In 1994, the Department of Social and Health Services (DSHS) in Washington state subsidized child care for about 35,000 children each month, with financial support provided in part by federal funds. The primary objective of this survey, the fourth in a series, was to set local maximum rates for subsidy programs based on the private-paying child care market, thus ensuring compliance with federal requirements and continued federal funding. A second objective was to provide policy makers with additional data about licensed child care in the state, including: (1) the population of children receiving licensed child care; (2) capacity and vacancies in licensed facilities; (3) costs associated with providing child care, such as salaries, benefits, and liability insurance; and (4) characteristics of providers. Following a summary of major findings, the report is presented in six chapters with two appendices. Chapter 1 introduces the study and describes its methods; chapter 2 provides an overview of the industry; chapter 3 gives detailed descriptions of the children in licensed care; chapter 4 describes the traits of providers; chapter 5 details the rates charged for licensed child care; chapter 6 summarizes the use of DSHS child subsidy programs; and two appendices show all available county-by-county data in tables and maps. (EV)