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Transitioning to Ontario's new child care funding formula and funding framework: Supporting documents

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Ministry of Education, Government of Onatario
Publication Date: 
17 Dec 2012

Excerpts from memorandum:

Need for Change

As the child care sector undergoes a transformation to align with the implementation of full day kindergarten, a new funding formula and more flexible funding framework will help build a child care system for tomorrow and the future beyond.

The current funding formula is out-dated, based on historical allocations, and is unreflective of demand. In addition, the current funding framework is complex, administratively burdensome, with multiple overlapping funding categories, and has limited flexibility making it difficult to meet the needs of local communities in Ontario.

The new funding formula is a more transparent, evidence-based and equitable approach to allocating provincial child care funds that respond to demands for services. The new funding framework provides municipalities' flexibility and tools to better manage the child care system at a local level and address issues such as fees and the availability of service. Together these elements will:

• Allow municipalities - particularly in growth areas - the capacity to increase service stability and access for both full fee paying and subsidized families, reducing waitlists and mitigating closures of child care centres.

• Respond to the demand for services and help stabilize fees and improve reliability of child care to better support parents as the system is transitioned to work with full day kindergarten.

Streamlining the rules and reporting under the framework for child care funding allows the government and its municipal partners to deliver more effective service at a better value for taxpayer dollars as well as reduce administrative burden.