Childcare Strategy Case Studies_Spring 2025

Strategies for Accessible, A1ordable, and Equitable Childcare

Recommendations for The Commonwealth of Virginia Based On Current U.S. and International Case Studies

May 2025

Prepared for The Center for Economic and Community Engagement

Prepared by Master of Urban and Regional Planning Graduate Students

Virginia Tech National Capital Region Campus

Prepared by Lynda Gri9in, Jan Lane, and John Luangkhot

Under the Supervision of Dr. Margaret Cowell

Table of Contents

Section I: Executive Summary page 3

Section II: Introduction and Background page 4

Section III: Methodology page 6

Section IV: California Case Study page 7

Section V: The Netherlands Case Study page 10

Section VI: Arkansas Case Study page 12

Section VII: Japan Case Study page 15

Section VIII: Georgia Case Study page 18

Section IX: Sweden Case Study page 20

Section X: U.S. National Childcare Matrix page 23

Section XI: Best Practices page 25

Section XII: Time Frame Recommendations page 26

Appendix: 1. Citations and Further Reading page 27 2. Sweden Scorecard page 34

Section I: Executive Summary

I. Introduction

This report has been prepared for the Center for Economic and Community Engagement (CECE), a research arm of Virginia Tech which helps promote economic growth and development across the Commonwealth of Virginia. This report was prepared by a small team of Master of Urban and Regional Planning graduate students, based at the National Capital Region campus of Virginia Tech. The team was tasked with finding, researching, and compiling case studies, both domestic and international, in order to identify viable strategies and solutions to make Virginia’s childcare system more aJordable, available, and accessible. This also addresses questions of transportation and aJordable communities.

The research period included an extensive examination of current and recent childcare policy, provision methods, and creative methods from around the United States and around the world. By analyzing government publications, scholarly academic research, organizational research, and news sources, common denominators were identified and have been classified into guidance regarding best practices, potential pitfalls, and respective mitigation strategies, as observed. This report has determined a set of childcare policy recommendations for the Commonwealth to potentially implement in three phases: short-term, mid-range, and longterm.

II. Case Study Selection

In order to create a more comprehensive analysis of the current state of childcare in the world, the team researched case studies in both the United States and abroad. Primary U.S. case studies include the states of: Arkansas, California, Georgia, Minnesota, Nebraska, North Carolina, Oregon, and the District of Columbia. Also included is a multi-state study of multigenerational coliving facilities. These states and their studies represent a variety of political backgrounds, socioeconomic levels, and population sizes.

Primary international case studies include Japan, The Netherlands, and Sweden. These international states represent comparable economic situations and capabilities to the Commonwealth of Virginia, at scale. Using the World Bank’s income classification system, the case studies are all countries classified as high-income. The United States is classified as a high-income country.

III. Notable Report Components

• In-Depth Case Studies Six detailed write ups of highlighted case studies–three primary domestic and three primary international selections

• Best Practices A comprehensive look at successful, actionable items observed across all included case studies, which could be applied to the Commonwealth of Virginia

• Pitfalls and Mitigations A guide to advise against potential obstacles, including mitigation strategies to prevent them from occurring

• Tiered Recommendations A compilation of potential recommendations for decisionmakers across all levels, in three phases of time for implementation: short-term, mid-range, and long-term interventions

Section II: Introduction and Background

Childcare plays a crucial role in the lives of families, serving as a vital resource that supports both the developmental needs of children and the economic stability of parents. It ensures that children are well-prepared for formal schooling, provides a safe and nurturing environment, and enables parents to pursue their careers and provide for their families. However, the availability, affordability, and accessibility of childcare services vary significantly across different localities, impacting families in diverse ways. According to data from 35 states, 35.1% of rural areas experience a “childcare gap,” where the number of children who need childcare exceeds capacity, compared to 28.9% of families in urban areas.

This gap indicates that many families in rural areas struggle to find adequate childcare services, impacting their ability to work and support their families. The shortcomings of the childcare market also impact the current and future well-being of the American economy, resulting in annual losses of $122 billion in diminished earnings, productivity, and tax revenue.

Virginia faces significant childcare gaps, particularly in rural areas, with a statewide childcare gap of 11.9%, which is lower than the 35-state average. However, rural communities in Virginia are relatively underserved compared to urban areas, consistent with national trends. In this report, we chose to focus on the availability, accessibility, and affordability of childcare services, with a particular emphasis on three states and three international countries for an in-depth analysis. The research focuses on children aged six years and younger. This report presents research from both national and international case studies, to identify potential strategies and interventions for application in The Commonwealth of Virginia.

Availability

The availability of childcare centers support families, particularly households with both parents in the workforce by offering essential services to create an environment where children can thrive. By providing a safe and nurturing space, these centers empower parents to advance their careers and contribute significantly to the economic landscape. However, the distribution and accessibility of these centers can vary significantly across different regions, impacting families' ability to find suitable childcare options close to home. More than half of all families live in childcare deserts. The availability of childcare services varies significantly between rural and urban areas. Rural areas often face a shortage of childcare providers, which can be attributed to lower population density and fewer resources. This shortage impacts the ability of families to find suitable childcare options close to home.

In Virginia, understanding the availability of childcare centers is particularly important due to the state's diverse geographic and demographic landscape. Rural areas often face a shortage of childcare providers. Conducive to a strategic analysis of childcare availability in Virginia, tactics

gained through analysis allow policymakers, stakeholders, and community leaders to identify gaps and develop targeted interventions to improve access to childcare services. By comparing the availability of childcare centers across different localities, this analysis can highlight areas where resources are most needed and inform decisions on where to allocate funding and support.

