Child-care centres, including the YMCA, the largest operator in Ontario, have been warning about the risk of closures if the funding formula isn’t soon updated
Ontario has told child-care centres that it will implement a new way of funding the national $10-a-day program — something operators have urgently called for — starting in 2025.
“The priority for us is to provide certainty to the operators,” Education Minister Stephen Lecce said in a recent interview. That means the government’s revenue replacement model is based on rates that don’t reflect the true current cost of providing child care, and the amount Ontario has factored in for inflation — 2.1 per cent for 2024 and 2.75 for 2023 — is not cutting it, some operators say.
“This is a critical step to ensure that providers — including our charity — can continue to deliver high-quality child care under the new $10-a-day system,” Romoff wrote in a statement. The ministry has now told operators that a new, cost-based funding approach will be in effect starting in January 2025, and that the details of that new formula will be announced soon.
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