City of Ottawa Children s Services

Transcription

1 City of Ottawa Children s Services Child Care Service Plan

2 Table of Contents Executive Summary...4 Introduction...6 Section1: Public Engagement Consultation Strategy Child Care Consultation and Information Session... 8 Section 2: Provincial Factors Impacting the Local Child Care System Implementation of Full Day Kindergarten (FDK Provincial Capital Investment The Child Care and Early Years Act, 2014 (CCEYA) Family Support Programs...11 Section 3: Current Service Sector Children and Families in Ottawa Families with Low Income Families in Receipt Ontario Works Supporting Francophone Families Francophone Programs Supporting First Nations/ Métis/Inuit Families Children with Special Needs Licensed Child Care in Ottawa Licensed Home Child Care (LHCC) Early Intervention Programs Child Care Registry and Waitlist (CCRAW) Financial Assistance for Child Care Priority Criteria Placement Coordination...19 Section 4: Directly Operated Child Care Programs Overview of City-Based Programs Staffing and Financial Impacts of CCEYA on Municipal Child Care Programs...21 Section 5: Financial Management Introduction Implementation of the New Funding Framework Contribution Agreements Sector Stabilization and Child Care Rates Viability and Sustainability Planning Emergency Bridge Funding

3 5.7 The New Fee Subsidy Model...26 Section 6: The 2016 Child Care Budget Introduction Provincial Funding Core Service Delivery Wage Enhancement Funding (WE) Special Needs Pay Equity Special Purpose and Capital Retrofit Funding Family Support Programs Municipal Investment Emergency Bridge Funding Health and Safety Funding Child Care Facility Funding Conclusion and Next Steps Appendix A: Child Care Modernization Framework Appendix B: Principles for Child Care Modernization Appendix C: Ottawa s Local System Priorities Appendix D: Letter to the Province Appendix E: French Language Designation Criteria Appendix F: French Language Designation Agencies and Sites Appendix G: Fee Subsidy Funding Policy Statement Appendix H: Priority Criteria Appendix I: MCC Demographics and Alternate Child Care Options Available Appendix J: Child Care Rates in Ottawa Appendix K: General Operating Funding Policy Statement Appendix L: Emergency Bridge Funding Policy Statement Appendix M: Child Care Facility Funding Policy Statement

4 Executive Summary As the Consolidated Municipal Service Manager (CMSM) the City of Ottawa is required to complete a service plan, an important document that supports the planning and delivery of child care services in Ottawa. In developing the Child Care Service Plan , City staff conducted a broad community engagement exercise with the licensed child care community, seeking feedback on system priorities and policies. The Child Care Service Plan builds on the significant system changes outlined in the 2015 service plan, providing greater detail on implementation processes, impacts to the community and next steps. The service plan provides a vision for continued transformation of the sector to align with Provincial direction in the final year of the local Child Care Modernization framework. The Child Care Service Plan is divided into six sections. Section 1: Public Engagement In 2015 the City consulted with multiple stakeholders, including the expert panel on Viability and Sustainability, the Parent Advisory Group and the Stakeholder Reference Group. Section 1 summarizes the key activities of these consultative groups, detailing the resources and supports required to achieve identified outcomes for A summary of the February 2016 child care consultation and information session is included. Section 2: Provincial Factors Impacting the Local Child Care System Provincial policy and legislation are driving factors behind the significant changes to the child care system in Ottawa. Section 2 examines the provincial factors impacting child care programs and services in Ottawa including; the implementation of full day kindergarten, Provincial Capital Investment, the Child Care and Early Years Act, 2014 and the delivery and the funding of Family Support Programs in Ontario, that is the newly announced Ontario Early Years Child and Family Centres (OEYCFC). Section 3: Current Service Sector A snapshot of child care programs and services in Ottawa is provided in Section 3. It includes demographic information specific to the children and families accessing child care programs in Ottawa. First Nations, French-language, special needs and early intervention programs and services are highlighted. Section 4: Directly Operated Child Care Programs In 2013, City Council approved the City s vision for modernizing Ottawa s child care sector while directing a review of the City s directly operated child care programs. As a result, the City undertook an extensive review of its municipal programs. Section 4 summarizes this review. Section 5: Financial Management The Stabilization Initiative ($11.5M) was approved by Council to support agencies in transitioning to the new funding model that was implemented beginning in Section 5 highlights additional supports that are being implemented to further stabilize the sector including: child care rates; viability and sustainability supports and; emergency bridge funding. 4

5 Section 6: The 2016 Child Care Budget The City s total child care budget for 2016 is $119.7M. Section 6 provides a breakdown of total funding allocated for programs and services, distinguishing the 100 per cent municipal investment from total Provincial funding. This section includes solutions for addressing the $1.4M reduction in Provincial funding, including those endorsed by the licensed child care community at the February 2016 child care consultation and information session. 5

6 City of Ottawa Child Care Service Plan Introduction The City of Ottawa, as a Consolidated Municipal Service Manager (CMSM), is responsible for the delivery of child care services on behalf of the Province of Ontario. The Children Services Unit of the Community and Social Services Department oversees the delivery of the child care programs and services outlined within the Child Care and Family Support Program Service Agreement with the Ministry of Education. The City enters into agreements with local service providers for the delivery of the programs and services as outlined within the agreement. The City of Ottawa s total child care budget in 2016 is $119.7M. The total Provincial- Municipal cost share funding is $106.7M with an additional 100 per cent municipal contribution of $13M. In addition, the City also directly operates 11 child care centres with a total licensed capacity of 504 spaces. Background The Province began to modernize the child care sector in 2005 with the implementation of the Best Start strategy. Influenced by Dr. Pascal s vision for child care and early years, the system has continued to transform. Key milestones in the modernization of child care include: Responsibility of child care transferred from the Ministry of Community and Youth Services to the Ministry of Education, with a focus on early learning ( ); Full day kindergarten is implemented ( ); A new Provincial funding approach is implemented (2013); The Ontario Early Years Policy Framework is introduced (2013); How Does Learning Happen is established as the framework for quality and pedagogy (2014); Child Care and Early Years Act, 2014 is enacted (2015); and The vision for the creation Ontario Early Years Child and Family Centre is announced by the Province (2016). Vision and Mandate The Province s Vision for Child Care and Early Years is stated as: Ontario s children and families are well supported by a system of responsive, highquality, accessible, and increasingly integrated early years programs and services that contribute to healthy child development today and a stronger future tomorrow. Within the legislation, the City is required to maintain the provincial interest. The City has articulated a vision for Children s Services to align with the Provincial mandate: Children s Services, together with community partners, provides high quality child care services that are accessible, inclusive and affordable to families. Every child has the right to childhood experiences that promote early learning and healthy development. 6

