Lawmakers disagree over how to investigate child care subsidy program

State lawmakers want reviews of Michigan's child care subsidy program after reporting by the Free Press found mistakes that led to child care providers not being reimbursed for care and children losing their spots in day care.

But Democrats and Republicans have taken different tacks when it comes to oversight of the subsidy program touted and expanded by Gov. Gretchen Whitmer, who last year raised the income threshold for eligibility.

A spokesperson for Whitmer declined to spell out any plans to investigate issues illuminated in the Free Press report, instead highlighting that expanded subsidies made an additional 150,000 Michigan children eligible for help, though only about 32,000 children benefit from the payments.

Asked directly about possible next steps to review the program, Whitmer referred the Free Press to the Michigan Department of Health and Human Services, which administers the subsidy. "I'm not in a position to shed a whole lot more light on it right now. But obviously we all read the Free Press and we obviously care about making sure that this system's working as well as it was intended to," Whitmer said in a interview Wednesday.

Notification delays, long phone wait times

The Free Press uncovered an inefficient notification process whereby parents are sent letters in the mail to alert them of changes to their eligibility. Although MDHHS says it mails letters before children are terminated from the program and parents may request text alerts regarding changes to their benefits, parents told the Free Press they were unaware their children had been kicked off the subsidy, and sometimes did not receive letters for weeks after payments had been stopped, sticking them with large unpaid child care bills owed to providers.

Parents and providers who attempted to contact caseworkers for assistance reported long wait times and an inability to connect with anyone who could help. When administrative errors were identified, no restitution was offered.

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Nearly 19,000 Michigan families receive subsidized child care through the state’s Child Development and Care program, an estimated 10% of those eligible. The DHHS said in a statement that the program has worked well overall but apologized for long wait times experienced by some recipients trying to connect with caseworkers. The department said it is working to address the issue. It also said it is resolving any notification issues parents have experienced about their eligibility for the program with the Department of Education, the partner agency for the child care subsidy.

'Someone has got to answer'

Republican legislative leaders want the state auditor to investigate the subsidy program. House Oversight Committee Minority Vice Chair State Rep. Tom Kunse, R-Clare, said that the audit he requested could fix what he called bureaucratic mistakes that have left parents without the support they were promised.

"It's not a funding issue, the money is there. We're just doing a bad job administering it. And there's got to be repercussions to this. Someone has got to answer," he said.

Representatives for Democratic legislative leaders commended the subsidy program and said they're looking for ways to improve it. They did not express support for an audit.

"Parents are looking for solutions, and waiting for a lengthy report from the auditor general is not necessarily the most effective way to address their pressing concerns," said Amber McCann, a spokesperson for state House Speaker Joe Tate, D-Detroit, in an email.

Audits take a long time to complete, according to state Rep. Erin Byrnes, D-Dearborn, the House Oversight Committee chair. She vowed swift action by working with the Whitmer administration.

"In terms of the Democratic Party taking action on this, we are looking to move more quickly to find answers and solutions to really support our families," she said. "For Democrats, we have long been the party that has advocated for affordable child care."

She said that communication with the administration is in its early stages and didn't specify a timeline for identifying next steps. "We will be moving ... as quickly as possible. This is absolutely top of mind," she said.

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Dems pass on budget amendments to alter subsidy program for now

Last week, Democrats serving on the House budget committee responsible for shaping funding for the Department of Health and Human Services declined to vote on a GOP budget amendment that would have required timely notification of any benefit changes for subsidy recipients and restitution for those wrongfully removed from the program.

"I'm going to pass on this today, but I think this is something that we need to give some attention to and certainly look into what’s happening, and we will continue to look into this issue," said state Rep. Christine Morse, D-Texas Township, who chairs the House Appropriations MDHHS Subcommittee.

Morse later told the Free Press that the decision does not reflect Democrats' disinterest in ensuring the child care subsidy is properly administered. "I think it would be ridiculous to assume that because we passed on an amendment that we don't care about child care. It's really absurd actually," she said. "I anticipate us looking into the issues and seeing what needs to be done to fix them."

Morse joined other Democrats on the House Appropriations Committee in voting down once more the GOP amendment aimed at notification requirements and restitution for the child care subsidy program before reporting the MDHHS budget to the House floor.

Eligibility level at 200% of poverty

The state set a ceiling on how much a family can earn and still qualify for the subsidy. Legislation with bipartisan support raised this ceiling last year.

• A family of two can now make up to $36,620 annually.

• A family of four can bring in up to $55,500.

The state says this higher income entry level — which went from 185% of the federal poverty level to 200% — is temporary, but no date has been set for when that ceiling will be revised again. A state handbook states that when it is, the rate is actually set to drop below the original amount, to 160% of poverty level.

Staff writer Todd Spangler contributed to this report

Clara Hendrickson fact-checks Michigan issues and politics as a corps member with Report for America, an initiative of The GroundTruth Project. Make a tax-deductible contribution to support her work at bit.ly/freepRFA. Contact her at chendrickson@freepress.com or 313-296-5743. Follow her on Twitter @clarajanehen.

Jennifer Brookland covers child welfare for the Detroit Free Press in partnership with Report for America. Reach her at jbrookland@freepress.com.

This article originally appeared on Detroit Free Press: Michigan lawmakers split over child care subsidy oversight