April 21, 1998

 To:Strategic Policies and Priorities Committee

 From:City Clerk

 Subject:1998 Operating Budget - Community and Neighbourhood Services - Funding Cost of Filling 2,000 Licensed Child Care Spaces

 Recommendations:

 The Budget Committee on April 20, 1998, recommended to the Strategic Policies and Priorities Committee, and Council, that:

 (1)a reserve account be set up into which savings resulting from a social assistance caseload drop below 88,000 be directed;

 (2)the purpose of this reserve account be to protect against future caseload increase and that these funds also be available to provide interim funding for the child care costs of up to 2,000 clients leaving social assistance;

 (3)a communication be sent to social assistance recipients advising that should they cease to be dependent upon social assistance, child care funding could be available immediately to support their work or study commitments. However, funding from this reserve fund would cease upon re-entry to the social assistance system;

 (4)the funding of child care spaces from the reserve fund be contingent upon appropriate provincial cost sharing; and

 (5)the Commissioner of Community and Neighbourhood Services report back on the results of the cost sharing discussions with the Province and any implementation progress that follows.

   Background:

 The Budget Committee on April 20, 1998, had before it the following:

 (a)Report (April 15, 1998) from the Commissioner of Community and Neighbourhood Services regarding funding cost of filling 2,000 licensed child care spaces; and

 (b)Letter of transmittal (April 16, 1998) from the Children=s Action Committee regarding the expansion of child care subsidies.

 City Clerk

 Barbara Liddiard/rc/kd

Item No. 4

Attachment

 Sent to:Commissioner of Community and Neighbourhood Services

Interim Functional Lead for Children=s Services

 c.Chief Financial Officer and Treasurer

Chief Administrative Officer

(Report dated April 15, 1998, addressed to the

Budget Committee from the

Commissioner of Community and Neighbourhood Services)

 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

 (Letter of transmittal dated April 16, 1998, addressed to the

Budget Committee from the

Children's Action Committee)

 Recommendation:

 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;...@

 (This communication has also been forwarded to the Community and Neighbourhood Services Committee).