Daily Egyptian Spring 04
Spring '04 Edition
Eurma C. Hayes Child Care Center may close if city cannot help
Rachel Lindsay
Daily Egyptian
The Eurma C. Hayes Child Care Center's fate hangs in the balance as the loss of a state grant puts its budget even further in the red, forcing the city to either close the center or pick up the tab.
According to Donald Monty, Carbondale assistant city manager, the amount budgeted for the state grant this year was about $51,500, a small amount compared to its total budgeted cost of about $600,000. However, loss of the grant will force the city to add the amount to its yearly contribution for a projected expense of $363,700 for the next fiscal year if other revenues and expenses do not change.
This year, the budgeted expense to the city was about $202,000. About two-thirds of the center's revenue comes from state agency grants and daycare fees, while the city picks up the remaining one-third. Of the estimated total expense, just over three-quarters is used on personnel costs.
The rest of the money goes toward the day-to-day expense of running a child-care service, including rent, operating expenses and classroom supplies and food for the children the center serves.
According to a report issued by the city manager's office, the center has been losing money each year since 2001 due to the number of children in the daycare program. Although the center has a capacity for 160 children, only about half that number is enrolled. As of November, only 50 of those attended on a daily basis.
Because the grant from the Department of Human Services is proportionate to the number and ages of children the center serves, the report said state reimbursement has remained constant despite rising costs.
With the stagnation in growth, the report projected the Child Care Services Fund will end this fiscal year with a negative balance of $391. With the minimum wage increasing 50 cents in January, the city will also need to increase pay for child-care aides. Coupled with the loss of the state grant money, the city would be forced to use its own money to compensate for the loss.
Because of the substantial increase in the amount the city would have to pay to keep the center open, the City Council was forced to reconsider its funding. Mayor Brad Cole said because of requests from community members, the council decided to refer the matter to an independent review panel. The panel will consider all angles of the problem and make its recommendation by July 1.
"I'm sure they'll come back with some solid recommendations that will take into account the programming as well as the financial aspect," Cole said. "Until that point, there's not much for the council to do."
The center has been around since 1975, when the city opened it to meet the community's need for affordable daycare options. While the center's initial funds came from Carbondale's Community Development Block Grant, the city began using its general revenue fund in the mid-1980s to conduct operations.
In 1995, the city received a grant from the state in an average amount of $34,350 a year, which would cover a 10-year period. The grant was part of a statewide initiative to support the federal Enterprise Zone/Empowerment Community program, which set out to designate enterprise communities. While most communities that applied for the label were not selected, all received some amount of funding from the state.
According to Monty, Carbondale was one of the cities that received the "consolation prize," and a smaller amount of funding. The city opted to use the grant for a child-care program, one of the specific uses identified in its proposal. Monty said due to erratic and uneven payments by the state and a 2-year time limit on using the money, this August would be the last year the city would receive that funding.
While the amount of grant money allocated by the state averages about 6 percent of the center's yearly revenue, the center cannot stay open without it. Monty said the reason is Carbondale's own monetary commitment.
"I think what you can see here from looking at the numbers is the city has been putting in a substantial amount of its own money," he said. "And one of the problems is that enrollment of children has declined in recent years. This means the amounts projected from payments from the state have not been realized, so the city has been putting in more money in order to balance it out."
Although the city budget, slated for publication next week, will continue to reflect funding for the center, Cole said that could change after the panel makes it report.
"If the council makes the determination that it wants to provide child care, then we will make the resources available," Cole said. "But it is increasingly difficult to do that and balance the more immediate needs of providing basic public services to the community."
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Last update: Wednesday, March 24, 2004 at 6:08:13 AM
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