The Washington State Department of Social and Health Services (DSHS) subsidizes child care for about 30,000 children each month. In 1992, telephone interviews were conducted with 1,179 child care centers and 1,277 licensed family child care homes throughout the state. An estimated 140,000 children were in licensed care at that time. Three major factors affected rates charged for child care: (1) wage levels and benefits provided to employees in centers; (2) the employment of paid assistants in homes; (3) liability insurance coverage in both centers and homes. Major findings from the study include: (1) between 1990 and 1992, the average rates for licensed child care increased 16.4 percent; (2) geographical differences in child care rates were similar to those observed in the 1987 and 1990 surveys; (3) child care rates varied with the age of the child; (4) on average, child care centers charged more than family homes; (5) in 1992 the DSHS maximum rates varied from the 3rd to the 73rd percentile of market rates; (6) in child care centers; rates tended to be higher when salary levels for teachers and aides were higher; and (7) in family homes, child care rates tended to be higher when providers employed assistants and when they carried liability insurance. (KM)