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DOUBLE TAB TO ZOOM ON PHONE OR TABLET Step 3 If you want the current wages to double, your equation would look like this: 581,388 total paid teacher hours × $20.00 average wage per hour = $11,627,760 spent per year on teacher and provider salaries Step 4 Then subtract the amount currently being spent to find the current subsidy: $11,627,760 (cost of wages at $20.00 per hour) – $5,813,880 (current cost of wages) = $5,813,880 (the amount of subsidy provided by the work force) Submit this number on the “invoice” to community leaders to let them know how much teachers and providers are currently subsidizing the child care system through their low wages. If you want to go a step further, calculate how much each child (that is, each parent) is being subsidized by dividing the subsidy by the total number of children. In this case, the equation continues: $5,813,880 subsidy ÷ 2,500 children = $2,325.55 subsidy per child per year This figure represents how much it would cost each family to raise the cur- rent wage to $20.00 per hour. Compare the current average wage to that of a kindergarten teacher. To find out how much kindergarten teachers are earning, ask the state Department of Education or a reference librarian. When you divide a teacher’s salary to find out the average wage per hour, divide by 1,500 hours per year (because of sum- mer break) and not the standard work year of 2,080. Final Notes Whichever method you use to determine the subsidy teachers and providers supply to the system, be sure to keep careful records of all your calculations. If someone asks how you arrived at your estimate, you should be prepared to answer. If you are planning to use the subsidy number primarily to raise aware- ness, the Minnesota Method may be easier. However, if your state or local officials are seriously considering a salary enhancement project, the Michigan Method may be more useful. 346 Appendix 8 COPYRIGHTED MATERIAL