7 Locally, Ottawa has been transforming the child care sector in response to significant Provincial changes and in 2013, introduced the Child Care Modernization Framework (Appendix A) which includes: 1. System Planning Priorities 2. Prioritized Access to Fee Subsidies 3. Financial Management 4. City Operated Child Care Programs This framework has set the direction for key initiatives aimed at creating a child care system in Ottawa where: Access to child care fee subsidies is streamlined and priority is given to the families who are most in need; Parents with child care fee subsidies have a broader range of child care providers from which to choose; All not-for-profit child care agencies receive remuneration for child care fee subsidies based on an equitable and transparent funding formula that considers the age and number of children served; Child care agencies report on established performance measures and continuous service improvements for children and families; and Planning for the child care and early years system is achieved in an integrated and cooperative manner. As part of the 2014 Child Care Service Plan, the City identified guiding principles to help achieve this vision including: parental choice; prioritized access to subsidy; unique needs; system accountability; system sustainability; integrated planning and transparency and; engagement. Refer to Appendix B for details on the local principles for child care modernization. Section1: Public Engagement 1.1 Consultation Strategy The Child Care and Early Years Act, 2014 outlines the requirement for service system managers to consult with key stakeholders in the community when developing service plans. The City consulted with multiple stakeholders throughout An overview of the key stakeholder groups is provided below. Expert Panel on Viability and Sustainability As committed in the 2015 Child Care Service Plan, an Expert Panel on Viability and Sustainability was implemented to identify tools and resources to support licensed child care providers in developing business plans to respond to the new funding framework. Further details on the Expert Panel can be found in Section 5 of this service plan. 7

8 Parent Advisory Group The Parent Advisory Group was introduced in 2015 in order to better understand a parent s experience within Ottawa s child care system. Parents have provided feedback on a number of changes to the child care system including the Child Care Registry and Waitlist, communication and marketing strategies, accessing fee subsidies and quality child care. Stakeholder Reference Group In 2013, following a broad consultation with the child care sector and parents, the City implemented a consultation strategy for child care modernization that included the development of the Stakeholder Reference Group (SRG). In 2015, the SRG developed a strategic work plan in response to changes occurring in the child care sector. The following strategic priorities were identified and addressed in 2015: quality, system planning, prioritized access to fee subsidy and capacity building. Appendix C summarizes the priority activities of the SRG work plan and the expert panel and outlines the tools, supports and training required in order to achieve the anticipated objectives of the workgroups. The plan calls for a spring forum for boards of directors and executive directors focused on How Does Learning Happen (HLDH), viability and sustainability plans and system planning data and tools. The plan also calls for a fall conference for front line staff on HDLH (with a focus on building a network of facilitators and coaches). 1.2 Child Care Consultation and Information Session On February , the City hosted consultation and information sessions with over 250 participants from the licensed child care community in order to confirm the priorities and strategies for the current child care service plan. Figure 1 is a summary of the feedback heard at the February 2016 consultation. 8

9 Figure 1: Summary of Feedback from the 2016 Child Care Consultation and Information Session 9

10 Section 2: Provincial Factors Impacting the Local Child Care System Provincial policy and legislation are the driving factors behind the significant changes in the child care sector in Ottawa. As the service system manager, the City is required to implement provincial policy while continuing to meet the needs of the child care community in Ottawa. The impact of the implementation of full day kindergarten, the Provincial Capital Investment, the Child Care and Early Years Act, 2014 (CCEYA) and recent changes to family support programs have all had an impact on the local child care sector. 2.1 Implementation of Full Day Kindergarten (FDK) The implementation of full day kindergarten began in 2010 and was completed in September 2014, resulting in a 33 per cent increase in licensed spaces in Ontario during this time. 1 With the transition to full day early learning, school boards developed an integrated planning system, as supported by their elected officials, which reviews and revises service offerings based on community demographics. As directed by the Ministry of Education, the City as service system manager, works collaboratively with local school boards to review and incorporate proposals into a city-wide plan for the allocation of programs, services, and resources in order to provide a seamless transition for children between community-based child care service providers and the school system. 2.2 Provincial Capital Investment The Ministry of Education launched the Schools First Capital Retrofit Policy in Capital investment from the Province allows schools to repurpose school space as part of a transition to serving children 0 to 3.8 years. Since the implementation of the Schools First policy in 2012, the Province has allocated almost $12M for Schools First capital retrofit in Ottawa. Provincial capital funding for new construction of child care was announced in 2015, with an investment of $120M over three years to support the construction of new child care spaces for children ages 0 to 3.8 years, in both new and expanded schools. All four school boards in Ottawa have applied to the Province to expand their licensed capacity. Up to 1897 new licensed spaces will be created in Ottawa (551 spaces for ages and 1346 spaces for ages 4-12) including 1590 francophone spaces. There has been a gradual increase in licensed spaces in Ottawa from 21,448 in 2010 to 32,681 in While this is good news for parents who may prefer to access child care in schools, it has created pressure within community-based child care centres who may struggle to fill the spaces vacated by those who left for school-based care. The impact of full day kindergarten and the provincial capital investment on communitybased child care in Ottawa is not yet fully known. 1 Ontario Ministry of Education, Ontario Ministry of Education,

11 2.3 The Child Care and Early Years Act, 2014 (CCEYA) The shift from delivery agent to that of service system manager creates a significant expansion to the role of the City in the delivery of child care services and early learning programs, and in particular an increase in local responsibilities. Table 1 describes the new role of the City as service system manager under the CCEYA as compared to their previous role under the Day Nurseries Act (DNA). Table 1: Role of Service System Manager Historically (DNA) CCEYA (as of Aug 31, 2015) Service delivery agent Role is not legislated City not required to enter into agreement with the Province Plan and manage delivery of child care services (ages 0-4) Develop local child care plan Agreements with child care service providers for the delivery of child care services Service system manager; maintain interest of the Province Role is legislated Plan and manage coordinated and integrated early years programs and services, including child care services (ages 0-12) Develop a local child care and early years plan responsive to Provincial interest Lead local initiatives to address the various needs of the community, establish connections among child care and early years programs and services, and plan for the delivery of a continuum of such programs and services. As child care is a provincially funded program, the City will presume that the Province has completed an analysis of the costs associated with the implementation of these proposed regulations and has a financial plan to support funding for local child care providers. The City outlined its concerns to the Province (Appendix D) in a response to the draft regulations in April Family Support Programs The Provincial vision for early years includes a high-quality and responsive system that is easily accessible to children and families in Ontario, with integrated programs and services that are well coordinated and easier for families to navigate. There are four provincially-funded child and family programs; Ontario Early Years Centres (OEYCs) Parenting and Family Literacy Centres (PFLCs) Child Care Resource Centres (CCRCs) Better Beginnings, Better Futures (BBBFs) that includes eight province wide programs focused on poverty reduction 11

