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Aug. 28, 2024 |  By: Clara Bates - Missouri Independent

Missouri legislative leaders call for hearings over child care subsidy ‘crisis’

child care

By Clara Bates - Missouri Independent

Missouri legislative leaders are demanding answers from state education officials about a monthslong backlog in a child care subsidy program.

Two House committees — the budget committee and the education committee — have scheduled hearings into the matter next month, and a Republican Senate leader has called for her chamber to launch a similar inquiry.

“I think it is safe to say The Office of Childhood is a massive disaster,” Senate Majority Leader Cindy O’Laughlin, a Republican from Shelbina, wrote in a Facebook post Tuesday, referring to the office within the Department of Elementary and Secondary Education that is responsible for administration of the subsidy.

“… instead of creating more child care,” she wrote, “this office is running day cares out of business.”

Child care providers have been struggling to keep their doors open, and in some cases forced to shutter, due to technical issues with the education department’s disbursal of federal funds.

State education officials have largely blamed a contracted vendor for the monthslong backlogs. The system launched in December after the program shifted from the Department of Social Services to the Department of Elementary and Secondary Education.

The subsidy, part of a federal block grant program that is state-administered, helps cover the cost for day care owners serving low-income and foster children. Some day cares rely on the program to pay their staff.

O’Laughlin said due to the “incompetence” of the office, she is requesting that Missouri Senate President Pro Tem Caleb Rowden appoint an interim committee to look into the issues. 

The technology vendor, along with leadership of the Office of Childhood, parents and child care providers would be asked to testify, she wrote.

The vendor contracted to develop and implement the new system for the subsidy program is World Wide Technology, a large technology services provider headquartered in St. Louis.

In addition to O’Laughlin, House Minority Leader Crystal Quade, a Springfield Democrat running for governor, demanded that her chamber’s leadership create an interim committee to look into the issues surrounding the subsidy. 

The problems administering the program have “escalated to the point of crisis, with families losing access to care,” Quade wrote in a letter last week to House Speaker Dean Plocher, “as some facilities have been forced to close, due in large part to the department’s failure to remit the payments owed in a timely manner.”

The education department has been “less than forthcoming” in communication, she wrote. 

“Since members of the House Democratic Caucus are being inundated with pleas for help from desperate families and struggling providers,” Quade wrote, “I’m certain our Republican colleagues are as well. 

“If the department is unable or unwilling to provide answers, it is our duty to demand them.”

Wednesday, Plocher announced the House Elementary and Secondary Education Committee will hold a hearing Sept. 10 to “investigate the causes and impacts of delays” in the state issuing child care payments.

A House Budget Committee hearing was already scheduled for Sept. 11 to discuss child care with the education agency.

“At any hearing that is scheduled with lawmakers,” the education department’s spokesperson, Mallory McGowin, said in an email to The Independent, “DESE plans to be transparent about the challenges that exist, and the work being done to address the issues.”

McGowin said there are currently backlogs in family applications for subsidy assistance, provider contract applications, and in providers’ requests to resolve outstanding payment issues.

And there are ongoing issues getting providers their full payment: “Payments are being processed daily and providers are getting paid,” she said, “though some are not receiving full payment due to ongoing technical issues.”

Regarding the backlog of family applications, McGowin said the department has contracted with a staffing agency and expects it to be cleared by “mid to late September.” The department has also cross-trained additional staff to clear the backlog of provider contract applications. That backlog is expected to be cleared “by early to mid-September.”

Regarding outstanding payment issues, she said the current contractors have doubled their staff working on “issues preventing or delaying provider payments.” DESE has also contracted with an agency to clear the backlog of subsidy payment corrections and hired part-time workers to help process requests for missing payments. McGowin didn’t provide a timeline for the department overcoming the backlog of payment corrections.

“DESE recognizes the importance of subsidy payments to the child care industry and the value the program provides to Missouri’s workforce, in particular for families who provide care to children in foster care,” McGowin said.

McGowin encouraged parents and providers with questions to call the subsidy hotline at 573-415-8605.

“DESE and its contractors, World Wide Technology and MTX, are working hard to address these issues and sincerely apologizes to the child care providers and families affected by this transition,” she said.