Child-care providers bracing for fallout from funding changes

The City of Ottawa could beshort as much as $6.3 million in 2020 because of changes to provincial child-care funding, and the shortfall has service providers bracing for the fallout.

After postponing planned cuts to child care and other services earlier this year, Ontario Premier Doug Ford announced this week that his government will go ahead with some of the cutsin the new year.

Starting Jan. 1, municipalities will have to pay 20 per cent of the cost of creating new child-care spaces, which was previously fully funded by the province.

• Ontario government moving forward with municipal funding cuts
• Mayor Watson calls for more details on provincial funding cuts

The province is also cutting back on funding for administrative costs for child care, a move that will force the city to find efficiencies elsewhere,according to the report.

According to the report, there's been limited direction from the province about how the cityis expected to reduce administrative costs.

"Unless there are significant changes the City will not be in a position on January 1 to fully mitigate the lost provincial revenue with efficiencies and this will impact services," the report reads.

Too early to tell

It'stoo early to tell howthose cuts will impact the subsidized spaces, according to Kim Hiscott, executive director of Andrew Fleck Children's Services, a local child-care provider.

"In the short term, we don't know enough of how this is going to affect our services, but we're going to be paying attention to the provincialdirection and responding as we can," she said."It's still very much a let's wait and see [situation]."

The city provides funding and subsidized daycare spotsto service providers includingAndrew Fleck.

The city had relied on the funding tosubsidize hundreds of spots at child-care centres across Ottawa, the report said. It notes the province boosted child-care funding to the city by $2.6 million this year and last, money the city usedto further reduce the wait list for subsidized spaces.

City looking to make up shortfall

Hiscott saidone potential option for Andrew Flecktoraise fees down the road.

"We might have to increase by cost of living over the next couple of years if we don't see any additional funding, or if we see funding cuts," she said.

City staff will bring forward proposals in the 2020 draft budget to make up the shortfall, the report notes.

Hiscott said she's confident the city will be able to make adjustments that will have the least impact on services and families, and that her organization is preparing to do the same.

"As a not-for-profit agency, there's never the luxury of unlimited resources," she said. "We're used to working with what we have."

The report will bepresented to the city's community and protective services committee next week.