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CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
February 2, 2004 | |
Author: |
Carol Ann Young | |
Phone No.: |
604-871-6042 | |
RTS No.: |
3564 | |
CC File No.: |
2402 | |
Meeting Date: |
March 9, 2003 |
TO: |
Vancouver City Council |
FROM: |
Director of Social Planning |
SUBJECT: |
Report Back on Protecting the Availability of Child Care Spaces |
RECOMMENDATION
THAT Council approve the addition of $165,500 to the Civic Child Care Grants Budget; source of funds 2004 Operating Budget to be added to Civic Child Care Grants annual grants budget without offset.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of the foregoing.
COUNCIL POLICY
On May 13, 2003, Council approved a motion on Affordable and Accessible Childcare which stated:
WHEREAS access to quality day care is vital to children of working families to promote healthy child development and school readiness in children while supporting a strong economy and labour force participation;
AND WHEREAS the City of Vancouver has long recognized and advocated for adequate and stable funding to ensure a high quality, affordable and accessible child care system;
AND WHEREAS the City of Vancouver has taken leadership in childcare at the Municipal level, building what has been assessed as the highest quality childcare in Canada;
AND WHEREAS recent Provincial government cuts to childcare subsidies are creating a two-tiered system with childcare for those who can afford it and unregulated child minding or less for those who cannot;
THEREFORE BE IT RESOLVED that, the City of Vancouver call on the Provincial government to meet with the City to find solutions to the childcare crisis, and reposition British Columbia as a national leader in childcare;
AND BE IT FURTHER RESOLVED that City Council ask City staff to provide a report on measures the City can take on an urgent basis to protect the availability of childcare spaces and programs in the City of Vancouver.
On July 24, 2003, Vancouver City Council approved additional funding to the Childcare Grant program of $162,250 annually, to be directed to grants for improving childcare affordability and stabilization under the Inner City grant program, subject to evaluation and report back in early 2004; source of funds for 2003 to be from Contingency Reserve. Subject to report back, funding for 2004 and subsequent years of $165,500 would be added to the Civic Grants Budget without offset.
On November 4, 2003, Council approved 33 Child Care Subsidy Grants totalling $162,316 as listed in Appendix A to the Administrative Report "Approval of Availability of Child Care Spaces Subsidy Grant", dated October 20, 2003, with conditions as noted; source of funds: 2003 Inner City Subsidy Grant allocation.
BACKGROUND
During the past eighteen months, a number of Provincial policy changes impacted the affordability and accessibility of licensed child care, particularly for low and moderate income families. Key changes over this time, and overall impacts of policy changes, were described in the Council Report of July 24, 2003. In summary, families must be poorer to receive child care subsidy; pay higher fees, particularly in out-of-school care; have time limits on returning to work to maintain subsidies; are no longer eligible for preschool subsidy to assist their children's development for social reasons; and receive no subsidy if they qualify for $50 or less, putting preschool out of reach for many low income families.
While Council recognized it is not the responsibility of local governments to pick up the downloading costs of the Provincial government, it was concerned about the number of vacancies in child care programs on the east side and the number of low income families unable to access licensed child care due to lack of or reduced Provincial subsidies. In an attempt to mitigate these impacts, Council approved a subsidy grant intended to:
_ reduce current vacancies;
_ provide a fee subsidy for 20% of the licensed spaces in Inner City Grant recipient programs to assist low income families maintain spaces; and
_ aid low income families to return to licensed child care programs.
Council approved a $28 per space, per month grant for 11 months for 527 spaces in 33 programs. Grant allocations were dispersed in the Fall of 2003 and programs have reported monthly on the use of grant funds. While it is too early to conduct a full evaluation, preliminary findings of a sample of programs, over a four-month period from October, 2003, to January, 2004, suggests that the grant has had an impact on enrolment and increasing affordability. It should be noted, however, that since the reductions in operating dollars to out-of-school care in 2002, and the overall changes in subsidy, programs continue to struggle with lower enrolments due to affordability.
In a four-month period from October, 2003, to January, 2004, a sample of program data in January, 2004, on 1,011 licensed spaces in 26 programs was reviewed (11 out-of school, 5 preschool and 10 three to five years group program). Findings suggest that in these 26 programs, 275 children received subsidies in January, 2004. Some of these children received double subsidy in order that they could remain in their program. Of these 26 programs, 14 programs are now fully enrolled. This is particularly significant to the overall financial viability of programs, as they are now in a position to access the full Provincial operating grant, which is tied to enrolment.
The full expenditure of subsidies for some programs has not yet occurred. During discussion with some of the larger child care providers, a number of reasons for this were given. Programs indicated that it is taking time to rebuild enrolment as families have found alternative care at a lower cost, likely unregulated care; administration of subsidy is time-consuming; some families do not request subsidies due to perceived stigma attached; and the timing of the grant. Programs generally take enrolment lists over the summer and early September, yet grant funding was not released until late October. Despite these challenges, programs were confident that, over time, they would see the benefits of the subsidy. One key recommendation made by some programs was the preference to have the subsidy grant rolled into an operating grant to reduce fees overall for families.
Social Planning Department will continue to gather and monitor findings. The University of British Columbia has agreed to assist the City in conducting a more rigorous evaluation of the impact of the grant funding over the next year. Findings from the full evaluation will be reported to Council in the Fall of 2004.
FINANCIAL IMPLICATIONS
Council approved a Civic Child Care Grants budget of $706,800 in the Spring of 2003 and an additional $162,250 Child Care Subsidy Grant in the Summer of 2003, a total budget of $869,050. The 2004 Civic Child Care Grants Budget, with a 2% general inflation increase, will be $886,400, should Council approve the continuation of the Child Care Subsidy Grant.
CONCLUSION
Preliminary findings from four months' data of 26 programs suggest that the City Subsidy Grant is making a difference to low income families and child care programs in the Inner City. Program vacancies have decreased in a sample of programs reviewed, enabling low income families to remain and/or return to child care. Increased enrolment has also enabled programs to realize the full Provincial operating grant. There are still seven months remaining for the allocation of these subsidies, after which time a full evaluation will be conducted in partnership with UBC. A report to Council will then follow. Staff are recommending that the grant continue and that the $165,500 be added to the Civic Child Care Grants Budget for 2004 and subsequent years as part of the Inner City Grant.
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