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New payment policies put hurt on Pa. child care providers

PHILADELPHIA (KYW Newsradio) — Child care providers across Pennsylvania are struggling amidst the coronavirus pandemic. A lot of their financial woes stem from new payment practices implemented recently through the state's Office of Child Development and Early Learning.

The new policy, in which reimbursements are based on enrollment, went into effect September 1. Mary Graham, executive director of Children's Village in Philadelphia said it isn't sufficient.


"Now, when providers are receiving their payments, they're seeing how they're being adversely, severely affected by this policy," she said. "40% of our children who are typically here have not returned. That means 40% of our attendance has dropped. It would be wonderful if 40% of our expenses have dropped as well but that's not the case."

"The level of cuts was bigger than we could've anticipated or imagined," said Donna Cooper, of Public Citizens for Children and Youth.

Kym Ramsey of The Willow School said like many other providers, their numbers have dropped but new COVID-19 precautions mean more supplies and caretakers are needed.

"I'm still maintaining the same level of expenses, even higher, and therefore resulting in a negative 22% loss," she said.

Charles Coe, with Incredible Kids, says most of the families they serve are headed by single mothers.

"And I hate to say this but I almost feel like (since) child care predominantly impacts women, it almost seems as if it's not a priority," she remarked.

Coe said state leaders don't seem to be taking into consideration that those who have been furloughed or lost their jobs still need child care in order to have the ability to find new jobs.

"When parents do not have suitable child care, we've now created an additional barrier because that parent cannot go on an interview," she said.

"So then they're finding that what are we going to do? Is there any way that they're making promises -- 'well, once I get a job and, can I pay you guys then?' That's the worst situation to be in."