Missouri education officials apologize for backlog of child care subsidy payments

Missouri’s education department hopes to resolve a backlog of payments to daycares across the state in the next two months, agency staff told the State Board of Education on Tuesday.

The department previously predicted the backlog — which has left many daycares on the brink of closure — would be overcome by the end of July.

Everyone involved in the process “is frustrated, is exhausted, is at the end of their rope, myself included,” said Pam Thomas, assistant commissioner for Missouri’s Office of Childhood. “And I think that the only thing that you can say is you recognize it. We sincerely apologize.”

Technical issues with the education department’s disbursal of federal funds has left many daycare providers struggling to keep their doors open as they wait on payment from the state.

“We understand this program is vital, not only to the providers and the families, but to the employers, to those that are going to school,” Thomas said. “We understand that, and we are doing the best we can to get this cleaned up within the next month and get back on track.”

The subsidy, part of a federal block grant program that is state-administered, helps cover the cost for daycare owners serving low-income and foster children.

The Missouri Department of Elementary and Secondary Education, which oversees the program, has largely blamed a contracted vendor for the months-long backlogs. The system, which launched in December, is still not fully operational.

The vendor contracted to develop and implement the new system for the subsidy program is World Wide Technology, a large technology services provider headquartered in St. Louis.

“The first time the vendor put more resources and came on site and took us seriously was May 1,” she said. “We are not experts in an information technology system in the department.”

She said World Wide Technology has doubled their staffing on the project and brought in experts, but until it did that, the agency was “treading water” because it didn’t have the expertise to fix various issues.

The state now has three vendors working on the program and “it takes all three of them to come together and get on the same page with what we need,” Thomas said.

Thomas said they are bringing in outside staff to help work through the backlog, because they have enough staff to process new requests as they come in but “do not have the capacity for the backlog on top of that.”

Those other vendors are MTX Support, to help with the data system, and KinderSystems for administering the system that tracks children’s attendance for payments, said Mallory McGowin, a spokeswoman for the education department, in an email to The Independent.

McGowin said it took “longer than expected” to contract with and onboard the vendors. There are now around 1,800 providers’ accounts that will be reviewed by the contractors, she said, a process that is currently underway.

Thomas estimated it would take 45 working days to clear the backlog, but that is “dependent upon the vendor getting those system glitches fixed.”

Board member Pamela Westbrooks-Hodge raised concern at the meeting for struggling daycare providers.

“I am keenly aware,” Westbrooks-Hodge said, “… of the challenges we’ve heard from providers who literally are going out of business because they’re not being paid.”

Providers, she added, “don’t have the margins to tolerate our issues.”

Karla Eslinger, who has been commissioner of education since July 1, said her agency is doing all it can, and urged providers “just keep working with us.”

She said the problems should’ve been addressed earlier.

“We should have addressed it this way three months ago,” Eslinger told the board.

Eslinger added that she has “no patience when it comes to this. We will get these folks paid. We will take care of these children.

“I’m hoping that next month we’re going to have a very, very different story.”

This story was originally published by the Missouri Independent, part of the States Newsroom.

Copyright 2024 St. Louis Public Radio