Childcare provider empties 401K amidst subsidy delays
Tyrone Dumas owns two childcare centers where 100% of the families he serves pay using state subsidies. “This is probably, other than healthcare, the least appreciated business going on because we’re never going to get accommodated financially for all we do for the kids and the community,” he said. Dumas feels that way because for months now, some of those subsidy payments have been delayed as the state transitioned to a new software in January that caused major problems. As a result, Dumas and many others are fighting just to keep the lights on. “I had to take my 401K. I had to wipe it out to make sure my staff could still float and my kids could continue to provide services,” Dumas said. The software problems have caused three issues. There is the delay in payments. But also, families and childcare centers applying for subsidies have not been able to get approved.