularly in urban and suburban areas (Group IA and IB).
These CCAP percentile analyses underscore that while the Illinois Child Care Assistance Program provides crucial support, its effectiveness in ensuring access to licensed family child care group homes varies considerably across the state and by child’s age. Families in urban and suburban areas, especially seeking preschool care in group homes, may face more limited choices within the CCAP subsidy maximums compared to those in rural Group II counties.
Additional Fees and Non-Standard Hour Availability in Group Homes
Beyond the base daily rates, it’s essential to consider additional fees that child care providers may charge and the availability of care during non-standard hours, as these factors can significantly impact the overall cost and accessibility of care.
Additional Fees (from Table 14):
Licensed family child care group homes in Illinois sometimes levy extra fees for various services. Here’s a summary of the prevalence of these fees based on the 2018 survey:
| Fee Type | Percentage of Providers Charging |
|---|---|
| Registration/Application | 23.6% |
| Deposit Required | 30.0% |
| Field Trips | 19.7% |
| Transportation | 10.5% |
| Materials/Supplies | 3.3% |
| Meal/Snack Fee | 1.5% |
| Late Pick Up | 51.4% |
| Charges CCAP Difference | 16.6% |
Key Points on Additional Fees:
- Late Pick-Up Fees Common: Over half of group home providers (51.4%) charged fees for late pick-up, which can be a significant consideration for working parents facing unpredictable schedules.
- Deposit and Registration Fees Substantial: Around 30% required a deposit and nearly 24% charged registration or application fees. These upfront costs can create barriers for families, especially those with limited financial resources.
- CCAP Difference Charges: A notable 16.6% of providers indicated they charge parents the difference between their full rate and the CCAP subsidy amount. This practice, while potentially helping providers cover costs, can reduce the affordability benefit of the CCAP for families.
Availability of Care During Non-Standard Hours:
The survey also examined the availability of care outside of typical daytime weekday hours, which is crucial for families with non-traditional work schedules.
- Overnight Care Licensing: Approximately 43.5% of licensed family child care group home providers were licensed to provide overnight care, indicating a potential capacity for extended-hour care within the sector.
- Limited Non-Standard Hour Shifts: However, despite the licensing, actual full-time shifts offered during evening or overnight hours were relatively rare. Only a small percentage of full-time shifts were designated as evening (approximately 2.5%) or overnight (less than 1%).
Implications of Fees and Hours:
- Out-of-Pocket Costs Increase: Additional fees, particularly registration, deposits, and late pick-up fees, add to the overall cost of child care for families, potentially making it less affordable even with subsidies.
- Limited Non-Standard Hour Options: While a segment of group homes are licensed for overnight care, the limited availability of actual non-standard hour shifts suggests that families needing care outside of regular daytime hours may face challenges finding suitable licensed group home options.
Implications for Families and Providers
The 2018 market rate survey data for licensed family child care group homes in Illinois carries several important implications:
For Families:
- Geographic Cost Disparities: Families, especially those with infants and toddlers, need to be aware of the significant cost differences across geographic regions in Illinois. Urban areas (Group IA) are considerably more expensive than rural areas (Group II).
- CCAP May Not Fully Cover Costs in Urban Areas: The CCAP subsidy, while helpful, may not fully cover the market rates for group homes, particularly in urban and suburban counties. Families might need to budget for out-of-pocket expenses or have limited choices within the subsidy maximums.
- Factor in Additional Fees: Families should inquire about and budget for potential additional fees, such as registration, deposits, and late pick-up charges, as these can add to the overall cost of care.
- Limited Non-Standard Hour Options: Families needing care outside of standard daytime hours should proactively inquire about availability, as full-time non-standard hour shifts in licensed group homes were not widely prevalent in 2018.
For Providers:
- Market Rate Awareness is Crucial: Licensed family child care group home providers need to be aware of the prevailing market rates in their geographic area and for different age groups to set competitive and sustainable prices.
- CCAP Participation Considerations: Providers considering participating in the CCAP should understand the reimbursement rates and how they compare to their operating costs and desired revenue. The CCAP percentile data can help assess the program’s financial viability in different markets.
- Fee Transparency is Important: Clear communication about all fees, including registration, deposits, and late pick-up charges, is essential for building trust with families and ensuring transparency in pricing.
For Policymakers:
- Regular Market Rate Surveys are Essential: The 2018 survey highlights the importance of ongoing market rate analysis to ensure that child care subsidies remain aligned with market realities and effectively support families’ access to care.
- CCAP Rate Review and Adjustment: The findings suggest a need to regularly review and potentially adjust CCAP reimbursement rates, particularly in urban and suburban areas (Group IA and IB) to improve coverage and choice for families, especially for infant, toddler, and preschool care in group homes.
- Consideration of Fee Impact: Policymakers may need to consider the impact of additional fees and explore strategies to mitigate their burden on families using subsidies, potentially through guidance or adjustments to subsidy policies.
Conclusion
The 2018 market rate survey for licensed family child care group homes in Illinois provides valuable insights into the costs of care, geographic variations, and the relationship between market rates and the state’s child care assistance program. The data underscores the importance of understanding market dynamics to ensure that child care is both accessible and affordable for families across Illinois. Continued monitoring of market rates and thoughtful adjustments to support programs like CCAP are crucial for a thriving and equitable child care system in the state.
Reference:
This article is based on data from: Market Rate Survey of Licensed Child Care Programs in Illinois Fiscal Year 2018. Bureau of Child Care and Development, Illinois Department of Human Services.
