I only have one subsidized family.
They (California Department of Education) do a yearly market rate survey of all providers to determine what the average daycare rate is. I base my increases on that survey. I take the weekly rate, round it up, and divide it by 5 to get my daily rate. By law, I have to charge private and subsidized families the same amount. The subsidized families already pay a copay to the subsidy agency, I'd rather not collect from them as well. This method keeps my rates slightly above average.