STAFF REPORT

To: Community Services Committee

From: Commissioner of Community and Neighbourhood Services

Subject:Additional Funding Request from the Family Resource Centres and Special Needs Resourcing Agencies

Purpose:

This report responds to the request of the family resources programs and special needs resourcing agencies for an additional $1 million to be added to the Children's Services budget request. This request was supported by the Children's and Youth Action Committee and referred to the Community Services Committee and Budget Advisory Committee for consideration.

Financial Implications and Impact Statement:

The request of the family resource programs and the special needs resourcing agencies which is supported by the Children's and Youth Action Committee would have the effect of increasing the Children's Services budget request by $1.0 million gross and $ .2 million net were it to be added to the submission. Since this report makes no such recommendation, this report has no financial implications.

Recommendations:

It is recommended that this report be received for information.

Background:

Family resource centres and agencies providing special needs resourcing were among the programs approved by Council April 13, 14 and 15, 1999 for downloading to the City effective July 1, 1999 as part of the provincial local service realignment process. Under the terms and conditions of that transfer, the Province required the City to maintain the funding to these programs without change for at least one year following the date of transfer. At the February 18, 2000 meeting of the Children and Youth Action Committee (CYAC), representatives of these programs made a presentation outlining the financial pressures they were experiencing as a result of historic underfunding and requesting support for a phased plan to address this financial problem. They proposed and the CYAC recommended that $1 million (gross) be added to the Children's Services budget request as a first year downpayment or instalment in a five-year plan to more adequately fund their services. The Budget Advisory Committee, at their February 22, 2000 review of the Children's Services budget submission requested that the department comment on the CYAC recommendation respecting increased funding for family resource centres and special needs resourcing.

Comments:

The Department has less than one full year's contractual history with these programs having just assumed service system management responsibility for them July 1, 1999 when they were downloaded from the Province. An analysis of these programs' first budget submissions to Children's Services as well as a review of their previously approved Ministry funding level was undertaken. The preliminary analysis confirms that family resource centres spent all the monies flowed to them under their previous service contracts with the Province ($3,369,922.00) as well as the $790,104.00 in funding they are receiving from other funding sources such as the United Way. They did not incurr shortfalls and technically speaking their actual costs of operation are being met. They are living within their budgets although they may not be providing all the services they ideally would like. This conclusion is not intended to refute their claims that prior to the July 1, 1999 download they were subject to Ministry imposed funding constraints of approximately 6 to 7.5 per cent since 1994, depending on whether they received wage subsidy, nor to refute that they have unfunded pay equity obligations.

With respect to special needs resourcing, the preliminary analysis shows that these programs have submitted 2000 budgets totalling $2,976,961.00. The Ministry approved funding of $2,949,864.00 leaving a shortfall of approximately $27,097.00 which presumably is found through fundraising activities. Essentially, special needs resourcing programs are also living within the resources available. They, like the family resource programs, were also subject to the Ministry imposed funding constraints of approximately 6 to 7.5 per cent since 1994 depending on whether they received wage subsidy. They, too, may have unfunded pay equity obligations.

In the case of approved corporations, there is a potentially stronger case to be made for financial disadvantage as their cost sharing status changed with the download from the Province to the Municipality. Prior to downloading , they were funded 87 per cent by the Province and were responsible for raising the remaining 13 per cent from clients and/or fundraising. Since downloading to the City, their services are subject to the regular 80:20 municipal provincial cost sharing formula but they can no longer charge clients for any shortfall in public funding. While these programs were not subject to the previous provincial constraint discussed above, they too, may have unfunded pay equity obligations. The approved corporation 2000 budgets, as submitted, indicate program spending of $3,311,953.00. Initial analysis of these budgets indicates a potential shortfall of up to $360,000.00. Agencies have addressed this shortfall through fundraising and in kind services.

The Children's Services 2000 budget as recommended by the CAO makes no provision for increased funding for these programs. Even the proposed second year payment in the phased return to actual costs plan for licensed programs, which was originally part of the Children's Services budget submission, has been recommended as a cut. Had this enhancement been recommended for approval, it may have been possible to spread the intended funding enhancement beyond just the licensed programs to provide some financial relief to family resource programs and special needs resourcing as well in recognition that they too, like the licensed care programs face average annual inflationary costs of approximately 1 per cent. Unfortunately, the Children's Services budget as currently recommended is no longer large enough to include any additional funding provision for any of the child care services which are part of the Children's Services portfolio.

This matter will be reconsidered in the context of the 2001 operating budget request.

Conclusions:

This report is provided for the information of both the Budget Advisory Committee and the Community Services Committee

Contact:

Karen Gray

Program Manager, Contracted Services Unit

Children's Services Division

Tel: 397-1465

Email: gray@csis.csis.csd.metrotor.on.ca

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General Manager of Children's Services

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Commissioner of Community and Neighbourhood Services