The Child Care and Development Fund (CCDF) regulations require that States receiving CCDF funds conduct a Market Rate Survey within two years of the effective date of the currently approved plan. Beginning in 1999, American Indian and Alaskan Native grantees receiving CCDF funds must also conduct a survey or use the State's Market Rate survey data. The Market Rate survey needs to be completed every two years. If the American Indian or Alaskan Native grantee adopts the State's Market Rate Survey, they need to know what that survey demonstrates. This document is written to assist tribal grantees in making decisions regarding the Market Rate Survey.

A Market Rate Survey describes the rates charged by child care providers, and paid by the users of the service, within a certain geographical area. The market rate is the price for child care services charged to families who receive no help in paying for their child care. The objective in establishing subsidy rates is to have the price paid by a government subsidy plus the portion of the fee paid by the family equal to the amount paid by non-subsidized families. This helps to provide subsidized families access to child care services across a range of providers.

The first step in conducting a Market Rate Survey is to identify the market area. The market area is the geographical area in which the child care providers are located who will be surveyed. Due to the differences among Tribes, the varying regulations regarding child care providers on reservations, and the different geographical configurations of tribal grantees, deciding the market area will be critical. Once the decision is made on the geographical area to be used in the Market Rate Survey, the grantee needs to identify which child care providers will be surveyed.

There are several possible resources that Tribes can use to collect the information needed for the Market Rate Survey: State Child Care Agencies, Child Care Resource and Referral Agencies, Tribal Offices and others. Some of the resources may have all the data that is needed. Other resources may be able to provide only some of the information. Some agencies may provide assistance to the tribal grantee in conducting their own Market Rate Survey.

The Market Rate Survey needs to produce reliable and valid information so that the data can be used to make accurate decisions. The format of the survey needs to ensure that it can be completed easily and quickly. After looking at all the data and making decisions and policies as described throughout the document, the Tribal decision makers can then set payment rates for families and providers. Based on a well-developed Market Rate Survey, tribal families will have valid options in the CCDF supported child care they select.

This Guide explores in detail the issues surrounding a Market Rate Survey. Identifying the market areas, deciding which child care providers to include in the data collection, designing the survey instrument, calculating the data, and applying the results of the survey are presented within the context of the needs of American Indian and Alaskan Native Child Care Development Fund grantees.

Return to Table of Contents
Go to next page