I think one way would be to encourage business growth and creation of family/daycare businesses through tax credits and incentives, and then let the market decide the availability of spots. Then instead of subsidization they could spend money on quality control and standards so these businesses have to meet strict thresholds.
Either the government subsidizes directly, or they create an operating framework in which the private sector can take more responsibility for this service.
I am for a market-base alternative, although I'm not a parent and I don't really know the situation on the ground like a parent would. It might be difficult to get he right type of care - assuming your child is special needs or something else that requires unique circumstances.
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