Recently, internet investigatory reporter Nick Shirley released a video suggesting that several children’s daycare facilities he visited in San Diego, as well as some hospices in Los Angeles, may have defrauded the government of millions of dollars in subsidies. The State News Office last Friday (20th) responded to Epoch Times’ request for comment, disputing Shirley’s findings on daycare services.
According to California policy, families with incomes not exceeding 85% of the state median and who can demonstrate need are eligible for government subsidies for daycare services, with monthly subsidy amounts ranging up to thousands of dollars.
The video shows Nick and his team visiting several daycare facilities in San Diego. In one daycare center located in a shopping plaza with 39 registered children, they only saw 5 children; while in another family daycare with 14 registered children, they found no children present.
It is understood that the latter facility had been penalized in the past for lacking child records and not establishing a facility roster. Nick believes that this may constitute fraudulently claiming government funding without actually operating.
At another daycare they visited, only two children were playing outside with no teachers in sight.
Having conducted similar investigations in Minnesota, some interviewees immediately recognized him during the California investigation. From the video, it is evident that his investigation did not go smoothly, as the parties often were uncooperative, emotional, perhaps hindering Nick in unraveling his doubts.
Currently, state government-funded daycare services fall far short of meeting families’ needs. According to the California Budget Center website, in 2022, there were 2.16 million children in California eligible for income and need-based daycare subsidy services, yet only about 230,000 actually received the service.
Regarding Nick’s claim of discrepancies between registered children and actual site visits at family daycares, the State News Office, in their response to Epoch Times last week, stated that the absence of children on-site during the investigation could have various legitimate reasons, such as children being in school or sick, and that “an empty facility at noon does not mean the same at 7 PM.”
The California Department of Social Services (CDSS), which oversees the program, also clarified in a press release that some operators cater to parents who work at night or on weekends.
CDSS stated in the press release that California has established a stringent fraud detection and prevention system. “When fraud is suspected, CDSS collaborates closely with counties and contractors, including referring cases to investigators where appropriate.” If fraud is confirmed, appropriate actions will be taken at all levels.
Since 2015, California has made daycare facility permit records public on the “Facility Inquiry” website, allowing parents to access official oversight documents, including inspection reports, violations, and complaint records.
Wu Mengzhen, a board member of the Mountain View School District in Los Angeles County, also watched Nick’s video. In an interview with Epoch Times on Monday (23rd), she explained that government-funded childcare and daycare programs fall into three types:
1. Programs within the public school system, with some districts offering early education programs, including federally-funded “Head Start” and state-funded preschool programs. These programs are typically managed directly by the public school system.
2. Childcare or Transitional Kindergarten programs established by Charter Schools, which are also government-funded but operate and are regulated differently than public schools.
3. Family daycare centers in residential areas and institutional daycare centers in commercial areas. Individuals can apply to become licensed childcare providers and receive funding from the federal, state, or local government for preschool children.
“Since the funding may come from federal, state, or local government, the operation and scheduling of various programs may vary,” Wu Mengzhen said. “Some programs operate during the day, while others provide services in the afternoon or evening to accommodate family needs.”
A family daycare owner in Apple Valley, San Bernardino County, who declined to be named, expressed that she felt California’s regulation of operators was very strict: “Family daycare services must renew licenses annually, pay licensing fees, and regulatory agencies may conduct surprise checks during business hours to ensure compliance with standards; if there are violations, they will face fines at different levels.”
The operator added that while family daycare services are not required to be open all day, it is necessary to ensure someone is on duty during the specified operating hours announced, “If no children come that day, you don’t have to sit there all day, but you need to inform the relevant authorities that you’ll be closed for the day.”