Accessibility

Accessible childcare services are another major concern, particularly in rural areas. Families in these regions may have to travel long distances to reach the nearest childcare center, which can be a significant barrier. Additionally, transportation issues and limited infrastructure further exacerbate the accessibility problem. Consistent scheduling and quality care are also critical components of accessibility. Families need reliable childcare services that align with their work schedules, and the quality of care must meet certain standards to ensure the well-being and development of children. Addressing these accessibility challenges is essential for creating a more equitable and effective childcare system.

Affordability

Affordable childcare is a critical issue for many families. The high cost of childcare can strain household budgets, especially for low-income families. In some cases, the cost of childcare can exceed other major expenses, such as housing. Efforts to make childcare more affordable include government subsidies, tax credits, and public-private partnerships aimed at reducing the financial burden on families (Britt, 2025). Comparing the affordability of childcare services in Virginia with other states internationally can provide valuable insights into effective strategies and policies. Such comparisons can help identify best practices and areas for improvement, ensuring that Virginia can implement measures to make childcare more accessible and affordable for all families.

Conclusion

In conclusion, the availability, accessibility, and affordability of childcare services are critical components that significantly impact the well-being of families and the economic stability of communities. The disparities between rural and urban areas in Virginia highlight the urgent need for targeted interventions to address childcare gaps. By conducting strategic comparison analysis with other states and international countries, policymakers can identify effective strategies and best practices to improve childcare services. Ensuring that all families have access to quality, affordable, and accessible childcare is essential for supporting the developmental needs of children, enabling parents to pursue their careers, and fostering economic prosperity.

Collaborative efforts, such as government subsidies, tax credits, and public-private partnerships, are vital in reducing the financial burden on families and creating a more equitable childcare system. Addressing these challenges will not only benefit individual families but also contribute to the overall health and growth of the economy. Ultimately, bridging these childcare disparities requires a unified commitment to equity, ensuring that every family, dependent on location or circumstance, can thrive in a society that prioritizes the well-being of its youngest members and their caregivers.

Section III: Methodology

To develop comprehensive policy recommendations for improving availability, accessibility, and affordability of childcare in the Commonwealth of Virginia, the following research and analytical methods were utilized:

1.) Comparative Policy Analysis

a. Identify other states and countries with innovative childcare policies addressing availability, accessibility, and affordability

b. Analyze policy language, structure, and objectives to understand their design and intended outcomes

2.) Data Collection and Literature Review

a. Review government reports, academic studies, and organizational publications on childcare policies, both from U.S. and international sources

b. Analyze the Virginia Child Care Plan and Federal Reports. The report outlines the state's strategies for improving childcare availability, accessibility, and affordability, as well as compliance with federal requirements. It includes insights into funding allocations, quality improvement measures, and efforts to address underserved areas

c. Collect qualitative and quantitative data when available, such as budget allocations, enrollment rates, and satisfaction surveys, to evaluate policy effectiveness

3.) Case Study Development

a. Select a diverse range of policies for in-depth case studies, ensuring representation of different geographic, economic, and cultural contexts

b. Assess the implementation strategies, challenges, and success stories for each case.

4.) Outcome Measurement and Final Product

a. Identify key metrics to assess the effectiveness of childcare policies, such as increased enrollment, improved accessibility, and reduced financial burden on families

b. Compile findings into a detailed report and presentation

c. Contextualized recommendations for the Commonwealth of Virginia

d. Submit work for inclusion in CECE's larger report on childcare policy recommendations

Section IV: California Case Study

California’s Big Picture Connections to Childcare Facilitation

The state of California has been at the foreground of many topics germane to planning in recent decades, from environmental sustainability to creative housing legislation. While its major cities are not necessarily known for their public transportation infrastructure, they are years ahead of many other U.S. states in this regard. Expansive evidence shows that families prosper when they can reach a level of stability attainable only after they have safe and affordable housing. Often, particularly for low-income households, reliable and accessible public transportation is essential when trips between home, work, and childcare or schooling are combined. Recent efforts across the state, particularly in urban areas, present an array of choices for other states looking to follow suit.

A natural connection to housing, employment, and transportation is childcare—any household with one or both parents in the workforce must contend with the national childcare crisis. Those households with children aged six years and younger face ever-increasing costs and may have to find coverage with a mix of carers and or facilities throughout the day.

Public Transport Access and Childcare

One way that districts across the state of California are looking to help childcare commutes is by ensuring that trips on public transport are safer and easier for those traveling with small children. One main motivation for these improvements is the decreased ridership postpandemic overall, but also because female ridership has also markedly decreased. Minor changes can increase feelings of safety and comfort for many types of riders. One agency in the Bay Area created specific zones in buses so that parents or caregivers do not have to fold strollers once on the bus. An expansion of this could be to create secure stroller depots at designated transit stops (e.g. bus rapid transit) so that parents do not have to manage any wheeled devices up and down stairs.

A Los Angeles-based advocacy group, Investing in Place, performed travel audits of six Los Angeles routes. With the help of low-income and Spanish-speaking ride volunteers, the group identified potential areas for improvement with seat layouts, stop waiting areas, consideration for protection from the elements, fare structures, and more. The Los Angeles County Metropolitan Transportation Authority and Bay Area Transportation Authority, serving San Francisco and the greater region, have both use findings from the audit to inform safety measures with female riders, young children, and the elderly in mind. Small decals noting priority seats are inexpensive additions to encourage thoughtful ridership.

Small changes can make a ride dramatically more comfortable for riders transporting young children, particularly those in strollers or traveling with more than one child and may induce ridership for other purposes related to health care, public services, shopping and entertainment, or recreation. After transit authorities implement these changes, a parent or caregiver could

conceivably combine their commute, first to their place of childcare, then place of work. One California study in The Journal of Transport Geography found that at least twenty-five percent of all public transport trips are linked, meaning with two or more destinations, and that number could rise given additional infrastructure changes.

