• SSBG Focus Reports 2004


• Adult Protective Services
• Child Day Care
• Child Protective Services
• Child Welfare Services


• Services for Adults and Children With Disabilities
• Services for Older Adults

The Social Services Block Grant (SSBG) program disburses funds to States to support social services for adults and children. This report is one in a series of focus reports describing SSBG expenditures and recipients for specific service categories, populations, and clusters of services, based on data published in the SSBG Annual Report 2004.[1]

Child Day Care

In a large number of American families with young children, the primary caregiver is in the workforce. In 2003, 29 percent of children in married two-parent families had both parents working year round, full time, while 63 percent of children living with a single father and 47 percent of children living with a single mother had a parent who worked year round, full time. Childcare assistance is essential to help families leave or avoid welfare and maintain employment.[2]

When a child's caregiver is in school or in the workforce, high-quality childcare is critical. Furthermore, the success of welfare reform efforts depends at least in part on the availability of funding for quality childcare.[3] The challenge of securing safe, affordable childcare can also be amplified by economic downturns and an increase in unemployment. The SSBG is a critical source of Federal funds for agencies that provide child day care. Forty-one States reported using the SSBG to fund child day care, which was the third largest of the 29 service expenditure categories in 2004.

The SSBG provides funds to States, in proportion to their population, to assist with the provision of social services. States have substantial discretion in the use of SSBG funds and may determine what services are provided, who is eligible to receive them, and how funds are used. In addition, a State may transfer up to 10 percent of its annual Temporary Assistance for Needy Families (TANF) Block Grant allocation into its SSBG program.

States report on SSBG expenditures and recipients annually in a postexpenditure report. The term SSBG expenditures refers to the expenditures of the SSBG allocation combined with funds transferred from TANF into SSBG.

During 2004, SSBG expenditures for child day care were approximately $254 million. In addition to supervision of children in a qualified setting, child day care expenditures can include recreation, meals and snacks, licensing and monitoring of facilities, and counseling for parents.

Highlights of SSBG's role in the funding of child day care services are listed below.

• Child day care for approximately 3 million children in 41 States was funded in whole or part by the SSBG during 2004.
• During 2004, States reported spending approximately $254 million on child day care, which is approximately 10 percent of all SSBG expenditures. This is a 54 percent increase from 2003 State SSBG spending ($165 million) for child day care. Approximately 56 percent of this amount were funds transferred from TANF.
• Nine States reported spending 20 or more percent of their SSBG expenditures on child day care and two states -- Delaware and Tennessee -- spent 58 percent and 48 percent, respectively.
• More than three-quarters of SSBG expenditures toward child day care were by five States -- California, Connecticut, Maryland, New York, and Pennsylvania. California, New York, and Pennsylvania each spent more than $30 million.

Table 1 details the recipient and expenditures data for child day care.