Transfer Plan for Child Care Services and Adjustments
to Child Care Support for Ontario Works
The Strategic Policies and Priorities Committee recommends the adoption of the recommendation of the Budget
Committee embodied in the transmittal letter (September23,1998) from the City Clerk.
Councillor Ashton declared an interest in this matter and advised that the nature of his interest was that his daughter
is registered in a non-profit child care centre in the City of Toronto.
Councillor Pantalone declared an interest in this matter and advised that the nature of his interest was that he has
two children registered in a child care centre in the City of Toronto.
The Strategic Policies and Priorities Committee submits the following transmittal letter (September 23, 1998) from
the City Clerk:
Recommendation:
The Budget Committee on September 23, 1998 recommended to the Strategic Policies and Priorities Committee, and
Council, that the Mayor and City Council once again write to the Premier of Ontario requesting permission to use monies
from its Social Services Reserve to fund child care spaces, in order to allow people who require child care services to return
to work and to request the Province to cost share these 2,000 spaces with the City.
The Budget Committee reports having requested the deferral of the recommendations of the Community and
Neighbourhood Services Committee to a future Budget Committee meeting.
Background:
The Budget Committee on September 23, 1998, had before it:
(a)a transmittal letter (September 10, 1998) from the City Clerk forwarding the recommendations adopted by the
Community and Neighbourhood Services Committee; and
(b)a communication (September 21, 1998) from the Commissioner of Community and Neighbourhood Services requesting
deferral of the above-noted item to a future meeting of the Budget Committee.
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(Transmittal letter dated September 10, 1998 addressed to the
Budget Committee from the City Clerk)
Recommendations:
The Community and Neighbourhood Services Committee on September 10, 1998, recommended to the Budget Committee,
and Council:
(1)the adoption of the attached report dated September 1, 1998, from the Commissioner of Community and
Neighbourhood Services, subject to:
(a)amending Recommendation No. (4) to read as follows:
"(4)the Department consult with the community concerning the most appropriate strategies for implementing the
requirements of Ontario Works Child Care and report further on the outcome of this consultation recommending specific
changes in response to the enhanced level of provincial funding and in response to unmet child care service demand; and
further that no changes take place until completion of the community consultation and resulting report;";
and
(b)amending Recommendation No. (6) to read as follows:
"(6)the Children's Advocate, with the asistance of the Office of the Mayor and the support of the Commissioner of
Community and Neighbourhood Services continue to advocate to the Province the City's need for child care subsidy
expansion to meet the significant service demands of Ontario Works and other eligible clients; and
(2)that the Province of Ontario again be requested to pay its share of the subsidies of 2,000 children, as proposed by the
City of Toronto; and
(3)that the City of Toronto reconfirm its support for a high quality child care system, the policies of first come, first served,
equity and informed parental choice.
Background:
The Community and Neighbourhood Services Committee had before it a report (September 1, 1998) from the
Commissioner of Community and Neighbourhood Services respecting the transfer plan of child care services and
adjustments to child care support for Ontario Works.
The Committee also had before it a communication (September 9, 1998) from Ms. Anne Dubas, President, Canadian Union
of Public Employees, Local 79, urging the Committee to commit any additional provincial funding to making high quality,
licensed child care accessible to more children and their parents.
The following persons appeared before the Community and Neighbourhood Services Committee in connection with the
foregoing matter:
-Ms. Cheryl MacDonald, Toronto Coalition for Better Child Care; and submitted a brief in regard thereto;
-Mr. Spyros Volonakis, Child Care Advisory Committee; and submitted a brief in regard thereto;
-Ms. Samantha Patton, Director, Parkdale Beach Child Care; and submitted a brief in regard thereto; and
-Ms. Fatima Alvis, Child Care Director, St. Stephen's Community House.
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(Report dated September 1, 1998, addressed to the
Community and Neighbourhood Services Committee from the
Commissioner of Community Services)
Purpose:
This report outlines the transfer plan for child care jointly negotiated between the City and the Ministry of Community and
Social Services. It also outlines the additional provincial subsidy available to support the child care needs of Ontario Works
participants and describes the associated adjustments the City is expected to make in its child care strategy for Ontario
Works clients.
