Study: The Cost of Child Care in PA

The Institute of State and Regional Affairs at Penn State Harrisburg, in partnership with Pennsylvania’s Office of Child Development and Early Learning (OCDEL) and the Pennsylvania Key, has released a new study on the Cost of Child Care in Pennsylvania.

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The economic cost of care was estimated via the ingredients method using detailed site-level resource data from a large, representative sample of providers. The ingredients method focuses on the characteristics and quantities of resources – including people, services, and supplies – used to deliver a program.

The principle finding of the study is an estimated weekly cost of child care of $290 per child among providers that participated in the study, which is generally higher than in prior studies. Across providers, the weekly cost ranged from $148 to $627 per child. Costs were related to several provider characteristics including quality, type, and location.

Facility and personnel median costs per child were lower at child care centers, as they reported operating closer to ratios established in regulation.

As with provider type, variation in cost was observed across Keystone STAR levels. STAR 3 and 4 providers generally had higher costs compared to STAR 1 and 2 providers. Finally, a comparison of providers by locale reveal a large difference between the local per-child cost between providers in metropolitan and rural areas.

Personnel costs constituted 80% of total child care costs, at the median, with a significant number of providers exceeding 70%.

The findings from the study “provide evidence of the costs faced by child care providers and inspire further important research questions,” according to the report.

The study provides recommendations to reassess the subsidy rate structure and explore viable alternatives.

For details and more information, read the complete study: Cost of Child Care in Pennsylvania.