The connection between a safe, affordable, and accessible home for families with children is paramount. Once a family is settled, their outcomes for employment improve. With some of the highest costs of housing in the country, particularly in the three main urban centers of Los Angeles, San Francisco, and San Diego, the combination of housing and childcare costs was enough to drive many families out of the state.

Communal Lifestyles with Built-In Childcare Options

In 2024 California received national recognition and attention with its progressive legislation regarding accessory dwelling units, or ADUs. Urban areas with sprawl and density need housing solutions with multi-family units, be they for sale or for rent. The next wave of creative housing solutions, not just for California but for any U.S. state, could be multigenerational housing. The introduction of the concept of multigenerational housing is one which could revolutionize housing, and access to childcare and public transport, in urban areas. This creative solution also shifts lifestyles from being individualistic to being more of a communal nature.

For this purpose, multigenerational housing buildings are those which are purpose-built with living units and shared and communal spaces in one structure. Of course, many households and cultures across the world have more than one, even three, generations living in one unit together. Examples of multigenerational housing can be found across Europe, but they have caught a foothold in very recent years in select U.S. states because of their widespread benefits, including some with direct relevance to accessible and affordable childcare.

Firstly, multi-generational housing structures typically contain a variety of housing unit types and sizes, for a variety of lifestyles and ages: individual studios, mobility units, units with considerations for the elderly, and family size units, with two, three, and four bedrooms. In both urban and rural areas, households with multiple children often struggle to find affordable housing which contains sufficient bedrooms. (Regarding family units, gentrification in the 2010s across many urban centers of the U.S. introduced an inventory primarily studio and one bedroom luxury apartments, displacing low-income and or larger families.) This combination of units, again either for purchase, for rent, or a mix, creates a community of households of all ages and compositions.

Secondly, multi-generational structures include a range of communal spaces. Notably, some may choose to place an in-house childcare facility on the first floor of the building. This childcare facility may be run by a third-party operator, by a cooperative of the residents of the building, or by a combination therein. Of course, in such a building childcare may also be shared amongst residents informally due to proximity, e.g. through a nanny share.

As for funding, private sector developers and non-profits are charting the course, but a wide range of public-private partnerships could collaborate to build this style of housing. Some multigenerational housing structures may also place mixed-development retail on the ground floor to help subsidize affordable units above. One new building in San Leandro ensured it was built across the street from a Bay Area Rapid Transit stop. This means that a resident can make a fairly seamless journey from home to childcare facility, to public transportation stop, to their commute to work.

Affordable Housing and Childcare Proximity

Investments in childcare and childcare infrastructure are essential—both for families and for the economy. Every household must decide whether it can afford formal or informal childcare solutions, if they are even available in a viable radius. Proximity to childcare is easier in urban areas, but that drives housing costs up substantially. The Bipartisan Policy Center found that only twenty percent of households eligible for childcare funding assistance in some capacities can take advantage of it, in part due to lack of proximity between housing, place of employment, and available childcare facilities.

One solution is co-locating affordable housing and childcare facilities. The inclusion of affordable housing units in private sector development can be augmented either by governmentfunded subsidies, incentives, or trade-offs (e.g. greater building heights permitted with a minimum number of affordable units added. Reducing the cost burden of housing allows families to live closer to their workplace, and to live within a reachable distance of childcare facilities with available slots, which can then allow them to take advantage of eligibility for government assistance with childcare costs. The Bipartisan Policy Center further found that in these scenarios, parents are able to maintain stable employment more easily and work more hours.

For application in other parts of the United States, the Low Income Investment Fund, or LIIF, has created an expansive guide on how to develop and construct co-located affordable housing and childcare, noting the positive outcomes that children realize when they are raised in a stable environment. Of note also are the potential reductions in racial disparity of co-location. One example in the guide is a development in San Francisco that catered to low and very low-income households. Some residents became licensed childcare providers in their own homes, welcoming children from both within the building and the neighborhood.

Access to safe and accommodating transportation options, stability in an affordable home, opportunity for employment, and accessible childcare are the building blocks of a household, and these strategies being employed and expanded upon in California could be applied to different extents in both urban and rural Virginia.

Section

V: The

Netherlands Case Study

A Workforce Culture Which Supports Working Parents

Netherlands has streamlined its legislation and its culture to support parents in the workforce. Through a combination of nationwide legislation, adjustments in expectations for working hours performed, employer payments towards childcare costs, and infrastructure improvements, The Netherlands have become a model country for top-down childcare funding form. Shifts in culture over previous decades have also helped to destigmatize behavior that could be seen as inconvenient to colleagues.

There are three major and positive outcomes of these relatively recent changes on Dutch society. First, the effect of women in the workforce in The Netherlands has been statistically significant. Second, the economic impact of the 2005 childcare funding reform has paid off for the Dutch economy. Third, while more difficult to quantify, a lifestyle which allows career and work obligations to be shaped around one’s personal life and family dynamics leads to a better quality of life. Happier citizens, a stronger economy, and a more efficient childcare system make The Netherlands worth examining for application in Virginia.

Subsidies Provide A Compounding Return on Investment

In 2005, The Netherlands legislature passed The Childcare Act this radically changed the way childcare is funded and regulated in The Netherlands. This act (also called The Law on Childcare) enabled a new nationwide system which involves joint funding by the parents or guardians themselves, their respective employers, and the state. Employer contributions are legally mandatory. There are a number of associated subsidies and earned income tax credits at varying percentages aJiliated with parent contributions as well.

