This handbook consists of information related to the licensing and funding of child care centers (which serve children aged 2 years, 10 months to 6 years) in the Chicago area. Included are: (1) a brief outline of some basic issues in the development of a child care center; (2) lists of Chicago and Illinois licensing requirements and helpful suggestions; (3) an organizational chart of licensing agencies; (4) sources of government funding for day care (local, state, and federal); guidelines for establishing fees; (6) major and minor start-up expenses and sample budgets; and (7) some basic cash flow problems that may be encountered. (ED)