12 On February , the Ministry of Education announced that, by 2018, the Province aims to integrate all four programs into one single and cohesive system known as the Ontario Early Years Child and Family Centres (OEYCFC s), guided by a provincial framework and a new funding approach. The Ministry outlined the critical role that CMSM s are required to play to transform the sector including: Conducting a needs assessment ( ); Engaging parents, caregivers and early years partners; Integrating OEYCFC s into local service system plans for early years programs; Managing Provincial funds and contracts associated with the delivery of the OEYCFC s and measuring and reporting the impact of the OEYCFC s on families. Beginning in 2018, the City will be required to manage the delivery of core services including services aimed at: engaging parents and caregivers; supporting early learning and development and; making connections to other family services. CMSM s must decide how the core services are delivered, and by whom, through local system planning. The Province has committed to maintain the current level of funding ($97M) in the OEYCFC system. What is uncertain is the funding approach that will be used to allocate these funds across the Province. Local impacts are not known at this time. What is clear is that these changes represent a significant shift and expansion to the role of CMSM s. With no new provincial funding, CMSM s are left with the difficult task of meeting new Provincial demands in a system that is already under funded. With limited information from the Province at this time, the City estimates that the initial administrative cost to implement the new integrated approach to child and family programs will be beyond the capability of the City to absorb unless additional administrative funds are allocated by the Province. Section 3: Current Service Sector 3.1 Children and Families in Ottawa According to the 2011 census, the total population in Ottawa reached individuals in 2011, an increase of 8.8 per cent since Of the total population, nearly are children 12 years and under, representing over 14 per cent of Ottawa s total population. This is expected to increase to 140,000 by the year The breakdown by age group is listed in Figure 2. Figure 2: Percentage of children under the age of 12 living in Ottawa 5 2.2% Infants (Under 2 years of age) 1.1% Toddlers (2 years old) 3 Statistics 4.4% Preschool/Kindergarten Canada, 2011 (3-6 years old) 4 Planning and Growth Management Department, City of Ottawa, % School Age (7-12 years old) 5 Statistics Canada,

13 3.2 Families with Low Income Economic status is one of the largest external influences on a child s development. Parental income both directly and indirectly influences a child s quality of life. Financial resources can influence the ability to buy nutritious food, access safe and stable housing, participate in recreational activities and access quality child care. The 2011 National Household Survey notes that the overall poverty rate for Ottawa residents is 11.7 per cent, and the poverty rate for children aged 0-6 is 15.2 per cent. 6 All families rely on a range of services to meet the child care needs of their children. However, because funding is limited, the City gives priority access to child care fee subsidy to families most in need, including households whose income is under the Low Income Cut Off (LICO). 3.3 Families in Receipt Ontario Works The Ministry of Education directs municipalities to prioritize child care fee subsidy funding to Ontario Works (OW) and Ontario Disability Support Program (ODSP) recipients. Since the implementation of priority criteria in 2014 in Ottawa, the number of OW/ODSP parents approved for fee subsidy increased from eight per cent to 30 per cent. 7 In Ottawa, nearly 31,000 adults and children received Ontario Works on a monthly basis. The majority of recipients (62 per cent) were single individuals while 37 per cent were families with children 8. Figure 3 highlights the income source for children and families with a fee subsidy. Figure 3: Income Source for Children Placed in Child Care with a Fee Subsidy 9 During the past year, 24 per cent of those exiting OW are leaving for reasons of employment. 10 Youth, sole support parents, people with disabilities, new Canadians, and older adults face more significant barriers to employment. They may experience 6 Statistics Canada, Census and National Household Survey, OneHSN, January CSSD, City of Ottawa, OneHSN, January CSSD, City of Ottawa,

14 longer stays on OW and require more supports, including child care, to successfully transition to employment. 3.4 Supporting Francophone Families In 2006, Council approved the Francophone Child Care Development Plan (ACS2006- CPS-PAR-0007), which allocated additional funding for Francophone child care services in Ottawa in order to achieve equity for the Francophone population. As of January 2016, the percentage of the child care budget allocated to Francophone services was 17.2 per cent, thereby surpassing the equity target of 15.2 per cent established by the 2011 census report Francophone Programs In 2010, the City of Ottawa implemented a policy known as the French-language designation of licensed child care programs. This policy lists the key criteria for identifying French-language licensed child care programs. It enables parents to make informed choices and ensures that French-language services are available to meet the needs of the Francophone population in Ottawa. Child care agencies offering services in French and that meet the French-language designation criteria may request a French-language designation. Appendix E lists the criteria required for French language designation, as per the City s policy. Agencies may request a French-language partial designation (i.e. only parts of their programs are designated French). To date there are a total of 46 Francophone designated programs in Ottawa and seven programs with partial designation. Refer to Appendix F for a complete listing of Francophone designated agencies in Ottawa. 3.6 Supporting First Nations/ Métis/Inuit Families The 2011 National Household Survey identifies that there are approximately 35,000 Ottawa residents of North American Aboriginal origin. Aboriginal children aged 14 years and under represented 20.3 per cent of the total Aboriginal population and 2.5 per cent of all children in Ottawa. 12 Currently fewer than 2 per cent of parents of children on the Child Care Registry and Waitlist (CCRAW) have indicated that they are of Aboriginal status. 13 It is important to note that families applying for care are not required to indicate if they are of First Nations/Métis/Inuit status. First Nations/Inuit/Métis families are prioritized on the waitlist for child care once approved for a fee subsidy. Feedback from the child care community is that this sector may be under represented in the data as a result of the tendency to not self-identify upon completing the application for child care. The City will continue to work with the First Nations/Métis/Inuit service providers in order to better understand the needs of this community. 11 Finance Department, City of Ottawa, January Statistics Canada, OneHSN, January

15 3.7 Children with Special Needs The City is committed to supporting parents with a documented illness or disability and families with children who have a documented need(s) through access to fee subsidies. The Province legislates that 4.1 per cent of Provincial funding be allocated towards services for children with special needs. The City allocates over 5 per cent of its funding for programs serving children with special needs. At the child care consultation held in February 2016, the child care community supported maintaining funding for special needs resourcing. Currently only 3 per cent of the parents with children on the CCRAW have self-declared upon application that their child has a special need. 14 Families of a child with a documented need and parents with a documented illness or disability are also prioritized on the waitlist for child care once they have been approved for a fee subsidy. 3.8 Licensed Child Care in Ottawa Licensed child care in Ottawa is provided through centre-based care or by a home child care provider who has a contract with a licensed home child care service provider. There are a total of 311 licensed centre-based child care centres in Ottawa and 15 licensed home child care agencies. Of this, 76 per cent of the child care programs (centre-based and licensed home child care) are operated by not-for-profit organizations and incorporated under one of the federal or provincial acts governing not-for-profit corporations. Twenty-four per cent are operated by incorporated for-profit child care service providers. 15 Licensed capacity refers to the total number of spaces offered in a licensed child care program. Ottawa has a total licensed capacity of 32,681 spaces. Ottawa has seen a steady increase in licensed capacity (Table 2) with a total increase of over 11,000 spaces since Table 2: History of Licensed Child Care Spaces in Ottawa Total Licensed Capacity (includes licensed home child care) 21,448 22,698 24,419 27,213 28,051 32,681 According to the Province of Ontario, the increase in licensed spaces can be partially attributed to the implementation of full day kindergarten in 2010 and the School s First Policy in 2012, noting a 33 per cent increase in licensed spaces in Ontario since that time OneHSN, January Ministry of Education, Ministry of Education, Ministry of Education,