Funding Sources, Financial Implications and Impact Statement:
In letters dated July 3, 1998, and August 18, 1998, the Ministry of Community and Social Services advised the City that an
additional $3,147,500.00 in annualized provincial subsidy was available bringing the total annualized provincial
contribution for Ontario Works child care funding to $11,093,600.00. This additional provincial subsidy is conditional
upon municipal cost-sharing approval and some refinement to the child care targets and strategy for Ontario Works outlined
in the Business Plan originally approved in 1997. The $590,156.00 required as the 20 percent municipal contribution can be
funded fiscally from the surplus user revenue in the Children's Services appropriation identified in the June 30, 1998,
Corporate Variance Report. An annualized increase of $786,875.00 in the net base budget of Children's Services is required
as part of the 1999 budget process to maintain the approved service levels and is recommended in this report.
On August 11, 1998, the Ministry of Community and Social Services further advised the City that $338,000.00 in 100
percent one-time funding was being approved to support the transitional technological activities outlined in the "Child Care
Plan for Transfer of Responsibility for Managing Child Care Delivery".
The financial implications and recommendations contained within this report have been discussed with the Finance
Department and have the concurrence of the Chief Financial Officer and Treasurer.
Recommendations:
It is recommended that:
(1)the $590,156.00 required as the 1998 municipal cost-sharing contribution to the additional $3,147,500.00 provincial
subsidy offered to enhance the funding support for child care within the Ontario Works program be found from the surplus
user revenue identified within the Children's Services appropriation in the June 30, 1998, Corporate Variance Report and
approval be given to adjust the 1998 and 1999 Children's Services budgets accordingly;
(2)the City negotiate with the Province the fiscal use of the additional provincial funds to meet the costs associated with
the current level of Ontario Works child care in 1998 and develop a strategy for implementation in 1999 that would
increase the number of Ontario Works clients' children who could be supported with the annualized enhanced provincial
funding;
(3) the City accept the $338,000.00 in one-time provincial transitional funding to support the technological activities
identified in the child care transfer plan;
(4) the Department consult with the community concerning the most appropriate strategies for implementing the
requirements of Ontario Works Child Care and report further on the outcome of this consultation recommending specific
changes in response to the enhanced level of provincial funding and in response to unmet child care service demand;
(5) the jointly negotiated plan for the transfer of child care services be approved and the Department continue negotiations
with the Province for adequate administrative support for the increased program responsibilities and an expeditious transfer
date;
(6) the Office of the Mayor, with the assistance of the Children's Advocate and the support of the Commissioner of
Community and Neighbourhood Services continue to advocate to the Province the City's need for child care subsidy
expansion to meet the significant service demands of Ontario Works and other eligible clients; and
(7) the Department report back to Council on the results of the ongoing negotiations with the Province.
Council Reference/Background/History:
On June 10, 1997, a strategy to meet the child care needs of Ontario Works clients was approved as part of Toronto's
Ontario Works Business Plan. At that time, an annualized budget of $9,627,900.00 (gross) was approved to support a target
of 2,050 units of child care service for Ontario Works participants. As part of the 1998 budget approval process, Toronto
Council also authorized the creation of a Social Services Reserve and agreed to fund up to 2,000 additional child care
subsidies for Ontario Works participants from it, conditional upon provincial cost sharing approval. A provincial response
to this subsidy expansion request is still outstanding.
As part of the 1998 budget process, the Children's Services base was increased by $37,439,300.00 in recognition of the
additional cost-shared child care services being transferred from the Province to the City. These additional child care
programs include: wage subsidy, special needs resourcing, approved corporations and family resource centres. Since
January, departmental officials have been working with provincial officials to develop a detailed transfer plan for these
services. The development of that plan has now been completed and is currently being reviewed provincially. While the
City has been cost-sharing these additional programs since January 1, 1998, the actual transfer of the system management
responsibility for them awaits formal approval of the plan which is now expected to occur by calendar year end. This report
summarises the components contained within the child care transfer plan and highlights as yet unresolved issues related to
the level of administrative support and the timing of the transfer. This report also identifies the confirmed level of
provincial support for transitional funding required for transfer of the programs.
