Where’s the money? Las Vegas childcare providers in danger of closing

LAS VEGAS (KLAS) — Some Las Vegas childcare providers are in danger of closing because of a delay in funding. Some providers reported a delay of approximately two months in the childcare subsidies they rely on.

“I’ve borrowed money from friends, from family. I’ve taken out loans,” Mysha McClain, EdD. told the 8 News Now Investigators. “I’ve skipped mortgage payments.”

McClain opened Prestigious Academy of Las Vegas on the east side in 2022. She said most children who attend her facility are paid for through childcare subsidies for low-income families. The state of Nevada gives funding to Las Vegas Urban League which is responsible for distributing the funds to childcare providers.

McClain provided an email to the 8 News Now Investigators dated April 15. The reimbursement supervisor wrote, “Unfortunately, funding has not been received from State, and as soon as it is received, payments will go out to providers.”

In-home childcare provider Danielle Belis said she is also owed nearly two months of payments. Belis owns Strong Family Daycare in the northeast valley.

“Some of us do still live paycheck to paycheck to take care of the kids, so that one paycheck could literally close a daycare down,” Belis said.

Nevada Department of Human Health and Services spokesperson Kristle Muessle confirmed to the 8 News Now Investigators the April funding was delayed, but then fully processed to Urban League by May 6.

Urban League received more than $104 million for the fiscal year so far, and more than $82 million for the last fiscal year, according to Muessle.

Muessle attributed the delays in payments for a combination of events, including an expansion of the childcare subsidy program which increased the number of families participating in the program.

“Subaward modifications need to be exact, and this can take time,” Muessle wrote. “Revising the budget for Urban League’s subaward took longer than anticipated but was necessary to ensure the agency would be receiving the correct amount of funding.”

The 8 News Now Investigators repeatedly reached out to Urban League over the course of 24 hours. When no answers about the payment delays were provided, the 8 News Now Investigators went to the office where an employee who identified himself as an eligibility manager said he could not comment.

McClain and Belis said the payment delays have caused major stress.

“I can’t tell a parent that I’m going to accept your child on a certain day and my center is closed on that day,” McClain said. “You should know what you have in your account.”

The 8 News Now Investigators reviewed federal tax documents for Las Vegas Urban League. Expenses, such as salaries, did not appear to be immediately available.

According to an independent audit of Urban League obtained by watchdog “Pro-Publica” for 2022 and 2021 financial statements, more than $3.7 million was spent on salaries. The audit referred to a need for more oversight of the organization.

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