One study from the University of Amsterdam (focused on data from 2005 to 2012) found that the reform was initially quite costly, at an estimated cost of 90,000 euros per full time employee. However in this same time frame, maternal employment increased by 3% and maternal weekly working hours increased by 6.2%. Conversely, paternal working hours slightly decreased, presumably due to increasing their time share in the household childcare burden. The economic impact of increasing maternal involvement in the workforce has and will contribute to the Dutch economy for years to come.

Non-Standard Work Weeks and Hours

Allowing for flexibility for working parents, even in small measures, can go a long way. Dutch employers allow parents and guardians to arrange their working hours such that they can take care of childcare needs. This could range from pick ups and drop oJs in accordance with day care, preschool, creche, or in-home care centers, or public school hours, which often have built in pre-K

childcare facilities. Employers being on board and flexible by even just thirty minutes can make a big diJerence for a working parent.

Another cultural phenomenon in The Netherlands is the standardization of non-standard working hours. An employee can toggle back and forth between diJerent numbers of weekly work hours. 32, 35, and 40 are common options oJered by an employer. For some families, the trade oJ in the earnings from five hours a week is outweighed by the convenience of further flexibility in their schedule, typically for childcare coverage for younger children. The Palgrave Handbook of Family Policy found that allowing employees, particularly women, to gradually increase their hours encouraged a sustainable return to oJice after childbirth. Society accepting this as a norm in the oJice also helps parents not to feel any shame around deviation from workplace expectations.

Infrastructure Helping Instill Independence in Children

The Netherlands is famed for its bicycling culture. From a very young age, children are taught and encouraged to incorporate bicycles into their daily lives. Thousands of miles of protected cycling lanes throughout the country allow for increased independent movement by children, unaccompanied by their parents or guardians. This concept of CIM, or children’s independent mobility, allows for children to transition from the very early years of standardized schooling into middle adolescence. For example, children commonly bike to and from school, easing their parents’ time involvement in twice daily transportation.

Parents also utilize the extensive bike path network to transport children in “bakfiets”, or bicycles with a large basket-type structure in front, where children sit either loose or in safety seats. These cargo bikes are also manufactured as electric bicycles as the technology of e-bikes advances. Sustainable transportation options, which are also door to door, give both parents and children greater options when it comes to safe and easy movement with small children.

Exemplary Changes In Short Order

The examples provided herein were not enacted over a long period of time. The changes being widespread, in a country with a small land mass but a relatively large population, have become standard in less than a generation one Dutch study estimates since 2006 as a result of the 2005 Childcare Act. Some of these measures could be implemented at jurisdictions of varying sizes around Virginia.

Section VI: Arkansas Case Study

Sustainable Childcare Solutions for Rural Communities: Lessons from Arkansas

Arkansas’s innovative childcare solutions can inspire and guide efforts in Virginia's rural communities. Childcare costs in Arkansas are significant, with infant care costing $8,869 annually, toddler care $8,099, and care for a 4-year-old $7,670. For a single-parent family with a median income of $29,541, childcare expenses can consume 30% of their income. Similar struggles are faced in Virginia's rural counties, where the average income is $35,220 and quality childcare remains equally burdensome. Therefore, policies addressing these affordability crises in Arkansas could serve as valuable models for Virginia's rural communities, where low-income families face similar difficulties in accessing quality care services.

Prioritizing Families: Arkansas’ School Readiness Assistance Initiatives

Recognizing the importance of early childhood support, Arkansas has implemented various programs to assist families in need. The School Readiness Assistance (SRA) program supports children from birth to age 12, providing financial assistance via the Child Care Development Fund (CCDF) for eligible families. Notably, the waitlist is waived for specific groups, including teen parents, families experiencing homelessness, TANF families, and those participating in Transitional Employment Assistance (TEA) or Extended Support Services (ESS). Additionally, guardians, custodians, childcare workers, and families earning between 85% and 100% of the State Median Income (SMI) are prioritized. Furthermore, individuals working at least 10 hours per week at a licensed CCDF-approved program, children with special needs, and those transitioning from foster care are included in this waiver. To address the complexities of affordability, these policies establish clear, criteria-driven parameters aimed at mitigating barriers to childcare eligibility and access, ensuring that more families can benefit from the support they need.

Strengthening Early Childhood Development Through Behavioral Support

Ensuring that children and families have access to high-quality childcare services is a priority in Arkansas, which has established a dedicated office focused on early childhood development. The Arkansas Office of Early Childhood (OEC) ensures accessible, high-quality childcare services. Initiatives include parent education, childcare licensing, and community engagement. Programs like BehaviorHelp provide technical assistance to manage children's emotional and behavioral challenges, reducing expulsions and suspensions. By prioritizing behavioral health and fostering accountability among practitioners, Arkansas addresses accessibility gaps and diminishes the disparities faced by rural communities.

Safe Routes to School

Investing in transportation infrastructure is crucial for fostering community growth and accessibility. Arkansas has made significant strides in this area, enhancing connectivity through initiatives like Safe Routes to School and Non-Emergency Transportation (NET), which improve

access for families. Additionally, local churches contribute by offering bus services that support community engagement.

These reliable transportation options facilitate easier connections between parents and childcare providers, ensuring better access to essential childcare facilities. To further support these efforts, the state's regulations emphasize safety and accessibility, mandating a minimum of two staff members when transporting more than twenty children. This comprehensive approach ensures that transportation services are both effective and secure for all users.

