The Civitas Institute, a right-wing Raleigh foundation, claims that mismanagement by a Durham nonprofit cost almost 250 needy children their child-care subsidies in December.

Those responsible for managing the subsidies, though, say the claim has little or no basis in fact.

"It's not based on anything," said Tracy Zimmerman, spokeswoman for North Carolina Partnership for Children, who called the Civitas claim "outrageous."

“The Civitas Institute and [author] Andrew Henson have it all wrong,” the Child Care Services Association of Durham said in a prepared response.   

In November, the Child Care Services Association, which administers a Smart Start scholarship program with an annual budget of about $3.4 million, informed about 200 families that their subsidies would end Dec. 17.

Smart Start is a state program that operates through local agencies to promote and serve healthy early-childhood development. Durham's Partnership for Children is the local Smart Start affiliate, and contracts with Child Care Services to administer the Smart Start scholarships.

“Unfortunately, funding was just not available to continue all of the families served,” said the Association’s statement. (link below) “Smart Start funding had been cut.  State subsidy funds had been cut.  Durham’s Partnership for Children faced an expanded population of vulnerable children.”

Those are the same reasons the Association gave in November. In a report released this morning, however (http://www.nccivitas.org/2011/childcare-subsidy-goes-bust-kids-go-home), Civitas claims that the association's overspending used up almost two-thirds of the budget in the first half of the fiscal year 2010-11.

"Serious questions remain," the Civitas report says, "as to how such a serious structural deficit could have gone unnoticed or unreported." Civitas claimed its report was based on unspecified "internal documents" but also said it had been unable to get detailed information from the association, which claimed its records are not subject to the state open-records law.

In response, the Association said it follows requirements for program and fiscal audits and reports to funders and the state auditor. “CCSA has consistently been awarded a clean bill of financial health.” It also claimed that Civitas investigator Henson “used aggressive, inappropriate and threatening tactics to bully CCSA” to supply him with information.

Zimmerman said the state Partnership for Children knows of no mismanagement and that regular examinations of the association's performance gave no indication it was not operating properly.
 

Documents:

Durham's Partnership for Children, the group created to oversee Smart Start funds in Durham County, will see $322,000 less of that money for the next fiscal year, the group announced today.

“This cut has come at the same time when the community’s need for services is increasing,” said Marsha Basloe, the group's executive director. “With the reduction in funds toward Smart Start funded programs and the More at Four program, the entire early childhood system in Durham will have additional challenges.”  

Smart Start funds ensure that children from birth to age 5 are given what they need for healthy growth and development. The partnership has helped pay for child care and provide health and family resources.

State legislators cut $200,000 from Durham's Smart Start funding, along with an additional $101,000 for More at Four, a Pre-Kindergarten program that serves at-risk 4-year-olds.

Smart Start funds have been cut yearly since 2001. Last year's funding was cut by nearly 14 percent.

Marsha Basloe, executive director of Durham's Partnership for Children, will take on the same position with the New York State Early Care & Learning Council.

Basloe has led the partnership since 2003, and within that time, the organization has strengthened its operations and increased community awareness of early childhood education, according to a written statement.

“The Partnership staff is skilled and unique, and I know that as we transition to a new phase for the organization, there will continue to be the same high quality efforts to support the Durham community," Basloe said in the statement. "I will work closely with staff and board on this transition phase in the next couple of months.”

Angelica Oberleithner, the partnership's assistant director, will temporarily take over Basloe's position while the group searches for a new leader.

A request for the city and county to proclaim 2010 as "Year of the Young Child" in Durham prompted county and city officials to raise frets about social-welfare programs that operate without coordination and duplicate services.

"We have so many efforts going on here in Durham that the left hand doesn't know what the right hand is doing -- and that's a fact," City Councilman Howard Clement said.

"We need to get together."

Former Gov. Jim Hunt got a standing ovation from a crowd of business leaders and educators early this morning as he challenged them to do more for Durham’s children, including mentoring and tutoring.

Hunt was the headliner at the annual State of Durham’s Children breakfast, held at the American Tobacco campus near downtown for $20 a head. This year’s speakers focused on involving businesses to improve education and job preparation.

“We need a lot of volunteers to introduce these children to careers,” Hunt implored. “Let ’em learn what it’s like and get excited about it. Help them understand why it’s important to study... Help them go somewhere.”