This investigation of educational policy for child care facilities identifies 18 areas of school operation that would benefit from written policy statements and suggests 6 procedures to use in formulating policy. Interviews with 6 child care center directors, a review of the literature, and a review of federal and state standards for child care, are used as a basis for formulating a definition of policy and identifying parties responsible for policy formation. Suggested areas of operation for which written policy statements are advisable include ownership, purpose, goals, enrollment, parent participation, health requirements, financial arrangements, personnel, research, discipline and maintenance. The suggested policy formation process consists of the following steps: planning, definition, weighing the issue, formulating the statement, formal adoption, and identification of the consequences of policy in coordination with periodic policy review. (RH)