Child Care Providers in Crisis Due to Delayed Subsidies
Child care providers in Missouri are facing a crisis as they struggle with delayed subsidies that are meant to support families in paying for child care services. Lisa Scheer, the director of Baden Christian Child Care Center, expressed her concerns about the situation, stating that most of the families they serve rely on state subsidies to cover their tuition costs. Without this financial assistance, Scheer fears that their center would be forced to close its doors.
The issues with subsidy payments began when the Department of Elementary and Secondary Education (DESE) implemented a new software system at the start of the year. Unfortunately, this software is not effectively communicating with another program responsible for processing subsidy claims. As a result, even families that have been authorized for subsidies are not receiving the financial support they need in a timely manner.
Scheer revealed that her child care center is owed $17,000 in unpaid subsidies, but the actual losses could be much higher due to the inability to enroll families who qualify for state assistance. She emphasized the impact of these delays on the children, noting that some families are unable to access child care services, leaving young children without proper care and supervision.
DESE Takes Action Amidst Vendor Troubles
In response to the ongoing issues with subsidy payments, DESE has taken measures to address the situation. The department has withheld funding from the vendor responsible for the software system, citing failures to meet project milestones. The total cost of the project is significant, totaling $13.79 million, with DESE having paid $10.7 million to date. With four payments withheld since January 2024, the department is holding the vendor accountable for the delays in processing subsidy claims.
World Wide Technology, one of the vendors involved in the project, expressed its commitment to resolving the issues and ensuring that payments are made to child care providers accurately and in a timely fashion. However, State Rep. Chantelle Nickson-Clark, representing District 67, labeled the situation as a crisis, emphasizing the severity of the impact on child care providers and the families they serve.
According to Nickson-Clark, the delays in subsidy payments have extended for months, leaving providers struggling to cover their operational costs and support their staff. She called on DESE to take immediate action to rectify the situation and provide financial relief to the affected child care centers.
American Rescue Plan Funds Offer Some Relief
Recognizing the urgent need for support, the state has allocated additional funds from the American Rescue Plan to assist child care providers facing financial challenges. Eligible providers can receive a stipend of up to $55,000 based on the size of their operation. While this financial aid is welcomed, Scheer and other providers believe that it may not be sufficient to address the long-term ramifications of the subsidy delays.
Scheer highlighted the financial strain that providers have faced, including taking out loans and depleting savings and retirement accounts to stay afloat. She argued that a one-time stipend may not be enough to stabilize the child care industry, calling for ongoing support until providers can recover from the financial setbacks they have experienced.
DESE has indicated that the vendor responsible for the software system has committed to resolving the issues and ensuring that the program is fully functional by the end of the month. However, the impact of the delays on child care providers and the families they serve remains a pressing concern that requires immediate attention and resolution.