Infrastructure

Making childcare more accessible in rural areas requires investments in infrastructure, professional engagement, and financial support. Programs like Excel by Eight (E8) and the American Rescue Plan Act - Child Care Expansion Grant enhance childcare availability. Ensuring sustainable childcare in Arkansas involves targeted investments in infrastructure, professional engagement, coalition-building, and financial support, collectively improving access to quality care for underserved communities. Childcare centers are vital for supporting families, especially in rural areas where access to essential services can be limited. Expanding accessibility to these centers requires significant investments in infrastructure, including the development of new facilities, renovation of existing buildings, and improvements in transportation and broadband connectivity. Incorporating innovative solutions, such as smart technologies and sustainable building practices, can further enhance the efficiency and effectiveness of these investments. This includes the use of advanced systems like automated lighting, heating, and security, as well as digital tools for managing childcare operations and enhancing learning experiences. These technologies can make childcare centers more responsive to the needs of children and staff.

Building Local Solutions

Excel by Eight (E8) focuses on improving health and education outcomes for children from prenatal to age 8 by partnering with local communities to build models for change, identifying resource gaps, and implementing strategies to improve early childhood development. E8 collaborates with local steering committees composed of families, educators, health professionals, and policymakers to assess resources and develop targeted strategies. They use data-driven decision-making, gathering insights through community outreach methods like data walks, to inform their planning and policy decisions. Each community develops its own model for change based on unique needs and strengths, while E8 advocates for policy changes at the state level to support these initiatives. This program uses data to inform policy decisions and advocates for advancements in children's health and education, thereby creating a reliable resource grid that connects families to essential services.

Capacity Building

The American Rescue Plan Act Child Care Expansion Grant provides substantial funding to stabilize and expand the childcare sector, enabling providers to increase their capacity and

improve the quality of care. This grant supports the renovation and expansion of childcare facilities, ensuring they meet licensing requirements and can serve more children. By increasing the number of childcare centers and enhancing their infrastructure, these programs help create a more robust and accessible childcare system. In Arkansas, the grant prioritizes quality programs that serve lowincome families and operate in areas with identified shortages of childcare services. It supports renovations and expansions of existing facilities, including converting spaces like garages or spare rooms into classrooms. Childcare providers can increase their capacity to serve more children, provided they meet health, safety, and licensing requirements. Recipients must keep detailed financial records and may be subject to audits to ensure proper use of funds.

Strengthening Rural Childcare

Ensuring sustainable childcare in Arkansas involves targeted investments in infrastructure, such as broadband expansion and transportation improvements, which are essential for connecting families to childcare services. Professional engagement within childcare centers is equally important, as it correlates with improved retention rates and communication strategies among practitioners, fostering a more cohesive and supportive environment. Additionally, financial support through grants and subsidies helps childcare providers meet renovation requirements and licensing approvals, thereby increasing their capacity to serve more children.

Programs like Medicaid and ARKids provide financial assistance to eligible individuals, ensuring they can access necessary medical services. Similarly, Arkansas has invested in childcare infrastructure through programs like the Arkansas Better Chance (ABC), which provides highquality early education services. The state collects and analyzes data on childcare needs to identify shortages and ensure qualified professionals are available. The Office of Early Childhood works with various stakeholders to ensure children have access to safe, high-quality childcare environments. Financial support for childcare is provided through initiatives such as the Child Care Development Fund (CCDF) and School Readiness Assistance (SRA).

Arkansas serves as a model for rural communities seeking sustainable childcare solutions. By addressing affordability, accessibility, and availability, Arkansas has implemented innovative childcare policies, including the School Readiness Assistance (SRA) program, BehaviorHelp initiative, transportation improvements, Excel by Eight (E8), the American Rescue Plan Act Child Care Expansion Grant, and the Arkansas Better Chance (ABC) program. These efforts have created a comprehensive support system that not only meets the immediate needs of families but also fosters long-term developmental progress for children. The innovative approaches in Arkansas, such as the School Readiness Assistance program and BehaviorHelp initiative, demonstrate the importance of structured, criteria-driven support mechanisms.

By adopting similar strategies, Virginia can reduce economic burdens, improve accessibility, and ensure quality care for underserved families, ultimately contributing to the overall well-being and development of its rural population. The success of Arkansas's model underscores the potential for transformative change when states prioritize the holistic needs of children and families, paving the way for a brighter future for all.

Section VI: Japan Case Study

Transforming Childcare: Japan Amid Policy Reforms and Entrepreneurship

In 2012, Japan passed a significant law aimed at making it easier for small-scale nurseries to operate. The Act on Child and Childcare Support led to significant investments in childcare centers. A transformative change in the childcare sector. Overnight, 1,655 existing small-scale nurseries were able to get authorized and begin collecting subsidies. This financial support enabled these nurseries to lower their tuition fees, making childcare more aJordable and accessible for families across Japan. This law was part of the Comprehensive Support System for Children and Childrearing, which was implemented in April 2015. The system aimed to expand childcare options, improve aJordability, and increase government subsidies for smaller nurseries, allowing them to lower tuition fees and serve more families, which is particularly important for a nation that is struggling to increase birth rates.

Both Japan and Virginia face significant challenges in providing accessible childcare services, particularly in rural areas. Japan has addressed these issues by making it easier for smallscale nurseries to operate, allowing facilities with fewer than 20 children to receive authorization and subsidies. This approach has increased the availability of childcare services, especially in rural areas.

Social Enterprises

Important innovation in Japan’s childcare space is, Florence, a social enterprise. Florence's founder, Hiroki Komazaki, proposed the idea of converting vacant apartment rooms into smallscale nurseries to the Ministry of Health, Labor, and Welfare, which led to the implementation of laws making it easier for small-scale nurseries to operate. Florence's initiatives have provided flexible childcare options and support for working parents, partnering with municipalities to develop and run model nurseries, thereby creating a more inclusive and accessible childcare infrastructure across the country.

