NEW YORK, NY February 13, 2008 —REPORTER: The city says it will change the way it funds subsidized daycare centers.

Instead of paying each facility based on total capacity, it will pay only for children who attend each day.

Administration for Children's Services Commissioner John Mattingly says each center will manage its own marketing, recruitment and enrollment.

MATTINGLY: The city has been spending an awful lot of money for quality child care and it's time for us to share some of the responsibility for keeping those spots filled.

REPORTER: Opponents of the plan say funding cuts will force centers to provide more services with less money.

District Council 1707 represents 5,000 daycare workers. Spokesman Neal Tepel say decentralization has already hurt some centers.

TEPEL: Under this administration, 17 centers have been closed, all in minority and poor communities.

REPORTER: ACS says the city's 347 daycare centers operate at 85% capacity.