2024 Child Care Market Survey Results

July 2024

DCF-P-5793 (N. 07/2024)

 The Department of Children and Families is an equal
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Division of Early Care and Education

Department of Children and Families
201 West Washington Avenue
Madison, WI 53703
https://dcf.wisconsin.gov/

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Table of Contents
Section 1: Introduction ......................................................................................................................... 4
Section 2: Market Rate Survey ............................................................................................................. 5
Section 3: Narrow Cost Analysis ....................................................................................................... 11
Section 4: Conclusion ........................................................................................................................ 15

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Section 1: Introduction
The Wisconsin Department of Children and Families (DCF) is committed to ensuring that all
Wisconsin families have access to quality, affordable early care and education. A key
component of this ongoing work is the Wisconsin Shares child care subsidy program, which
helps make child care more affordable for working families.

Wisconsin Shares is funded through the federal Child Care Development Fund (CCDF). The
CCDF funding provided to states, tribes, and territories is administered by the federal
Administration for Children and Families (ACF) Office of Child Care (OCC) and is the primary
public funding source for child care services across the state.

CCDF regulations require Lead Agencies to certify that their child care subsidy payment rates
are sufficient to ensure equal access to care for children who are eligible for subsidy when
compared to children in the private pay market. In addition, Lead Agencies must complete two
analyses:
• A Market Rate Survey (MRS) to understand child care provider prices and the buying
power of the child care subsidy, and
• A Narrow Cost Analysis to understand the true costs of providing quality child care.

This report meets these CCDF requirements and informs DCF and other child care stakeholders
about the price of child care, the buying power of Wisconsin Shares, and the true cost of
providing quality care.

Key findings include:

• Child care provider prices have increased between 2022 and 2023.
• Because of these price increases, the buying power of Wisconsin Shares has decreased.
In 2022, the maximum Wisconsin Shares rate was at or above the price of 74% of slots.
In 2023, it was at or above the price of 50% of slots.
• Provider prices do not always reflect the true cost of providing quality care. The true cost
of providing quality care would include child care workforce salaries that reflect pay
parity with kindergarten educators in K-12 settings.

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Section 2: Market Rate Survey

Purpose: The Market Rate Survey is intended to show:

• Full-time provider prices at various geographies, provider types, and age ranges; and
• The buying power of the Wisconsin Shares subsidy.

Data Collection: Provider prices for the Market Rate Survey are collected by Wisconsin’s Child
Care Resource and Referral Network through the Business Information Form (BIF). The BIF is
the source for estimates of monthly market rates for full-time child care by provider type, age
group, and geographic location. An example of the BIF can be viewed on the 4C website.

The following types of regulated child care providers were surveyed as part of the 2024 Market
Rate Survey:

• Licensed family providers, which provide care for between 4 and 8 children. This care is
usually in the provider's home.
• Licensed group providers, which provide care for 9 or more children. These centers are
usually located somewhere other than a residence and may be small or large in size.

As shown in Table 1, the response rate for the 2024 Market Rate Survey was 32%. Due to this
low response rate, DCF conducted additional analyses to validate the results of this analysis. 1

Table 1 – 2024 Market Rate Survey Response Rate

Total Sample Size Total Surveys Received Response Rate
3,683 1,178 32%

Data for this 2024 Market Rate Survey are current as of fall 2023.

Data Analysis: This analysis is focused on:

• Prices for full-time, year-round care, meaning that part-time prices and prices for care
that is not year-round are excluded.

1
DCF validated that the sample was representative of Wisconsin child care providers, with no substantial
under- or over-representation of providers by any provider attribute that DCF collects. DCF also evaluated
price data from additional child care providers that are not included in the survey. The additional analysis
considered all regulated providers, not just licensed providers, and considered more price data. Licensed,
certified, and public schools were considered. Provider prices from Wisconsin Shares were used when
prices were missing or outdated from the BIF. Hourly rates were converted to weekly using a 45-hour
week (due to 40-hour work week and travel time to/from work). Providers with all or mostly all children
with subsidy were included. Part-year or part-day programs were included, except for those not operating
in the month of December 2023.

