April 15, 1998
To:Budget Committee
From:Commissioner of Community and Neighbourhood Services
Subject:Funding Cost of Filling 2,000 Licensed Child Care Spaces
Purpose:
At the request of the Children=s Action Committee, this report has been prepared to provide Council with information
concerning the funding cost of expanding child care subsidies to fill 2,000 licensed vacancies within the child care system
as recommended by the Children=s Action Committee at its meeting held on April 6, 1998.
Funding Sources, Financial Implications and Impact Statement:
The funding identified as necessary to provide the subsidies to fill 2,000 licensed child care spaces is not currently
included in the 1998 budget request of the Children=s Services Division of the Community and Neighbourhood Services
Department. Provincial approval would be required before the cost of these 2,000 additional child care subsidies could be
cost shared under the normal cost sharing formula of 80 per cent provincial 20 per cent local contribution.
Recommendations:
It is recommended that this report be received for information.
Council Reference/Background/History:
The Children=s Action Committee on April 6, 1998, recommended to Council for its meeting to be held on April 16, 1998
that funding be provided to fill the 2,000 licensed daycare spaces currently vacant; and further, that Council be advised that
the Children=s Action Committee reiterated point no. (1) of its previous recommendation to the Community and
Neighbourhood Services Committee, viz:
AThat the following principles be considered during the 1998 budget process:
(1)that there be expansion of child care subsidies to ensure that the 2,000 vacancies in the licensed child care system are
filled......@
The Children=s Action Committee requested that the Department provide information concerning the cost of funding the
2,000 child care subsidies referenced in the Children=s Action Committee recommendation.
Comments and/or Discussion and/or Justification:
The total cost of funding 2,000 additional child care subsidies at a per space cost of up to $7,500.00 would be
approximately $15 million. If provincial cost sharing approval for such an expansion was obtained, under the normal cost
sharing formula, the City=s share would be $3 million and the provincial share would be $12 million. This estimate
assumes that these spaces would be used to support the child care needs of Ontario Works participants and, therefore,
would not include user revenue.
Conclusions:
The above is provided for the information of the Committee.
Contact Name:
Marna Ramsden, General Manager
Children=s Services Division
Tel.: 392-8128
General Manager of Children=s Services
Commissioner of Community and Neighbourhood Services