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, http://www.naccrra.org/sites/default/files/default_site_pages/2012/washington_060612-3.pdf
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, http://realwashingtonstatebudget.info/
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, http://www.eoionline.org/tax_reform/reports/
• 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, http://realwashingtonstatebudget.info/index.php?option
• 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: http://en.wikipedia.org/wiki/2012_United_States_federal_budget
• 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, http://www.urban.org/UploadedPDF/412600-Kids-Share-2012.pdf
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