I too have an increase each year of $1/day. Every December I look over the current contract and handbook with all of my policies and procedures and decide what I want to change and add etc. The parents are given the new contract and handbook to look over and sign by the beginning of the new year. In my handbook it says that there will be an annual increase each year so there are no surprises that it is coming. If they don't like the policy then they don't have to sign with me. With all the increases in prices lately the costs for craft supplies, food, toys and books are crazy!!