Excerpt
The Ontario government has released new documents providing details of the cost-based funding approach to be implemented in CWELCC programs in January 2025.
This long-awaited funding update solves some of the immediate challenges faced by child care centres suffering under the outdated "fee replacement" funding approach. But the new funding formula doesn't adequately improve workforce compensation and raises red flags about profit-making in child care.
Despite consistent calls from the sector, the new funding approach does not include a wage grid for Early Childhood Educators and child care workers. The OCBCC and AECEO have called for a publicly funded salary scale of at least $30-40 per hour for RECEs and $25 per hour for non-ECE staff. Decent work and compensation need to be the foundation of a funding formula. Providing and expanding quality licensed child care in Ontario depends on a well-supported, well-compensated workforce. Without increased compensation for educators Ontario will not solve the child care workforce crisis that is limiting access for families.
To ensure that we solve the workforce crisis and increase child care spaces, we need a provincial wage grid for Early Childhood Educators and child care workers, as outlined in the OCBCC and AECEO’s Position Paper. By contrast the new funding formula from the Ontario government locks in huge disparities in pay across employers and doesn’t guarantee decent work and pay for every educator.
The new funding formula also allows considerable profit making in child care, and continues a flawed approach of treating non-profits and for-profits as if they are the same when it comes to funding and accountability. The guidelines promise "flexibility for how operators run their businesses will be maintained by not reconciling cost-based allocations against eligible costs line by line".
Next steps
Over the next weeks, the OCBCC will be undertaking a detailed analysis of the funding approach and engaging with Ministry officials for futher clarity on funding changes and their impacts on our members.
In September, the OCBCC and AECEO will be holding joint information sessions for our members to share what we learn with the early learning and child care community.
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