Missouri childcare subsidy system backlog causes financial stress for daycare providers, Gov. Parson demands action

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Kansas City, Missouri – As delays still harm the state’s childcare industry, Governor Mike Parson is pushing the Department of Elementary and Secondary Education (DESE) and its contractors to speed up the transfer of federal subsidies to daycare providers. This call for action follows continuous problems with a new online system meant to handle these payments.

The system, which went live in December under the oversight of DESE, was designed to streamline the application process for childcare subsidies by making it web-based. Families seeking subsidies must apply using this new Child Care Data System; money meant for daycare providers will be directly distributed. Technical problems, however, have plagued the system’s operation and cause extreme processing application delays. Certain applications have been outstanding since last fall, which leaves many daycare providers short-funded.

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These delays have significant consequences. Usually running at full capacity, daycare facilities suddenly notice far lower enrollment as they fight to find money. Several providers have said they have been tapping into personal funds to pay running expenses; others have even been closing.

Addressing the issue, Governor Parson emphasized the urgency of resolving the payment delays.

“We’ve got to push these contractors and make sure they’re getting the right information in there, we can get it out and get the money out. The money’s not the obstacle, having the money, it’s just a matter of getting it to those people. So we’ve got to do a better job of doing that,” Gov. Parson said earlier this week.

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DESE has stepped up its efforts in response to the backlog by employing extra personnel through a staffing agency solely to handle the application pile-up, with an eye toward late September clearance. The agency has also started cross-training more staff members to guarantee quicker processing of complete and partial payments to vendors.

Next week, the continuous payment problems—which are under great discussion at two important meetings—are likely to take front stage. Focusing on resolving a solution to guarantee daycare providers get the late payments, the Missouri House Committee on Elementary and Secondary Education will meet on Tuesday; the House Budget Committee on Wednesday will follow.

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The situation emphasizes the difficulties upgrading governmental structures and the effects of such changes on basic services including childcare. The result of the forthcoming committee meetings could be very important in determining how fast and successfully these payment problems are addressed, therefore influencing many families and businesses across Missouri.

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