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One Time Transitional Grant - Issue Report

Report To: Program Planning Committee

From: Lori Clark, Director of Integrated Human Services and
           Amy Ingram, Integrated Human Services Manager

Date: February 14, 2024

Re: One Time Transitional Grant


To update the Board on the discontinuation of the One Time Transitional Grant in 2024 and the impacts for the Manitoulin-Sudbury District Services Board.

In September 2019, an Issue Report was presented to the Board regarding Child Care administration and Expansion Plan cost share adjustments made by the Ministry of Education.  The changes were initially to be implemented starting in April 2019 and were later deferred to January 2020. 

In 2020, CMSMs/DSSABs were asked to cost share the Expansion Plan operating funding at a rate of 80/20 provincial/municipal ratio. In 2021 and 2022, the Ministry of Education implemented the requirement for a 50/50 cost-sharing arrangement for all provincial child care administration funding and a reduction in the allowable administrative funding threshold from 10% to 5%. 

Given the challenges posed by the COVID-19 pandemic and the substantial changes to the system introduced by CWELCC, the Ministry granted a transitional fund to CMSMs/DSSABs. Following a three-year funding period during which the system was under extraordinary circumstances, the Ministry announced that the one-time transitional grant is discontinued for 2024. 

The Association of Municipalities Ontario (AMO), the Ontario Municipal Social Services Association (OMSSA), and Service System Managers from across the province have expressed deep concern regarding the recent decision by the government to eliminate the transitional grant to municipal child care service system managers. This decision poses a significant challenge to system planning resources required for the successful implementation and sustainability of core services through the Canada-Wide Early Learning and Child Care (CWELCC) program for Ontario. 

The discontinuation of the transitional grant directly affects the availability of resources essential for efficient system planning. The introduction of CWELCC has introduced new demands that were not present before the reductions in administration funding. This has resulted in increased reporting, enhanced data management, heightened financial management requirements, and amplified processes, thereby intensifying the burden on current resources. Alterations to administrative funding will pose significant challenges, especially for service system managers tasked with implementing CWELCC and overhauling the current system. 

Considering the Local Impacts

In 2021, the Manitoulin Sudbury District Services Board allocation for the Transitional Grant was $231, 054 and in 2022 and 2023 the allocation was $414, 902.  The Guidelines permit the use of the transitional grant for administrative expenses as well as direct support to child care programs. The Transitional Grant provided flexibility which allowed the Manitoulin-Sudbury DSB to be responsive in addressing administrative pressures, enhancing recruitment and retention, and bolstering sustainability initiatives.

Adequate funding is essential for maintaining accurate record-keeping, robust financial management, and overall stability. The cuts may have repercussions for budgeting and financial reporting for providers.


Effectively managing the local consequences of diminished administrative funding necessitates a comprehensive review by all stakeholders. 

AMO, OMSSA and its members, including the Manitoulin-Sudbury District Services Board, are committed to working with the province to implement a child care system that meets the needs of families and supports a strong economy. AMO and OMSSA seek urgent discussion regarding this matter and a broader conversation about the CWELCC implementation plan.    

Staff are recommending that the Board approve this issue report in recognition of the increased challenges presented because of the reduction in administrative funding.  Staff are asking the Ministry of Education to reconsider these administrative funding changes.