One particularly significant component of the Child Care Transfer Plan involves suggested revisions to the Ontario Works
child care strategy. New approaches are being proposed in response to increased service pressure for child care from the
sole support caseload being transferred to the City and in response to provincial conditions associated with an offer of
additional funding available for Ontario Works child care. This report highlights these proposed new directions for publicly
assisted child care in both the short and longer term, and recommends advising and consulting the community prior to
Council consideration of any recommended changes.
On July 3, 1998, the Province advised the City that provincial child care funding for Ontario Works child care could be
increased on an annualized basis by $3,147,500.00. A subsequent letter dated August 12, 1998 clarified the provincial
expectations. This increased provincial funding support is offered to the City on three conditions. First, the City must
contribute its matching 20 percent portion ($590,156.00 fiscally, $786,875.00 annualized). Secondly, the City's child care
strategy as approved in the 1997 Ontario Works Business Plan must be modified in accordance with certain provincial
suggestions (e.g., greater use of part-time and informal care options). Thirdly, the increased funding must be used to
increase the level of child care service available to Ontario Works participants.
Comments and/or Discussion and/or Justification:
The Child Care Transfer Plan:
A copy of "The Joint Implementation Plan for the Transfer of Responsibility for Managing Child Care" has been filed with
the Clerk's Office. The Child Care Transfer Plan provides a brief history of this municipality's longstanding involvement in
child care and describes the structure, processes, policy and accountability framework for managing the existing child care
subsidy system. The Plan also details how the transferred services (approved corporations, family resource centres, wage
subsidy and special needs resourcing) will be integrated and managed by the Children's Services Division. Specific detail is
provided with respect to planned modifications to the approved Ontario Works child care strategy and to the integration of
the Serious Occurrence/Complaint Reporting Protocol. Resourcing needs related to the program transfer are also outlined.
The Province has confirmed one time 100 percent provincial transitional funding in the amount of $338,000.00. for the
technological activities necessitated by the transfer of the additional child care programs and responsibilities. Discussions
continue concerning both the exact timing of the transfer and the level of administrative support required by it. The Plan
proposes transfer of the child care programs by calendar year-end.
Ontario Works Child Care Strategy:
The transfer plan contains a detailed section on the kinds of revisions to the Ontario Works child care strategy required to
respond to increased service demand within current funding limitations. While the Province has not formally responded to
the City's Social Services Reserve Initiative and its request to cost-share up to 2,000 additional fee subsides, it has offered
$3,147,500.00 as an annualized funding enhancement to the Ontario Works child care envelope. As described above, this
provincial offer is conditional upon municipal cost-sharing, upon certain revisions to the Ontario Works child care strategy,
and upon assurance that more service for Ontario Works clients can be provided as a result of this increased provincial
funding.
This report proposes a City response to the provincial offer. With more than 21,000 children of social assistance recipients
who have a mandatory participation requirement under Ontario Works, the City's current child care service target of 2,050
units of care is inadequate. The City, therefore, welcomes the provincial offer of $3,147,500.00 in additional annualized
funding for Ontario Works child care and can find the necessary matching municipal fiscal contribution of $590,156.00
from surplus user revenue.
As already described in the "Joint Implementation Plan for the Transfer of Responsibility for Managing Child Care", the
City has outlined ways in which the child care portion of the Ontario Works Business Plan can be modified in keeping with
the Ministry suggestions contained in its July3,1998, offer of additional funding.
To maximize the use of the available dollars, the Ministry is encouraging the City to consider using more part-time care by
tying a child's care arrangement to the actual amount of time a parent is required to be engaged in a qualifying activity.
Basing a child's care plan on a parent's entitlement time is a significant departure from the current practice of providing a
full day developmental service for children when so requested by subsidy eligible parents. Making the proposed entitlement
change would maximize scarce resources but would also narrow parental choice, reduce some children's program
participation and affect operators' enrolment and funding patterns.
