I'm agreeing with those who are mentioning that if she's supposed to be a registered kennel but is on unemployment there is something wrong with this picture. It could be that she's collecting the unemployment and also getting paid "under the table" cash payments for kennel services. That's illegal.
And, if she is a registered kennel, why are the dogs in her care running loose? Again, something wrong with this picture, maybe you could look up her kennel and check into whose dogs are in her care and find the owners of them. It might be that her licensing is not up to date, or some other factor is at play here.
And, do not accept a single dollar, chicken, cage or anything from her without some sort of legal action. Accepting anything infers that you agree with this as 'payment' for your losses. Keep it with in the law, take her to court and do everything by the book. It's a long drawn out process, a pain in the butt, and the only way to do it right.