Social enterprises like Florence have significantly reformed Japan's childcare system by providing flexible childcare options and supporting working parents. By pioneering the conversion of vacant apartments into small-scale nurseries and partnering with municipalities to develop model nurseries, they have created innovative solutions to childcare challenges. Similarly, Virginia could benefit from encouraging such social enterprises to address its childcare needs, particularly in areas where adaptive re-use of spaces is common. Overall, an approach could help create more accessible and inclusive childcare options, supporting the needs of working parents and fostering community development.

Partnerships and Coalitions

In Japan, partnerships and coalitions, such as those led by Komazaki, have played a crucial role in addressing childcare dilemmas. These groups organized debates, inviting prominent

politicians from various parties to foster a shared goal of tackling childcare challenges despite political differences. Concurrently, in 2012, the "New Support System for Children and Childcare" law was enacted, authorizing the establishment of small-scale nurseries. Komazaki was appointed to the advisory council responsible for designing the system's details. To amplify the voices of small-scale nursery operators, Komazaki also founded the National Small-Scale Nursery Association, collaborating with other organizations that operated unauthorized small-scale nurseries.

Legislative Action

Measures for the Welfare of Workers Caring for Children or Other Family Members have been introduced on May 15, 1991, to promote flexible working arrangements, such as telework, adjusting start/end times, and providing facilities. Employers must implement these measures to support employees in balancing work and childcare responsibilities. Insurance covering maternity expenses for natural childbirth will be introduced by fiscal 2026. The government plans to establish a system where every child can attend preschool on a flexible hourly basis, regardless of the parents' work situation, by the end of fiscal 2024. Additionally, paternity leave benefits will be increased by fiscal 2025 to encourage fathers to take childcare leave.

Limited Liability Company

The Godo Kaisha (GK) is a type of Limited Liability Company (LLC) in Japan, offering a flexible structure for businesses with limited liability protection. This framework supports entrepreneurial ventures by providing a clear legal structure and easier compliance with Japanese business regulations. Japan has some promising approaches to facilitate availability, affordability, and accessibility in the realm of quality care centers.

Government Subsidies for Childcare Facilities under LLC Incorporation

Eligible institutions developed under LLC incorporation, such as kindergartens, day care centers, centers for early childhood education and care, municipal-level childcare services, and corporate childcare centers, benefit from government subsidies. The Japanese government actively encourages the establishment and operation of these childcare facilities through various subsidy programs, including the Local Childcare Center (LLC) program. These subsidies are designed to reduce the financial burden on families and make childcare more accessible. For example, the "Japan Free Childcare" initiative significantly reduces or eliminates fees for children ages three to five in licensed facilities. The "Japan Free Childcare" initiative significantly reduces or eliminates fees for children aged three to five in licensed facilities through several mechanisms. The government provides direct financial support to licensed childcare facilities, covering the costs of tuition for eligible children, which means parents do not have to pay for these services out-ofpocket.

The initiative covers children aged three to five in licensed nursery facilities and certified combined nursery and kindergarten facilities, as well as children aged zero to two from households

exempt from municipal residents' tax. The subsidies apply to various types of childcare services, including kindergartens, day care centers, and centers for early childhood education and care, ensuring that families have access to a range of childcare options. Additionally, for families with multiple children, the initiative extends benefits to younger siblings, providing free care for children under two years old, thereby reducing the overall financial burden on families with more than one child. By implementing these measures, the "Japan Free Childcare" initiative aims to make quality childcare more accessible and affordable, supporting families and addressing broader societal challenges such as declining birth rates and the need for more support for working parents. This financial support is crucial for ensuring that families can afford quality childcare services, which in turn helps to address broader societal issues such as declining birth rates and the need for more support for working parents.

By providing subsidies to LLC-incorporated childcare facilities, the government aims to create a more inclusive and supportive environment for early childhood education and care. Also, through the combination of subsidies to facilitate childcare services the quality of childcare increases in integrity tremendously. This approach not only benefits families but also supports the growth and sustainability of small-scale nurseries and other childcare providers.

Virginia could benefit from adopting similar strategies to address childcare needs, particularly in rural areas. Encouraging social enterprises and innovative solutions, such as converting vacant spaces into nurseries, can help provide flexible childcare options and support for working parents. Partnerships and coalitions can play a crucial role in fostering shared goals and addressing childcare challenges. By implementing measures to promote flexible working arrangements and leveraging business structures like LLCs, Virginia can develop sustainable approaches to childcare that reduce economic burdens, improve accessibility, and ensure quality care for underserved families. While partnerships and coalitions develop strategic enterprises to assist in childcare deserts.

Section VII: Georgia Case Study

Engagement Strategies to Expand Childcare: Lessons from Georgia

Georgia's childcare program has grown yearly, utilizing creative funding sources since its inception. Childcare centers in Georgia offer quality, nurturing, and healthy early learning experiences that support and promote young children's healthy growth and development. In addition, Georgia has focused on strengthening partnerships with stakeholders, families, and communities. Georgia is aware that to expand the childcare program, they will need to be creative with their approach to funding sources, which will also include a commitment to reaching those families without subsidies.

Unlocking Avenues to Financial Support and Gaining Opportunities to Accessibility

• The Georgian Lottery of Education is a funding source for the Pre-K program

• The Georgia Department of Early Care and Learning (DECAL) also funds the childcare program. DECAL strives to provide high-quality early care and education for all children in Georgia

• The Georgia General Assembly created a special task force called the Office of School Readiness to administer Georgia's Pre-K Program

• The Georgia Head Start State Collaboration Office developed and implemented the Standards of Care Program to enhance childcare quality for infants and toddlers. Working families in Georgia need accessible, affordable, quality childcare and early learning opportunities for their children, like those in Virginia

• Currently, federal and State early learning programs reach thousands of young children and their families in Georgia. But too many working families in Georgia are missing out

Making Investments to Expand Capacity and Building Bridges to Sustainability

In 2020, about 4,500 licensed childcare providers offered 368,000 slots to children aged zero to twelve. However, the potential demand outpaces the supply. Forty-four percent of state residents live in a childcare desert, defined as an area with insufficient licensed childcare providers to meet the needs of children.