16 3.9 Licensed Home Child Care (LHCC) Licensed home child care is provided in the homes of child care services providers who are affiliated with and monitored by a licensed home child care service provider. Individual home caregivers are not licensed by the Ministry of Education, but are contracted by home child care agencies that are licensed. LHCC services are available throughout the city of Ottawa. There are 15 licensed home child care programs in Ottawa, with a licensed capacity of 6,647 spaces Early Intervention Programs Early intervention programs are licensed child care programs that make up an important service sector for Ottawa s most vulnerable families. They include both Headstart Programs and specialized programs for young parents. Headstart Programs There are nine Headstart Early Intervention Programs in the City of Ottawa. Seven programs are managed by five community based not-for-profit agencies and two programs are directly operated by the City (Foster Farm Child Care Centre and Esther By Child Care Centre) with a total licensed capacity of 180 spaces 18. This made in Ottawa program provides specialized programming for families with multiple barriers including abuse, neglect, addiction, mental illness, speech or developmental delays or other identified social needs. The current funding model supported by the City of Ottawa recognizes the special needs of multi-risk families and the expertise and capacity of Headstart programs to provide the enhanced supports they need. As the majority of the families accessing care through a Headstart program are subsidized, fee subsidy funding for these programs has been preserved in The City has partnered with Carleton University researchers to access MITACS research grant funding. With the support of the Ottawa-Carleton Headstart Association for Preschools Network (OCHAP), this qualitative research project will examine the local Headstart programs in order to understand the contributions of these programs to child development, and to determine what key program components and strategies lead to their success. Programs for Young Parents Petites Frimousse (French) and Youville Centre (English) serve primarily adolescent mothers and their children with a combined total licensed capacity of 80 spaces. 19 Both programs have mandates with the Ministry of Education via local school boards to offer child care to young mothers attending the centre while completing a high school diploma in this fully accredited secondary school. Funding for these programs will also continue to be preserved under the new fee subsidy model in Ministry of Education, Ministry of Education,

17 3.11 Child Care Registry and Waitlist (CCRAW) In June 2014, the City of Ottawa launched the Child Care Registry and Waitlist (CCRAW), a customized and responsive system for parents to apply for child care and fee subsidy and for child care service providers to manage their waitlists. As service system manager, the City will be able to use data from the waitlist to plan for and respond to the needs within the child care sector including: Directing provincial funding to the most vulnerable children and families; Maximizing the utilization of provincial funding; and Identifying the current/future child care needs of the community by program type (infant, toddler, etc) and ward. Since 2014, reporting abilities in the CCRAW have been greatly enhanced and the City is now able to report on the items listed below. Below is a profile of families on the CCRAW as of February ,830 children waiting for a licensed child care space 7,846 children waiting for a full fee space 984 children eligible for a fee subsidy and waiting for a space 3,131 children placed in a child care program and in receipt of a fee subsidy and requesting a transfer to a child care program at a preferred location 30 % of all families approved for a fee subsidy are in receipt of Ontario Works The CCRAW was further enhanced in 2015 to support new functionality required to support the new fee subsidy model. The City worked with the system developer, internal staff and members of the child care community to identify enhancements that would support the new fee subsidy model and meet the needs of parents and child care service providers. Specific enhancements are further described below. a) Priority Criteria All families approved for a subsidy are ranked in order of priority (as per criteria outlined in Section 3.13). Child care service providers with a contribution agreement for fee subsidy are required to accept children in order of highest priority. b) Vacancy Reporting Effective January 2016, all child care service providers with a contribution agreement must report their current vacancies in each of their programs on a monthly basis in the CCRAW. City staff working directly with parents will now have the ability to provide parents with information on available spaces in their preferred area. The City will also be able to track vacancy trends across the sector by ward and program type in order to inform future investments in child care spaces. 20 OneHSN, February,

18 c) Transfer Status As a result of the new fee subsidy model, where the subsidy follows the child, parents have the ability to transfer from one child care service provider to another (providing the child care service provider has vacant spaces within their licensed capacity). The enhancement to the CCRAW facilitates the transfer for families and for child care service providers as this permits families to stay on the CCRAW until they find their preferred placement with the child care service provider of their choice Financial Assistance for Child Care A child care fee subsidy helps with the cost of child care for eligible families and may cover all, or part, of a family s child care costs. Out of the 8,830 children waiting for a space on the waitlist, approximately 11 per cent have applied and been approved for fee subsidy 21. Until the end of 2015, subsidized child care spaces were attached to specific child care service providers with guaranteed fee subsidy funding previously referred to as Maximum Confirmed Budgets (MCB). The historical MCB process resulted in many challenges: Proportion of subsidized spaces attached to agencies did not necessarily reflect demand in local neighbourhoods, thereby resulting in underutilization; Opportunities for system growth were limited as underutilized subsidies attached to specific agencies could only be recovered and redistributed once annually; Parents eligible for a subsidy often accepted any subsidized space regardless of proximity to their preferred geographic location; and MCBs were administratively cumbersome for staff and child care service providers as a result of the processes attached to the allocation and recovery of funds. On January 1, 2016, Ottawa moved to a more flexible fee subsidy model that offers choice to parents and allows funding to be portable. Families who qualify for financial assistance with child care costs can choose where to access licensed child care as long as that child care service provider has space available within their licensed capacity and has a signed contribution agreement with the City of Ottawa. Benefits to parents and child care service providers include: Parents have more child care options from which to choose from (26 new agencies offer a fee subsidy); Parents who qualify for financial assistance can transfer from one provider to another without impacting their access to funding; Child care service providers are funded based upon the number of subsidized children in their centres; and There is no limit to the number of children with a fee subsidy that child care service providers can accept (within the licensed capacity of their program and subject to the availability of fee subsidy funds). 21 OneHSN, February

