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 Service Administration Boards
FROM: Shannon Fuller, Assistant Deputy Minister, Early Years and Child Care Division
DATE: May 11, 2020
SUBJECT: Child Care & EarlyON Sector Funding – COVID Outbreak
Thank you again for your continued partnership during this unprecedented, and evolving time.
We know that the COVID-19 outbreak is having significant impacts on families and on the child care sector. This memo sets out details of Ontario’s child care sustainability funding approach. This funding approach will be in place during the closure period and will align with the timing of federal supports.
The objective of the funding approach during the closure period is to support financial sustainability across the child care sector, as we know that a stable and accessible child care system will be critical to Ontario’s recovery following the COVID-19 outbreak. While our Child Care Funding Formula includes a variety of different funding lines, given the unprecedented times, and that child care services are not currently being provided, as well as the urgency of the situation, we have framed the supports into the two areas of operations: Fixed Overhead Costs and Salary and Wage supports.
As part of the Federal COVID-19 Economic Response Plan, and in partnership with Ontario, the federal and provincial governments have announced the Ontario-Canada Emergency Commercial Rent Assistance Program (OCECRA). The federal government designed the program and program details are being finalized by the federal government. To receive more information, visit the Canadian Mortgage and
Housing Corporation’s website and sign-up to receive additional details including when the application process opens:
https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business
Provincial funding will be provided by the Ministry of Education for eligible child care operators who benefit from the OCECRA to pay the tenant portion (25%) of rent as outlined in OCECRA. The other 12.5% of provincial funding for those that benefit from OCECRA will flow through the OCECRA process. Child care operators should work with their landlords to determine whether they will benefit from this program.
Please note that school boards will not be charging rent to child care or EarlyON centres located in schools that have closed until the end of the closure period. Child care and EarlyON centre staff will be permitted to enter schools during the closure period to obtain materials and other tools required to support the implementation of the sustainability plan.
Funding will also be provided for other eligible fixed monthly overhead costs, so centres are able to re-open operations following the conclusion of the state of emergency.
Provincial funding will be provided through CMSMs/DSSABs for child care operators that have a purchase of service agreement for general operating and/or fee subsidies. CMSMs/DSSABs will work directly with child care operators in their area to confirm the fixed overhead costs of operators and the applicable 25% tenant portion of rent under OCECRA. For further clarity, not having a purchase of service agreement is defined as not having a purchase of service agreement for general operating and/or fee subsidy funding with a CMSM/DSSAB.
The province will directly fund child care operators who do not have a purchase of service agreement. The Ministry will provide an application form as part of their application process.
The federal government has announced supports for businesses and individuals related to COVID-19, including the Canada Emergency Wage Subsidy (CEWS) for businesses and the Canada Emergency Response Benefit for individuals.
For your ease of reference, below is a link to the federal government site that outlines all federal supports in Canada’s COVID-19 Economic Response Plan: https://www.canada.ca/en/department-finance/economic-response-plan.html
All child care centres will be required to apply for Federal COVID-19 Economic Response Plan funding to support staffing costs retroactively to March 15, 2020.
We encourage child care operators to research and optimize these federal supports
for staff not working during the emergency closure period so that they are in a position to re-open following the conclusion of the declaration of emergency and to ensure staff are supported throughout the outbreak.
CMSMs/DSSABs that have committed to providing top-up funding for salaries and wages above the Canada Emergency Wage Subsidy will be required to use municipal funding.
In order to ensure no funding gaps before the Federal COVID-19 Economic Response Plan funding is provided, CMSMs/DSSAB’s monthly cash flow will continue so that CMSMs/DSSABs are prepared to action Ontario’s child care sustainability funding approach across the sector. Funding will be reconciled starting in August.
While home child care providers are permitted to operate, the Ministry recognizes that many providers have closed or have seen a reduction in the number of children in their care as a result of COVID-19.
In addition to funding for emergency child care, the following Provincial funding will continue to flow through CMSMs/DSSABs for home child care:
The Province will provide funding to cover the fees for families that are eligible for emergency child care directly to licensed home child care agencies who do not have a purchase of service agreement with a CMSM/DSSAB for general operating/base funding for home child care and/or fee subsidy. The Ministry will provide an application form as part of their application process.
While physical EarlyON Child and Family Centres are closed under an Emergency Order, many centres have continued to provide virtual programming. Provincial funding, including salaries and wages, will be provided for the days/hours worked.
EarlyON Child and Family Centres will also be supported through the Ontario-Canada Emergency Commercial Rent Assistance Program (OCECRA).
Provincial funding will be provided to service providers to pay the tenant portion (25%) of rent as outlined in OCECRA. Funding will also be provided for other eligible fixed monthly overhead costs, so centres are able to re-open operations following the conclusion of the state of emergency.
Operating funding for Indigenous-led, off-reserve programming and Special Needs Resourcing funding will continue to be provided for days/hours worked to provide service.
A sample budget template is attached for ease of completion and to ensure consistency, where possible. Financial Analysts and Early Years Advisors at the Ministry will work with CMSMs/DSSABs on individual plans and the funding required during this period.
Municipal contributions represent an important component of funding to the early years and child care sector. In addition to ministry commitments outlined above and federal supports announced, we encourage CMSMs/DSSABs to maintain municipal contributions, where possible.
If CMSMs/DSSABs have or receive questions about issues with eligibility or other requirements, please reach out to your Financial Analyst and Early Years Advisor at the Ministry. We are committed to working with you throughout this period.
The following changes have been made to provide additional supports to the child care sector during these unprecedented times:
We are grateful for your partnership and look forward to our continued collaboration going forward. The Ministry continues to depend on service system managers, and your knowledge of the needs of your communities, to make decisions that best support the early years and child care sector in your service areas. Please continue to let us know how we can support your efforts during this challenging time.
Thank you,
Shannon Fuller
