Child care provider says state slow to pay subsidies
by: Eric Rasmussen Updated:
Some day care operators who help low income families are saying money from the state is taking longer to get into their bank accounts.
A child care provider told FOX25 Investigates that she depends on the state to pick up the bills for many of her clients who can't pay on their own. She said those checks are arriving lower than normal, and it's putting her in a tight place financially.
The woman, who doesn't want to be identified, runs a daycare out of her house in central Massachusetts.
She's recently racked up late fees and overdraft charges while waiting on thousands of dollars in reimbursement from the state.
"Our life insurance was almost canceled because the money wasn't there," she said.
She told FOX25 that in the last year, 10 out of 12 monthly payments were late.
She's among many providers who get referrals from "Kids Unlimited" in Charlton. The company has a contract with the state to help about 200 families in need through the Department of Early Education and Care.
"Kids Unlimited" insists it's not holding up the money, but acknowledged some billing has to go through yet another outside agency before the state can process the payments that child care providers are depending on.
Some blame delays with rolling out a new computer system to handle those payments.The state insists it's still getting the money out on time and the hold-up could be happening somewhere else in the process. However, not everyone's satisfied with those answers.
"Providing nutritious meals for my daycare, along with my family, is becoming a struggle when you don't know when you're going to get paid," the day care provider told FOX25.
In a statement, "The Department of Early Education and Care said it is paying all submitted invoices on time, typically within 10 business days of receipt, which is substantially quicker than the 45 days required under state policy."
Despite those answers, the woman said all the red tape is making it hard for her to stay in the black.
On Thursday, the state acknowledged it has not been able to roll out a new payment processing system that was supposed to launch earlier this year.
For now, the process is still essentially handled on paper, which could change early next year.
