By Rob Moritz
Arkansas News Bureau
LITTLE ROCK ? The board of directors of Russellville-based Child Development Inc. is working to make sure employees of its child care centers have insurance coverage, a spokeswoman said today.
Employees learned earlier this week that they have not had health insurance coverage since the first of the year, even through employee contributions have been deducted from their pay checks.
Lori Kamerling, CDI?s communications specialist, said the financially strapped nonprofit that has provided services to 2,300 children in 12 counties paid Blue Cross Blue Shield of Arkansas for its January employee insurance bill today.
?It will cover the month of January, so everyone who had claims then can resubmit them and then be paid,? Kamerling said.
She said the firm?s board of directors was looking for a way to pay employee insurance benefits for the 10 day period between Feb. 1 and today, CDI?s last day to operate a state and federally funded preschool programs. Denver-based Community Development Institute takes over the preschool programs on Monday.
Child Development Inc. has 460 employees.
Kamerling said the new company has told workers, who must reapply for employment at a job fair Saturday in Little Rock, that those who are hired will have insurance coverage immediately.
CDI closed its doors Jan. 31, the last day of the fiscal year for the federally funded Head Start program. The 30 centers where it offers the programs reopened the following day.
Last month, the company used its Russellville headquarters as collateral to receive a $400,000 loan to make its employee payroll.
Employees also were not paid for several weeks, but Kamerling said the many of began receiving back pay last week.
Last week, the Russellville-based non-profit?s governing board announced it was relinquishing its Head Start grant funds to Denver-based CDI today. The board said Wednesday that is also would be relinquishing its ABC funding back to the state Friday.
Federal officials have said those children attending the federally-funded Head Start and Early Head Start programs will continue to so on Monday without out interruption.
Amy Webb, spokeswoman for the state Department of Human Services, said arrangements are being make for the 388 students attending through the state-funded Arkansas Better Chance Program to continue attending and that parents would be notified if there are any changes.
Bettye Williamson, chairman of the Russellville non-profit?s board of directors, and several other board members have not responded to repeated telephone requests for interviews.
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