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Kids' Country Hemorrhaging Money !!!

Original post made by Dave on Jun 5, 2011

Kids' Country finally filed its tax return for last year and it lost a staggering amount of money. For the year ended June 30, 2010, KC lost more than $742,000!

KC's revenues actually increased slightly over the previous year, from $5.85 million to $6.00 million. But, its expenses went up inexplicably from $5.98 million to $ 6.75 million.

How can KC be losing this much money?? And what are they spending it on??

For anyone who is interested in the details, KC's tax returns for the past several years can be found on the Foundation Center's website (just Google "FoundationCenter.org" and search under KC's official name, "San Ramon Valley School Age Child Care Alliance"), or by following this link to the most recent tax return:
Web Link

The tax return shows that KC had to use up a significant amount of its cash reserves to cover this loss. One more year in the red like this and it look like KC could entirely deplete its reserves.

Curiously, Chris Erbe (KC's Executive Director), sent out a letter to parents on March 4, in which he announced a 9% increase for next year in rates charged to parents. He said that KC employees had not seen an increase in wages since 2008. However, what Mr. Erbe didn't mention in the letter is that he got a nice raise last year!

And if employees haven't gotten a raise since 2008, how did KC's spending on wages and salaries for employees (including management) go up by $278,000 in one year???

Something is not right at Kids' Country. The School District and the parents need to look into it.

Comments (10)

Posted by Observer, a resident of Danville
on Jun 5, 2011 at 9:19 pm

Sounds like someone is attempting extremely hard to seriously discredit Kid's Country. Just my opinion.


Posted by Dave, a resident of Danville
on Jun 6, 2011 at 6:41 am

Or some parents who are frustrated by the poor management of Kids' Country and don't want to see that incompetence destroy the only option they have for after school care.


Posted by Keeping Perspective, a resident of San Ramon
on Jun 6, 2011 at 10:36 am

Sounds like "Dave" is very disgruntled.


Posted by Kids Country Fan, a resident of Danville
on Jun 6, 2011 at 2:11 pm

Obviously, nothing is perfect, especially when it comes to child care options, but we were always pleased with Kids County at Vista Grande, and thought the staff did a great job. It seems like each site may differ greatly, but I think it would be beneficial for anyone with concerns or issues to deal in private directly with their site, and stop taking pot shots at the entire program.


Posted by member, a resident of Danville
on Jun 7, 2011 at 9:49 am

I would love to actually speak with "Kids Country Fan." In fact I think I will -- Chris Erbe -- are you taking calls today? The actual parents know it is you because you always recommend "private" conversations. Don't get this out in the open right now -- who YOU are may actually come to light!

Parents and Concerned citizens -- keep talking and keep talking in public -- the school board will have to eventually listen. And when they do, they will see how Kid's Country deals with problems -- Every parent who has had a problem with Kids Country finds out in their "dealing privately" with it -- that their child is the problem...How can that possibly be?e


Posted by Mom of Two, a resident of Greenbrook Elementary School
on Jun 7, 2011 at 1:31 pm

Since we are all getting things out in the open, you have to know one more thing about Chris Erbe. He has been trying to fire all of the older workers at Kids Country to save money. Pretty despicable.

Kids Country has many older workers. Most of them are ladies who came here from the Phillipines and have worked for Kids Country for 10 years or even longer. And they do a good job taking care of our kids. Because they have worked there for so long, they get paid more than brand new younger workers. Chris Erbe wants to cut costs. So he has been firing them, one by one.

It's against the law to fire older workers just because they earn more. But Chris Erbe doesn't care. He fires them. They sue Kids Country. Kids Country spends parents' money to settle those legal cases. Kids Country loses good workers. Our children lose good caregivers.

The board of directors is letting him get away with it. Not to mention wasting the parents' money on lawsuits and settlements. How much? Who knows. WE should know. After all, we are the ones paying for it through higher fees.


Posted by Keeping Perspective, a resident of San Ramon
on Jun 7, 2011 at 6:08 pm

Sounds like "Dave" is at it again.


Posted by Curious, a resident of another community
on Jun 7, 2011 at 6:30 pm

Dave,

How do you know Mr. Erbe got a raise?


Posted by Dave, a resident of Danville
on Jun 7, 2011 at 11:07 pm

It's not too hard to figure out from the tax returns.

Too bad Erbe didn't have the courage to tell parents, in his letter to them, that he was taking a raise.


Posted by John, a resident of Danville
on Jun 8, 2011 at 12:36 pm

Can the school district audit Kids Country? Maybe we can find out where the money is going.

When everyone else is tightening their belts, why is Kids Country spending so much more money each year - especially if the employees haven't gotten a raise? And Kids Country keeps asking us to pay more.


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