Indiana Supreme Court hears arguments in nutrition compliance case

The Indiana Supreme Court will decide whether the state Department of Education overstepped its authority in permanently disqualifying an Indianapolis church daycare’s participation in a federal nutrition program for low-income families.

The justices heard oral arguments Thursday in a case brought by Mount Zion’s Loving Daycare seeking reinstatement in the Child and Adult Care Food Program, or CACFP.

DOE terminated the Indianapolis daycare’s participation in CACFP in 2023 following a series of “serious deficiencies” related to food labeling and serving sizes.

Attorneys for the daycare argue in a petition for judicial review that DOE took an “on-again-off-again approach” to correcting what they describe as “minor” documentation issues.

Trouble started when DOE notified Mt. Zion’s Loving Daycare of its intent to disqualify the daycare from participating in the nutrition program if it did not take corrective action by Nov. 11, 2022. The daycare had relied on the program since 1999 to feed four meals a day to infants and children from some of the poorest Indianapolis neighborhoods.

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The petition alleges daycare officials submitted a plan prior to deadline, “demonstrating Mt. Zion’s Loving Daycare’s immediate willingness to act,” but only learned the plan did not meet DOE’s expectations via email three months later.

A subsequent email from DOE found the daycare “has fully and permanently corrected the serious deficiencies,” yet an inspector showed up at the daycare 45 days later, according to the petition. 

The daycare received another notice of termination in Aug. 2023, citing a lack of documentation for all but one commercially processed product served by Mt. Zion’s Loving Daycare and other “minor” documentation issues, according to the petition.

Attorneys for the daycare allege DOE did not provide technical assistance requested by Mt. Zion’s Loving Daycare, and rejected the daycare’s inquiries to correct issues.

A Hamilton County trial court ruled in the daycare’s favor and ordered DOE to reinstate Mt. Zion’s Loving Daycare’s eligibility for federal meal reimbursement through CACFP.

The Indiana Court of Appeals reversed the order last year — finding DOE’s decision was not arbitrary, but rather supported by “substantial evidence” of serious deficiencies identified in multiple inspections.

Mt. Zion’s Loving Daycare appealed the decision to the Indiana Supreme Court.

In oral arguments Thursday, Deputy Attorney General Evan Comer referred to deficiencies identified in prior inspections of the daycare in 2015 and 2018.

“It’s the same issues that are happening over and over again,” he said. “At some point, the department has to be able to say, ‘That’s enough, and we’re going to move forward.'”

Maggie Smith, counsel for Mt. Zion’s Loving Daycare, argued DOE erred in its findings and should have permitted the daycare to take corrective action until a hearing was held, noting the daycare sought DOE’s assistance as it tried and failed to find another vendor.

“They were serving substantially nutritious food,” she said. “What we’re talking about is meal patterning and labeling, and many of the deficiencies that were originally found by the department … ended up being completely wrong.”