19 Lastly, in 2016 the City will begin accepting applications for the provision of fee subsidy from not-for-profit child care service providers who currently do not have a contribution agreement with the City. There are currently seven not-for profit child care service providers who do not have a contribution agreement with the City of Ottawa. Further details on the application process, eligibility criteria, and reporting requirements are outlined in Appendix G Priority Criteria Due to high demand for financial assistance for child care, the City identified the need to streamline access to child care fee subsidy and to ensure priority is given to families who are most in need. The City implemented priority criteria (Appendix H) that were developed in consultation with an Expert Panel made up of local academics and accredited experts in child development and the Stakeholder Reference Group, as outlined in both the 2014 and 2015 Child Care Service Plans. Upon application for fee subsidy in the CCRAW, a family s income, qualifying activity and other priorities are weighted. Each child is assigned a numerical score and placed in order of priority on the waitlist for each child care program to which they have applied. In 2014, the City partnered with 38 agencies, including municipal child care centres, to pilot the new fee subsidy model. The model prioritized access to child care fee subsidy for Ottawa s most vulnerable families using the waitlist technology and the established priority criteria. As of January 2016, all child care service providers who have a contribution agreement with the City of Ottawa are required to select the child with the highest priority when placing a child with a fee subsidy. As outlined in Appendix H, the City prioritizes parents in receipt of Ontario Works/Ontario Disability Support Program as well as parents living below LICO (low income cut off). Other priorities include single parent families, First Nations/Inuit/Métis families, and children with a documented recognized special need. With the system wide implementation of full day kindergarten now complete, children ages 3.8 years and older can access full day early learning programs offered in schools. There are currently 184 families in Ottawa who access financial assistance for a full time child care space, at a cost of $1.9M even though they qualify for FDK. 22 Based on feedback received at the February 2016 child care consultation and information session, the City will undertake a survey of the 184 families to gain additional information on why families choose to keep their children in a licensed child care preschool program instead of FDK. While the child care community agrees that priority to limited financial assistance should be given to those who most require care, there was varied feedback on prioritizing fee subsidy for children not eligible for FDK Placement Coordination Placement coordination was introduced in 2014 as the process by which children approved for a fee subsidy and who have a high priority are matched to an available 22 City of Ottawa, OCCMS, January

20 licensed child care space. City staff work directly with parents seeking a licensed space by offering support and resources and reaching out to child care service providers on their behalf. With the implementation of vacancy reporting in 2016, City staff will be able to further support families by offering information on available spaces to meet their needs. Section 4: Directly Operated Child Care Programs City Council approved the Child Care Modernization Framework in This Framework set the City s vision for transforming and modernizing the local child care sector and directed a review of the City s directly operated child care programs. The intention of the review was to ensure that City programs were continuing to meet their intended purpose, that is, to serve vulnerable children and families in underserved areas of the city. The review also examined the availability of other child care options within one and two kilometers of City operated programs and the need for fee subsidy in the community. With respect to City operations, programs were reviewed to compare staffing models to other community-based models. The profile of clients participating in the programs and a condition assessment of City facilities was also undertaken as an update to a physical plan conducted in Ottawa is not the first municipality to review their child care services. Approximately half of the comparable CMSM s do not provide directly operated services. Of those CMSM s that only fulfill the required role as CMSM, all still have an additional 100 per cent municipal contribution to child care. In many CMSM s, funds that were previously allocated to directly-operated municipal programs have been redirected to communitybased priorities. 4.1 Overview of City-Based Programs The City of Ottawa directly operates 12 municipal child care (MCC) centre-based programs and one licensed municipal home child care (MHCC) agency. In the summer of 2015, the operation of Centre Éducatif Beausoleil was temporarily suspended pending completion of building renovations. As of February 2016 the operation of the MHCC was suspended indefinitely due to changes in staffing. The City s MCC centres were built in the early 1970 s. They were located in high needs neighbourhoods to ensure access to quality child care for all residents within their local community. A summary of current MCC centres with demographic information is presented in Appendix I. Since the original establishment of the MCC centres, community demographics, such as low income cut off (LICO), average age of residents, and number of families who qualify for subsidy, have shifted across City wards. The changes in these demographics have resulted in the increase of full fee paying families in some City operated centres. Some centres have shown a shift from a fully subsidized clientele to full fee paying families. 20

21 Over the past decade, there has been a 50 per cent increase in the number of licensed child care spaces on average, available in the community within a two kilometer radius of municipal programs (Table 3). Table 3: Summary of Centres and Licensed Spaces within 2km by Ward 23 Centre Ward # of # of # of # of spaces Centres spaces Centres Beausoleil Program currently suspended Elsie Stapleford Foster Farm Borden Farm Huron ELC Charmian Craven Pinocchio Tournesol St. Luke s Esther By Dr. E Couture Woodridge TOTALS ALL Staffing and Financial Impacts of CCEYA on Municipal Child Care Programs For all child care programs, the majority of costs are associated with salary and benefits (80 to 90 per cent). The average salary cost per licensed space for municipal child care centres was $17,000 per space (a range of $14,500 to $22,600). This is approximately three times greater than the lowest community comparator reviewed at $6,000 per licensed space. The highest community comparator included in the review was at $14,000 per licensed space. Staffing in MCC programs exceeds the present requirements of the CCEYA. Of the community agencies reviewed, only 14 per cent exceeded the provincial minimums for ECE s. As a result of proposed regulations that were announced in January 2016 to the CCEYA, the City is anticipating increased staffing costs, decreased revenues and a reduction of licensed spaces (refer to Appendix D). This is a result of increased requirements for regulated staff and enhanced child to staff ratios. 23 Table data does not include MCC centre data 21

22 Section 5: Financial Management 5.1 Introduction The Province of Ontario, through the Ministry of Education, is responsible for funding child care. Since 2010, provincial funding per licensed space for child care in Ottawa has decreased from $3,183 per space in 2010 to $2,357 per space in This is largely due to Provincial funding not keeping pace with the expansion of licensed capacity in Ottawa. See Table 4 for details on government funding per space in Ottawa. Table 4: History of Funding for Licensed Child Care Spaces in Ottawa Total Licensed Capacity Provincial Funding Allocation * Funding Per Space 21,448 22,698 24,419 27,213 28,051 32,681 68,266,075 68,532,321 70,483,592 71,614,376 75,007,293 77,014,707 3,183 3,019 2,886 2,632 2,674 2,357 * 2015 allocation excludes Wage Enhancement funding for comparison purposes With respect to funding for not-for-profit child care agencies, in 2013 the Province eliminated the historic wage subsidy program and introduced a new funding stream called General Operating Expense. All municipalities were required to develop and implement a new funding framework to respond to this change by the end of Following consultation with child care stakeholders, Council approved a new funding formula for Ottawa as part of the 2015 Child Care Service Plan, which was fully implemented in Implementation of the New Funding Framework Existing agencies were notified of the new funding framework and the legal requirement to terminate current contribution agreements in May Agencies were required to submit an application in order to receive funding in The City received 122 applications from child care service providers and entered into 117 contribution agreements. There were five agencies that applied but later decided not to convert to not-for-profit status. This requirement was identified in the 2015 Child Care Service Plan as being necessary for child care agencies to access General Operating funding. 24 Ministry of Education, Ministry of Education,

