Ministry of Education
Early Years and Child Care Division
315 Front Street West, 11th Floor
Toronto ON M5V 3A4
TO: Consolidated Municipal Service Managers and District Social Services Administration Boards (CMSMs and DSSABs)
FROM: Holly Moran, Assistant Deputy Minister, Early Years and Child Care Division
DATE: December 2, 2021
SUBJECT: 2022 Early Years and Child Care Funding Approach
Thank you for your continued partnership and commitment toward a stable and accessible early years and child care system across Ontario. In addition to supporting the well-being and healthy development of children, we know that a strong early years and child care sector is also a critical support for families and the broader efforts to reopen Ontario’s economy. That is why the province is investing up to $1 billion in the creation of up to 30,000 new licensed child care spaces over five years. To date, nearly 24,000 new spaces have been approved, which will support families and ensure a strong and accessible child care system. In addition, as part of its efforts to support working families, the province is providing a 20 per cent enhancement of the Childcare Access and Relief from Expenses (CARE) tax credit for 2021. For parents, this means an increase in support from $1,250 to $1,500 per family, on average.
The Ministry of Education recognizes the continued importance of a stable funding approach in 2022 for early years and child care, particularly as the child care system works through our reopening process in response to the COVID-19 pandemic. In support of that, I am pleased to provide you with information in advance of the municipal funding year on the 2022 allocations for early years and child care.
We have heard and acknowledge the concerns expressed by our CMSM and DSSAB partners regarding service system management capacity to prepare for the third of three planned funding changes, and the additional administrative burden municipalities continue to take on as they respond to the evolving COVID-19 pandemic. We also recognize the need for municipalities to have time to plan in advance of the 2022 funding year.
To this end, I am pleased to inform you that details on the 2022 funding allocations for Consolidated Municipal Service Managers (CMSMs) and District Social Services Administration Boards (DSSABs) are being made available to you shortly. This funding is intended to continue to support high quality, accessible, safe and affordable child care and early years services and programs.
The funding methodology and associated data elements used to determine allocations will continue to remain unchanged from 2021. This decision is based on sector feedback, including consultation with the Provincial-Municipal Technical Working Group on Early Years and Child Care. The ministry will continue to work with the sector to develop and implement a new Child Care Funding Formula in the future.
In 2022, the Ministry of Education will be investing more than $2 billion in child care and early years programs. This investment includes $113.3M in new funding from the Canada-Ontario Early Childhood Workforce Agreement, for the retention and recruitment of high-quality child care and early years workforce. Also included is an additional $36.4M from the renewed Canada-Ontario Early Learning and Child Care (ELCC) Agreement, to support child care and early years program delivery.
We are also pleased to let you know that in 2022, the ministry will provide a one-time transitional grant of $85.5M to help offset and assist with the new 5% administration threshold, set to take effect on January 1, 2022, and to continue to help offset a portion of the 50/50 administration cost share that was introduced in 2021. This one-time grant may also be used to assist with the provision of child care programs and services as well as other COVID-19 related operating costs such as, but not limited to support for reduced capacity, enhanced cleaning and personal protective equipment (PPE).
This one-time transitional grant will help to mitigate the impact of the previously communicated funding changes and allow our partners additional time to transition and plan for the upcoming funding changes so they can effectively serve their communities with the critical services they need during and beyond the pandemic. The ministry has worked to eliminate redundant or duplicate reporting requirements and will continue to engage with the sector on ways to reduce administration burden, where possible.
As a reminder, CMSMs and DSSABs will continue to cost share Expansion Plan operating funding at a rate of 80/20 provincial/municipal. The Expansion Plan cost share remains voluntary and is not required. CMSMs and DSSABs are encouraged to continue finding opportunities to reduce administrative costs through process improvements and other means.
Please note that due to the continuing impacts on the child care and early years sector related to COVID-19 in 2021, the ministry will not levy any penalties related to underachieved contractual service targets for the 2021 calendar year.
The 2022 budget schedule includes ELCC funding for the entire 2022 calendar year. The ELCC funding has been allocated in two parts:
The Child Care and Early Years Workforce Funding supports the retention and recruitment of a high-quality child care and early years workforce with the objectives of sustaining the workforce, enhancing access to professional development, growing the number of qualified staff, and attracting an increasingly diverse workforce. In 2022, CMSMs and DSSABs will be receiving $113.3M in one-time Child Care and Early Years Workforce Funding. This funding has been provided through the Canada-Ontario Early Childhood Workforce Agreement with the federal government and will also be provided to CMSMs/DSSABs in 2023.
With the one-time transitional grant, the additional federal funding through the Ontario-Canada Early Learning and Child Care Agreement and the Federal Early Childhood Workforce Agreement, CMSMs’ and DSSABs’ total 2022 annual allocation will increase by $149.7M for the 2022 funding year for both Child Care and EarlyON programs and services. (Please see Appendix A Funding Allocations Chart).
The ministry remains committed to providing the 2022 Child Care and EarlyON Child and Family Centres Service Management and Funding Guideline shortly, as we understand that these documents are instrumental in the planning process. The Agreements will be made available on the Transfer Payment Ontario (TPON) online platform, which provides one-window access to funding information.
Thank you for your ongoing collaboration and partnership as we work to support the child care sector in 2022. I look forward to working together to continue to strengthen the early years and child care system throughout Ontario.
Thank you,
Holly Moran
