July 7, 1999

To:Policy and Finance Committee

From:Commissioner of Community & Neighbourhood Services

Subject:Provincial Response to Child Care Cost Sharing Request

Purpose:

When City Council as part of the the 1999 approval of the Children's Services Division budget agreed to spend $3.3 million as a one time contribution towards the actual costs of service for providers of subsidized child care the department was directed to seek provincial cost sharing and report back on provincial willingness by July 1999. This report confirms that while the Toronto Regional Office of the Ministry of Community and Social Services commends Council for its support of child care programs, it is unable to provide matching provincial cost sharing as requested.

Funding Sources, Financial Implications and Impact Statement:

The $3.3 million needed to finance the one time bonus payment to child care operators and home child care providers was approved by Council at its meeting held April 26, 27, and 28, 1999 and is available within the Children's Services allocation. Council at this meeting also confirmed approval for the department to flow this money to operators and providers by September 1999 even if provincial cost sharing could not be secured.

Recommendations:

It is recommended that this report be received for information.

Council Reference/Background/History:

During the 1999 budget discussions the fact that the rates paid to home child care providers and operators providing subsidized child care had not been increased since 1991 and 1993 respectively was discussed. A strategy to give those providing subsidized child care a one time bonus payment from unspent money budgeted originally for school rents was proposed and supported by Council. The $3.3 million in unspent rent funds is sufficient to return all operators to within 96 per cent of their optimal per diem rates and to give an average of $.90 cents a day per child bonus to home child care providers to bring them closer to the market rates requested. The use of the $3.3 million for this purpose was described as a "downpayment" on actual costs.

In approving this one time payment strategy, Council directed the department to seek provincial cost sharing for this planned expenditure and to report back by July on the provincial response received to the City's request. Council also gave staff authority to implement the one-time City payment in September regardless of whether provincial matching dollars could be secured

Comments and/or Discussion and/or Justification:

The Department wrote to the Toronto Regional Office of the Ministry of Community and Social Services on May 3, 1999 as directed. On June 2, 1999 the Department received a response from the Ministry's Regional Director advising that the Ministry is not in a position to provide the matching dollars having no additional unallocated dollars with which to consider the City's request.

Conclusions:

As previously approved by Council, the Department will proceed to disperse the one-time payment of $3.3 million to bring the rates of all operators providing subsidized child care to within 96 per cent of their optimal per diem rates and to provide an average of $.90 cents bonus on the daily rates of home child care providers serving subsidized children.

Contact Name:

Marna Ramsden-Urbanski

General Manager

Children's Services Division

Tel.: 392-8128

email: ramsden@csis.csis.csd.metrotor.on.ca

General Manager of Children's Services

Commissioner of Community & Neighbourhood Services