The ABCs of Childcare

1) How many children in Washington state need childcare?
• Children under 6 in single- or two-parent families with parents in labor force: 301,078
• Children under 4 living in poverty: 83,368
• Spaces in childcare centers and family home care: 174,210
Source: National Association of Child Care Resource and Referral Agencies,

2) Average monthly cost of full-time childcare (non-subsidized rate):
• Infant = $693(family home care) to $1029 (childcare center)
• Toddler = $665 (family home care) to $866 (childcare center)
• Preschooler = $609 (family home care) to $766 (childcare center)
• Kindergartener = $ 535 (family home care) to $641(childcare center)
• School age = $493 (family home care) to $546 (childcare center)
Source: 2012 report by Washington Department of Early Learning

3) What are childcare workers paid?
• $17,340 in Eastern Washington to $23,780 in Seattle area average per year (childcare center employee)
• $ 44,440 average per year (childcare center director)
Source: 2012 US Department of Bureau of Labor Statistics

4) What does the state spend on childcare through DSHS Working Connections Childcare (Washington's main subsidy program)?
• In fiscal year 2011, Washington state spent $197 million on childcare subsidies ($17 million less than the amount spent in fiscal year 2001).

• Between 1997 – 2011, the overall state budget for childcare under the federal Temporary Assistance to Needy Families grant has remained between $400-500 million.

5) How much does Washington state give away in corporate tax breaks and subsidies?
• Washington spends at least $2.35 billion per year on "business incentive" programs.

• Lost state revenue due to corporate welfare was about $50 billion in 2010.
Source: "Real Washington State Budget," a website of the Fair School Funding Coalition,

6) Who are the biggest recipients of corporate welfare?
• From 2004 - 2006, Microsoft was by far the largest beneficiary of the high-tech sales tax break, claiming between $24 million and $25 million each year. The company was also the only firm to claim the maximum B&O credit of $2 million each year.

• Others claiming large annual sales tax credits of between $3 million and $6 million annually were the University of Washington, Intel, Immunex, and Zymogenetics.

• From 2003 through 2007, the legislature passed 77 business tax breaks that reduced state revenue by nearly $600 million in the 2007-09 biennium. Aerospace industry tax breaks cost the state $207 million in 2007-09. High-tech and rural investment incentives cost the state another $200 million.
Source: Economic Opportunity Institute,

Microsoft receives all kinds of hidden tax breaks — including millions in credits for equipment and property tax exemptions. Its biggest state tax break is exemption from the Software Royalty License tax, which reduces state income by approximately $1 billion annually.
Source: Real Washington State Budget,

Boeing is another major recipient of state tax subsidies. The 2003 deal that landed the first production line for the 787 Dreamliner aircraft promised the company up to $3.2 billion in tax subsidies over the life of the facility.

• At least one Wal-Mart location has received state subsidies worth about $1 million. At least three Wal-Mart locations in the state have challenged property tax assessments.

7) How much priority do children get in the federal budget?
• Department of Defense expenditures for 2011 were $3.63 trillion.
Source: Wikipedia:

• Federal expenses for childcare and early childhood education in 2011 were $12.3 billion. Federal expenses on all programs benefiting children in 2011 were $376 billion.
Source: Urban Institute Report,

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