Ohio bill aiming to crack down on childcare fraud clears Ohio House

Ohio lawmakers are moving to limit childcare overpayments and potential fraud without requiring controversial cameras in daycare centers.

In January, lawmakers introduced dueling bills after allegations of childcare fraud spread on social media after the U.S. Department of Health and Human Services froze childcare payments in Minnesota. Ohio Gov. Mike DeWine defended that state's system for rooting out fraud, which is not widespread.

On June 9, the Ohio House of Representatives voted 82-7 to advance one of those bills. House Bill 647 would require taxpayer-funded childcare payments to be based on attendance rather than enrollment and empower Ohio to cut off payments to unscrupulous actors.

"We can say we had a problem, we've identified the problem, and we have a pretty good solution to end this nonsense," said Rep. Phil Plummer, R-Dayton. “When you’re dealing with an organized crime ring, it’s pretty sophisticated.”

In May, Ohio cut off funding to 10 childcare providers, most of them in central Ohio, because of misuse and overpayments totaling $1 million. Another dozen were flagged for overpayments tied to administrative errors − a small fraction of the $969 million spent annually on publicly funded child care. 

The bill would also give the Ohio attorney general authority to prosecute fraud cases if local prosecutors decline to. To date, such cases have been "extremely rare," according to the Ohio Prosecuting Attorneys Association.

Rep. Tom Young, R-Washington Township, said the bill doesn't cut off childcare funding or make it more difficult to access. "It does not penalize providers acting in good faith and following program rules," he said.

Rep. Crystal Lett, D-Columbus, expressed frustration that the bill originated with unsubstantiated allegations of fraud, but voted for the final version. "For months, this legislature has spent countless hours debating a problem that has yet to be proven while Ohio families continue to struggle with a child care crisis that is very, very real," she said.

The bill heads to the Ohio Senate for consideration later this year.

A competing proposal, House Bill 649, hasn't advanced out of committee. That bill would require video surveillance at childcare facilities to audit attendance. Childcare providers and parents pushed back against requiring photographs at drop-off and pick-up.

"This bill raises serious concerns about children’s privacy, safety and the trust families place in our programs," testified Zandra Phillips, owner of Dayton-based Pitter Patter Learning Center.