ST. LOUIS – Tyrone Dumas owns two childcare centers where 100% of the families he serves pay using state subsidies.
“This is probably, other than healthcare, the least appreciated business going on because we’re never going to get accommodated financially for all we do for the kids and the community,” he said.
Dumas feels that way because for months now, some of those subsidy payments have been delayed as the state transitioned to a new software in January that caused major problems. As a result, Dumas and many others are fighting just to keep the lights on.
“I had to take my 401K. I had to wipe it out to make sure my staff could still float and my kids could continue to provide services,” Dumas said.
The software problems have caused three issues. There is the delay in payments. But also, families and childcare centers applying for subsidies have not been able to get approved.
At a state committee meeting on Sept. 11, the Department of Elementary and Secondary Education (DESE) said it has brought in extra workers to help catch up with the backlog in subsidy applicants. DESE said it would have the backlog in family applicants caught up by Sept. 23 and the backlog in day care center applicants completed by Sept. 30.
DESE declined an on-camera interview but sent FOX 2 News the following information. It says it has reviewed 100% of the family applications, with 112 still pending completion. Multiple childcare providers question the accuracy of this number.
DESE says it has reviewed 68% of provider contracts with a goal of completing the review by Sept. 30.
Forty-two percent of payment corrections have been reviewed and it expects to be done with that by the end of October.
Dese said it will likely spend $4.8 million to work through the backlog.
“They’re paying $4 million. That money could go to us. You’re paying people to do this work and it’s not getting done,” he said.
Dumas says he still has 10 families waiting to get approved for subsidies.
“I’m pulling a lot of money out to keep us going. So, I’m hoping for a miracle,” he said.
Without it, Dumas does not know how much longer he can stay open.
