‘It’s been a rough year’: Thousands of Missouri childcare providers still await state subsidy they’re owed

JEFFERSON CITY, Mo. (KY3) - The Missouri Department of Elementary and Secondary Education is making progress on clearing the backlog of childcare subsidy payments, unprocessed family applications, and provider contract reviews and renewals.

“It’s been a rough year,” said Lakaisha McCaleb, owner of Joy & Gladness Children Academy in Jefferson City. “It’s been very hard, but through the grace of god, I’m not giving up on my community.”

In its most recent update on October 10, the department’s online dashboard used to track the backlog’s status reported DESE caught up through August 4th on family subsidy applications, with 3,327 still waiting to be reviewed review.

DESE said it’s caught up through July 1 for provider contract approvals or renewals, with 219 still waiting.

However, the department said it hasn’t caught up on provider payment corrections through May 31, leaving 1,181 in the queue.

The delays have stressed an industry already imperiled by the COVID-19 pandemic, which was immediately followed by an abrupt return to a booming job market and high demand for childcare services.

“Covid hurt all our parents; they closed, and we lost,” said Paula Benne, who co-chairs the workforce development commission for the Jefferson City Chamber of Commerce. “It’s been an impact to our workforce dramatically. And I love what we’re doing and encouraging our child care centers, but I don’t like what’s happening on the backend. It’s two steps backward, and they’re struggling. We need to help them.”

Benne said she believes passing a package of childcare tax credits, which failed in the last two legislative sessions, is the first big step in clearing the backlog and ending the childcare shortage.

“Businesses, we’ve got their attention,” Benne said. “They want to know, ‘How can we help?’ if we have those tax credits, they’re in. That’s the incentive to help and donate and [to open] that child care center. I think it would be a great help, a positive step forward to helping our child care centers.”

State leaders describe a scarcity of daycare options as the biggest obstacle to Missouri’s workforce development and economic growth.

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