In its July 3, 1998, letter, the Ministry has also clarified the flexibility available to the City to use informal care funding to
purchase care for children from non-licensed community programs (e.g.,Parks and Recreation programs, summer day
camps, family resource centres, on-site child minding services, etc.) and is encouraging the City to use such informal care
arrangements to meet the diverse needs of many clients who require care on an irregular schedule, for a limited time period,
or outside of the normal working day hours of service.
In the Department's ongoing discussions with the Ministry, staff have been assured that different models of school aged
care may be given future consideration provided they conform to legislative requirements. Different models of school aged
care can, in the longer term, help to expand the service potential of the existing system and serve a greater number of
children more effectively and cost efficiently.
The Community and Neighbourhood Services Department and the former Metropolitan Council have always been willing
to give full consideration to a range of service strategies that make the most effective use of available resources and support
the needs of both Ontario Works participants and other parents who are working, studying or coping with special needs.
However, any revision to the existing policy framework that governs the provision of publicly assisted child care requires
full discussion with service partners in the community.
As most child care services are delivered by community agencies and programs, it is essential that they be well informed of
proposed changes and actively consulted on implementation issues. It is also important that the financial and service
impacts of any proposed changes be identified, analyzed and discussed prior to decisions by Council. The Department
proposes engaging the community in such a dialogue and bringing recommendations to Council later in the fall.
Meeting the third condition of the provincial offer of enhanced funding will take a little longer to achieve. An increase in
the level of child care service that may be provided with the annualized increase in funding can be achieved in 1999. But,
the increased level of provincial funding will be needed during 1998 to meet the current costs of providing the contracted
2,050 units of care.
As has already been discussed with provincial officials and outlined for Council in the Department's March 12, 1998,
report, entitled "Child Care Demand Related to the Ontario Works Program", the original level of funding approved is
inadequate to meet the current costs of providing the contracted 2,050 units of care. The average unit cost of service for
children of Ontario Works clients is higher than originally forecast ($28.31 per day versus $18.46 per day) for several
reasons. First, high proportions of younger aged children are being served. This is partly because the provincial regulation
governing mandatory participation which was announced after program costing had been done, includes children of junior
kindergarten age. Fifty-seven percent of the Ontario Works children in care are under four years of age. Serving children of
this age is decidedly more expensive than serving older school aged children on whom the original cost forecast was based.
There is also a higher proportion of younger aged children because of the large number of voluntary participants who have
very young children requiring care. Seventy-five percent of children currently in receipt of care funded by Ontario Works
have parents who are participating voluntarily in the Ontario Works program.
The child care costs are also higher than forecast because of parental choice. The majority of Ontario Works clients choose
formal licensed child care as the service of choice for their children rather than the less expensive informal care
alternatives. Only 2 percent of Ontario Works clients in receipt of child care currently are using informal care. The average
actual cost of informal care is $12.89 per day as opposed to $28.45 for licensed care.
Not only is the provincial funding enhancement needed to meet current program commitments, but there is also insufficient
lead time to make the service strategy modifications necessary to increase future service levels before 1999. The City needs
time to inform its community service partners and discuss the implementation of proposed changes with them. Time is also
needed to discuss the financial and service implications of proposals and to secure Council approval of planned changes.
Any changes in service strategy approved by Council will require a phased implementation to avoid disrupting current
service arrangements for clients already in receipt of care. Therefore, while some service expansion is achievable in 1999
through modification of service strategy, the full annualized effect is not likely to be seen until the year 2000.
The Department is continuing its discussions with the Province to negotiate an achievable plan for the use of the new funds
for Ontario Works child care and will report further to Council on the success of these discussions.
Although the revisions and refinements to the Ontario Works child care strategy being considered could help address some
of the unmet need for care, these strategies alone will not be sufficient. The Department has identified up to 21,500 children
in families with mandatory Ontario Works participation requirements who will require child care support. There are
currently over 15,000 children on the subsidy waiting list whose parents require care to continue working, studying or
coping with special needs. Future referrals from the Healthy Babies, Healthy Children Initiative will further increase this
demand. The need for subsidy expansion is great.
