With state legislators more than 75 days late passing a budget, area childcare providers face the possibility of not getting a check for the month of August.
Along with a myriad of other social service agencies that rely on state funding, North Coast Opportunities (NCO) is feeling the crunch as its funds are withheld until a budget is signed. The agency took out a $1 million private loan to pay its providers for July, according to NCO Co-Director Denise Gorny. If the bank doesn”t extend another $1 million line of credit for August”s payment, providers may go unpaid. Some may turn parents away, Gorny said.
“This has a huge ripple effect. We pay 208 providers (in Lake and Mendocino counties) ? that”s 208 businesses that will not be able to buy food in the community or pay their bills. Some parents, if they lose childcare because providers are saying they”re not going to take kids until they get their money, where do they go? Parents may not show up to work because of this,” Gorny said.
Lakeport childcare provider Margaret Taffi said she plans to keep her doors open if the delay continues, but won”t take any new children who are covered by a state subsidy.
“It”s about a third of my income now. Last year it was closer to three-quarters of it. I acted deliberately ? when I got new kids, I made a choice stay away from assisted childcare,” Taffi said.
Taffi said she”s never seen the budget delayed this long in her 19 years as a home provider. After last year, she said she looked for another job, considered moving out of state, and ultimately decided to take less children who were covered by the state subsidy.
Gorny said another problem NCO faces is paying for the interest accrued on the $1 million loan. The interest on the $1 million loan NCO took out last year was approximately $5,000, she said.
“The bugaboo is that the state does not allow us to use state funding to pay the interest, even though it”s their fault. So we have to find funds through fundraising, or by charging for services in another program. It”s a real dilemma,” Gorny said.
If no budget is passed by Sept. 15, she said NCO may face laying off staff, or asking staff members to voluntarily work without pay.
Gorny said NCO pays an average of $600,000 to $700,000 to childcare providers in Lake and Mendocino counties. That includes 14 centers, 22 large family childcare homes, 52 small family childcare homes and 110 family or friend care providers who are exempt from licensing requirements.
Contact Tiffany Revelle at trevelle@record-bee.com or call her direct at 263-5636, ext. 37.
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