Every state, including Wyoming, regulates childcare in some form.

During the past several decades, the demand for childcare has risen dramatically.  Childcare is a regulated industry, with every state regulating providers in some form.  This regulation reduces risks to a highly vulnerable segment of the population:  young children.  States mandate minimum standards for childcare providers in areas believed to affect children’s health and safety.  Licensing rules are minimum requirements that must be met in order to operate a childcare business and represent the floor below which a program cannot legally operate.

Wyoming Has Been Regulating
Childcare for 35 Years

Out-of-home care
is the only type of care regulated
by the state.

Licensing rules set minimum standards for childcare.

States generally regulate childcare that takes place outside of the child’s home.  Out-of-home care, meaning care delivered in a setting other than the child’s own home, is the only type of care regulated by Wyoming and is the focus of this study.  In Wyoming,the Department of Family Services’ (DFS) Childcare Licensing Unit licenses out-of-home childcare providers.  DFS, along with other entitiesincluding the State Fire Marshal and the Department of Agriculture, ensures licensed providers are meeting a variety of minimum standards. 

W.S. 14-4-101 through 14-4-116 (see Appendix A) authorizes DFS to regulate childcare facilities.  Wyoming began regulating childcare in 1966 and the first childcare certification standards, only four pages long, were adopted the same year.  After revising rules every three to five years through the 1980s, DFS most recently revised them in 1990.  The current rules set minimum standards for childcare, regulating all out-of-home childcare providers who, unless exempted by statue or rule, care for more than two unrelated children. 

As of this writing, DFS is in the process of revising its childcare licensing rules. DFS began the rule promulgation process in the spring of 2000 and the new rules are slated to go into effect July 1, 2001.  DFS has modified the final version of rules in response to providerconcerns about specific aspects of the proposed rules, and has also created a one-year variance period to allow providers who apply time to come into compliance with the new rules.  DFS also reports that during the next year, licensers will continue to focus on their primary regulatory mission.  At the same time, the agency will work to educate providers about the requirements of the new rules, evaluate the economic impact of the rules, and build childcare capacity.

Demographic Changes Have
Increased Demand for Childcare

As more mothers enter the workforce, more children will be spending time in a childcare setting.

Increasing numbers of children will rely on caregivers during critical years of development.

One of the most significant social and economic trends in recent U.S. history has been the increase in percentage of women participating in the workforce.  Consequently, regulation has taken on more importance:  as more mothers enter the workforce, more children will be spending time in a childcare setting while parents are working.  Over the past 40 years, mothers have come to account for most of the rise in women’s overall labor force rates, with a steady growth in participation of mothers with young children.  As shown in Figure 1, the percentage of women in the workforce who have young children has increased substantially in the last 20 years.  

Recent evidence that learning begins at birth has had a significant impact on the field of early childhood development.  In a broad sense, this means that during the critical early years of development, increasing numbers of children will rely upon caregivers in a childcare setting for at least part of their stimulation and development. 

Figure 1:  Percentage of Women In the Workforce
 With Children Under Six

Source: LSO analysis of Bureau of Labor Statistics data

Parents Use Many Different Types
of Care for Their Children

In Wyoming, the great majority of children in care are not in licensed facilities.

Parents often utilize care that the state does not regulate.

Most children in Wyoming are not receiving care from licensed providers.  According to Bureau of Census estimates, in 1999 there were 85,800 children under the age of 12 in Wyoming.  Of these children, we estimate 62 percent, or about 53,000, require regular childcare (see Appendix B for estimation process); we call them the “childcare population.”  Regulated childcare providers, who are the focus of this study, care for about 15,000 children, or 28 percent of the childcare population.   The remaining 72 percent of the childcare population is receiving care in unregulated facilities.

While this report focuses on regulated out-of-home care, parents utilize a variety of other types of care that the state does not regulate.  Some providers are, by law, exempt from regulations; the categories are listed in the next section.  Others should be licensed, but either do not know of licensing requirements or choose not to comply.  They are operating illegally.  In addition, some children may stay at home alone, or parents may adjust their work schedules to lessen the need for childcare.  Many parents may rely on a combination of childcare arrangements.

Childcare Exempt from Regulation

Statute requires all childcare facilities, unless specifically exempt, to be licensed.

