Byline: Steve Peoples

Oct. 9--PROVIDENCE -- Scott Smith doesn't want to turn children away from the YMCA.

"I think that people want to be able to turn to the Y as one of those places they can always rely on," he said.

But starting this week, the YMCA and other child-care providers will begin denying service to many lower-income families on state-subsidized childcare. The providers say they have no choice, given years of stagnant reimbursement rates from the state and a new rate formula approved by the General Assembly that takes effect today.

Roughly 1,900 children were disqualified from the state child-care program Sept. 1 after the Assembly narrowed ...