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In
Brief: Military Examines its Child Care Costs Web-only Article
The military child-care system, the largest system of employer-sponsored child care in the country, has received wide recognition for providing high-quality, affordable care for the children of military employees. Like many other sectors, however, the Department of Defense (DoD) has been affected by the current budget deficit, and as a result has been investigating the most cost-effective ways to provide care while maintaining a high level of quality and multiple options for parents. A recent RAND report explored the cost of providing care through DoD-operated child development centers, family child care homes, and centers operated by outside providers under contract to the DoD. The study found that the average annual cost of DoD-operated center-based child care ranged from $12,133 for infant care to $4,595 for school-age care. However, the cost of care to parents is largely subsidized by the DoD. Parents pay on a sliding scale based on their total family income. Per-child cost was lower in larger centers, and higher in areas with a higher cost of living. Family-based care was substantially less expensive for the DoD, particularly for younger children. However, parents who use family-based care do not necessarily benefit from these lower costs because they do not receive as much assistance from the DoD. Fees are often negotiated between parents and providers, and are unregulated by the DoD. As a result, the amount parents pay at family-based care might actually be higher than what they would pay at a child care center. Offering higher subsidies for family child care might make this type of care more appealing to parents, and could help DoD save money. The RAND study also found that care provided by outside contractors did not reduce costs for parents or the DoD. Source:
Facts in Action, October 2002 |
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