The five research studies in this volume focus on the financing of child care, and constitute part of a detailed analysis of issues relevant to child care and parental leave policies and the effects of such issues on the Canadian family. Paper 1 describes how child care is funded through the Canada Assistance Plan (CAP); points out the problems with such funding; and indicates ways of addressing the problems. Paper 2 provides an analysis of Section 63 of the Income Tax Act, which allows deductions for child care expenses; outlines an alternative: the child care tax credit; explores types of care and the deductibility of each; describes duties and responsibilities of parents and caregivers as specified by federal and provincial governments; discusses the feasibility of establishing private home care as a business; and considers the Quebec Availability Allowance as an alternative. Also covered are auditing procedures of Revenue Canada and the relationship of child care deduction to child tax credit. Paper 3 reports a study on wages and working conditions of employees in licensed group day care centers and providers of licensed family day care in Canada. Paper 4 examines the role of municipal governments in child care in Canada, analyzing the effect of governmental involvement on community services. Paper 5 describes the financial support provided for child care in Canada by provincial/territorial and federal governments and the impact of this support on families differing in income. (RH)