The trickle-down effect of the ongoing state budget impasse has reached flood stage for child care providers, who are cutting services, laying off employees, or even closing their doors as they struggle to stem a cash flow crisis.

Protests were staged this week by some of the state's 8,577 day care providers who accept state subsidies for low-income families.

Since the fiscal year ended on June 30, no state funding has been available for payroll expenses, hot lunches or several early-childhood education programs.

The taxpayer-funded subsidies provide child care for about 130,000 children statewide. Even before the budget stalemate, a typical waiting list of about 6,000 families swelled to a record 16,000 who are looking for help this year.

"We are being flooded with calls," said Terry Casey, president of the Pennsylvania Child Care Association, a nonprofit group representing day care operators. "I just got off the phone with a woman who was crying and crying, but there's nothing I could do."

The woman was forced to close her Johnstown day care center after 27 years in business, Ms. Casey said.

Other operators are finding ways to keep their businesses open.

Day care operator Karen Janos of Youngwood, Westmoreland County, has asked parents to help out if they can. She hates doing it, because so many are struggling.

"We no longer have a food program," she said. "Our families are packing lunches and donating snacks."

The business she started in her living room 10 years ago with just eight children has expanded to more than 100 children at her center, which she rents from the Holy Cross Church.

About 68 percent of the families she serves use state subsidies to pay for day care, and though the church is letting her slide on rent payments for now, utility companies and banks aren't as forgiving.

She has furloughed five of her 18 employees and obtained a credit union loan through her husband, who refinanced his truck to help her meet payroll for the next two weeks.

Amber Herrle, operator of The Nurturing Place in Youngwood, is keeping her business open on a day-to-day basis.

"We have enough to pay the payroll until Friday," she said. "We're going to try to hang on for the next couple of weeks."

About half of the 63 children at her day care center are eligible for state subsidies, and Ms. Herrle said she must find a way to continue serving them, because the contract she has with the state does not allow her to halt the programs she offers or to ask low-income families to pay privately.

"I don't understand what they want us to do," she said of state officials. "We're between a rock and a hard place. There are day care centers closing every day."

Ms. Casey agreed, saying she gets more calls daily from operators who are being forced to close their doors until a new budget is ironed out.

Gov. Ed Rendell and Senate Republicans have been deadlocked since July 1, with the governor proposing a budget of $28.2 billion versus Republicans, who want a spending package of about a billion dollars less.

Mr. Rendell earlier this week announced that the state was laying off 255 workers as of Aug. 28.

Last week, he assured state workers would begin receiving pay again by signing $11 billion of a $27.3 billion budget proposed by Senate Republicans. But he vetoed another $13 billion in spending, including payments for child care subsidies.

"We have never been faced with this crisis before," said Ms. Casey.

Gerard Nale, co-owner of a day care in Altoona, said the state's budget impasse means a long delay in getting reimbursed for his July payroll, utility, food and rent costs, and that puts him in a tough position. The state won't reimburse him for those expenses until 30 days after a budget is approved, and no one knows when that will be.

Several day care operators this week said parents who will soon be left in limbo have threatened to quit their jobs and join the welfare rolls to make ends meet.

Others said they would use less-qualified caregivers, such as neighbors, which worries providers the most.

Bouncing children between different caregivers at an early age can produce long-term negative effects, Ms. Casey said.

"We are very concerned where kids will go," she said. "Some may have trouble forming attachments. This is not good for kids."

Seton Hill Child Services, the oldest and largest early education provider in Westmoreland County, has faced many challenges over its 43-year history, but none as devastating as this one, said Executive Director Sarah Dye.

"We have already reduced hours, reassigned staff, laid off six staff, and if there is no budget resolution, we will be forced to limit our services to the federally funded Head Start and Early Head Start programs. That means only 210 of our usual 400 children would receive services," she said. "We are dangling by a thread."