To: The Government of Ontario

Subject:   Urgent Revisions to the CWELCC 2025 Funding Formula requested.

We, the Private Operators Of Ontario, are deeply concerned that the proposed CWELCC Cost-Based Formula for 2025 jeopardizes the overall performance of the system. Many participating spaces will be lost, while centres who have not been accepted into CWELCC may face closures. The goals of the program are not achievable under this model.

Key Concerns:

 1. Financial Autonomy: Excessive cost eligibility criteria significantly
jeopardizes quality programs. End of year Cost Reviews analyze highest
funded centres, in an effort to make “quality more equitable across all
programs.” However, lowest-funded programs are not being analyzed for
increases to improve their quality. The government is not concerned about creating a high-quality childcare system, only concerned about reducing costs overall.
2. Promote inclusion: Funding may not cover necessary costs for inclusion of children with special needs in our programs. Extra staff wages needed for support will not be eligible. Adapting programs to meet diversity of the children who attend may not be possible due to ineligibility of extra meals and/or activities meant to support different cultural celebrations.
3. Why is Ontario cutting funding from childcare centers not in the $10- a-day program? Cutting funding from childcare centres not in $10/day program eliminates thousands of subsidized spaces for low income families. Non-CWELCC centers risk losing critical funding for children and teachers, including the Fee Subsidy and WEG, which support vulnerable families and dedicated educators. As noted by the Toronto Star, Of 51,000 new spaces, only 25,500 are within the $10-a-day system.
4. Emergency Fund:
A surplus covering three months of expenses should be provided to ensure continuity during crises.
5. Geographical Adjustment Factor (GAF):The allocation of GAF, which discounts funding in certain geographic areas while rewarding others, is unjustified. The operating costs for most childcare centers in close proximity, regardless of municipal boundaries, are nearly identical. For instance, operators located on the west side of Etobicoke Creek will receive a 20% reduction in funding compared to those on the east side.

Conclusion:

Support Working Parents – We urge the government to leverage all available resources in Canada, including both non-profit and for-profit organizations. There are currently not enough childcare spaces to meet demand. Involving Canadian
for-profit corporations will significantly help the government meet its childcare targets. Parents should have choice in their care. Excluding these organizations eliminates choice and reduces the quality centres are providing through the program.
Simplify Delivery of the CWELCC system – By distributing funding to follow the families, administrative costs of the CWELCC system will be significantly reduced, allowing for more families to access reduced rates. Funding should be delivered straight to the families based on their income, allowing them to choose which centre best suits their child’s needs, and eliminates the reduction of quality due to operators’ added overhead. This will increase access to spaces while allowing further fee reduction for families.
Empower Small Childcare Businesses – We urge a revision of the CWELCC 2025 formula to ensure the long-term sustainability of the childcare sector. Many operators are dedicated family-run businesses, having invested their life savings, tireless efforts, and passion into nurturing young minds.

The CWELLC 2025 cost-based funding is insufficient, undervaluing their dedication and hard work.  The formula jeopardizes the ability of operators to provide quality care to their children, while reducing operators’ abilities to keep their programs inclusive to children with higher needs. We seek a revised formula that recognizes the value of small childcare businesses, supporting their viability and the well-being of our community, children and families
We call for the delay of the roll-out of the cost-based CWELCC 2025 funding until a new model that supports educators, fosters inclusion, and maintains quality is established. The development of this program must include input from the stakeholders in the childcare sector, including families, educators, operators, and service system managers.  The Government needs to recognize the essential role of small childcare businesses and non-profit centres alike, ensuring their viability while supporting the well-being of children and families.
The goal should be to make childcare more affordable, protect the quality of services, and increase the availability of spaces for families across
Canada—without imposing restrictive regulations. Centres that do not meet the standards of quality should be assisted more with the services they provide, rather than looking to cut expenses in the high quality programs.
We do not want the CWELCC program to fail, but without flexibility for families and operators, many may opt out. This would hinder the governmens goal of 86,000 spaces, jeopardizing the program success.