DESE under investigation as childcare facilities continue to struggle

KANSAS CITY, Mo. — Many childcare facilities across Missouri rely on faith to do their jobs because they say the state isn’t doing theirs.

“Only through the grace of God have we been able to maintain and keep our doors open,” Linda Franklin Lynn the Administration Assistant at The Downtown Childhood Development Center said.

Hundreds of thousands of dollars are sitting in Missouri’s bank account as daycares weigh if they can stay open or not.

FOX4 first told you about this at the beginning of the month. Now, the Missouri House is opening an investigation into the Department of Elementary and Secondary Education (DESE).

“The light company wants all they money or your lights will be turned off. These kids need care but the childcare providers need the funds to do that” Franklin Lynn said.

“The fact that we’re even having this conversation is mindboggling, but I think what we need to do is apply more pressure to those in charge,” Crystal Quade, the Democrat Minority Leader in the Missouri House of Representatives, said.

A crisis with a big price tag that has Jefferson City on high alert.

“We’re seeing so many of our childcare providers having to close their doors because they can’t make payroll, they can’t keep the doors open,” Quade said.

That reality is very real for Linda Franklin Lynn and her team here at The Downtown Childhood Development Center.

“Give us our money, we kept these babies and show them love and we will continue, but give us our money. That’s your word and we expect you to keep your word,” she said.

Crystal Quade says there’s a pot of more than $215 million allocated to serve more than 23,000 kids, but only $24 million has been used.

Some childcare facilities have been missing their childcare subsidies since November.

Last time we spoke with DESE, they said they hoped to have the issue resolved in 90 days, however, many of these spaces will close by the time we get to 90 days.

“Get on it, get like Kansas, get like Kansas and it’ll be simple for you and simple for us too,” Franklin Lynn said was her message to the state.

Franklin-Lynn said they haven’t had to cut services yet, but they’re close.

In the midst of this, FOX4 reached out to DESE who followed with this statement:

At any hearing that is scheduled with lawmakers, DESE plans to be transparent about the challenges that exist, and the work being done to address the issues.

Additional information about the challenges and work being done is below.

The new Child Care Data System (CCDS) allows families and providers to have a web-based, near real-time system to enter and view their information for child care subsidy . DESE’s Office of Childhood launched the CCDS in December 2023.

• There have been a number of challenges during the transition to a new data system. 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. 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.

The ongoing challenges with system issues have created a backlog in family applications for subsidy assistance and provider contract applications. DESE and its vendors are committed to fixing these issues and processing all applications as quickly as possible. Here are the solutions we have put in place:

• Family Applications: DESE has contracted with a staffing agency to provide full-time staff to help clear the backlog of family applications. We expect the backlog in family applications to be cleared by mid to late September. Once approved for subsidy, we will ensure there is no gap in the family’s eligibility and authorizations.
• Provider Contracts: DESE has cross-trained additional staff to help the subsidy team to clear the backlog of provider contract applications. We expect the backlog in provider applications to be cleared by early to mid-September. Once applications are processed, we will ensure there is no lapse in the provider’s contract.
• Provider Payments: Payments are being processed daily and providers are getting paid, though some are not receiving full payment due to ongoing technical issues. DESE has put the following resources in place to address the outstanding payment issues as soon as possible.
  • DESE’s current contractors who support the child care data system have doubled the number of staff working on issues preventing or delaying provider payments.
  • DESE contracted with an agency to clear the backlog of subsidy payment corrections.
  • DESE hired a team of part-time employees to assist with processing requests for missing payments.

Parents and providers with questions may call 573-415-8605 to speak to a customer service representative during these hours:

• Monday through Thursday: 8:00 a.m. to 8:00 p.m.
• Friday: 8:00 a.m. to 5:00 p.m.
• Saturday: 8:00 a.m. to Noon

Parents and providers experiencing a longer wait time during the day are encouraged to call back during evening or weekend hours.

FOX4 also reached out to Quade’s opponent, Lt. Governor Mike Kehoe who said,

“Access to safe and affordable childcare is critical for Missouri families. This delay in payments to childcare providers is unacceptable, and I will work with the Governor’s Office, the legislature, and DESE to ensure government bureaucracy does not continue to hurt these small businesses in providing essential services to hardworking Missourians.”

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