The City has made provision for its 20 percent share of up to 2,000 additional child care fee subsidies from the Social
Services Reserve established in 1998. The City's request to the Province for 80percent cost-sharing for this expansion has,
as yet, gone unanswered. The City is aware, however, that the Province will be announcing how it intends to distribute the
$25 million in LEAP (Learning, Earning and Parenting Program) funding identified in the last provincial budget as a
support to young single parents. It is imperative that the City continues to advocate to the Province its pressing need for
child care subsidy expansion. These discussions with the Province must also highlight the need to increase the supply and
range of care options for parents. Reinstating a cost-shared capital program to encourage licensed child care development is
one important proposal for the City to discuss with the Province.
Conclusions:
Significant progress has been made in the planned transfer of the child care programs from the Province to the City. It is
important for Council to endorse the transfer plan and for the City to continue to press the Province for adequate
administrative support for these transferred programs and for as expeditious a date of transfer as possible.
The additional $3,147,500.00 in provincial funding is needed to provide child care support to Ontario Works participants. It
is critical that the City cost-share this provincial funding enhancement; the $590,156.00 municipal share is available from
the surplus user revenue identified in the Children's Services 1998 operating variance forecast. As a condition of this
additional provincial funding, it is imperative that the City actively consider modifications to its existing child care service
strategy for Ontario Works. For this reason it is vital that the Department initiate a dialogue with the community on how a
broader, more inclusive, range of community services for children could help meet the child care needs of Ontario Works
families. In particular, the Department needs to explore further the impact of basing a child's care entitlement on the
number of hours a parent is involved in work, study or community placement. Assisted by community implementation
advice, the Department would make specific recommendations to Council for consideration later in the fall.
In the meantime, the Department recommends continuing discussions with the Province to use the money fiscally in this
calendar year to cover the costs of the current child care service being provided to Ontario Works clients while an
implementation plan that allows some expansion of service in 1999 and 2000 is negotiated. The Department will also report
to Council on the results of this negotiation.
Contact Name:
Marna Ramsden
General Manager of Children's Services
Tel: 392-8128
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The Strategic Policies and Priorities Committee also submits the following communication (September9,1998) from
Anne Dubas, President, CUPE Local 79:
This report provides information about additional money being offered by the Province to fund child care for Ontario
Works participants and describes the conditions that are being attached to that funding. The report recommends that the
City accept the provincial money with the necessary cost-sharing, continue to negotiate with the Province about the
conditions being proposed, and consult the child care community about how to meet those conditions.
We are very concerned by the conditions the Province is attaching to its offer of funding. According to the report, the
Province is "encouraging the City" to use both informal care arrangements and part-time care and has promised to consider
"different models of school aged care" that the City may propose.
The Province's "encouragement" for the City to provide informal care for Ontario Works clients will have troubling
consequences. It will divert child care money away from the formal child care system. It also has the potential to creeate a
two-tier child care system, a high quality, licensed system for the children of full fee paying parents and "ordinary" subsidy
receipients and a low quality, unlicenced system for Ontario Works participants. This would be an unacceptable step to
take.
Local 79 urges this Committee to commit any additional provincial funding to making high quality, licensed child care
accessible to more children and their parents.
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The Strategic Policies and Priorities Committee also had before it the following items which were circulated to all
Members of Council with the agenda of the Strategic Policies and Priorities Committee for its meeting of September 24,
1998, and copies thereof are on file in the office of the City Clerk:
-Presentation to the Community and Neighbourhood Services Committee on September 10, 1998 by the Metro Toronto
Coalition for Better Child Care
-Presentation to Community and Neighbourhood Services Committee on September 10, 1998, by Spyros Volonakis, Chair,
Child Care Advisory Committee of Toronto
-Presentation to the Community and Neighbourhood Services Committee on September 10, 1998, by Samantha Patton,
Director, Parkdale Beach Child Care Centre
-Communication (September 21, 1998) from the Commissioner of Community and Neighbourhood Services, addressed to
the Chairperson of the Budget Sub-Committee