This annual report of the recently established Alaska Day Care Assistance Program describes the system of state subsidies instituted to encourage local government participation in the delivery of day care services. Established to aid low-income families in providing for adequate child care, the program is administered by the state Department of Community and Regional Affairs. The Department established standards of eligibility for day care benefits and contracts with local communities for direct program administration. Subsidy grants are available only to communities with licensed day care facilities, with the parent or guardian selecting the provider. Eligibility is determined on the basis of family income, number of children, and single-parent status. The document includes brief descriptions of programs in 11 urban and rural communities, and consists mainly of appended tables which illustrate the scope and growth of the program, presenting details of operations in the individual communities. (BF)