The girl then said the baby hit his head on a footstool, Kowalczyk said in court.
Treu's attorney had asked for a $1,000 bond, but the judge set it at $250,000 - calling Treu a flight risk due to the extended jail time he faces.
"She stated she was holding the child and that's when she dropped the child".
The parents of 9-year-old Jayna Kelley, who was killed, said it all feels like a nightmare.
Defense attorney Kirby Harless asked for a smaller bond, saying the girl has lived her whole life in the area and there is no reason to think she wouldn't attend a future court hearing. The baby was 6 months old.
The girl's biological parents appeared with her in court, but the daycare where the baby died is reportedly run by her foster parents.
The incident happened in the same county where three Girl Scouts were killed by a truck driver over the weekend.
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The 11 charges filed against Colten Treu on Tuesday include four counts of vehicular homicide and four counts of a hit-and-run resulting in death.
From left, Sara Jo Schneider and her daughter Haylee Hickle, along with fellow Girl Scouts Jayna Kelley and Autumn Helgeson were killed in a hit-and-run in Wisconsin, Nov. 3, 2018, while picking up trash along a highway.
He will be charged with four counts of homicide, Lake Hallie police Sgt. Daniel Sokup said. Treu and his passenger later told investigators they had been huffing from a computer keyboard cleaner they'd purchased that day.
Treu and his passenger, who also turned himself in, allegedly told police that right before the crash they "had been intentionally inhaling chemical vapors," also known as "huffing". The driver, Colten Treu, sped away, but later surrendered to authorities. The baby's injuries were "consistent with a heavy force/pressure", the sheriff said in the statement.
Schneider said her daughter, granddaughter and grandson moved in with her a couple of years ago and they expected the house in the Town of Lafayette to be their "forever home".
The girls were fourth-graders and members of Troop 3055 in nearby Chippewa Falls, about 90 miles (145 kilometers) east of Minneapolis.