Ontario daycare operators warn of looming rolling closures

A group of daycare operators are threatening a week of rolling closures that could affect parents across Ontario to call on the province to hold off changes to its child-care funding formula.

The group is mostly made up of for-profit daycare operators, who say the closures set for the week of Oct. 21 will hit Toronto, Peel, York, Halton, Barrie, Muskoka, Durham and potentially other regions.

"It's the only thing that's going to make our voices heard," said Lisa Todorovic, a daycare operator in Toronto who plans to take part. Her daycare, Little Footsteps Childcare, consists of 106 childcare spaces.

Starting January 2025, the Ontario government's new plan will cap parent fees at $22 per day down from an average of $23 with the goal of cutting that amount to $10 per day by March 2026.

Instead of the old formula that covered the money parents were saving when daycare costs were slashed as part of the federal $10-a-day program, the new formula will see operators get a main pool of funding based on factors like location, number of spaces and age groups they serve.

Daycare operators who spoke with CBC said they support more affordable daycare, but this funding approach won't work for those with unconventional costs.

They say if their protests don't lead to change, they may close for good, opt out of the national $10-a-day program, or significantly downgrade their offerings.

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Ontario child-care centres that aren't participating in the national $10-a-day program will soon lose provincial funding to offer fee subsidies to lower-income families, and their staff could see a pay cut of $2 an hour.

Members of the group said it will be up to each operator to notify parents about potential rolling closures.

That includes Anya Kerr, the operator of Stepping Stone Early Learning Academy in Muskoka.

"We have to cut at least possibly three staff that would normally be in our programs as extra support," said Kerr, who oversees 85 child-care spaces split between her two centres.

Operators say new formula is too vague and limiting

On top of the baseline funding operators will receive under the new plan, they will also get an additional eight per cent in lieu of profit from the provincial and federal governments. As well, those that want to expand could receivetop-ups, and there will be legacy top-ups for operators whose eligible costs go above the standard.

But operators taking part in the closures said the government's guidelines are too vague, leaving it unclear which of their expenses would be eligible under the new plan. Some worry the plan won't cover things that make their centres stand out, like parties for families or extra staff.

Salima Rawjee, the operator of Little Learners Academy in Toronto with 54 child-care spaces, also plans to take part in the rolling closures.

"We will be cookie-cutter child-care centres," she said.

In a statement, Education Minister Jill Dunlop said she's talked to operators, parents and her federal counterpart.

"Ottawa must provide more funding, lift the cap on for-profit providers, and give more flexibility so that providers can cover their costs and create necessary spaces," she wrote.

In a statement, a spokesperson for the federal Minister of Families, Children and Social Development said Ontario's new rules "allow for operators to make healthy profits, but not excessive profits off hard working families trying to find a spot for their kid."

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A major daycare operator in Toronto says it has no choice but to cut employee wages due to a lack of funding. The Learning Enrichment Foundation has 25 locations in the Greater Toronto Area and serves nearly 2,000 children. CBC's Lane Harrison has the story.

Genevieve Lemaire said:"These operators can't expect a free ride with taxpayer money."

But the daycare operators who spoke with CBC disputed that characterization.

"It's not about the money, it's about doing the best for the kids we care for," said Kerr.

Operators unhappy with their allocated funding can apply to have it recalculated. But Kerr said the overall administrative burden means staff will spend less time with kids and more time trying to justify their expenses.

"[My supervisor] should be supervising. Instead she's been tied to the office desk," Kerr said.

Non-profit operators not as affected

Carolyn Ferns, a policy co-ordinator from the non-profit Ontario Coalition for Better Child Care, says the bulk of the current complaints come from for-profit operators.

"It's kind of a hard pill to swallow to hear a for-profit owner saying that they want to have essentially full control over their business make as much profit as they want, but still be in receipt of public funding, no questions asked," she said.

Ferns said non-profit operators shouldn't be as affected by the new changes as for-profit ones.

Linda Cottes, a senior vice-president at the YMCA of Greater Toronto, said the new funding formula is an important step forward.

"It's early days, however we believe this will help alleviate the shortfalls our Y previously faced."