23 The new funding framework also resulted in 26 new agencies offering fee subsidy. This resulted in an increase of 1,325 licensed spaces, offering more choice to families approved for a fee subsidy. In total, the agencies that have a contribution agreement with the City account for 19,903 centre-based licensed spaces and 1,924 home child care service providers totalling 6,647 spaces. In total, there are approximately 26,550 licensed spaces for which the City has contribution agreements, representing 81 per cent of the total spaces in Ottawa Contribution Agreements As of January 2016, Children Services introduced a new contribution agreement template to ensure that all agreements meet required criteria, contain the appropriate terms and conditions, performance measures and deliverables, and follow a standard process for documenting and reporting in order to meet both provincial and municipal requirements. The City hosted information sessions for eligible child care service providers in October and November 2015 to explain the new contribution agreements. The new contribution agreements have a five year term to align with the funding transition (Stabilization Initiative) and outline the terms and conditions of the funding arrangement. Child care staff worked with Legal Services to ensure the agreements contains appropriate insurance, termination, and workplace safety and indemnification provisions as per Council direction. Some of the new child care specific terms and conditions include: 1. A requirement to report monthly attendance and vacancy information and to use the Child Care Registry and Waitlist. 2. An allowance for annual inflationary increases upon board approval of full-fee daily rates based on past funding practises and processes within the City s purchasing bylaw. It is important to note that if no additional funding is received from the Province on an annual basis, inflationary increases could have an impact on the number of subsidized children served. 3. To align to Provincial reporting requirements, Auditor General recommendations and to consolidate financial reporting, providers are required to submit an audited Schedule of Revenues and Expenses related to child care funding. Additional details and instructions are provided in the Provider User Guide available on the City s child care website. 4. Some child care service providers have outstanding advances owing to the City of Ottawa. This resulted when the City changed the payment system to the Ontario Child Care Management System (OCCMS) managed by the Province. Child care service providers will be required to repay the advance by December Child care service providers will be required to submit a repayment plan to the City by December The City will use the repayment plan to adjust the provider s monthly / quarterly payments to recover the outstanding amounts. 26 Ministry of Education,

24 Child care service providers are also obligated to submit required documents on an annual basis. Examples include: Audited financial statements, management letters, insurance, board of directors, minutes from Annual General Meeting and annual budget. 5.4 Sector Stabilization and Child Care Rates As outlined in the 2015 Child Care Service Plan, Council approved a five year Sustainability Initiative ( ) to transition child care service providers to the new funding framework. This initiative is funded with 100 per cent municipal funding ($11.5M) from the child care reserve and will help bridge those child care agencies that may receive a lower allocation of equitable provincial funding from 2017 to As part of the new framework, the City will now pay all agencies their posted full fee rate, regardless of what level of financial assistance a family is eligible to receive. The City will also assume collection of partial fees from parents to eliminate administrative steps for agencies. This type of equalization between subsidized rates and full fee rates has not been completed since Since then, full day kindergarten has had significant impacts on child care service providers, requiring them to serve younger age groups which have higher associated operating costs. Agencies were required to adjust their business models and their full fee rates accordingly, however subsidized rates only continued to receive an inflationary increase. Aligning the subsidized rates with full fee rates closes the gap between fees paid by the government (Province of Ontario) for care and that paid by full fee paying parents. This equalization will result in additional costs to the City of approximately $2.4M. Capacity for the additional cost exists within the current child care budget as a result of ongoing underutilization in the former MCB system. Addressing the gap between full fee and subsidized rates will also help agencies with their viability as an additional $2.4M will be paid to child care service providers. Of the 59 agencies losing General Operating funding, 38 will receive additional funding through fee subsidy. Agencies who have received additional funding through the equalization of full fee and subsidized rates or through the implementation of the new funding framework will be expected to stabilize or reduce fees. The City will work with agencies to ensure additional funding can be used to stabilize and/or reduce their rates over the transition period. The City will continue to monitor daily rates to ensure they remain reasonable and will also continue to provide average daily rates by ward to child care service providers. In relation to full fee rates in Ottawa for 2016, the new framework has had very little impact, with increases and decreases being very modest. See Appendix J for information on child care rates in Ottawa. 5.5 Viability and Sustainability Planning Council approved an Expert Panel on Viability and Sustainability composed of not-forprofit and business experts to provide advice and guidance on developing a framework for viability and sustainability including; Identification of key challenges facing not-for-profit child care service providers; Consideration of key elements for ongoing agency viability; 24

25 Establishment of priority activities for the City to undertake to support ongoing sustainability; and Development of templates for viability and sustainability plans. The panel included representatives from the SRG, community members, business sector, and City staff. The SRG and the child care sector were also consulted to identify gaps. Through this process the panel was able to: Develop business plan templates and budget information to assist agencies and Boards with decisions on how to align to the new funding model; Identify other tools and supports required throughout the transition and; Define viability and sustainability with respect to key elements related to governance, operations and finances for agencies and Boards to consider as part of their five year business plan. The key elements are as follows: Governance Adhering to the not-for-profit legislation and the Child Care and Early Years Act, 2014; Reviewing and adjusting board composition to strengthen the corporation from a management and strategic perspective; and Ensuring the board has the ability to carry out their duty to oversee all aspects of the management and operations. Operational Aligning the business to the new funding model and parental choice; Establishing a viable benchmark for operational capacity and developing mechanisms to achieve and monitor those objectives; and Having personnel in key positions that are committed and have the necessary skills required. Financial Presenting a balanced operational budget that addresses the new funding and the business model changes; Introducing affordable fees for parents; Establishing an uncommitted reserve balance to address unforeseen events, and Developing financial reporting to review expenditures, budgets, and overall financial health. Overall, the community agreed with these key elements. However, some expressed concerns regarding their ability to meet these expectations without additional training and support from the City. The City will continue to work with agencies throughout the transition period to help with business plans and identify gaps in order to facilitate additional training and supports. For child care providers to receive additional transition funding, they will be required to address the key elements outlined by the Expert Panel 25

