State auditor: Millions mismanaged in child care subsidies
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SEATTLE -- The state auditor says Washington may not be getting its money's worth with a child care program designed to help low-income families.
The state spends $233,500,000 on child care subsidies each year. So the state auditor decided to take a closer look.
The auditor isn't arguing that daycare is a frill; the office just wanted to know if anyone was really checking each name and checking it twice before state money was sent out.
The auditor's first finding was actual overpayments of $1.6 million -- not bad in a program which costs 200 times that much.
But here is the rub. The office estimated there may be $74 million being paid out improperly, and another $35 million going out without adequate proof.
"I think it would cause anyone who is looking for accountability in state government to question what kind of systems are in place," said Mindy Chambers of the state auditor's office.
But Thomas Shapley with the state Department of Social and Health Services says the numbers are not exact figures.
"It's an interesting estimate, and that's exactly what it is," he said. Shapley says the auditor looked at 153 high-risk day care centers, then guessed about the rest. "We have challenged the methodology, but it is their audit."
The auditor and DSHS say accounting for children who receive state subsidies is usually good among large centers. It is the one- or two-kid in-home day care that poses the problem that, according to the auditor, should not exist.
"As we know, dollars are precious," said Chambers. "The state is facing a budget shortfall over the next several years, so I think it points out there needs to be systems in place to protect all those resources."
The last session of the Legislature added money for four auditors in the Department of Early Learning. The auditor says that is an important first step, but the state needs to automate child care accounting to ensure tax dollars are protected.
The state spends $233,500,000 on child care subsidies each year. So the state auditor decided to take a closer look.
The auditor isn't arguing that daycare is a frill; the office just wanted to know if anyone was really checking each name and checking it twice before state money was sent out.
The auditor's first finding was actual overpayments of $1.6 million -- not bad in a program which costs 200 times that much.
But here is the rub. The office estimated there may be $74 million being paid out improperly, and another $35 million going out without adequate proof.
"I think it would cause anyone who is looking for accountability in state government to question what kind of systems are in place," said Mindy Chambers of the state auditor's office.
But Thomas Shapley with the state Department of Social and Health Services says the numbers are not exact figures.
"It's an interesting estimate, and that's exactly what it is," he said. Shapley says the auditor looked at 153 high-risk day care centers, then guessed about the rest. "We have challenged the methodology, but it is their audit."
The auditor and DSHS say accounting for children who receive state subsidies is usually good among large centers. It is the one- or two-kid in-home day care that poses the problem that, according to the auditor, should not exist.
"As we know, dollars are precious," said Chambers. "The state is facing a budget shortfall over the next several years, so I think it points out there needs to be systems in place to protect all those resources."
The last session of the Legislature added money for four auditors in the Department of Early Learning. The auditor says that is an important first step, but the state needs to automate child care accounting to ensure tax dollars are protected.
Hey, hey, DSHS what do you say!
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How many millions have you wasted today?
See this why we need less government. I am shocked to see people once again figure out how to get free money. While our family works hard and pays our taxes.Â
There are some very questionable child care facilities out there and they are benefiting from the subsidy rule.Â
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Hope these places are investigated and shut down.Â
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There are people running day care facilities out of rental properties without state inspections or they falsify their license information - having a business license isn't the same as having a legitimate daycare license from the state. They may have a teen whose given birth and are getting subsidies for that while charging a fee to parents leaving a child in their home.
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There are plenty of people out there will to take advantage of a system designed to help people in real need.
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I would check for anyone whose license has been revoked or pay for a background check before leaving my child in the care of someone I have to trust in order to go to work.Â
A state government agency wasting money, 'say it isn't so'!
 I wonder how many of these people getting this free stuff will vote for Romney?
@CrankyPanky none, that don't want to miss out on free money.