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 • Prices in the private market, meaning that prices for providers serving more than 75% of
children receiving Wisconsin Shares are excluded.

The analysis is specific to county, provider type (licensed family provider or licensed group
provider), and the child’s age for the slot.

To conduct the analysis, we compared each provider’s slot price to the applicable Wisconsin
Shares maximum rate to determine whether the maximum Wisconsin Shares rate was at or
above the price for the slot. When the applicable Wisconsin Shares maximum rate was at or
above the price, that slot was considered affordable. We then divided the number of affordable
slots by the number of total slots to get the percentage of affordable slots statewide.

It’s important to note that the term “affordable” has a specific definition for the purpose of this
analysis. “Affordable” is used to describe a slot for which the maximum Wisconsin Shares rate
is at or above the provider price for that slot. It is not a general measure of whether the price of
child care is affordable for families. For example, most families who utilize Wisconsin Shares
are authorized for less than the maximum Wisconsin Shares rate. Likewise, many families are
not eligible for Wisconsin Shares and pay the full price out of pocket.

Results: According to this analysis, 50% of child care slots statewide are affordable, meaning
that the price of the slot is at or below the applicable maximum Wisconsin Shares rate for that
slot.

Table 2 – Percentage of Affordable Slots, 2024

Available Slot Data MRS 2024
Affordable Slots 28,569
Available Slots 56,794
Percentage of Affordable Slots 50%

Fifty percent is well below the target for affordability. The affordability threshold set by both the
federal Administration for Children and Families and Wisconsin Statute is that 75% of child care
slots should be affordable.

Fifty percent also represents a significant decline from the prior Market Rate Survey, which
found that in 2022, 74% of child care slots were considered affordable.

The decline in the percentage of affordable slots between 2022 and 2023 corresponds with an
increase in provider prices. While maximum Wisconsin Shares rates have stayed constant since
2022, their purchasing power has declined as a result of provider price increases.

To illustrate the change in provider prices over time, chart 1 shows prices for infant child care in
rural and, separately, urban areas between 2006 and 2023. The round (rural) and square (urban)
markers indicate the average price (i.e., 50th percentile or median) each time the Market Rate
Survey was conducted. The lower (red) and upper (green) markers indicate the 25th and 75h

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percentile of price, respectively. The chart also includes “R” markers whenever Wisconsin
Shares maximum rates were raised. The “R” markers show the approximate buying power of the
Wisconsin Shares maximum rate at that time.

Chart 1 – Provider Prices Over Time

As shown in chart 1, provider prices have increased over time, with increases between 2022 and
2023 that are larger than predicted by prior years’ trends.

It is important to note that Child Care Counts payments to providers were reduced by half in May
2023 in order to stay within the budget allocated for the program. According to research
conducted by the UW-Madison Institute for Research on Poverty, providers use Child Care
Counts funds to cover core expenses such as payroll, materials, rent, and utilities, thereby
avoiding passing those costs along to families. When Child Care Counts payments were
reduced, providers were forced to pass some of these costs along to families in the form of
increased prices.

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For more information on the range of provider prices across the state, tables 3-6 show the 25th,
50th, and 75th percentile of weekly full-time prices in communities at different levels of urbanicity
(0-24% urban, 25-49% urban, 51-74% urban, and 75-100% urban). Figure 1 provides a map
showing which zone of urbanicity each county is in. The prices are specific to provider type and
age group.

As an example for reading the following tables: In communities that are between 0 and 24%
urban, 25% of slots for children aged 0-1 in licensed family child program are at or below $150
per week, 50% of slots are at or below $160 per week, and 75% of slots are at or below $175 per
week.