26 over the transition period. This will include a five year pro-forma financial statement outlining the financial actions the agencies will implement to address the new funding framework and to ensure a balanced budget. The City will continue to work with agencies throughout the transition period to help with the business plans and identify gaps in order to facilitate additional training and supports. Child care service providers will be required to provide updates to their business plan as it progresses throughout the transition period. Agencies will be eligible to receive up to 100 per cent of their reduction for the entire transition period upon submission and approval of a viability plan. Training will be provided to boards of directors and executive directors on developing viability and sustainability plans and using system planning data at the upcoming spring forum on governance and leadership. 5.6 Emergency Bridge Funding To support not-for-profit agencies at risk of closure prior to the implementation of the new funding framework, the City issued Emergency Bridge funding. The City received eight applications from child care service providers and entered into seven contribution agreements as one of the applications did not meet the eligibility criteria. This funding assisted agencies to remain open and meet their operating requirements until the new funding framework was implemented. Child care service providers receiving emergency bridge funding were required to submit a business plan outlining the implementation plan for the agency to become viable. These providers are also required to provide monthly updates on the steps they have taken to become more viable, as indicated in their implementation plan. 5.7 The New Fee Subsidy Model In Ottawa, the demand for child care fee subsidies outweighs the available provincial dollars. In 2015, 75 child care service providers underutilized their MCB funding in the amount of $5.3M. The number of agencies is comparable to 2014 at 74 however the underutilization was only $3.2M in The underutilization in 2014 and 2015 is attributed to the antiquated fee subsidy model (MCB) and implementation of full day kindergarten that had a further impact in Ottawa over The underutilization of fee subsidies in Ottawa is a contributing factor to the City s decreased 2016 provincial funding allocation. With the shift to a new fee subsidy model on January 1, 2016, child care service providers (with a signed contribution agreement with the City) are funded based on the number of subsidized children in their centres. Throughout 2016, the City will monitor the implementation of the fee subsidy model, the budget utilization and the impacts to parents and child care service providers. Specific to budget, the City has developed financial tools that enable City staff to monitor the utilization of the fee subsidy budget in order to maximize the number of children accessing a fee subsidy. These tools take into account the provincial allocation for fee subsidy, the number of children placed, the age of the children placed and the provincial and municipal mandated targets for specific populations of children including special needs, Francophone, and First Nations/Inuit/Métis. The City is monitoring the utilization of fee subsidy funding with the goal of fully maximizing the number of children accessing care. 26

27 Section 6: The 2016 Child Care Budget 6.1 Introduction The City of Ottawa s total child care budget in 2016 is $119.7M. Figure 4 shows that $106.7M is from provincial funding with the associated legislated portion ($13M). In addition to the legislated requirement, the City will invest $13M in the child care system this year. The ability to distinguish the 100 per cent municipal investment from the provincial envelope is an important step in building a sustainable funding model and supporting local objectives set by Council. The City is mandated to allocate provincial funding to the following programs and services: Supports to Children with Special Needs, Pay Equity Memorandum, Special Purpose, and Family Support Programs. The remaining Core Service Delivery envelope contains a program delivery aspect and the remaining funding is fully flexible between General Operating funding and fee subsidy. In 2016, the City received a funding reduction of $1.4M from the Province of Ontario to fund child care in Ottawa. The City consulted with the community on how to address this funding shortfall and to identify funding priorities for The child care community confirmed the following funding priorities: maintain special needs funding; maintain fee subsidy funding; and enhance emergency bridge funding. Figure 4 reflects these funding priorities which are further described in this section. Figure 4: City of Ottawa s 2016 Child Care Budget Finance Department, City of Ottawa, January

28 6.2 Provincial Funding Core Service Delivery a) General Operating Funding General Operating (GO) funding is intended to decrease wait times and fees for services, stabilize service levels and increase access to high quality affordable early learning and child care services (where funds allow). It is equitably distributed to all licensed not-for-profit operators in Ottawa that applied for funding in The City will not be accepting new applications for GO funding unless an increase in provincial funding is received. The City will prioritize unallocated GO funding to existing child care service providers using system planning priorities and local needs to determine targeted allocations. See Appendix K for additional details on the funding policy which has been updated since 2015 to reflect prioritization of GO funding. b) Fee Subsidy Fee subsidy is intended to allow families most in need access to high quality child care services. Funding is allocated in a transparent manner to all licensed not-for-profit child care service providers and school boards who have a contribution agreement with the City to accept children with a fee subsidy into care. Funding is based on the child care service provider s per diem rate multiplied by the number of days that the child in receipt of a subsidy attends the program. Child care service providers are required to submit attendance for the month. The City collects the partial fee from the parent(s). In spring 2016, the City will begin accepting applications, on an ongoing basis, from not-for-profit child care service providers for fee subsidy funding. For-profit child care service providers do not qualify for fee subsidy funding. However, in geographic areas where there are no existing not-for-profit child care service providers and not-for profit child care service providers are not able to shift their service offerings, the City will consider entering into a Contribution Agreement with a for-profit operator as approved by Council in February 2013 (ACS2013-COS-CSS-0001). Currently, 24 per cent of licensed child care agencies are for-profit. See Appendix G for additional details on the funding policy and application process for fee subsidy funding for child care service providers. c) Program Delivery The Province provides funding to support the City in their role as service system manager. This funding is intended to support costs associated with the administration of all types of child care funding as outlined in Figure 4 and must not exceed 10 per cent of the provincial funding allocation. The City s allocation is less than five per cent. 28

29 6.2.2 Wage Enhancement Funding (WE) Wage Enhancement funding is intended to help close the wage gap between Registered Early Childhood Educators (RECEs) working in the publicly funded education system and those in the community-based licensed child care sector, to help stabilize child care operators by supporting their ability to retain RECE and non-rece program staff and to support greater employment and income security. The Province is directing CMSM s to distribute 10 per cent of the Provincial allocation for administration of WE funding to licensed child care providers to help with administrative costs for those who apply for and receive WEG funding in The City will distribute this funding equitability to each eligible provider based on their approved WE allocation in proportion to the total WE allocation. In 2016, wage enhancement will support an additional $1 per hour increase for eligible child care workers with a wage of less than $26.27 per hour in the licensed child care sector, bringing the total increase up to $2 per hour plus benefits. Home Child Care Enhancement Grant (HCCEG) An additional $10 per day increase is provided to home child care providers who qualify, bringing the total increase up to $20 per day for licensed home child care providers contracted with a licensed child care service provider. Supplement Grant An additional supplemental grant of $150 is calculated for each eligible centre based full-time equivalents (FTEs) or home visitor FTEs and $50 for each eligible home child care provider. The supplemental grant must be used to support staff, home visitors and providers hourly/daily wage or benefits. It provides the child care service providers with the flexibility to cover salary shortfalls (due to increased hours in program or new staff/providers) and additional benefits, (e.g. vacation days, sick days, professional development days and/or other benefits) once mandatory benefits are covered Special Needs Provincial Special Needs Resource (SNR) funding is to be used to support the inclusion of children with special needs in licensed child care settings, including home child care, and approved recreation programs at no additional cost to parents. The City is committed to supporting parents with a documented illness or disability and families with children who have a documented special need(s) through access to fee subsidies. Parents of children with special needs and/or a disability often experience higher living expenses and other barriers when trying to access supports and essential services for their child. These parents are more likely to be employed part-time with reduced incomes. 29

