Childcare Subsidy Rollover is Statewide Epidemic $51 million lost

Thousands of NYS childcare providers express outrage

ALBANY, NY (07/02/2008)(readMedia)-- Thousands of VOICE/CSEA childcare providers are outraged to learn that, for the last three years, counties failed to distribute money to children and families in need.

VOICE/CSEA, with 7,500 provider members throughout New York State, was organized, because of late payments from the counties that were forcing many great family and group family child care providers out of the business. Now providers find out that several counties have chosen not to spend millions of dollars intended to help thousands of children and families.

The NYS Office of Children and Family Services (OCFS) cut funding for any county that rolled over at least 10 percent of its prior years allotment by 40 percent of that rollover amount. As a result, some of these same counties, including those with the largest rollover amounts, have begun PR campaigns to say how the loss in funding hurts children and families.

“We’ve learned the problem is epidemic with 47 of the 57 counties outside of New York City having rolled over in excess of $51M from fiscal year 2006-2007 into 2007-2008,” said negotiating team member Patrick Hogan, from Westchester County.

“This money was specifically given by the State to the counties to be distributed among families in need of childcare assistance. Balancing work and family is a challenge. This is unacceptable and irresponsible for the counties entrusted to not pass this money on, said Rose McCabe, VOICE /CSEA childcare provider and advocate from Binghamton.

Eleven counties had rollovers in excess of $1M, with Erie and Suffolk Counties at the top of the list at $8M and $6M, respectively, for fiscal year 2007-2008.

  • Albany $2,805,964
  • Cattaraugus $1,329,190
  • Duchess $1,110,129
  • Erie $8,461,727
  • Essex $1,171,390
  • Monroe $5,890,032
  • Niagara $2,825,524
  • Oneida $2,130,134
  • Steuben $1,036,582
  • Suffolk $6,162,240
  • Westchester $5,94,273

The funding is intended to ensure that child care is available through qualified providers. It benefits children, families, communities and businesses that rely on the services to keep people working and productive.

“We call on all these counties to take care of our communities. Enough with county PR campaigns to get even more money when they aren’t even spending what they’ve been given”, said Damaris Samolinski, Suffolk County. “It’s inconceivable that they had money sitting there when we were suffering from a rash of late payments--57 days late for payments! A lot of providers lost their homes in Suffolk, and many left the business. This shows poor planning and has caused undue stress to our communities. Why is it that Nassau County does it well and Suffolk can’t get their act together? ”

“The counties ought to increase eligibility for needy families and take care of as many families as they can with the money entrusted to them by the State,” said Kim Bannister, Erie County provider. “The way to restore funding to previous levels will be to show there is a need through program expansion and fair eligibility standards.”

It was reported Monday, June 23 in the Buffalo News that Niagara County is seeing an increased need for childcare assistance. Yet, Niagara County is one of the top offenders with $2,825,524 in unspent money for 2007-2008 alone.

“In 2005, we had over 400 families (out of 900 receiving subsidy) who were notified by letter that they would lose their child care assistance in just 10 days! During the next 4 months, I lost 18 colleagues in the Eastern portion of Niagara County. Some of these providers were excellent and added to the professionalism we look for in child care. They closed their businesses; Niagara County and its families are the ones who lose out,” said Cathey Sandman, Niagara County provider.

“The rule is: use it or lose it. Families are paying the price for the County’s decision,” said Denise McFadden, Monroe County provider. “Records show the County also failed to provide the funding in 2005-06.”

“I became homeless because I couldn’t count on subsidy payments from my county,” said Denise McFadden. “This is not a harmless budget issue. It affects all of us: providers, parents and children in very real ways.”

###