Omaha families, day care centers lose federal subsidies as students move to remote learning
Local day cares face a funding dilemma as Omaha Public Schools switches to remote learning for the start of the 2020-21 school year.
Some working families will still require child care, but state and federal government said their children won't qualify for grant money and subsidies because the children will still technically attend school even if it's online.
The news came as a shock to Jacque Casey, the owner of the Crayon Castle day care in Florence.
After calling The Nebraska Department of Health and Human Services several times and demanding answers, she said she wonders how this will affect not just her business but all care centers burdened by a loss of funding and the families they serve.
"You want to tell Nebraska families or Omaha families what they're going to do? Because they're counting on child care centers to help them with their kids," Casey said.
As the Crayon Castle staff prepared the nearly 60 kids for 'quiet time,' Casey reflected on how she and her team have made do with several challenges throughout the past few months.
She said she still fears losing a major source of funding. Two-thirds of the kids Casey cares for are eligible for federal and state subsidies under Title 20 that help the parents pay. It's funding Crayon Castle will no longer qualify for they'll no longer qualify for as OPS shifts to a fully remote first quarter.
"My staff won't get paid, so I can't ask them to do it, you know what I mean? We're in trouble. They are telling the child care centers, 'We're not going to reimburse you for the care of the children.' Where does it leave our families? This is getting a little political, too, a little bit, because where does it leave your tax base? Families are going to have to quit work," Casey said.
KETV Investigates reached out to DHHS for comment on the matter. Department officials said current federal guidelines do not allow child care providers to receive those payments while students are in school, even if students are remote learning but physically at the day care center.
DHHS officials also said the department is waiting for more federal guidance on the issue.
Casey said she will keep calling all state departments involved. She also said she hopes other day care centers will fight to stay open and provide a safe, healthy environment for Nebraska's kids.
"(DHHS') priorities are off in left field someplace; the state of Nebraska's priorities are way off. They better step up to the plate, and they better get this taken care of. I'm doing fine financially, we'll be able to handle this, (but) if they don't pay us for the kids, they'll sink all of us," Casey said.
Casey's concerns echo a troubling response from thousands of other day care providers in Nebraska.
The Buffett Early Childhood Institute published a survey last week which revealed that more than half of those who answered said without more financial aid and support, they will most likely shut down their businesses.