Understanding Child Care Demand and Supply Issues: New Lessons from Los Angeles. PACE Policy Brief. Early Education Series.

With family demand for child care outpacing supply, California state and local policymakers want to learn how best to target resources on those neighborhoods most in need. Using the findings from two recent studies in Los Angeles County, this policy brief provides an overview of some of the options facing policymakers as they address issues of child care supply and demand. The brief discusses factors contributing to puzzling conclusions for those tracking the child care market, including licensed providers who do not want to care for as many children as they are licensed to have, parents who do not want to use licensed providers, conflicting information from different databases, and changing demographics. The brief notes that over 50 percent of the centers in Los Angeles County have waiting lists, suggesting that the openings that do exist are not meeting parents' needs. Parents who work nontraditional schedules are more likely to find care in child care homes than in centers. Only 28 percent of centers are able to accept children with severe special needs, and many providers are not serving children in their native languages. A lack of transportation is also a barrier to using available child care slots. The brief concludes by asserting that additional study is needed to examine why families needing child care do not use available spaces in licensed facilities, why many do not use subsidies to which they are entitled, and the extent of organized programs that are exempt from licensing regulations but serve a child care function, such as parks and recreation activities. (KB)