Cracking Down on Child Care Assistance Fraud

As any parent knows, providing child care while at work can be challenging. To help address this problem, Wisconsin developed the Wisconsin Shares Child Care Subsidy Program. This is an extension of the Wisconsin Works (W-2) program which assists eligible Wisconsin residents with finding employment instead of merely providing a monthly check to meet their needs.

In order to qualify for subsidized child care under Wisconsin Shares, a family must meet a number of criteria. They must be Wisconsin residents whose family income does not exceed 185% of federal poverty level. Parents who utilize the program must need child care because they are employed, receiving employment training, or are enrolled in high school. This subsidized childcare is available for children age birth to twelve, except for special needs individuals, who qualify to age nineteen.

Funding for the program comes from a variety of sources at the state and federal level. In 2011, the program spent over $275 million to reimburse child care providers and assisted in the care of over 53,000 children. The Department of Children and Families (DCF) is tasked with administering this important program. All child care providers within the system must be licensed through DCF and county or tribal human service agencies are responsible for certification of the child care providers.

In the past this program has experienced fraud. The Journal Sentinel is publishing a continuing series titled, Cashing in on Kids, which highlights the fraud that was present within the program. One woman who scammed the system was able to collect $3 million through her Milwaukee based child care centers and enjoyed a life of luxury in a 7,600-square-foot home.

She was able to collect this money by falsifying attendance reports and claiming she provided care to children that were never present. It took eight years and over 150 violations before she lost her license to operate. Many similar stories exist, but it is important to remember that these thieves are stealing from hardworking Wisconsin taxpayers. We should not be cheating honest hardworking families who are faced with the cost of providing child care for their own children.

With the creation of Governor Walker’s Waste, Fraud, and Abuse taskforce the theft of state monies from the Wisconsin Shares program has been significantly reduced. Increased vigilance of providers and more prudent enforcement of qualifications have led to the savings of millions in taxpayer dollars. Our most recent budget increased funding for fraud detection and prevention. The increased funding allowed the Department of Children and Families to step up efforts to investigate fraud.

In addition to the taskforce, Governor Walker’s Administration has developed and implemented a new tiered reimbursement system, called YoungStar, which began in July of this year.  The goal of YoungStar is to ensure that the quality of child care provided meet specific standards in order to continue receiving public funds.

Child care providers are evaluated using four categories; training and education of staff, learning environment and curriculum, business practices, and health and wellness are the focus areas for evaluation.  If providers receive a rating of two on a scale of five, their reimbursement rates are reduced by 5%.  Those providers, who receive a one, will lose their reimbursement through the Wisconsin Shares program or their licenses and certifications will be revoked altogether.  Any providers earning a three or above maintain their funding level or receive an increase of up to 10%.

This type of attention towards fraud prevention is needed to root out the theft. Wisconsin taxpayers should feel confident that their money is being directed to individuals who are truly in need and not those who are out to get ahead by cheating the system.