Pennsylvania Child Care Providers Demand Payment Amid Vendor Issues

Pennsylvania Child Care Providers Demand Overdue Payments

In a troubling development for child care services in Pennsylvania, numerous providers serving low-income families are facing financial hardship due to delayed state payments. These subsidies, which are essential for sustaining community-based child care services, have been disrupted following a summertime vendor switch.

Since the transition to a new payment vendor, Caring People Alliance, approximately 150 child care providers around Philadelphia have not received their June payments. The impact has been severe, leading to credit issues, unpaid rent, and staff attrition among providers, with some forced to close their doors entirely.

During a recent press conference, members of Child Care Providers United – Pennsylvania (CCPU-PA/AFSCME) voiced their frustration and concern over the situation. They emphasized the dependency of these small businesses on timely state support to remain operational.

“I don’t know of anybody in any job who would keep doing work without getting paid, or who wouldn’t get their paycheck in the first place,” expressed Henrietta Henry, who had to halt her services due to non-payment. “And yet as child care providers, we are asked to pick up the pieces and provide critical services for free. I feel disrespected, angry and devastated at the results of this situation.”

Dez Shields, another affected provider, highlighted the dire straits caused by the payment delays. “Because of nonpayment, I had to rely on others to help me, and at this point I have exhausted all resources and need payment ASAP to keep providing services to my community,” she stated.

The lack of clear communication from the payment vendor has compounded frustrations, leaving providers uncertain about when they might receive the funds they are owed. Kathy Pugh, who has been in the child care business for nearly two decades, noted, “I rely on every paycheck to pay my staff person. Because I haven’t received my June payment, she is looking to find a different job because I’m not able to support her. The lack of Caring People Alliance to provide transparency during this process has been devastating to my program.”

Providers are calling for established dialogues between CCPU-PA and state authorities to enhance vendor accountability and stabilize the payment process. Victoria Glover-Williams, another provider, stressed the need for balanced accountability, saying, “We rightfully are held to a high standard of accountability in the services we provide to the children of the commonwealth. We expect the same level accountability on the part of the vendors and the state in terms of their oversight. The system is currently too one-sided and at the end of the day, it’s the commonwealth’s families who suffer when providers are forced to shut down their businesses for not getting paid.”

CCPU-PA is considering legal avenues to ensure that providers receive their due payments promptly. Glover-Williams added, “As a member of the union, I’m proud that we’re able to come together and support each other, and we are exploring what legal action can be taken to make sure we are reimbursed our June payment ASAP. We are looking forward to partnering with the state to make sure accountability is ensured.”