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Nirvana, a medium-sized city in the midwestern part of the United States, has experienced a significant change in the municipal work force of 1800 employees. Many more employees are responsible for caring for children than in the past. In a recent survey of city employees, over forty percent of employees said that “affordable day care for children” was important to them. Meanwhile, the Director of the Office of Personnel, Mary Lux, has become convinced that the lack of affordable day care is one of the main reasons for absenteeism and lateness among city employees. Mayor Petula Spark, some of the members of the city council and the leader of the major city employees’ union (Denardo Legado) have all agreed that something should be done. The question is—what would it be?
Mayor Spark was in favor of doing something as long as it did not result in a major expense for the city’s already strained budget. She told Legado, who was negotiating for day care on behalf of the city employees: “We’ll give you space and utilities for a year at no cost. It is up to you to come up with a suitable day care center that conforms to state and federal law.” The only state and federal requirements specific to day care centers are that they a) need to be licensed and inspected once a year (the cost of annual inspection is $100); b) that all new day care workers take part in a three-day state-certified training program (training costs are $400 per employee); and c) that the child to day care giver ratio for no greater than 8 to 1.
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