Peel’s New Early Learning & Child Care Funding and Policy Framework

Service Provider Information Session

November 2015

Agenda

1. Agenda Review 2. Icebreaker 3. The Context 4. Update on Key Policies and New Funding Framework 5. Looking Ahead 6. Q and A 7. Wrap Up

2

Icebreaker

At your table: • Name • Organization • Icebreaker – ‘one

interesting thing about your organization’

3

The Context – Major System Change

4

This is what we talked about

How can we further: • Increase Parental Choice and

Access to Licensed Child Care • Enhance ELCC Funding

Accountability • Stabilize the ELCC system

5

This is what we heard

Parental Choice and Access to Licensed Child Care • Key barrier to parents/caregivers accessing licensed child care is

due to not all licenced centres having a fee subsidy agreement with the Region of Peel

• Repealing the resolution could create better access for parents to licensed child care in Peel

• Concerns raised about providing fee subsidy directly to parents

6

This is what we heard

ELCC Funding Accountability • Demonstration of inclusionary practices and participating in a quality

initiative should be tied to eligibility for “all” ELCC funding • The Region should play more of a supportive role and “walk

alongside” centres to help move them to the standard expected

7

This is what we heard

ELCC System Stability • Provide General Operating funding to both non-profit and for profit

providers • Items to prioritize for funding:

1. Staff wages 2. Rate stabilization 3. Areas of need/growing areas 4. Younger age groups

8

9

Overview: Peel’s New Early Learning & Child Care Funding and Policy Framework

INCREASE PARENTAL CHOICE

AND ACCESS

ENHANCE ELCC FUNDING

ACCOUNTABILITY

STABILIZE ELCC SYSTEM

REPEAL 2009 RESOLUTION

NEW QUALITY AND INCLUSION

PRACTICES

GENERAL

OPERATING FUND

3 CORE COMPONENTS

Parental Choice and Access to Licensed Child Care

10

11

Repeal of 2009 Resolution 41 new sites

2,333 licensed spaces

August 2015

Explore Paying Fee Subsidy Direct to Parents

Research Completed:

• Jurisdictional scan • Input from fee subsidy applicants and

recipients • Input from licensed child care providers

Next Steps:

• Continue to pay subsidy directly to providers at this time

• Ongoing research • Build on learnings and identify

opportunities to improve current system.

November 2015

ELCC Funding Accountability

12

Quality and Inclusion Practices

• Quality and inclusion requirements to be met by August 1st, 2016 (for those who do not already meet them)

13

ELCC System Stability

14

ELCC Funding Provided to Licensed Child Care Providers

15

Funding Type Purpose Funding Available to

Licensed Non-Profit Providers

Licensed For-Profit Providers

General

Operating Fund

Wage Subsidy

• To improve the salaries and benefits of child care staff, to enhance staff stability, and to make licensed child care more affordable for all parents

x x

One Time Best Start

Wage Improvement

• To support the increase in salaries of program staff and to increase the payments to private home day care providers

x x

Transition Operating

• To support licensed ELCC providers with operating costs to help stabilize the ELCC system

x

Capital Retrofit • To help transition and modernize the child care sector as it adapts to the implementation of FDK.

x

Play Based Material and Equipment

• To support ELCC licensed providers provide enriching environments with materials that promote children’s learning and development through exploration, play and inquiry.

x x

Repairs and Maintenance

• To support ELCC licensed providers and private home day care agencies to maintain compliance with provincial licensing requirements.

x x

Transformation • Intended for one-time costs for ELCC licensed providers and private home day care agencies to support program viability and facilitate child care transformation.

x

Pay Equity • Funding provided as per Memorandum of Settlement (2003) to eligible licensed ELCC agencies

Agencies in Peel included as per the Memorandum

New Wage Enhancement

• Available to eligible staff in licensed ELCC agencies in Peel

x x

New General Operating Fund (GOF) Model

16

Wage Subsidy and Best Start Wage Subsidy

2016 TOG

Total 2016 GOF Allocation $23.6M

HISTORICAL ALLOCATION $8.8M

SYSTEM PRIORITY ALLOCATION $14.8M

One Time Best Start

Wage Improvement

One Time Best Start

Wage Improvement

Transition Operating

Grant

17

Wage Subsidy

New General Operating Fund

Then

Now

18

2013-2015 Interim Transition Operating Grant ($7M)

Operating Capacity

Weighting Process

Age Priority

GOF Calculation

• Calculation uses the adult to child ratio to calculate the points • Age group points increase to reflect higher costs as the ratio of adult

to child decreases

19

Age Group Operating Capacity X Points per Space Infant X 36 Toddler X 24 Preschool X 15 Kindergarten X 11 School Age X 0

New General Operating (GO) Fund Will Support…

20

SYSTEM STABILITY

Higher Costs of Serving Younger Children

Broad Operating

Costs

Retention of Qualified Staff

Provider Business Viability

21

New General Operating Fund (GOF - $23.6M)

Historical Allocation

($8.8M)

System Priority Allocation ($14.8M)

Priority Operating Fund Mitigation Fund

22

New General Operating Fund (GOF - $23.6M)

Historical Allocation ($8.8M*)

• Eligible to providers in receipt of wage subsidy

• Support for wages • Quality and inclusion requirements apply

* Includes Wage Subsidy and Best Start Wage Subsidy

23

New General Operating Fund (GOF - $23.6M)

System Priority Allocation ($14.8M)

Priority Operating Fund

Mitigation Fund

• Supports broad operating costs to meet system outcomes

• Prioritizes younger age groups and non-profit providers

24

New General Operating Fund (GOF - $23.6M)

System Priority Allocation ($14.8M)

Priority Operating Fund

Mitigation Fund

• For unforeseen/unexpected costs that may affect the viability of a licensed child care program

• Application based process • Open throughout the year, subject

to availability of funds

2016 General Operating Fund Process

• Must be used to support wages/benefits • Quarterly payments, beginning January 2016 • Quality and Inclusion requirements apply • Annual reconciliation/reporting requirements

Historical Allocation

• Application process will commence in Spring 2016 • For-profit providers will submit a business case • Quality and Inclusion requirements apply • Funding will flow in August 2016 • Annual reconciliation/reporting requirements

Priority Operating Fund

• Applications can be submitted throughout the year • Quality and Inclusion requirements apply • Annual reconciliation/reporting requirements

Mitigation Fund

25

Looking Ahead

• New IT system for ELCC funds (2016) • Service Agreement extension to July 2016 • Remaining 2015 ELCC payments

– Play Based Material and Equipment – Best Start Wage Improvement

• Ongoing, regular updates

26

27

28