This cost of quality study illustrates the reality faced by child care providers across the state of Washington : Current revenues are insufficient to cover the true cost of child care . As shown in the default scenario results , when estimating the cost of care using current salaries , the Working Connections Child Care subsidy rates barely cover the cost of care . For infants , the cost of care exceeds the state reimbursement rate and is higher than most families can afford . This reality becomes even more stark when considering higher salaries for the child care workforce . Data from the cost of care survey found lead teachers earning around $ 15 an hour on average . This is not a competitive wage in most communities , leaving child care providers struggling to recruit and retain teachers , forced to close classrooms , or putting extra strain on the remaining workforce . The study results demonstrate that the child care system is built on the backs of a workforce that is insufficiently compensated for the critical role it plays in both enabling parents to work and educating the next generation .
Given the importance of the child care workforce , the cost estimation model developed for this study estimated the cost of providing child care with higher workforce compensation . The scenarios showing the cost of care when all child care providers earn at least a living wage offers one possibility for what this higher compensation could look like . Using living wage as a baseline enables providers to offer competitive salaries for every member of the workforce , while also adjusting for the additional responsibilities of different staff . The results of these scenarios illustrate that paying educators what they deserve leaves a large gap between what providers currently receive through WCCC and the true cost with higher salaries . Given that current WCCC rates are based on market prices , it is logical to also assume that families cannot afford the cost of care with living wage salaries either .
The cost model can help illustrate how Washington State can make changes to stabilize the child care system and ensure it has a sustainable future . Policymakers can use the model to inform WCCC subsidy rate setting , ensuring that subsidy reimbursement rates are sufficient to cover the cost of operating a program . The model can also be used to understand the cost of program enhancements , including those aligned with Early Achievers . While the state currently offers a higher reimbursement rate based on Early Achievers level , the model can show what that rate differential needs to be to cover the additional costs faced by providers at higher levels of Early Achievers . The model also demonstrates the impact of different payment policies and practices . When a percentage of anticipated revenue is not collected , programs already struggling to survive on razor-thin margins face economic peril . Policies such as paying subsidy reimbursement based on child enrollment rather than attendance and increasing the use of contracting for WCCC slots can help address this issue , providing more stable funding for providers .
This cost study and the cost estimation model highlight the limitations of subsidy rates to fix the broken child care system . To
qualify for assistance under WCCC , families must earn under 60 % of
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