W.S. 14-4-102(a) requires all childcare facilities to be licensed by the state before caring for children, unless specifically exempted.   The following types of care are exempt from state regulation: 

·         A legal parent’s or legal relative’s care of a minor

·         Occasional care of a neighbor’s or a friend’s child if the caretaking person does not regularly engage in this activity

·         Parents exchanging childcare on a mutually cooperative basis

·         Childcare by a person employed to come to the home of the child’s parent or guardian

·         Childcare facilities providing care for less than three minors

·         Childcare facilities providing care to the children of only one immediate family unit

·         Childcare facilities supervised by the state, any local government, school district, agency or political subdivision.

Current Rules Regulate
Three Types of Providers

Providers are licensed according to classifications
by number of children in care.

The 722 licensed providers operating in Wyoming care for a total of 15,000 children.

Childcare licensing rules establish three classifications of regulated out-of-homeproviders: 

·         The Family Day Care Home (FDCH) is a day care facility in which care is provided for 3, but no more than 6, unrelated children for part of a day in a home setting.  FDCH providers are also allowed to care for up to 2 school-age children above capacity for no more than three hours per day when school is in session. 

·         The Group Day Care Home (GDCH) is a day care facility in which care is provided for up to, but no more than, 11 unrelated children for part of a day in a family setting.  GDCH providers are also allowed to care for up to 3 school-age children above capacity for no more than three hours per day when school is in session. 

·         The Group Day Care Center (GDCC) is a person, partnership, association or corporation that is operating a business for profit or otherwise where 12 or more unrelated children are cared for on a regular basis. 

Under current classifications, 722 licensed providers were operating in Wyoming as of December 2000, and were caring for approximately 15,000 children.  (See Appendix C for locations of licensed childcare providers in Wyoming.)  Most children in licensed care in Wyoming receive care in centers, not home settings.  The majority of licensed facilities are Group Day Care Homes, yet most children are cared for in Group Day Care Centers.  The number of children cared for in Group Day Care Centers is ten times greater than the number cared for in Family Day Care Homes.  Figure 2 shows the number of licensed facilities by provider classification, while Figure 3 shows the number of children cared for by type of facility.

Figure 2:  Number of Licensed Providers
By Type of Facility

December 2000

The majority of licensed providers in Wyoming are Group Day Care Homes (GDCH).

Source:  LSO analysis of DFS-provided data as of December 31, 2000

Figure 3:  Number of Children in Licensed Care
By Type of Facility

December 2000

But most children in licensed care in Wyoming are in centers (GDCC).

Source:  LSO analysis of DFS-provided data as of December 31, 2000

Proposed Rules Change
Provider Classifications

Proposed rules add a fourth classification, enabling one provider to have multiple facilities.

The proposed rules will change these classifications, establishing four categories of regulated providers.  The new classifications are:

·         Family Child Care Home (FCCH)means a childcare facility in which care is provided for 3 to 10 unrelated children from more than one immediate family for part of a day in the home of the provider.

·         Family Child Care Center (FCCC)means a childcare facility in which care is provided for 3 to 15 unrelated children for part of a day, which may be a residential, or commercial type structure.  This gives providers the flexibility to offer care in their own homes or at another location.

·         Child Care Center (CCC)means a private person, partnership, association or corporation that is operating a business for profit or otherwise, where 16 or more children receive care for part of the day. 

·         Multiple Location Facility (MLF/CCC or MLF/FCCC) means any person, partnership or association or corporation that is operating CCC or FCCC at multiple locations. 

Unit Staff and Budget

Reflecting increased societal demands for protection of children in out-of-home care, the licensing unit has evolved and grown.  In the past five years, the size of its staff has expanded, as has its budget. 

Unit Staffing Has Grown

Licensing did not have a full-time
state-level staff
until 1991.

In 1999, the Day Care Licensing Task Force report recommended more staff.

The licensing unit used federal funds
to expand to its

current size.

Between 1966 and 1987, social workers in each county were responsible for enforcing childcare certification standards, performing licensing along with their other duties.  Without central administration, consistency between counties could not be ensured, so beginning in 1987, regional licensing officers were phased in.  In 1991, a state-level licensing manager was added to supervise licensers across the state. 