Ho hum, another story about state government flushing tax payers money down the toilet.  So wake me when me when the suspense dies down.  I personally was forced to participate in one of the greatest $5,000,000 and counting database fiascoes ever to be seen in state government.   And then I was called a lair for being honest about the waste and had proof but  the smoke screen put up by state managers kept the money flowing.  Well, I am history with state government.  I was a very productive database developer and was wanted to be shoved out the door by those supporting the project and they did slam the door very hard on my posterior on the way out.  And guess what, five years later the money still flows and the toilet keeps flushing and no tangible results while the simple and easy to use version I created for $250,000 as a stopgap is still on line at Fish & Wildlife and at BPA.  What's even worse is that those who backed the millions and millions dollar database do not know how to build it, maintain it, nor use it if it were done.  Go figure. Â
@growlerxrunner Shocking! Sounds like good ol' boy union worker system.
One of many state departments that need to shut down and let the private market fill the gap if needed, time to let go of this free loading system and let people take care of themselves for a change...
this is the sort of garbage that makes me reflexively vote "no" on just about any levy or new tax, regardless if i support the intent. none of these agencies can properly manage their budgets. none i tell you.
The State (DSHS) REQUIRES that all child support be paid to the State and then distributed. It's a money maker for them as the hold on to it for up to two weeks before paying it out. While that money sits in a fund, they are making interest off people's hard earned dollars to take of their own kids. I have no sympathy for this State. They take from families and then waste it with no thought what-so-ever.
@swansong68: Your anger is misdirected ~ the $25 annual fee the State collects is forwarded to the FEDERAL government.  It is a Federal law, not a State law which requires a $25 fee. Your Superior Court order does not change Federal law. The State does not hold your payments for weeks ~ unless the money is coming from a Withhold Notice sent to a bank. State law gives the non-custodial time an objection period to this sort of collection. If you are not happy with the way DCS works your case, you can always close it and collect your child support on your own.
 @swansong68 Plus if you are going through the child support agency to collect your child support, the agency started to charge either $25 or $50 per year a few years ago. And that is taken out of the child support and not given to the parent collecting. Even though there was a judges order that my former husband pay through the agency, my children were shorted because in order to collect, they charged ME!
I work in an office where a mother and daughter also work. The daughter stays home with her three children in the mornings while the mother comes in. Then they swap around lunch time and 'grandma' goes home and takes care of the kids. The mother (married with a husband who works full time!) gets $$$ from DSHS for her mother to watch the kids in the afternoon. Keep in mind, this mother is pregnant with her fourth child in four years. This couple also has medicare for the kids as well as buying a house through a state funded housing agency (meaning they are getting a lot of freebies with this house!). Now do the math...that is three adults who all work (and they earn $16 an hour or more!) and yet they get state aid at every turn. Explain this to me!
@k_did Report them!
And when I was unemployed they at first denied me coverage for my child. One child. Why? Because I had worked within the last year and IÂ HADÂ made to much money! Nevermind the fact I wasn't working at the time. I couldn't believe it. I just wanted my child to have medical coverage until I found another job. Which I did three months later. It was so stressful.
@swansong68: Please remember that your "free" daycare is paid for with other people's money. If you don't like jumping through hoops to get free things from the government, pay for them yourself.Â
 @swansong68 this is what bothers me! People like you who obviously are NOT bilking the system cannot get the help for the short time they need it, yet others milk it for all it is worth. ugh....oh, and guess who is paying for this woman's fourth delivery? Yup, us, the taxpayers!
So many people know how to work the system. Its the honest people that get penalized.
Exactly. I hope I never have to ask for anything ever again. It was humiliating and then to be told flat out "NO". I didn't even ask for me. I just wanted to be sure my kid was covered. I didn't ask for money or food assistance either. Just a horrible experience. By the time I was "approved" I had already got another job and was already under the company health plan.
I'm just going to pretend I didn't read this story because I do not wish to have a coronary this morning. It's Friday and I've got places to go and people to see. Well on second thought......I'M SO FREAKING FED UP WITH THIS CRAP!!! ENOUGH IS ENOUGH!!!!
DSHS has been a total failure regardless of the funding or staffing levels and should be shut down. There is never enough money and there is never enough staff. The one thing that is not lacking in this agency is its outright incompetence.Â
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One of the major problems in the DSHS field is that this area is under staffed, the cut backs in money has caused several key areas in our government to be understaffed, not just DSHS. If you are a single parent with 2 children and working a minimum wage (most retail) job, the help you get from DSHS is important to you. In little ol' Port Angeles we are short five positions in DSHS but the work still needs to be done. Let one state report fall thru the cracks and.....well you know. It is not surprising to me that mistakes happen or the job does not get done right.
