but day care remains the employee benefit that is least frequently offered. The number of employers providing on-site information-referral services has grown more than 400 percent since 1983; however, only an estimated 3,000 of 6 million private employers provide some kind of day care.

A small number of families are receiving day-care services funded by Title XX Social Services Block Grants. The income tax system offers broader Federal assistance. It allows tax credits for day-care expenses and does not tax employer benefits. These tax benefits tend to favor middle- and upper-income families, however, and do little for working families near the poverty line with little income tax liability. Such families are often on the borderline that separates work from welfare, so that extending them some tax relief could provide the difference that would make them self-sufficient.

We recommend that the Federal government provide child-care subsidies for lower-income families through such steps as making the existing tax credit refundable. We also recognize that providing adequate day care is not just a matter of financing, but also concerns assurances of safety and an adequate supply of services. State and local governments can play an important role here by establishing certification and monitoring mechanisms that are more rigorous in enforcing safety standards. At the same time, however, local authorities should review existing zoning requirements to eliminate unnecessary barriers that now prevent day care from taking place in safe settings like homes or churches. Unrealistic specifications about the number of toilets in a home, for example, might block a mother from offering day care to four children in a safe home setting, while zoning rules may permit day care in a dangerously run-down commercial neighborhood.

A commitment to quality care must also be reflected in the compensation of day-care workers. Currently, they are in the lowest 10 percent of all wage earners, and many have no health benefits. Steps to improve their training, wages, and benefits should be linked to community-wide efforts to set and uphold standards for day-care centers.