Cheryl Howard, the executive director of Nora Stewart Early Learning Center NSELC, is one of many daycare providers in Missouri who depend on state reimbursements to stay open. However, due to a delay in payments from the state, Howard says the center, which has been in Columbia for 91 years, is now at risk.
In the last two to three years, our enrollment has dropped by half. We haven’t received the grants we applied for, and that’s really hurting us, said Howard.
Howard, along with other daycare providers, testified before the Missouri House Elementary and Secondary Education Committee. Due to technical problems, state reimbursement payments have been delayed for months, causing financial strain on daycare centers across the state. More than 3,000 childcare providers are still waiting for their payments.
Three members of the Harris family, who have worked in childcare for over 40 years, shared that they had to sell their car, turn off their utilities, and dip into their Social Security just to keep their daycare open. Even with all this, they are still $60,000 in debt. They aren’t alone.
Latonya Williams, who runs the Bartlett Center, which cares for children with trauma, told the committee that if her daycare closes, many children will have no other place to go. I have over 100 kids in my program, and about 98% of them rely on childcare subsidies. Up until a week ago, I hadn’t received any payments, Williams said.
The state blames the problem on a new data system launched in December, which has caused a backlog in payments. Daycares need these payments to pay staff and stay open. The new system has also made tracking attendance difficult, and many providers say they can’t get help when they ask for it.
There won’t be any satisfaction until these providers are paid, with interest, said Rep. Raychel Proudie D-Ferguson. People are taking out loans, turning off their lights, just to keep providing care for children. Someone needs to fix this.
Minority Floor Leader Crystal Quade D-Springfield believes the state should make payments now. We know which providers and parents qualify for these subsidies. We could issue checks immediately to cover the costs, she said.
The new system has created problems not only for providers but also for families applying for assistance. Under the system, parents have to take attendance for their own children, which has been difficult for daycares. Additionally, the system only works for Android users, and the technology is outdated.
Quade believes the problem is bigger than just technology. She questioned whether the Department of Elementary and Secondary Education DESE should oversee the subsidy program. She pointed out that there’s a shortage of caseworkers, and the state has outsourced its call centers, leaving many people without help.
DESE said it plans to start issuing stipends soon, but for many providers, it’s already too late. Some daycare centers, especially in St. Louis, have already closed.
A budget committee hearing is scheduled to discuss how much these issues have cost and potential solutions. Quade encourages affected parents to contact her office or their local officials to share their stories.
Proudie still has questions about what happened to promised funds for providers who serve low-income children. Providers were promised a 30% differential, and an additional 20% for becoming accredited. But suddenly, without warning, that was stopped. I want to know who made that decision and why, she said.