Fraud Within Wisconsin’s Taxpayer-Subsidized Day Care Program Continues

MacIver News Service | November 17, 2010

[Madison, Wisc…] Another month brings more news of continued fraud within the controversial child care program known as Wisconsin Shares.

$526,039 in overpayments to suspended providers were newly reported this month, bringing the cumulative total overpayments to suspended child care providers in the program to more than $5.8 million.

The program, aimed to help low-income families pay for child care, continues to be rife with waste, fraud and abuse according to the latest report from the Department of Children and Families.

In October, the Department of Children and Families spent $295,200 on fraud prevention and investigation, and had $42,100 in expenses related to recovering overpayments due to error or fraud.

As a result of those expenditures, DCF recovered $142,087 in overpayments and/or restitution in September  ($47,843 in child care overpayments to individuals and $94,244 in overpayments to child care providers).

Eleven more child care providers were suspended from participating in Wisconsin Shares in September, bringing the total number of suspended providers to nearly 200.

The Department has been required to provide the legislature’s Joint Committee on Finance with monthly reports since mid 2009 after widespread reports of abuse within the program.