Currently, the licensing unit employs 21 staff, some of them part time, for an equivalent of 18 full-time employees.  The unit has more than doubled in size since 1997 when the executive branch announced a plan to eliminate the unit and transfer childcare licensing responsibilities to local governments.  In 1998, in response to objections from providers and parents, the Legislature restored the program for two years and authorized a Day Care Licensing Task Force study. 

The task force recommended keeping the unit’s four full-time positions, changing its four part-time positions to full time, and adding four additional full-time positions plus two new regional supervisors.   However, during the 1999 Session, the Legislature eliminated the four part-time positions but authorized up to four full-time AWEC (at-will employee contractor) positions. 

In 1999, DFS used funding from the federal Childcare Development Fund (CCDF) to expand the licensing unit to its current size, by adding more AWEC positions.  The unit has a program manager located in Cheyenne, three administrative assistants, two regional field supervisors, and eight regions, with offices in Sheridan, Wheatland, Cody, Riverton, Casper, Cheyenne, Lyman and Laramie.  All but two of the 15 licensers are AWECs. 

Licensers Have
Many Responsibilities

Licensers must ensure children in licensed facilities are cared for in safe environments.

Licensers’ caseloads normally consist of the three different types of facilities.  Licensers recommend whether licenses will be issued and renewed; they also monitor providers and enforce minimum childcare licensing standards.  Additional responsibilities include travel and offering technical assistance and training to providers. 

Licensers receive training in regulatory administration, health and safety issues, child development, the essentials of a good childcare program, and child abuse detection and prevention.  Licensers are charged with ensuring that providers are in compliance with minimum standards and that children are cared for in safe environments. 

The Unit’s Budget
Has Also Increased

The Child Care Development Fund (CCDF), mostly federal monies, funds the unit.

The licensing unit, together with the childcare subsidy function, is funded by the CCDF.  One staff member in the subsidy function administers a federal reimbursement program, under which low-income parents can qualify for subsidies to defray the costs of childcare. 

DFS also contracts with other entities to perform services related to childcare.  DFS contracts with Children’s Nutrition Services (CNS) to perform resource and referral services for the state, in addition to maintaining a training calendar for providers.  Parents can contact CNS to find licensed childcare providers in their community.  DFS contracts with the Children’s Action Alliance to approve provider training and track the training they complete.    

The CCDF consists largely of federal funds plus a mandatory General Fund match.  For the 2001-2002 biennium, the Legislature appropriated $16,990,987, of which $4,034,839 was general funds.  Of that amount, DFS has budgeted $1,528,399 for the licensing unit.  Figure 4 shows the budget for the licensing unit’s portion of the CCDF.

Figure 4:  Child Care Development Fund:
Licensing Unit’s Projected Budget, 2001-02 Biennium

The licensing unit accounts for a small portion of the CCDF.

Source:  LSO analysis of DFS-provided data

Estimated expenditures for the licensing unit for the 2001-02 biennium are approximately $480,000 more than for the previous biennium.  This increase is due to the 1999 expansion of staff from 7 to 18full time employee positions, including administrative support.  Figure 5 shows recent and projected expenditures for the unit.

Figure 5:  Licensing Unit Expenditures, 1995-2002

Staff expansion accounts for increased funding from 1997 to 2002.

Source:  LSO analysis of DFS-provided data

Funding for the licensing and subsidy unit is flexible.

According to DFS, funding for the licensing and subsidy unit is flexible.  Within certain federal guidelines, monies can be transferred within the CCDF, and from Temporary Assistance for Needy Families (TANF) and the Social Security Block Grant (SSBG) to the CCDF.  This flexibility is seen as beneficial because of the unpredictability of program needs from year to year.

The Licensing Process

Licensing childcare providers is the state’s primary means to ensure that they meet or exceed the minimum threshold defining a healthy and safe environment for children in out-of-home care.  To that end, the licensing unit is responsible for setting standards defining acceptable provider performance and ensuring standards are met.

DFS Sets Standards For
Childcare Providers

DFS rules expand
on standards specified in statute.

W.S. 14-4-104(b) specifies that providers must demonstrate good moral character; have practical experience; provide uncrowded, safe, sanitary, and well-repaired facilities; and prepare wholesome food in a clean and healthy environment.  Licensing rules go on to define more explicit standards in each of these categories.  The rules address:

·         Screening of new providers

·         Monitoring of licensed providers

·         Enforcing minimum standards in licensed facilities

·         Suppressing illegal operations

Screening Applicants

Providers
must submit an application and be screened by DFS.