Weekly Full-time Provider Prices by Percent of Urbanicity

Table 3 – Region A Provider Price Ranges
Percent Licensed 25th 50th 75th
Region of Urban Type Age Group Percentile Percentile Percentile
A 0-24% Family 0 to 1 $150.00 $160.00 $175.00
A 0-24% Family 2 to 3 $140.00 $150.00 $175.00
A 0-24% Family 4 to 5 $135.00 $150.00 $175.00
A 0-24% Family 6+ $130.00 $150.00 $170.00
A 0-24% Group 0 to 1 $185.00 $200.00 $230.50
A 0-24% Group 2 to 3 $170.00 $195.00 $215.00
A 0-24% Group 4 to 5 $157.00 $180.00 $197.50
A 0-24% Group 6+ $155.00 $175.00 $200.00

Table 4 – Region B Provider Price Ranges

Percent Licensed 25th 50th 75th
Region of Urban Type Age Group Percentile Percentile Percentile
B 25-49% Family 0 to 1 $150.00 $165.00 $185.00
B 25-49% Family 2 to 3 $140.00 $150.00 $175.00
B 25-49% Family 4 to 5 $140.00 $150.00 $170.00
B 25-49% Family 6+ $135.00 $150.00 $165.00
B 25-49% Group 0 to 1 $210.00 $244.00 $260.00
B 25-49% Group 2 to 3 $194.00 $221.05 $240.00
B 25-49% Group 4 to 5 $179.00 $200.00 $222.50
B 25-49% Group 6+ $160.00 $185.00 $200.00

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 Table 5 – Region C Provider Price Ranges
Percent Licensed 25th 50th 75th
Region of Urban Type Age Group Percentile Percentile Percentile
C 50-74% Family 0 to 1 $175.00 $200.00 $225.00
C 50-74% Family 2 to 3 $170.00 $180.00 $200.00
C 50-74% Family 4 to 5 $165.00 $180.00 $200.00
C 50-74% Family 6+ $165.00 $175.00 $195.00
C 50-74% Group 0 to 1 $235.00 $255.00 $285.00
C 50-74% Group 2 to 3 $215.00 $240.00 $265.00
C 50-74% Group 4 to 5 $199.00 $220.00 $231.00
C 50-74% Group 6+ $185.00 $200.00 $220.00

Table 6 – Region D Provider Price Ranges

Percent Licensed 25th 50th 75th
Region of Urban Type Age Group Percentile Percentile Percentile
D 75-100% Family 0 to 1 $200.00 $250.00 $300.00
D 75-100% Family 2 to 3 $190.00 $225.00 $275.00
D 75-100% Family 4 to 5 $180.00 $225.00 $260.00
D 75-100% Family 6+ $175.00 $200.00 $250.00
D 75-100% Group 0 to 1 $265.00 $325.00 $390.00
D 75-100% Group 2 to 3 $240.00 $282.00 $346.13
D 75-100% Group 4 to 5 $207.00 $250.00 $299.00
D 75-100% Group 6+ $185.00 $225.00 $265.00

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 Figure 1 – Wisconsin Child Care Subsidy Program Subsidy Rate Zones

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 Section 3: Narrow Cost Analysis

Purpose: Provider prices are constrained by what families are able to pay, meaning they do not
always reflect the true cost of providing quality child care. The CCDF-required Narrow Cost
Analysis is intended to show the true cost of care associated with meeting different levels on
YoungStar, Wisconsin’s child care Quality Rating Improvement System (QRIS).

Data Collection: Data collected for the Narrow Cost Analysis included the cost of meeting QRIS
requirements, staff costs, facility expenses, professional development, and ensuring sufficient
child-to-staff ratios. These data were collected through the ACF-OCC Provider Cost of Quality
Calculator (PCQC) and publicly available data sources.

Results: Per Child Cost of Care

Tables 7- 10 show annual per child costs based on YoungStar level, child age, and urbanicity.

Table 7 – Licensed Group Center in Region A (0-24% Urban)

5 Star Rated 4 Star Rated 3 Star Rated 2 Star Rated/Baseline
Annual Per Child Cost Program Program Program Regulation Program
1-24 Months $41,464 $34,018 $30,052 $25,540
2 years old $29,804 $24,437 $21,150 $17,894
Preschool 3 years old $22,603 $18,519 $15,652 $13,171
Preschool 4 years old $19,159 $15,689 $13,022 $10,913
School-Age $16,033 $13,176 $10,694 $9,261

Table 8 - Licensed Group Center in Region B (24-49% Urban)

