Childcare operators in Ontario, who have chosen to participate in the $10-per-day care program, receive assurances that their funding will persist at the same rate for roughly eight more months. However, this situation is inciting considerable challenges within the sector, as anxiously waiting program coordinators navigate financials on a razor-thin edge.
Under the Canada-Wide Early Learning and Child Care (CWELCC) system, it was expected that parental dues would already fall to approximately half of 2020 rates. The province pledged to cover the expense of any loss of these fees through 2023, allocating an estimated $1.2 billion for this purpose. But the stability of this one-size-fits-all funding approach remains under scrutiny from some operators, who contend it fails to factor in inflation.
These childcare programs, barred from augmenting parent fees, face the menacing reality of inflated costs adversely affecting their services. The repercussions might mean closing rooms due to a lack of staffing or restricting enrolment. No further rate reductions have been announced for 2024, and a funding strategy set to persist into the first eight months of the year remains unchanged, exacerbating these apprehensions.
Notably, a departmental memo recognizes the potential cost escalations childcare licensees may face. It cites uncontrollable factors, such as rent increases, and acknowledges how such a revenue replacement funding model could hinder their participation in the CWELCC system. Early November 2023 is the targeted date for releasing new funding allocations for 2024.
Meanwhile, potential assistance is in sight with government discussions hinting at a supplementary provincial allocation of approximately 2.75 per cent to mitigate costs. But this projected offshoot falls short of substantially compensating for the increasing operational costs of running a childcare program.
The Ministry of Education officials stands steadfast that current allocations should suffice in covering the entirety of cost reductions for parent fees and heightening compensation for registered early childhood educators (RECEs). Still, precise data and stakeholder feedback are paramount in shaping a future viable funding approach. The ministry is reportedly set to roll out an informative mini-survey in this context.
Concerning wages, a report by the Ontario Coalition For Better Childcare reveals that Ontario RECEs score near the bottom, earning roughly $19 an hour. Education Minister Stephen Lecce addressed this during the summer, pledging to work toward wage increases, though the details remain scant.
In Greater Toronto and Hamilton Area, a recent study by the Canadian Centre for Policy Alternities confirms that childcare costs prevail at high levels. This progressive think tank’s report evaluates Canada’s progress toward $10-a-day childcare, finding that more than half of the 32 jurisdictions in agreement with the CWELCC have succeeded in reducing their fees by 50 per cent.
Interestingly, the report singles out areas like Hamilton, wealthy Toronto suburbs such as Oakville, Vaughan, and Markham, which couldn’t quite meet the fee reduction target, due to already high fees and a high percentage of for-profit operators. Nevertheless, the median fees have considerably reduced from 2020 levels.
The public plan of the government aims at reducing the childcare fees by 52.75 per cent by the end of 2023, with an anticipated average decrease to $10 a day by September 2025. However, the timeline and exact details for the rate reductions in 2024 remain hazy.
