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Subsidized daycares unable to cover costs

Local | By Correspondent May 28, 2024

WILLEMSTAD - The eight subsidized daycares in Curaçao are sounding the alarm. They can no longer cover their costs and are on the brink of closing their doors. These daycares have been receiving the same subsidy per child from the Ministry of Education, Science, Culture, and Sports for nearly a decade. This amount, known as the "subject subsidy," is insufficient to keep up with rising expenses. 

The subsidized daycares, including Krèsh Dede Pikiña in Seru Fortuna and Krèsh mi Kasita EBG in Suffisant, receive a monthly subsidy of 450.00 guilders per child. This amount has remained unchanged for almost ten years, while the cost of living and the minimum wage have increased annually. Many parents can only contribute a small amount because they are often studying, unemployed, or earning minimum wage. 

Recently, all the daycares calculated their actual costs based on the government's requirements to maintain their licenses. It was revealed that each daycare needs at least 650.00 guilders per child to cover monthly expenses. The current subsidy falls short of this amount. 

The financial situation of the daycares is alarming. They cannot meet their obligations to employees, such as providing uniforms and vacation compensation. They are also unable to pay the Tax Office, which could result in the seizure of the personal property of board members. 

The daycares have written multiple letters and requested a meeting with Minister Van Heydoorn to address their issues and seek a solution. In a letter dated March 13, 2024, the minister's office indicated that SOAB is conducting an "efficiency study" to provide advice. However, none of the daycares have heard anything from SOAB so far. 

The situation is so critical that one of the eight daycares is on the verge of closing. This would be a significant blow to low-income parents who rely on subsidized childcare.

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