5 Star Rated 4 Star Rated 3 Star Rated 2 Star Rated/Baseline
Annual Per Child Cost Program Program Program Regulation Program
1-24 Months $43,280 $35,396 $31,239 $26,501
2 years old $31,083 $25,398 $21,950 $18,535
Preschool 3 years old $23,550 $19,223 $16,213 $13,615
Preschool 4 years old $19,947 $16,270 $13,469 $11,261
School-Age $16,666 $13,639 $11,031 $9,541

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 Table 9 - Licensed Group Center in Region C (50-74% Urban)

5 Star Rated 4 Star Rated 3 Star Rated 2 Star Rated/Baseline

Annual Per Child Cost Program Program Program Regulation Program
1 -24 Months $42,069 $34,477 $30,448 $25,860
2 years old $30,231 $24,757 $21,417 $18,107
Preschool 3 years old $22,919 $18,754 $15,839 $13,319
Preschool 4 years old $19,422 $15,883 $13,171 $11,029
School-Age $16,244 $13,331 $10,806 $9,354

Table 10 - Licensed Group Center in Region D (75-100% Urban)

5 Star Rated 4 Star Rated 3 Star Rated 2 Star Rated/Baseline
Annual Per Child Cost Program Program Program Regulation Program
1-24 Months $44,189 $36,085 $31,832 $26,982
2 years old $31,723 $25,879 $22,350 $18,855
Preschool 3 years old $24,024 $19,575 $16,494 $13,836
Preschool 4 years old $20,342 $16,561 $13,693 $11,436
School-Age $16,983 $13,871 $11,200 $9,680

Table 11 - Specific to Licensed Family Home Providers

Licensed Family Provider – 5 Star Rated 4 Star Rated 3 Star Rated 2 Star Rated/Baseline
Annual Per Child Cost Program Program Program Regulation Program
Serves only infants up to 24 months $32,707 $26,636 $20,917 $19,815
Serves only two years and older $17,209 $14,174 $11,261 $10,697

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 Results: Non-Personnel Expenses

Tables 12 and 13 show non-personnel costs by YoungStar level and provider type.

Table 12 – Non-Personnel Expenses (Licensed Family Provider)

Family Child Care
Budget Breakdown –
Non-Personnel Costs YS Level 2 YS Level 3 YS Level 4 YS Level 5 Unit

Rent/Mortgage $15,793.20 $15,793.20 $15,793.20 $15,793.20 per year

Utilities*** $4,997.97 $4,997.97 $4,997.97 $4,997.97 per year

Insurance
(liability, accident,
and home owners) $1,712.00 $1,712.00 $1,712.00 $1,712.00 per year

Telephone/Internet $2,125.02 $2,125.02 $2,125.02 $2,125.02 per year

Food $1,498.00 $1,498.00 $1,498.00 $1,498.00 per child

Supplies $1,605.00 1,926.00 $2,140.00 $2,408.50 per site

Field Trips and Outings
(with transportation) $80.25 $107.00 $214.00 $214.00 per child

Vehicle Expenses*** $3,663.68 $3,663.68 $3,663.68 $3,663.68 per year

Maintenance and
Repairs (including
cleaning) $1,310.75 $1,310.75 $1,310.75 $1,310.75 per year
Training and
Professional
Development $267.50 $481.50 $535.00 $642.00 per staff
Professional
Membership Dues,
Subscriptions,
Licenses, and Permits $235.40 $235.40 $235.40 $235.40 per year

Accounting and Legal $706.20 $706.20 $706.20 $706.20 per year

Pest Control $518.95 $518.95 $518.95 $518.95 per year

Advertising $160.50 $160.50 $160.50 $160.50 per year

Depreciation
(equipment) $353.10 $353.10 $353.10 $353.10 per year
*** Narrow cost analysis survey

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 Table 13 – Non-Personnel Expenses (Licensed Group Center)
Group Child Care
Budget Breakdown –
Non-Personnel Costs YS Level 2 YS Level 3 YS Level 4 YS Level 5 Unit
Food (includes food
and kitchen supplies)* $2,140.00 $2,407.50 $2,675.00 $2,675.00 per child
Office Supplies and Equipment $107.00 $107.00 $107.00 $107.00 per child
Education Supplies
and Equipment $240.75 $321.00 $374.50 $401.25 per child

