Item - 2007.CD6.9
Tracking Status
- This item will be considered by Community Development and Recreation Committee on June 5, 2007.
CD6.9 - 2007 Best Start Update to Child Care Service Plan and Report Back on Income Testing
- Consideration Type:
- ACTION
Origin
Recommendations
The General Manager of Children’s Services recommends that:
1. Council approve the 2007 Best Start Update to the Toronto Child Care Service Plan attached as Appendix 1 and that the approved plan be forwarded to the Ministry of Children and Youth Services;
2. The Children’s Services’ 2007 Approved Operating Budget be amended to include an additional $6,815.557 thousand in provincial Best Start revenues offset by a reduction of $6,815.557 thousand in parent fees due to the introduction of income testing;
3. Any additional reduction in parent fees in 2007 due to the introduction of income testing be funded from the Child Care Expansion Reserve Fund (CCERF);
4. Retroactive to January 1, 2007, base funding rate adjustments be made to eligible child care operators, family resource programs, special needs resourcing services and home child care provider rates in accordance with city budget guidelines and in a manner that maximizes the available provincial subsidy;
5. Health and safety funding of $1.0 million, included in Children’s Services’ 2007 Approved Capital Budget, be paid to eligible child care operators;
6. The General Manager of Children’s Services report to the Community Development and Recreational Committee and Budget Committee in December 2007 on the additional 2007 draw from the CCERF that may be required due to the impact of income testing and the expected service impacts in 2008;
7. The City continue to advocate with the province for adequate and stable funding for child care; and
8. The appropriate officials be authorized to take the necessary action to give effect thereto.
Summary
Financial Impact
The Minister of Children and Youth Services has confirmed that the City will receive an additional $9.1 million in Best Start funding for 2007/2008. As with previous Best Start funding, there is no net impact to the City. The Children’s Services’ 2007 Operating Budget must be adjusted to account for the additional $6.8 million (2007 allocation) in provincial revenues. The additional provincial revenue is expected to partially offset the reduction in parent fees resulting from the introduction of Income Testing. Currently, the Division has estimated $7.5 million reduction in parent fees due to the phasing of Income Testing in 2007 ($15.0 million annualized). Any reduction in parent fees beyond the additional provincial revenues of $6.8 million (included in Recommendation No. 2), estimated at $0.7 million ($7.5 million less $6.8 million) is recommended to be funded from an additional draw from the CCERF.
The Child Care Expansion Reserve Fund is expected to be exhausted in 2008 (as shown on the table below). Current provincial funding is not sufficient to maintain current service levels and absorb the full year impact of Income Testing in 2008. Service reductions may be necessary by September 2008 to fully implement service level reductions in 2009. The General Manager of Children’s Services will report to the Community Development and Recreational Committee and Budget Committee in late 2007 on the service level impact in 2008.
Also, Children’s Services 2007 Approved Capital Budget includes a Health and Safety/Playground Project of $5.0 million to assist child care operators address health and safety concerns including playground retrofit. Recommendation No. 3 of the Children’s Services 2007 Approved Capital Budget states that “approval of the $4.0 million, representing the provincial portion of the $5.0 million gross expenditure for the Health and Safety/Playground project, be conditional on receiving this funding from the Province”. It is not expected that these funds will be received, thus, this report recommends that Children’s Services spend the $1.0 million included in the 2007 Approved Capital Budget, representing the City’s portion of the Health and Safety funding.
The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.
Background Information
https://www.toronto.ca/legdocs/mmis/2007/cd/bgrd/backgroundfile-3974.pdf
Attachment - Appendix 1 - 2007 Best Start Update to the Child Care Service Plan
https://www.toronto.ca/legdocs/mmis/2007/cd/bgrd/backgroundfile-3993.pdf