30 6.2.4 Pay Equity The province will continue to flow funding as agreed in the Memorandum of Settlement to CMSM s as part of the core services delivery allocation. The City will continue to flow this funding to child care service providers Special Purpose and Capital Retrofit Funding Special Purpose and Capital Retrofit Funding is Provincial funding allocated to municipalities to support child care agencies with professional development, business transformation activities and repairs and maintenance costs, in order to be compliant with licensing requirements. It also includes retrofit funding to support the reconfiguration of existing child care spaces to serve younger age groups. With exception of Capacity Building, Provincial allocations for Special Purpose and Capital Retrofit Funding have been reduced in 2016 when compared to 2015 as per Table 5 below is the final year for Capital Retrofit and Transformation funding as FDK is now fully implemented. Table 5: Special Purpose and Capital Retrofit Funding Allocations Funding Stream Repairs and Maintenance 160, ,758 funding Transformation funding 315, ,657 Capacity Building funding 390, ,189 Retrofit funding 466, ,394 In 2016, Capacity Building funding will be prioritized to support the licensed child care sector with licensing requirements related to the Child Care and Early Years Act, 2014, as well as communications, leadership and professional development. The priorities for 2016 Capacity Building funding were developed in consultation with the Capacity Building Committee and supported by child care service providers at the community consultation in February Specific projects, supported by Capacity Building funds in 2016 will include: Spring forum for leaders and board members with a focus on viability and sustainability, How Does Learning Happen and system planning; Fall conference for front line staff on communities of reflective practice, facilitating communities of practice and coaching; Training for first aid to respond to CCEYA requirements (in 2016 only); Development of a communication portal for professional development opportunities in consultation with child care stakeholders; and Ongoing professional development opportunities. 28 Finance Department, City of Ottawa,

31 6.2.6 Family Support Programs In Ottawa, the Province currently administers the majority of Family Support Program funding directly with Ontario Early Year Centers. The City receives a small amount of funding from the Province to supplement and support the program. City funding for these programs in 2016 will not change. However, as stated in section 2.4, the Province will integrate the Family Support Programs by 2018 and will require the City to manage the delivery of the program. Details on the funding approach for the new integrated OEYCFC will be communicated by the Province later in Municipal Investment Emergency Bridge Funding Emergency Bridge funding is intended to support licensed not-for-profit agencies that will receive funding within the new General Operating funding or floating subsidy system, but who are experiencing financial difficulties or who are at risk of closure. The child care community endorsed the expansion of the Emergency Bridge funding at the February 2016 consultation. Staff are recommending that the program will be expanded to support agencies in addressing issues impacting their licensing including; health and safety, repairs and maintenance, first aid training and How Does Learning Happen (HDLH), required under the CCEYA. See Appendix L for additional details on the funding policy Health and Safety Funding Municipal Health and Safety funding is intended to maintain Ministry of Education licensing standards, address emerging health and safety needs and to maintain current child care capacity service levels. As of 2016, it is allocated equitably to all licensed notfor-profit operators receiving GO funding and is based on licensed capacity Child Care Facility Funding Development charges for municipal child care were removed from the Development Charge By-law in 2014, pending further study. The following factors make it difficult to predict future need for child care spaces and to complete a background study at this time: A reduction in funding from the Province in 2016 as a result of a reduction in families in Ottawa living below LICO and corresponding underutilization of fee subsidy funding; Schools board expansions of child care spaces in growth areas as a result of increased Provincial capital funding announced in November 2015; Vacancy reporting data is important in determining demand for space and is not yet available; and The impact of the new floating fee subsidy model is unknown at this time. The existing development charge reserves ($3.85M) and the non-growth portion (the existing population and property tax base that should be funding the program) funded from the child care reserves ($679K), result in a total balance of $4.529M. These funds 31

32 will be used to support the creation of new spaces in the licensed child care sector in high priority and / or underserved areas of the City. This will address demands from residential growth, decrease wait times and increase access to high quality affordable early learning and child care services. The City will issue a Request for Qualification (RFQ) in the fall of 2016 to identify a proponent to create new child care spaces in a growth area of the City. Refer to Appendix M for additional details on the funding policy. Conclusion and Next Steps Child Care Modernization represents a complete rebuilding of the child care service sector in Ottawa. Since 2013, the City has implemented several significant changes in order to align with Provincial direction. These changes include; Developing a new waitlist system for child care and fee subsidy applications; Adjusting the application model for fee subsidy funding for families; Implementing a new funding model for licensed child care providers; Establishing new contribution agreements with licensed child care providers; and Implementing a new fee subsidy model in support of parental choice and the portability of fee subsidies Over the next few years, the City will continue to monitor the impact that child care modernization has had on the local child care sector. City staff are currently developing an evaluation framework based on the stated future vision for child care as well as the components of Child Care Modernization (system planning and continuous improvement, prioritized access to subsidy, financial management and operations). The evaluation will refer to the Principles of Child Care Modernization and draw from different sources of data, such as internal tracking tools and feedback from clients and stakeholders, and may include focus groups, surveys and consultation sessions. The City remains committed to transparency and accountability and will continue to work with parents and licensed child care service providers in the final year of local child care modernization. The City will also work with established local networks including the Ontario Early Years Centres, Best Start Network, School Boards and the Ministry of Education to begin to address the changes to the Family Support Programs announced in February of this year. 32

33 Appendix A: Child Care Modernization Framework 33

34 Appendix B: Principles for Child Care Modernization These principles support the City of Ottawa s Child Care Modernization Framework, and are in alignment with the Provincial Early Years Policy Statement. Principle What This Means 1. Parental Choice Implement a gradual shift to floating subsidies (subsidy follows the child) Allow families to choose where their child receives subsidized care 2. Priority Access to Preserve access to child care in underserved neighbourhoods Subsidy Develop a prioritised waitlist for subsidy o All applications are date stamped o Application process is streamlined 3. Unique Needs Focus on families most in need, including children with documented Special Needs, and children from First Nations/Métis/Inuit families Maintain Francophone funding allocation proportionate to the census Francophone population with children aged 0-ten Maintain Head Start programs 4. System Establish a standardized funding formula Accountability Develop contracts with agencies, including performance measures to demonstrate that the agency meets: o Provincial licensing and quality frameworks o Continuous service improvements o Efficient service provision Allocate major and minor capital funding to agencies meeting operating performance measures 5. System Operate within approved budgets Sustainability Assist agencies to remain viable with three year transitional funding 6. Integrated Planning Support system planning with school boards and community partners Apply evidence based decision-making 7. Transparency and Engagement Consult with community partners and parents on an ongoing basis 34

35 35

36 Appendix C: Ottawa s Local System Priorities