Ideally, screening takes place before a provider begins offering care.  Screening is the first opportunity the licensing unit has to assess whether applicants are able to maintain a safe and healthy environment for children who will be in their care.  To apply for a license, providers must undergo a background check, provide a physician’s statement, take a tuberculosis test, submit a list of references, and provide a list of education, training and experience.  Where applicable, providers must also include evidence of local zoning approval.

Once a provider has submitted a completed application, a DFS licenser will inspect the applicant’s facility for compliance with licensing requirements.  An initial facility inspection determines whether the physical environment meets DFS standards.  Where applicable, providers must also demonstrate compliance with other requirements, such as fire and sanitation inspections, by including inspection results from the relevant entities. 

Monitoring Licensed Providers

On-site visits enhance licensers’ effectiveness.

After a license is issued, on-site visits are necessary to ensure continued compliance with standards.  Currently, providers must renew their licenses annually, at which time DFS conducts an on-site renewal inspection.  DFS also conducts investigations in response to complaints.  Although complaint investigations are corrective in orientation, they give licensers an opportunity to offer targeted training and technical assistance.  On-site visits, whether for renewal or monitoring purposes, also enable licensers to update providers; they can pass on new information before concerns become compliance issues, thereby enhancing the preventive nature of the licensing function.

Sanctioning Non-Compliant Providers

The goal of enforcement is
to protect children
in licensed care.

When licensers observe non-compliance with standards, either through renewal inspections, monitoring visits, or as a result of complaint investigations, they can use a variety of approaches to encourage, or if necessary, compel, provider compliance.  Examples of non-compliance include isolated incidents, such as a piece of playground equipment needing a small repair, or chronic and potentially dangerous supervision problems such as leaving children unattended in a car.  Licensers use various approaches, from providing technical assistance and consultation to revoking a license, to gain compliance. 

Ultimately, the goal of enforcement is to protect children. DFS uses negative actions, such as closing an unsafe facility, only as a last resort.  Negative actions such as this, in addition to removing unsafe providers from the childcare market, also serve as a deterrent to noncompliance by other providers.

Suppressing Illegal Operations

Providers who operate illegally
may be referred
for prosecution.

DFS licensers investigate complaints regarding unlicensed providers to determine whether they are in fact operating illegally.  Often, an initial visit is the first step taken after a licenser receives information about an unlicensed provider.  During this visit, the licenser informs the provider of the licensing requirement and gives the provider 24 hours to either claim exemption through statute or rule, or begin the application process.  Current rules state providers who continue to operate without certification after that time may have their cases referred to the county or district attorney (prosecuting attorney) for prosecution. 

Broad Childcare Issues, Not Just
Licensing, Need Policy Attention

The licensing unit

is struggling to
carry out its regulatory duties.

We note areas where changes can enhance the unit’s ability to protect children.

The final chapter examines regulation in the context of larger childcare issues.

Since Wyoming began regulating childcare in 1966, licensing has evolved from a secondary job of social workers to its current status as  a dedicated unit within DFS.  During the intervening 35 years, the composition of the workforce and the demand for childcare have changed drastically.  By 2001, the childcare licensing unit finds itself straining to deliver a program intended to protect children in out-of-home care. 

Nevertheless, we found staff in the childcare licensing unit committed to protecting children in out-of-home care.  We also believe Wyoming childcare providers, as a group, are dedicated to the children in their care.  Many report they remain in the childcare business because of their love of children.

This report assesses areas in which changes are needed to ensure the effective implementation of minimum childcare standards to best serve children in care and to build on the dedication of Wyoming licensers and providers to protect children in childcare.  The chapters are laid out in the order in which we recommend issues be addressed. 

Chapter 2 analyzes the staffing issues that have created problems for the unit.  Chapter 3 discusses the lack of management information available to DFS officials for program management and decision making.  In Chapter 4, we identify ways in which the unit has been unable to consistently enforce its rules.  Chapter 5 reviews the roles of different entities involved with childcare licensing. 

Finally, Chapter 6 presents the issues of childcare regulation in a larger context.  Regulation by DFS is just one of many factors that can affect the availability, affordability and quality of care.  We show that DFS is not solely responsible for this “trilemma,” and we lay out ways in which the state can begin to more effectively address childcare issues as a matter of important public policy.