• The State encourages providers with support for capital investments and start-up costs to expand the capacity of childcare centers. Costs that support licensing, staffing, marketing and advertising, insurance, and operational costs to increase the availability of childcare for families

• Georgia has multiple childcare options that appeal to families, whether they are smaller and more intimate or more traditional, with multiple teachers to students. a. Center Based childcare is the traditional care system for children under 6 that has more extensive facilities such as larger playgrounds and classrooms, and provides more structure

b. In-Home daycares offer developmental and skills-building, and more intimate settings with more personalized care

• Capital expenses are one-time, long-term investments that contribute to the functionality and sustainability of Georgia's childcare center.

Creative Long Term Funding Strategies

Georgia is developing several funding strategies to improve workforce development and enhance childcare affordability. One strategy is to increase funding levels in the Childcare and Parent Services (CAPS) Program, which would enhance subsidies for families to afford care and reimbursement rates for providers.

• Capital investments and start-up costs bolster tax credits for families and other financial assistance to make childcare affordable

• The initial income eligibility for CAPS subsidies is 50% of the state median family income, or $47,619 for a family of four.

• Georgia's Child Tax Credit and expanding eligibility for the tax credit for employersponsored childcare will increase access to childcare.

• Senate Bill 89 created a $250 tax credit per child under seven

• Self-Sustaining Childcare Trust Fund; Lower childcare costs for families

When more people contribute to the economy, all Georgians are better off; an economy that supports everyone means more robust local childcare, higher childcare worker pay, and lower family costs. Georgia will continue to expand its reach to sources and engage with the community to reach its goals of a self-reliant and sustainable expansive childcare program.

Section IX: Sweden Case Study

Sustainable Solutions to Expand Childcare: Lessons from Sweden

Sweden is regarded as having some of the best childcare services in the world. The Swedish Childcare Model holds that every family should have equal access to childcare opportunities, regardless of income level. Historically, Sweden has been expanding childcare and increasing accessibility for families since the 1900s and has made significant improvements in this area since then. Sweden's childcare program is considered a global gold standard for childcare and family policies. With an intentional focus on policies that have reformed the rights of fathers and mothers in its programs, Sweden places a high value on ensuring equality.

Sweden’s childcare plan has several program goals in place to bolster accessibility, availability and affordability, like high-quality care of children throughout the country regardless of income or social status of the parent; universal benefits to parents as cash, not tax deductions; parental choice about how to raise the children with the state providing care centers or providing funding for care at home; recognition of care of children as vital to society and not just a personal decision; treating care of children as a shared responsibility between the parents and the state.

Sweden's Continued Efforts to Bolster Accessible Childcare

Sweden expanded its childcare enrollment to approximately 100,000 children aged one to five, making childcare programs more accessible due to the number of children under five. Today, that number has increased to approximately 400,000 children, with the greatest need in the rural areas of Sweden.

• The Swedish government established the Swedish National Preschool Act, which provided the framework for its preschool education program. Sweden expanded the public childcare system by providing a minimum of 525 hours of free preschool education. Establishing the perimeters of the preschool program was partly due to the country's economic initiative aimed at meeting the needs of working mothers during acute labor shortages.

• Sweden is committed to providing access to rural areas for families needing childcare and offers incentives to families who move to rural areas in support of the most hard-to-reach communities.

a. Municipalities in rural areas often collaborate to ensure children can attend the nearest preschool, even if it's outside their municipality's boundaries.

• Sweden's voucher system for childcare help to make childcare fees more affordable and to ensure a maximum fee cap without utilizing tax deductions.

• Parents can choose between different preschool service providers, the municipal preschool provider, which remains the dominant form, and an independent preschool provider funded by the municipality.

• Municipalities are required to provide Free Bus transportation for preschoolers. This is a legal right of families who need it due to distance, traffic conditions, or other circumstances.

• Sweden established a grandparent program allowing grandparents and other legal guardians to receive paid parental leave while caring for a child in the first few months. This policy does not address the shortfalls of rural areas, but it will provide an alternative to those areas with limited childcare options.

Sweden’s Long-Term Plan for Expansion

Sweden experienced an increased demand for childcare within the preschool program, and municipalities had to reconsider their methods. Due to the increase in demand, municipalities were convinced that it was a factor worth supporting and beneficial to working families. They had reached an enrollment level of 90% of all preschool-aged children, approximately 420,000 children.

• Sweden established that all families are entitled to subsidized preschool childcare, referred to as "Forskola," from the child's first birthday to six. The programs are run by municipalities, and the parents only pay a portion of the cost.

• The Swedish preschool voucher system is more representative of middle- and high-income earners, as their increasing demand for choice and flexibility in services has led to its expansion.

• The positive performance of compulsory schools and the share of independent schools at the municipal level results in more independent childcare alternatives, such as parent cooperatives, which contribute to about 10% of all preschools.

a. Parent cooperatives are considered part of the broader public childcare system, with municipalities providing funding and ensuring compliance with national regulations established to provide childcare to all families.

b. Parents are the driving force behind these cooperatives, taking on responsibilities for preschool’s operations.

c. Parents are expected to invest time through volunteering to operate the facilities on a day-to-day basis.

