Item - 2007.CD2.2

This report describes a regulation change under the Day Nurseries Act to the method of determining eligibility for child care subsidy. Effective January 2007, the Province introduced income testing as the method of determining eligibility for child care subsidy. Income testing will make more families eligible for child care subsidies, but will result in an estimated annualized loss of $15 million in revenue from parent fees. Options to mitigate the loss of revenue to Toronto’s child care system are presented in the report. The Division will be consulting with parents and other stakeholders on the options and will report in June 2007 on the results of the consultation and a recommended strategy to address the lost revenue.