Philly daycare providers in financial bind due to backup in monthly state subsidies
PHILADELPHIA - Some daycare providers in Philadelphia have been in a financial bind after monthly state subsidies for June did not arrive on the anticipated pay date of July 20.
Aminha Howell is the owner of Arielle’s World Daycare Center in Poplar and the CEO and Vice President of Black Childcare Providers Coalition of Philadelphia.
"These payments cover our rent, these payments cover our bills, payroll for staff, everything. Everything comes from this one payment," said Howell. "We’re already paid a month behind so imagine being due a paycheck on July 20 and bills are due by the 25th. Whether we have reserves or not, those reserves are for actual emergencies, not just by not getting paid."
This all started after the PA Department of Human Services chose to move on from former contractor Caring People Alliance (CPA) which has been administering the Early Learning Resource Center (ELRC) in Philadelphia for the past five years.
Instead, beginning July 1, DHS said Public Health Management Corporation would be the new administrator of the ELRC in Philadelphia.
According to the DHS, the ELRCs are the hub of child care information and run Child Care Works subsidized childcare program.
In a statement, DHS said, "DHS provided the funds for these payments to all outgoing ELRCs to allow them to pay providers retrospectively for services provided in June 2024. We are closely monitoring the situation and working with affected parties to ensure that providers receive the payments to which they are entitled. Further questions should be referred to Caring People Alliance."
CPA said it mailed a notice to all providers on June 24 to submit June invoices by the required due date of July 5.
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In a statement, the CEO Jerry Macdonald said, "On July 19, we mailed checks to every childcare provider who had submitted their invoice on time (i.e. by July 5). As of 8:00 AM Tuesday, July 30, 2024, 1437 checks had cleared the bank and 96% of fund disbursed. Rumors that checks have not been honored or returned for insufficient funds are false."
Macdonald said the remaining staff is working to process invoices received between July 5 and July 15 in the order they were received, and final payments will be processed on or before August 20.
"[CPA was] only given enough money to pay providers – and no staff – so now it’s only probably about 4-5 staff handling payroll for [hundreds of] providers," said Howell.
Howell said she submitted her invoices before the due date, but learned by going to the CPA Office in person that her invoices were processed but her checks were not mailed for two of her daycare locations.
"They’re stating to me that those invoices were submitted after the 5th, which in fact I had confirmation that those invoices were all three submitted on the 3rd. So now they’re opting me to pick up a paper check today because I have proof," said Howell.
Asia Davis is the owner of Matu Magnificent Daycare and said she submitted her documents by the July 5 deadline and is still waiting for a check in the mail. "Worried, don’t know where to go from here. We have rent coming up, we have to pay our staff, we have to feed our children, so things are getting really tough, and we have no one to reach out and give us answers about anything."
Howell said some of the daycare providers are living check to check and cannot wait until August 20 for June payments.
"Everybody needs to be paid by July 31 because we’re already a month behind. We already rendered these services – these children were already taken care of, they were already fed, they were already changed, they were already taught the lesson so now you got to tell me I have to wait another month to receive payment on August 20," said Howell. "That’s insane."