• Sweden offers a robust selection of childcare centers, ranging from brick-and-mortar facilities to home-based childcare, where registered childminders care for children in their homes. This type of childcare is also called "Pedagogical Care," and it has a smaller, more family-like setting for children.

a. There are often dedicated buildings for these facilities that offer childcare, typically for children aged 1-5, childcare types they call Open Preschools, used explicitly for stay-athome parents and their children

b. The "educational care" option, a form of daycare, can be provided in a registered daycare's home or multi-family setting

• Municipal preschools offer childcare for children aged 1-5 and are often located in dedicated buildings that can accommodate multiple groups of children.

a. This childcare expansion also includes the grandparents' leave reform, which allows for transferring paid parental leave days to relatives or friends and offers grandparents the option of home-based care

b. The new childcare policy addressed some of the much-needed enhancements to a growing concern about available childcare options

• Night Nurseries are after-hours preschools. This program is a state-funded service to parents who provide proof of employment during night hours:

a. Local councils decide whether these programs are made available to parents.

b. This type of service is typically available after 6:30 p.m., when the daycare finishes. Children are dropped off, eat dinner, read bedtime stories, and go to bed after shift work, and parents pick up.

• Sweden has two other notable forms of childcare:

a. Leisure Time Centers, where children can be cared for after a regular school day in addition to serving those children in the rural areas

b. Open Daycare is a community-based practice where primary caregivers stay with their children, engage with other families, and offer free services, given that parents stay with their children and childcare providers are not solely responsible for supervision.

Municipality Established and Implemented Cost Savings for Working Families

Childcare in Sweden is heavily subsidized, and costs vary based on family income and the number of children. Parents only pay 10%, while the municipality covers 90%. Fees are capped at 3% of the family's gross income for the first child, 2% for the second child, and 1% for the third child. Families with four or more children are exempt from paying fees.

• To explain Sweden's childcare affordability further, the parent contribution is capped at SEK 1,382 (approximately USD 135) per month for the first child, or a maximum of 3 percent of the guardian's gross income.

• The second child's fee is SEK 922 (approximately USD 90) monthly, or a maximum of 2 percent of the guardians' gross income.

• For the third child, the fee is SEK 451 (approximately USD 44) per month, or a maximum of 1 percent of the guardians' gross income. Families with four or more children are exempt from paying childcare fees.

Additionally, each preschool in Sweden receives a subsidy for every enrolled child, including private preschools. Municipalities pay out this subsidy monthly, with SEK 9,800 (approximately USD 957) provided per month for each child aged three to five and SEK 11,211 (approximately USD 1,096) provided monthly for children aged one or two. This subsidy is designed to cover all costs associated with operating the preschool and expenses for children with special needs.

The Swedish Childcare Model is based on the principle that every family should have equal access to childcare opportunities, regardless of income level or location. Therefore, it is a standard and practice that reflects the historical assembly of the goal standard in childcare.

Section X: U.S. National Childcare Matrix

Section X: U.S. National Childcare Matrix Continued

Section XI: Best Practices

Nine Successful Strategies Seen Across Case Studies

1.) Flexible Work Hours: Allow employees to adjust their work hours creatively, to work around childcare needs and school hours, e.g., school pick up and drop off times, nanny share schedules

2.) Developer Involvement: Incorporate codified childcare facility requirements for new developments and construction, utilizing incentives to encourage facility incorporation

3.) Living Wages: Provide a livable wage to childcare employees to ensure recruitment, retention, and long-term career vision

4.) Maximize Existing Resources: Utilize city staff such as first responders as supplemental staffing for school and aftercare transportation

5.) Partner Housing and Childcare: Co-locate affordable housing units with childcare facilities, available to both residents and the neighborhood

6.) Bolster Parental Leave: Offer parents paid, guaranteed leave during newborn stages, assignable to extended family for single parents

7.) Employer Involvement: Involve employers in the support of their employees and their childcare needs, including employer contributions to subsidize monthly childcare costs

8.) Regulate Guaranteed Preschool: Provide subsidized or free childcare, guarantee preschool from age three until standardized schooling begins

9.) Improve Infrastructure: Prioritize affordable multimodal transportation in proximity to formal childcare centers

Section XII: Time Frame Recommendations

The wide array of strategies presented in this report, from case studies both in the United States and around the world, could be applicable to The Commonwealth of Virginia. Implementation at varying levels and degrees could see results in less than a generation.

The strategies listed in the case studies and best practices sections could best be divided into three categories of time: short-term, mid-range, and long-term. Short term strategies could include inexpensive or non-legislated changes. Mid-range could include those which may involve lawmakers, but no significant change to funding models. Long-term strategies are those which are more expensive, timelier, involve more political involvement, require a change in popular thinking and opinion, or a combination therein.

Some examples of overarching themes into which all proposed strategies fit, for each time frame, are as follows:

Short-Term

1 to 5 Years to Implement

Legislate: Codify building code and law to require, incentive, encourage, and/or subsidize new construction and renovation/retrofitting to include affordable housing units, in-home private childcare, multi-use developments with purpose-built childcare facilities, and more as applicable per jurisdiction.

Mid-Range

5 to 10+ Years to Implement

Fund: Determine new funding models for different jurisdictions, at the local, state, and federal levels, to help provide subsidies and to retain and provide childcare providers with a livable wage so that they can be recruited and retained long-term.

Long-Term Ongoing to Many Years to Implement

Build Buy-In: Change public and employer perception of subsidies for childcare, make known the long-term economic impacts of childcare shortages, grow support for funding childcare regardless if one has children themselves. Changes of this magnitude require a buy-in for the good of the community.

Appendix: 1. Citations and Further Reading

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Appendix: 2. Sweden Scorecard

Link to Sweden Scorecard Infographic