Missouri’s child care providers have faced significant challenges due to a backlog in subsidy payments, but recent developments indicate that relief is on the horizon.
According to Missouri Education Commissioner Karla Eslinger, the backlog is now 70% cleared, with full resolution expected by the end of February 2025.
Background of the Backlog
In December 2023, the Missouri Department of Elementary and Secondary Education (DESE) transitioned to a new Child Care Data System (CCDS) to streamline subsidy payments.
However, technical challenges with the new system led to significant delays in payments to child care providers. These delays caused financial strain for many providers, with some even facing closure due to the prolonged wait for funds.
Current Progress and Resolution Efforts
Commissioner Eslinger recently informed the Missouri Senate Education Committee that the backlog is 70% resolved.
She emphasized that the payment calculator within the system has been fixed, a significant milestone in addressing the issue. DESE has processed approximately $203.9 million in payments to child care providers serving subsidy-eligible children in 2024.
Impact on Child Care Providers
The backlog has had a profound impact on child care providers across the state. Many centers reported financial hardships, with some taking out loans or using personal funds to maintain operations.
The delays also affected families relying on subsidized child care, leading to disruptions in care and added stress.
Steps Taken to Address the Backlog
To mitigate the backlog, DESE implemented several strategies:
- Technical Fixes: The payment calculator issue within the CCDS was identified and corrected, allowing for accurate processing of attendance claims.
- Increased Staffing: Additional temporary and contracted staff were brought in to expedite the processing of applications and payments.
- Regular Updates: DESE provided weekly reports to track the status and progress of the backlog, ensuring transparency with stakeholders.
Future Outlook
Looking ahead, DESE aims to prevent future backlogs by ensuring all technical issues within the CCDS are resolved by the end of January 2025.
Commissioner Eslinger also highlighted the need to shift from attendance-based payments to enrollment-based payments to provide more stability for providers.
Governor Mike Kehoe echoed this sentiment in his State of the State address, announcing plans to implement enrollment-based payments in fiscal year 2026.
While the backlog in Missouri’s child care subsidy payments has posed significant challenges, concerted efforts by DESE and state officials have led to substantial progress.
With the backlog now 70% cleared and full resolution anticipated by the end of February 2025, child care providers and families can look forward to more timely and reliable support in the near future.
