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DHS Shortfall Affects Daycares Statewide

Daycare centers in Illinois may soon be left in a lurch... as the state's Department of Human Services says it's out of money for childcare subsidies and may not get anything more until July.

Letters went out to childcare providers this week, letting them know that DHS funding has run out for this fiscal year, and though the agency has asked for more money from the legislature, nothing has been approved yet.

Bonnie Bracket owns Heartland Kids Early Learning Center in Marion. She says the state's subsidy covers 40% of her revenues... and going without for three months just isn't going to work.
 
"I could make it a month without having to borrow money, but after that if we don't get it, then I would probably have to borrow money or start laying off people."

Brackett says the loss of that money could mean layoffs, but when you couple that with strict child-to-caregiver ratios... the effect is troubling:

"If you've got this many children in a room, you've got to have this many staff. So we've got staff-to-child ratios that have to be met. I can't lay off employees, which is my biggest expense- payroll expenses. I can't lay off employees without expelling children."
 
Brackett says for the past several years the threat of decreased or delayed payments has come up at this point in the budget year... but this is the first time the threat of no money at all has been a part of the picture.

A DHS Spokesperson says Federal law requires the childcare subsidy to come from the same fund as the Temporary Aid for Needy Families program - which has seen steep increases in costs this year.  She says the TANF shortfall was covered with childcare funds, and the agency is asking for more money from the legislature to cover the gap.

Jennifer Fuller joined Capitol News Illinois in July 2023 as the organization’s broadcast director. She will oversee the launch and operations of CNI’s new broadcast division.

Contact Jennifer Fuller at jfuller@capitolnewsillinois.com
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