LITTLE ROCK — The governing board of Russellville-based Child Development Inc. said Wednesday the firm will cease to operate a state and federally funded preschool program that serves 2,300 children in 12 counties at the end of the week.
The board, in a statement, said it had relinquished the state funds it receives to provide programs to 388 children to the state Department of Human Services.
Last week, the nonprofit announced it had relinquished its federally funded Head Start operation, which serves about 1,300 children, to a Denver company.
CDI’s last day to operate the programs in 30 centers is Friday.
DHS spokeswoman Amy Webb, said Denver-based Community Development Institute will begin running the Head Start programs beginning Monday and “has expressed an interest” in continuing to serve the children attending through the state-funded Arkansas Better Chance program.
Independent reporting for Pine Bluff & Jefferson County since 1879.
“Ultimately our goal is to not have any disruption in service for the kids,” Webb said, adding that the families who pay privately to send children to the programs will apparently have to make arrangements with the Denver-based company.
Also Wednesday, Lori Kamerling, spokeswoman for the Russellville nonprofit, said employees have been notified that they have not had health insurance coverage since the first of the year, even though employee contributions have been deducted from their pay checks.
Kamerling also said that the 460 employees have been told they must reapply for their jobs with the Denver-based company Saturday. She said she had heard the reapplication process will take place in Little Rock, but that she did not know where.
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 many began receiving back pay last week.
Last Thursday, CDI’s governing board, after a meeting, announced it was relinquishing its Head Start grant funds to Denver-based Community Development Institute. The board said Wednesday in a statement that it relinquished its ABC funding back to the state on Tuesday.
“The board has relinquished operations of the Child Development Inc., in order to ensure the continuity of programs available to children and families and the communities in the 12 counties which are currently being served as well as employment of existing CDI staff,” the statement said.
Bettye Williamson, chairman of the board, and Brad Wear, vice-chairman, did not immediately return telephone calls for comment Wednesday.
Pope County Judge Jim Ed Gibson, who also is a board member, did not return a telephone call seeking comment. Board member Denton Tumbleson declined comment.