Published: December 04, 2008 12:57 pm            

Nonprofit day care caught in budget snafu

On a typical Wednesday afternoon at Effingham Child Development Center, dozens of children play without a care in the world. Judging by the sounds of their laughter and high-pitched squeals of excitement, you might never guess the hardships this child care center has seen in past weeks.

One look at Director Shelli Dent paints a different picture. She’s worried about them — the children, their parents, her employees. What will happen to them if the center cannot afford to pay its bills, if the employees don’t get paid for several more weeks with Christmas right around the corner?

But thanks to an outpouring of community support, Dent is hopeful the center will weather a storm caused by a delay in state payments. She and center board member Sandy Wear made a heartfelt plea to the Effingham City Council Tuesday evening for some type of financial aid.

Dent said a delay in state reimbursements has left the center with financial problems. Recent minimum wage increases without an equal increase in state reimbursement also has driven up payroll.

“November was the first month that was so far behind. It kind of pulled the rug out from under us. We’re a nonprofit, and we don’t have a lot of money in the bank,” Dent said.

With a choice between paying the center’s bills and paying its employees, the center’s 18 employees went nearly five weeks from late October to late November without receiving a paycheck. Dent said one board member even paid the payroll one week.

“We were caught up (on payroll) at the end of November, but today (Wednesday) our staff was due a paycheck, but we can’t pay it until the funding comes in. Christmas is right around the corner. I know personally I haven’t bought Christmas (presents) yet and I have three kids. You have to make sure the house is paid for and the car. Then you thank God you got a roof over your head and your family and your health,” Dent said.

Carol Knowles, press secretary for state Comptroller Dan Hyne, said the comptroller’s office has “no outstanding vouchers for this facility.

“All of the vouchers we had have been paid. This facility received more than $16,000 in payments from the state during the last 30 days, and all but the last warrant (check) has already been cashed by this facility,” Knowles said in an e-mail.

According to Knowles, the payments catch the state up on what it owed the center for November. However, the center had to use what cash it had available to pay its bills while waiting for November’s payments; thus, it is already behind while it waits for December’s payments from the state.

The center has already received much needed and appreciated community support, including gifts of food from local food pantries, the Elks Club and employees of Wal-Mart’s bakery; gas cards from the Centenary Methodist Church; and even pet food from Effingham County Humane Society.

With a little more support, Dent said the center will make it through until it can adjust to the delayed payments.

“At this point, it’s a delay. We are going to get paid, so what we need is some assistance until we get back up on our feet. The community came out and helped us. We are going to make it, but until we get used to this delay, we are going to need more assistance until we can see how quickly we are going to get reimbursed for the services we are going to provide,” Dent said.

The center was founded by Pauline Bass in 1972. It has been at its current location at 1101 Holly Drive since 1999. Dent said the center currently serves 117 children, of which 82 percent receive some type of government assistance in paying for day care fees. The children receiving assistance may be from low-income families, in foster care or have special needs.

What makes the center special?

Dent said it’s the only not-for-profit day care center in Effingham County. It has an evening shift, meaning the center is open from 5:45 a.m. to midnight. The center also takes children other day care centers won’t. Some of the children who attend the center have autism, epilepsy and heart murmurs, among other conditions.

“We open our doors to everyone. We are pleased to ease these parents’ minds to let them know we will take their children,” Dent said.

Though aid has come from many other places, Wear told the city council the child care center is still in desperate need of help and said a $5,000 grant would help the center greatly.

“I certainly feel the plight here. The government is letting us down. However, we’ve got a lot of not-for-profits out there,” Commissioner Karen Flach said and asked center representatives if they had asked Effingham County officials for help.

Wear said they plan to ask the Effingham County Board for help soon, and they’ve also been to local churches, Effingham County mental health boards and Effingham County Community Foundation.

Commissioners were interested in helping the center but were unsure where the money would come from.

City Attorney Matt Hortenstine suggested using money from the General Fund for now, and then lobbying the General Assembly to change state legislation to allow all communities with a Tax Increment Financing (TIF) District to provide financial assistance to agencies like the center, which is located within a TIF District.

Hortenstine said state law currently only allows municipalities with 100,000 people or more to use TIF funds for this type of assistance. The council plans to further investigate the matter.

The center has faced similar financial crises in the past. In 2005, the center had to raise funds after declining enrollment caused by Unit 40 School District offering a preschool program for 3- and 4-year-olds. In 1992, contributions from several area businesses helped the center continue operations in the face of a $45,000 debt.

Angie Faller can be reached at 217-347-7151 ext. 131 or angie.faller@effinghamdailynews.com.