In January 2017 Washington State Department of Early Learning (DEL) surveyed child care centers and family homes on the impact of Initiative 1433 ("I-1433") raising Washington's minimum wage. The data collected indicates that providers were broadly impacted by the initiative. For family home providers, 46% reported that they had paid assistants, and the average pay increase among these was 12%. The survey data suggests a total impact on family home providers of $0.39 per child per day, or approximately 1%. For child care centers, wages were reported to increase for lead teachers by 5.2% and for assistant teachers by 8.5%, statewide. These increases suggest a total business impact regionally of 2.3%-6.4%. Using the survey data along with statewide unemployment insurance data, a statewide business impact for centers of 3.5% is estimated. The total business impact in each case represents a percent increase in provider costs that, if unmet by increased tuition rates, can be expected to result in a reduction in the availability or quality of child care for subsidy enrollees. To preserve the supply of childcare for subsidy enrollees, and to support subsidy providers progressing on improving quality, this review indicates that a percentage increase in regional subsidy rates equivalent to the percentage cost increase is needed. An increase of 1% for homes and an increase of 3.5% for centers over the 2018 fiscal year would increase overall payments over that time period by approximately $7,293,080, or 2.2%. The data described in this summary provide a basis for either a statewide increase or regional increases in the subsidy rates. Although regional variation is observed, the variation does not closely match the regional differences in current subsidy rates or other measures of relevant regional costs that we have reviewed. Accordingly, a single statewide percentage increase may be the best-supported mechanism to address a state-wide need at this time.