Frustrated providers tasked with delivering Mayor Zohran Mamdani’s promise of universal childcare — including a new, free 2-K program — complained the city is stiffing them out of six-figure payments, forcing them to dig into their own pockets just two weeks before the start of the school year.
Scores of childcare center operators contracted by the city for 2-K, 3-K and pre-K programs griped that advance payments usually sent in August haven’t arrived, leaving them scrambling to cover supplies, staffing and other basics in order to open in time.
“If we do open up on the first day of school, I won’t have staff,” said Adrienne Bond, director of the Quick Start Daycare Center in Queens, adding she was waiting on roughly $400,000 from the city.
“Mamdani promised positive change in early childhood education, and many trusted him by electing him to office, so when is that coming? We are anxiously waiting.”
Bond said she spent $400 of her personal funds, plus maxed out $35,000 from a private after-school program, to cover expenses.
She still had to delay two paychecks for staff and, as outstanding food supplier bills loom, was anxiously awaiting an interest-free bridge loan that so far has been held up by a city Department of Education backlog.
“I’m pleading with them for the bridge loan,” she told The Post.
The delays not only threaten the debut of Mamdani’s 2-K pilot program, but also the ability of free childcare centers to open when school begins September 10.
Hizzoner made free universal childcare one of his key promises when running for mayor in 2025. With the backing of Gov. Kathy Hochul, he unveiled a “2-Care” pilot for 2-year-olds that aims to expand citywide in the next four years — along with building up existing pre-K and 3-K programs.
The pair touted the initiatives — which came with $1.2 billion in state funding — during a joint press conference earlier this month.
The push heavily relies on existing childcare providers, many of which have contracted with the city for years and rely on advance payments to get programs up-and-running every fall.
Growing panic and hardships from the funding holdup were first reported by City & State on Tuesday, with it and The New York Times detailing providers considering fronting $90,000, taking reverse mortgages on their homes to pay expenses and asking employees to apply for unemployment.
Five city childcare providers who spoke to The Post this week, including Bond, detailed similar delays and frustrations.
One Queens childcare owner, who asked to stay anonymous, said she received a new 2-K class but the city won’t be sending her money to operate it until November.
The owner said she only got less than half of the five-figure sum she requested for a loan.
“I’m done — somebody needs to shine a light on what’s going on in this place because it’s an absolute disaster,” she said. “I have gone into my personal bank accounts, went into my 401(k), and I’m not doing it again.”
The Play Group Experience in Staten Island was still waiting on a $160,000 advance, said director Lori Congolese, adding that she spent $800 out of her personal bank account to prepare for September’s opening.
“We received zero funding that we usually receive in August to get us through to open,” she said.
“One of my colleagues, she just had to foot $1,800 out of her own pocket to do some repairs and fix the toilet just to prepare for September, and this money should’ve been coming from the DOE.”
Without a $300,000 advance payment from the city for 3-K and pre-K programs, Let’s Play & Learn Park director Olena Olson said she was relying on a $60,000 line of credit, payments from private 2-K tuition and foregoing her own salary to pay for staff and building costs.
“I will be OK for September if it takes that long,” the Park Slope childcare provider said. “But come October, if I don’t have either the loan or the advanced payment, then I don’t even want to think about it.”
Difficulties obtaining interest-free bridge loans from the DOE compounded the headaches for many providers.
“Whatever the amount is on the bridge loan, when you get your advancement, they’re going to take it back from you. It’s always as if you’re penny-pinching because they’re always taking back what they appear to give you.”
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The brewing blunder has bureaucrats were keen to pass the buck.
DOE paper pushers blamed bean counters in the city comptroller’s office for allegedly not registering contracts, a box-ticking step that must be done to process payments, the Times first reported.
Comptroller’s officials fired back that the DOE hadn’t even shared the contracts yet. The office hasn’t received any 2-K contracts as of Friday, officials said.
“The start of the school year is not an unexpected event,” City Comptroller Mark Levine said in a statement.
“The city knew these contracts needed to be approved by now, and failing to get them done on time risks setting back our affordability agenda,” Levine said.
“These are small providers with little financial cushion. Forcing them to begin caring for children without contracts or payment puts enormous strain on these organizations.”
One DOE insider complained that City Hall was dropping the ball on universal childcare — a goal “too important to fail.”
“New York City cannot build universal childcare on the backs and bank accounts of the people already holding the system together,” the source said.
“The administration continues to make ambitious promises about expanding 2-K, 3-K and pre-K. But universal child care cannot be built through press conferences and promises alone,” the insider added.
“It requires a government with the capacity, staffing and resources to deliver and right now, City Hall is demonstrating that it is in over its head.”
Mamdani was pressed earlier this week on the issues providers have been grappling with — including those concerned they won’t be able to open next month — but he could only repeat that “we have made this very clear that this is a top priority internally.”
Mamdani’s spokeswoman Jenna Lyle admitted the delays were “unacceptable” — but blamed former Mayor Eric Adams’ administration for cutting 600 employees tasked with establishing the city’s childcare system.
It’s not clear why the new admin didn’t address any staffing issues before rolling out the universal childcare expansion.
City Hall officials said the city has authorized overtime to complete loan payments by the first day of school, and that providers could expect approvals within five business days.
“We are expediting the processing and disbursement of loans for providers,” Lyle said. “And we are pulling additional staff from across city government, including every available contracting staffer at New York City Public Schools, to finalize outstanding contracts and quickly get them to the comptroller for payment.”
— Additional reporting by Craig McCarthy
