Just one example of what is happening all over.
Of course, this hits the poor the hardest.
February 12, 2015
Dear Mobberly CDC Parents and Families,
It is only after much thought, evaluation, attempts to identify alternative solutions, planning and, most importantly, prayer that, due to costs associated with the Patient Protection and Affordable Care Act (PPACA), commonly called the Affordable Care Act (ACA), we must share the news that the Mobberly Baptist Church Child Development Center (CDC) will be closing at the end of the work day on March 13.
The Patient Protection and Affordable Care Act is a United States federal statute signed into law on March 23, 2010. Employers meeting a certain employee count threshold are mandated by the ACA to provide full-time workers with comprehensive health insurance. There have been multiple delays in the roll out of the ACA, and now the legislation begins to be implemented, affecting many organizations and businesses.
Due to the ACA the church was forced to evaluate its options to comply. Options other than closing the CDC included:
a. Increasing tuition to cover costs for additional insurance. The increase in costs for tuition would not be viable or keep the CDC competitively priced compared to those day care centers not exceeding the ACA threshold requirements. In addition, the exact cost per family would vary by the number of employees, enrollment and costs of insurance coverage. The exact cost per family would depend on enrollment and future insurance costs.
b. Separate the CDC legally from the church as its own corporation in hopes of reducing the employee threshold required by the ACA. Mobberly staff contacted two non-profit attorneys that specialize in dealing with churches and church employee benefits and received counsel that this step would not be in the best interest for the church for multiple reasons, including a loss of property tax exemption, loss of control, and the possibility of the Internal Revenue Service ignoring the restructuring.
c. Reducing the number of classrooms/teachers. State regulations help guide the teacher/student ratio. In addition, the past historical quality of the CDC was built around the teacher/student ratios used.
d. Reducing the number of full time CDC teachers. Utilizing primarily part time teachers has been tried by CDC leadership in the past and has led to instability and higher staff turnover. We are aware of one other large day care operation that attempted to utilize only part time teachers recently, and they have now changed their philosophy and hired multiple full time teachers.
During this painstaking process of evaluating our options, we sought answers to many questions. Some of the questions we anticipate receiving from you and others include:
Why is this affecting Mobberly's CDC and not all other day cares?
Most day care centers in this area fall under the ACA threshold for full time staff and are not affected.
If the ACA is not required for Mobberly Baptist Church until 2016, why close the CDC now?
While it is very difficult to anticipate or guess about any pending legislative changes to the ACA, the current administration has vowed to veto any changes affecting employer or employee mandates. It is our desire and intent to allow parents to be in control of transitioning to other day care facilities prior to enrollment in March. We are focused on maintaining the best possible care during this time of transition.
Why doesn't Mobberly Baptist Church cover the increased costs for these insurance benefits?
Mobberly Baptist Church currently subsidizes operational costs for the CDC in several ways (utilities, equipment, custodial, accounting, administrative costs, insurance, etc.). The day care operations need to be able to operate within the current subsidies and operational costs to be competitive with other day care centers. Currently, the ACA puts them at a disadvantage when compared to centers that are under the full time staff threshold and not having to deal with this insurance cost issue.
Why are we just now hearing about this issue?
Selected members of the Mobberly Baptist Church staff have been praying, researching and discussing this issue for months. As many of you are aware, parts of the ACA were signed into law in 2010, but delays in implementation have kept us from being forced into acting earlier. We were at a point where no more delays are anticipated, other options have been exhausted and a final decision had to be made.
Why can't we stay open until May?
Many day care centers will begin enrolling for the fall in March. It is our hope that parents would have the opportunity to transition in advance of fall enrollment.
What about registration and supply fees?
Newly registered students will have their registrations fees refunded. Supply fees for the spring semester will be refunded to each family.
What will happen if the teachers leave to find other positions before the closing date?
The CDC will always work diligently to maintain quality care for all of their students and make any needed personnel adjustments required to accomplish this task.
Closing the CDC comes with much sorrow. We pray that you understand that this decision was not taken lightly and comes only after exhausting all other options. It was not made without consideration for your family and the teachers who teach, care for and love your children.
http://www.ketknbc.com/news/mobberly-baptist-church-to-close-daycare-due-to-ob