Child Assessment $0.00 $0.00 $21.40 $32.10 per child

Marketing, Printing, and Postage $48.15 $64.20 $85.60 $107.00 per child

Rent/Lease $13.77 $13.77 $13.77 $13.77 per sq foot

Utilities (gas, electric, etc.) $3.64 $3.64 $3.64 $3.64 per sq foot

Maintenance/Repair/Cleaning $3.96 $3.96 $3.96 $3.96 per sq foot

per site
Fees/Permits/Licenses $535.00 $535.00 $535.00 $535.00 annually
Background Checks $39.00 $39.00 $39.00 $39.00 per staff
per site
Accounting/Legal/Audits** $9,630.00 $9,630.00 $9,630.00 $9,630.00 annually

Staff Training and Education $267.50 $535.00 $802.50 $1,070.00 per staff
per
Consultation Services $0.00 $0.00 $0.00 $0.00 classroom
per
IT Support (per classroom) $0.00 $535.00 $1,070.00 $1,605.00 classroom
Insurance $117.70 $117.70 $117.70 $117.70 per child
per site
Telephone and Internet*** $2,487.75 $2,487.75 $2,487.75 $2,487.75 annually
Miscellaneous $26.75 $26.75 $26.75 $26.75 per child
Grounds Maintenance $3.85 $3.85 $3.85 $3.85 per sq foot

Medical Supplies $53.50 $53.50 $53.50 $53.50 per child

$1,605.00 $1,605.00 $1,605.00 $1,605.00 per site

Transportation annually
* CACFP guidelines
** Adjusted to match national averages
*** Narrow cost analysis survey

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Results: Workforce Salaries

Tables 14 and 15 show an average “current state” of the child care workforce wages at different
YoungStar level and provider types, and recommended child care workforce wages based on
the median Wisconsin workforce wages at similar levels of educational attainment and
including salary parity with kindergarten teachers in the K-12 system.

Table 14 - Licensed Group Center

Current Workforce Salaries (Licensed Group Center)
Position Title Licensed 2 Star 3 Star 4 Star 5 Star
Center Director $35,700 $39,730 $41,622 $48,136
Lead Teacher $25,951 $27,141 $29,389 $32,015
Teacher Assistant $23,012 $23,703 $24,671 $26,251

Recommended Workforce Salaries

Position Title Licensed 2 Star 3 Star 4 Star 5 Star
Center Director $43,264 $47,237 $64,792 $75,000
Lead Teacher $39,499 $43,264 $47,237 $64,792
Teacher Assistant $35,648 $37,524 $39,499 $41,474

Table 15 - Licensed Family Provider

Current Workforce Salaries (Licensed Family Provider)
Position Title Licensed 2 Star 3 Star 4 Star 5 Star
Teacher/Owner $22,895 $25,553 $30,705 $30,973
Teacher Assistant $23,012 $23,703 $24,671 $26,251

Recommended Workforce Salaries

Position Title Licensed 2 Star 3 Star 4 Star 5 Star
Teacher/Owner $39,499 $43,264 $45,427 $47,237
Teacher Assistant $35,648 $37,524 $39,499 $41,474

Section 4: Conclusion

The Market Rate Survey and Narrow Cost Analysis demonstrate that:

• Child care provider prices have increased between 2022 and 2023.
• Because of these price increases, the buying power of Wisconsin Shares has decreased.
In 2022, the maximum Wisconsin Shares rate was at or above the price of 74% of slots.
In 2023, it was at or above the price of 50% of slots.

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 • Provider prices do not always reflect the true cost of providing quality care. The true cost
of proving quality care would include pay parity with kindergarten educators in K-12
settings.

DCF remains committed to finding innovative solutions and long-term investments that support
making child care more affordable for Wisconsin families and empower child care programs
and educators in providing the quality care all Wisconsin kids deserve.

DCF will continue to conduct this Market Rate Analysis and a true cost of care analysis to
inform these critical efforts.

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