State finds $1M in taxpayer funded childcare overpayments

The centers no longer receiving state funding following are in Franklin, Cuyahoga and Hamilton counties – the state’s three largest counties and home to Columbus, Cleveland and Cincinnati, respectively.

Twelve other programs had overpayments of $130,000 “established as a result of administrative errors or inconsistencies,” the state said. Those overpayments have been “addressed through technical assistance and additional follow-up,” a news release said.

Some of the violations uncovered include failing to maintain original written attendance records onsite for one year and “provider misuse,” Ohio Department of Children and Youth spokeswoman Jodi Norton Trimble told The Center Square.

Examples of provider misuse include falsifying attendance records and knowingly accepting payment for childcare services that were not provided, the spokeswoman said.

“Once an overpayment is established, DCY actively works to collect repayment for 45 days,” the state said. “Funds not collected within 45 days are then certified to the Ohio Attorney General for further collection and action to pursue repayment until paid in full.”

Based on the number of violations found in the sample review, the state estimates that overpayments represent only 1.6% of the $969M spent annually for publicly-funded childcare. 

“When DCY was created in 2023, a core principle was to move Ohio’s childcare system toward stronger accountability, smarter oversight, and responsible stewardship of public funds, while preserving access for eligible children and families,” DCY Director Kara Wente said in a statement.

Publicly-funded daycare centers have attracted national attention in recent months following reports of alleged fraud in centers in Minnesota and other states.