Covering costs a 'growing challenge' for P.E.I. early years centres

It is becoming increasingly difficult for P.E.I. government-regulated and subsidized child care centres to cover their expenses and turn a profit, according to P.E.I.'s Early Childhood Development Association.

'Revenue is staying the same, but expenses are increasing'

Steve Bruce CBC News Posted: Feb 11, 2019 5:00 PM EST | Last Updated: February 11, 2019

Rates at P.E.I.'s early years centres haven't changed since 2015, but the province's early childhood development association says operating costs have steadily increased. (Ian Barrett/The Canadian Press)

It isbecoming increasingly difficult for Prince Edward Island's government-regulated and subsidizedchild care centres to cover their expensesand turn a profit,according to the Early Childhood Development Association of P.E.I.

The association's executive directorSonya Hoopersays the provincial government hasn't increased the fees early years centres cancharge parents since 2015, although the centres'operating costsincluding rent, heat, suppliesand foodhave risen steadily.

There needs to be recognition given to the fact inflation is a real thingand costs to operate a business do grow. Sonya Hooper

P.E.I. has some of the lowest child care fees in Canada

P.E.I. daycares preparing for changes to food menus

"Revenue is staying the same, but expenses are increasing," said Hooper.

"It's certainly been a growing challenge for centres to meet their expenses.We do believe they're finding ways, but I feel that from what I'm hearing from centres, they're pretty maxedwith the creativity that they can throw in there."

Government funding hasn't kept up

The province's 47 early years centres receive government fundingto help cover the cost of having to delivera set curriculumand paycertified staffaccording to agovernment-set wage grid.

Sonya Hooper of the Early Childhood Development Association of P.E.I. says early years centres need to find some way to boost their revenues, be it through more government funding or corporate help. (Steve Bruce/CBC)

The province says while its funding to centres hasincreased overall,from roughly $6.7 million in 2015 to $8.1 million in 2018,that islargely a response to centres creating more spacesand paying more certified staff.

Theformula used to calculate the province'sfunding to the centres does not factor in most operating costslikefood or rent.

Last week a new study from the Canadian Centre for Policy Alternatives showed that P.E.I. parents pay some of the lowest rates for child care in the country, at about $738 per month for an infant and $608 for a toddler.

"I think there needs to be recognition given to the fact inflation is a real thingand costs to operate a business do grow over a period of time," said Hooper."Even if it was built in that every three years or five years, there'ssome reflection of that."

Formula 'pretty fair'

But P.E.I.'s Minister of Education and Early LearningJordan Brown maintains the funding formula has worked well sinceearly years centres were establishedin 2010.

Education and Early Learning Minister Jordan Brown says the formula used to calculate funding to early years centres has 'worked well.' (Steve Bruce/CBC)

He points to the fact thenumber of Islanddaycaresoperating as early years centres has grown from 34 to 47 since 2010.

Brown saidwhile increasing parent feesisn't out of the question, the government has to be cautious.

We need to be careful not to throw the balance we've been able to achieve over the last eight or nine years. Jordan Brown

"What it boils down to is, can P.E.I. families afford to pay an increased rate?" said Brown.

"We're pushing quality, accessible programmingand we feel the formula we've had over the course of time has been pretty fair in the industry," Brown said.

"We need to be careful not to throw the balance we've been able to achieve over the last eight or nine years."

Hooper agrees increasing the cost of daycare for Island parents isn't the answer, but she saidtomaintain quality programming and to justify staying in business, centre owners need to boost revenue somehow.

"Whether that's through government revenue, whether that's creatingrelationships with some of the large employers across P.E.I. something needs to change," she said.