August 15, 2024
Excerpt: "The Ontario government is also introducing a new, cost-based funding approach for child care operators in the CWELCC program, effective January 1, 2025. This replaces the "revenue replacement approach" the government used in 2022, 2023 and 2024 where operators are eligible for the amounts required to buy down the parent fees (plus cost escalation). While this approach has worked for many it has also posed challenges, including that it was based on a point in time when some operators had kept fees low to support families during the COVID-19 pandemic. The new funding approach prioritizes a simple and easy-to-administer system that is consistent across the province and is representative of the true costs of operating child care. Benchmark Allocations - Under the new funding approach, all operators will receive benchmark funding based on the typical costs to operate child care in their region of the province. In order to simplify the process for operators, funding will be based on core metrics including: the number of operating spaces/active homes; licensed spaces by age group; operator setting; operating days; cost escalation."