Providing comparative data on child care policies and programs in the State of Kentucky; this report presents an analysis of the issues, including regulation, licensing, tax and fiscal policies, subsidy programs, expenditures, availability, and quality. Data used in the study were the most current data available from the United States Department of Labor, the Kentucky Cabinet for Human Resources, and a thorough examination of the literature on day care. Comparisons were based on data from the adjacent states of Ohio, Tennessee, Virginia, North Carolina, and Indiana as well as several states having model child care programs, such as Massachusetts and Minnesota. Virginia and Massachusetts were included partly because those commonwealths have governmental structures similar to those of the Commonwealth of Kentucky. Two major areas of interest emerged in the course of the study. One involves the shortage of child care subsidies for poor women; the second involves the enhancement of child day care availability for middle and lower income working families. Chapter 1 includes background information and an overview of child care as it has emerged as a social, economic, and business issue. Chapter 2 analyzes the specific issues related to child care and provides comparative information from other states. Chapter 3 reviews policy and legislative options and considerations. A bibliography provides 60 citations. (RH)