Penner, Couture secure critical accountability measures to combat child care fraud
CONTACT: Jennifer Hansen, Senior Public Information Officer for Rep. Joshua Penner | 360-786-7720
Hanna Scott, Public Information Officer for Rep. Travis Couture | 360-968-3938
Penner, Couture secure critical accountability measures to combat child care fraud
Washington’s child care system is hemorrhaging taxpayer money due to a complete lack of financial controls and oversight. The State Auditor’s Office (SAO) recently revealed it could not conduct full audits for fiscal years 2021, 2022, 2023, and 2024 because the Department of Children, Youth, and Families (DCYF) failed to track spending with the level of detail required by federal law. In the most recent Statewide Single Audit, the SAO “questioned” the program’s entire $416 million in spending due to inadequate documentation.
To stop this unchecked waste, Reps. Joshua Penner, R-Orting, and Travis Couture, R-Allyn, successfully negotiated strict accountability measures into House Bill 2253. These amendments transform the agency’s request legislation into a financial firewall designed to protect taxpayer dollars and root out systemic fraud.
“We are talking about nearly half a billion dollars in spending that the state cannot fully account for. That is not just a bookkeeping error; it is a massive breach of the public trust,” said Penner. “DCYF has acknowledged overpaying $2 million to 1,372 providers in the last year alone, and that is likely just the tip of the iceberg. We cannot continue to pour money into a system that refuses to track where it goes.”
The need for reform is underscored by a 2020 audit that found 29 of 31 sampled providers failed to submit required attendance records, and several operated significantly above their licensed capacity. To address this, they secured a permanent, lifetime ban on licensure for any provider found to have committed child care subsidy fraud. Furthermore, the bill addresses “ghost billing” by requiring all providers accepting state subsidies to use an electronic attendance system that captures daily check-in and check-out times via digital signatures or biometrics.
“Fraud depletes the resources meant for the most vulnerable children in our state. Every dollar stolen through ghost billing or lost to mismanagement is a dollar that doesn’t go to a child in need,” said Couture. “These reforms ensure that if you steal from the taxpayers, you are out of business forever. Whether it is financial fraud or physical danger, we are done with the excuses.”
In addition to the financial safeguards, the bill includes critical safety provisions. It establishes that exceeding a facility’s physical capacity at any single point in time is a statutory ground for license revocation, addressing the dangerous overcrowding found in previous audits. It also mandates the immediate termination of a license if high-potency synthetic opioids like fentanyl are found in a child care home.
“This bill puts teeth back into our oversight. We are moving from a system of ‘questioned costs’ and missing records to one of strict electronic verification and permanent consequences for fraud,” added Penner. “Taxpayers deserve to know their money is buying actual care for children, not lining the pockets of fraudulent providers. This is about restoring basic financial integrity to a broken agency.”
HB 2253 passed the House and now moves to the Senate for further consideration.
