This report from a 1996 Child Care Action Campaign national audioconference concerns approaches taken by Wisconsin and Minnesota in designing and implementing federally funded child care subsidy systems. Wisconsin Works phases out Aid to Families with Dependent Children cash assistance and redirects funds into job training, child care, and health care to ensure that all low-income families participate in work and are supported in doing so. In order to give all families of equal income equivalent child care support, Wisconsin will lower income eligibility for subsidized child care from 200 percent to 165 percent of federal poverty level and impose a sliding fee scale involving high co-payments for low-income working families. Minnesota seeks to expand child care capacity to keep pace with needs while retaining and expanding investments in child care quality. Conference comments regarding the Wisconsin and Minnesota efforts focused on the importance of child care quality, the need for child advocacy, and the need to consider the impact of state policy on children's well being. Strengths of Wisconsin's plan included its universal nature; concerns about the program included its lack of guaranteed child care for families required to work, limited parent choice, elimination of child care subsidies for participation in training or education, and requirements that parents with children 12 weeks and older return to work. The major strength of Minnesota's planning process was its effort to ensure that quality would remain central to child care decisions, while concerns about the program included the proposed reliance on tax credits to expand funding for low-income child care. (KB)