@whitewings2003 These problems existed before the cut backs.
Daycare is a rip of as it is. Â We have one child that we need care for. Â In our area it would cost us $800 to 900 a month. Â And if you are 5 minutes late picking your child up you start paying by the minute. Â We went online and found a part time nanny for 100 a week so maybe people should start looking into that option. Â It will save them money and save the state some money.
 @FBrumfield And the people actually looking after your kids at a day care are paid what, about $10 an hour? So someone is pocketing a lot more.Â
 @FBrumfield I like that you are proactive, how do you determine who a good day care person is tho? Angies List?
Big surprise??? Not.---- Its time we take back our lives, govt., and money.
The way the subsidy (for which I am SOOOO grateful!) works, you renew every six months... requiring an employer to fill out documentation of wages and schedules. If you get ONE thing wrong on the form, you can lose the subsidy for that month or until the form is corrected. And if the job is one you are struggling to hold onto - bothering the employer every few months becomes onerous in and of itself....and adds one more thing for which they may decide you are just 'too much bother'.Most folks who get the subsidy are low-income and working minimum or low-wage jobs. Imagine trying to pay a THOUSAND DOLLAR one month bill that you thought was covered by the subsidy and would not otherwise have incurred due to one small error (a date in the wrong field can do this) or because you are not sure exactly what they are asking on the forms. The only way to "talk" to a live person is... well, you really CAN'T talk to a live person. The 877 number on all the forms doesn't work... it is busy ALL the time, and when the calls ARE answered, you hear either "all lines are currently busy" or after holding (on your EMPLOYERS time) for forty-five minutes, you are disconnected without explanation. Also, you HAVE to call during the day, cannot leave a message and often cannot even get through.Now, the auditor is saying "Oh My! We have cheaters and slackers and heaven forbid, ALL these folks are CHEATING THE SYSTEM!!" I think one needs to remember that the auditor can only get re-elected if he can PROVE his job is necessary... this does not "feel" right. I don't know ANYONE scamming the daycare subsidy. I do know folks selling EBT cards - but no one I know is "selling daycare" or not qualifying. Paying for daycare will cost most of a minimum wage income - without it, moms who might climb the ladder and get to the point of paying INTO the system will be forced back on welfare. I just think we need to be VERY careful how we respond to this DIRE WARNING from our State Auditor.
 @cdc Very well put
 @cdc But they're talking about the day cares cheating the system, not the parents.
@merline @cdc : The parents are cheating too. If the dad pays child support directly to the mother, she does not declare this income to DSHS.  Mom then qualifies for free daycare.  That way,  neither parent has to provide daycare for their own children.
 @merline  @cdc I'd be interested in hearing the details of that, as well.  The license requirements are SOOO painful (and not required unless the daycare accepts DSHS subsidy) that some of the better ones just don't get licensed!  There is NO quality denoted by licensing, just fees being gathered by the state.Perhaps regular audits on a small percentage would be more effective than a regular license enforcer going into the daycare monthly "looking" for something to prove she is doing her job?  Or being paid to go into the daycare to read to the children? (as is currently happening)?  We ALL want safe daycare for our kids... but the government is not better than the parent at figuring out good care.  The government can help us (but not guarantee by any means) by ensuring that our daycare workers are not convicted pedophiles or have multiple assault charges.  But do they really need to be the ones who are deciding if the four foot tall monkey bar is too tall?  Government cannot be parents, and in trying to take this responsibility, usurp freedoms.  I think less licensing might be better than more.
35 million here, 74 million there, plus a 1.6 million and soon we will be talking real money.
What are high-risk day care centers?
 @Harrison Those open 24 hours who bill for each child's maximum time. Or those who have most or all their children on subsidies. Or those who are certain ethnic groups, like Somalian. Or those who have been caught overbilling in the past who quietly pay any assessed overpayment.
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DSHS will approve childcare for a certain number of units, either full or half time units depending on the parent's need. Even if the child doesn't attend full time (say, mom takes off a few days), the center will bill for those days because there's little oversight.
It's never too late to stop wasting money.
Oh its nothing just 100 million.... Keep on moving.