Fee Stabilization Support Funding
This funding is intended to help child care operators meet minimum wage requirements and avoid increases in child care fees for families. City Council has approved distribution of Fee Stabilization Support Funding for 2018.
All licensed child care centres and home child care agencies that opened before July 1, 2018 are eligible to receive this funding, regardless of auspice.
Letters will be sent by email to all applicants confirming if they are approved or ineligible for funding. Fee Stabilization Support Funding will be distributed in December 2018 to approved applicants.
Using the Fee Stabilization Funding
In September 2018, the Ontario Ministry of Education revised the funding guidelines in the following ways:
- Funding may now be used to support cost pressures associated with general compensation for staff such as vacation and sick leave.
- The new guidelines remove restrictions limiting funding to staff who were earning less than $14/hour as of December 31, 2017.
- Remaining requirement for operators is the need to demonstrate fees were reduced or maintained from 2017 to 2018.
Centres receiving Fee Stabilization Support must demonstrate the percentage change in child care fee increases avoided in 2018, as compared to 2017. This is also referred to as “fee avoidance”. Funding may be used also to support compensation, including increased vacation and sick leave entitlements, for licensed child care staff.
Fee Avoidance Example
Centre A’s child care fees as of December 31, 2017 are $50/day. On January 1, 2018, child care fees would have increased to $55/day (or 10%).
However, as a result of Fee Stabilization Support funding, child care fees were increased only to $51/day (or 2%).
Therefore, the fee avoidance is 8% (anticipated 10% increase minus actual fee increase of 2%).
Any under spent and/or funding not spent on the prescribed expenditures in accordance with the guidelines by December 31, 2018, will be recovered.
General Operating Funding
Centres who have used General Operating Funding (GOF) for fee avoidance in 2018 must demonstrate an additional fee avoidance to be eligible for Fee Stabilization funding.