STATE OF CHILD CARE
How Ohio Child Care Works
Recent online misinformation has fueled fear and confusion about how child care works in Ohio. Ohio can fight fraud and still support stable child care. These goals are not in conflict and should not be caught in the middle.
Ohio’s publicly funded child care system is designed to help working families access safe, licensed care while maintaining strong accountability and oversight.
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More than 100,000 Ohio children rely on state-subsidized child care each month.
Approximately 116,000 families use publicly funded care on average
Enrollment has declined significantly over the past decade, dropping from over 180,000 children in 2014 to roughly 140,000 today
This decline does not reflect reduced need. Instead, it reflects access barriers, workforce shortages, and program closures.
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Child care is delivered through approximately 5,200 licensed centers and family child care homes across Ohio.
Most providers operate as small businesses, often run by women and people of color.
Many communities, especially rural areas and infant/toddler care, already face severe shortages
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Ohio’s system includes:
Strict licensing requirements
Regular and unannounced inspections
Compliance monitoring and audits
Attendance verification and billing controls
Enforcement actions when violations occur
Ohio child care providers are subject to constant regulatory oversight. This is not an informal or loosely monitored system.
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Between 2017 and 2023, Ohio lost nearly one-third of its child care workforce. Many programs have not recovered from pandemic-era losses, rising costs, and low wages. Without stability, even well-run programs are at risk.
100,000+ children rely on subsidized care
5,200 licensed centers statewide
30%+ workforce loss since 2017
What Ohio’s Oversight System Actually Does
Ohio already has robust fraud prevention and detection systems, including:
Thousands of unannounced inspections
Cross-department data analytics to flag irregularities
Randomized PIN audits and anti-PIN-sharing controls
Photo and PIN attendance verification
Enforcement actions, including program closures and hearings
When fraud occurs, Ohio’s system is designed to find it, and it does.
facts
vs. Fear
What Misinformation Gets Wrong
Viral videos from other states do not reflect Ohio’s rules or systems
Isolated cases do not indicate system failure
Targeting entire communities based on race or immigration status undermines trust and safety
A Shared Principle
Providers, parents, and advocates all agree: fraud harms everyone.
It wastes resources, threatens funding stability, and erodes public confidence.
Accountability matters, but fear-based narratives do not improve accountability. They destabilize care.
Enrollment vs. Attendance
Enrollment-Based Payment (What Works)
Enrollment-based payment means providers are paid for a child’s reserved space, regardless of daily attendance.
This allows programs to:
Staff classrooms consistently
Plan budgets responsibly
Maintain quality and safety
Operate like private-pay child care
Many states using enrollment-based payment experience greater stability, lower turnover, and fewer closures.
Attendance-Based Payment (What Changed)
Under attendance-based payment, providers are only paid when a child attends.
This means:
No payment when a child is sick
No payment during family emergencies
No payment during weather closures
Yet providers cannot “turn off” their costs.
Costs Providers Still Pay
Even on days a child is absent, programs must:
Meet required staffing ratios
Keep buildings open and safe
Pay rent or mortgage
Cover utilities, insurance, and supplies
Pay payroll taxes and workers’ compensation
Attendance-based payment makes revenue unpredictable while costs remain constant.
Impact on Families and Workers
Increased risk of program closures
Reduced hours or fewer available slots
Parents forced to cut work hours or leave jobs
Lower continuity of care for children