Child Development Inc. to close, owes $22,000 in back taxes - WKOW 27: Madison, WI Breaking News, Weather and Sports

Child Development Inc. to close, owes $22,000 in back taxes

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MADISON (WKOW)-- One of Madison's oldest childcare providers, South Madison Child Development Incorporated, is closing August 8. The news comes after the CDI board discovered it owed thousands in unpaid taxes.

Kaleem Caire, a managing consultant for CDI, says an accounting firm was handling the finances and the discovery of $22,000 in unpaid taxes came after the CDI board treasurer stepped in.

“It just became to the point where instead of going further in to debt, not being able to continue paying payroll taxes, it's time to close and start over,” Caire said.

That new start-will be One City Early Learning Centers, a re-brand and re-launch of CDI, which is a non-profit, providing affordable childcare.

“They always wanted to hold on to that model of helping the most needy families,” Caire said.

CDI will transfer its assets and its debt, including the owed back taxes, to One city. Caire says there is a two-year payment plan set up with the IRS.

Meanwhile CDI's 38 kids need to find a new daycare provider. Parents were stunned to learn the news as they picked up their children Thursday.

“Right now, I'm thinking you know my mother and father until I find another daycare,” said Latonya Smith, whose 4-year-old attends CDI. “That's my only option.”

And when the center closes August 8, all 10 employees will be out of a job. If they want to work at One city, they will have to reapply.

“They can decide if they want to wait for that opportunity and that to arise and if they don't, then they will be able to collect unemployment or they'll be looking for jobs,” said Sue Krug, the CDI Board president.

Krug and Caire say One City will open its doors by October 1. But to meet the deadline- they need to raise $275,000 and so Far they only have $9,000.

“It's a high number, but we have a pretty good plan to try to get there and we're gonna work hard to get there,” Caire said.

That $275,000 is just what's needed by October 1. Caire says the building itself will require another $250,000 to $300-thousand in renovations.

Meanwhile families are being referred to 4-C, a group that will assist in finding other day care providers.

The CDI location at the Dane County Job center will remain open.

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