Modernizing Nebraska’s child-care systems to better serve providers and families

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A recent state audit of the Nebraska Department of Health and Human Services’ child care subsidy program highlighting overcharges by some child care providers has cast a shadow over a profession vital to our community.

There is no question accountability is of the greatest importance when taxpayer dollars are used to aid our fellow Nebraskans. However, it is all too likely those who only saw the headline and did not review the full report missed the systemic issues that contribute to these problems. It is just as easy to overlook the broader context of a child care industry in which under-resourced and overworked child care providers struggle daily.

Nebraska’s child care providers are some of the best in the country, dedicated to nurturing our youngest citizens and enabling parents to remain in the workforce. These professionals work tirelessly, often for near or poverty-level wages, to provide a public good essential for our economy and community well-being. We can’t have a functioning economy without our child care professionals.

The recent state auditor’s report uncovered significant inefficiencies and lapses in oversight, primarily due to outdated technology systems like the Nebraska Family Online Client User System. This antiquated and complex system makes it challenging for providers to comply with billing procedures, resulting in errors that are often misinterpreted as intentional fraud.

If Nebraska isn’t modernizing, we aren’t serving our citizens with efficient and effective services. States like Iowa have demonstrated the power of modern technology to support administration of child care subsidy. Iowa invested in making sure that all child care providers have an off-the shelf Child Care Management Software product that is a good fit for their program, and then strategically linked state subsidy billing and oversight to the provider’s CCMS. By adopting similar systems, Nebraska can not only help providers run successful businesses and reduce billing errors, but significantly boost data quality and efficiency for DHHS.

As a child care center director in Iowa reported, “We now have iPads at the door, so every parent clocks their child in and out electronically every day. Every parent does the same thing, and the CCMS reports inform me who I bill as private pay and who has hours sent to HHS. The new system also means that parents are now doing attendance submissions—not the teachers—and the technology verifies exactly who is signing the child in at what time.”

It’s important to recognize Nebraskans’ overwhelming public support for increased investment in child care. A vast majority agree that more state funding is needed. Child care is a public good, and investing in it pays dividends in the form of a strengthened child care provider field, stronger workforce, better-prepared children, and a more robust economy.

Early care and education — along with state government in Nebraska — is one of the last sectors of the U.S. economy to benefit from a technology transformation. Only a small percentage of child care program operators are using modern technology to operate their businesses. Most operate on a shoestring, with little to no administrative support, and struggle to comply with complex and outdated administrative requirements. In short, public investment needs to focus on both systems and services.

We must stay solutions-oriented. The audit’s findings should be the last wake-up call to modernize our systems. Training and support for providers must be enhanced, and systems must be upgraded to reduce errors and improve oversight.

Reform is possible. A handful of forward-thinking states have begun to implement a new approach to child care subsidy management that links billing and reporting for publicly funded child care to the automated CCMS providers use every day to manage their businesses. Staff in Iowa HHS are also pleased with the new approach. “From where we sit, the more providers that use CCMS, the better,” said Michael Towey, income maintenance supervisor. “We are super excited about this because we get timely and more accurate attendance.”

Modern technology can remedy many problems identified in the audit:

• Electronic check-ins and check-outs via unique identifiers such as PIN codes or QR codes can accurately track attendance.
• Enrollment and attendance data can be electronically linked to authorized hours and reimbursement rates, eliminating manual calculations and reducing errors.
• Unique electronic identifiers can prevent payment for duplicative services.

Harnessing the power of technology to track attendance, enrollment, rate-setting, and financial reimbursement not only improves data quality but significantly reduces the time child care programs must spend on administrative paperwork.

Nebraska would benefit from an updated system that supports our providers and ensures efficient use of public funds.

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