SUPPORTS ITEM NO. 6 CS&B COMMITTEE AGENDA MARCH 13, 1997 ADMINISTRATIVE REPORT Date: February 25, 1997 Dept. File No. CC File No. 2401-1 TO: Standing Committee on City Services & Budgets FROM: Director of Community Services, Social Planning SUBJECT: 1997 Childcare Grants: Funding Level RECOMMENDATION THAT Council approve a 1997 Childcare Grants Program budget of $665,895 to meet the grant category priorities outlined in this report. CSG MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY Council established the annual civic childcare grants program on October 23, 1990, as part of the Civic Childcare Strategy. The overall objectives of this grant program are: - to support the viability, accessibility and quality of existing childcare services; - to encourage new childcare initiatives in high need areas; - to encourage and support efficient, co-ordinated administrative services required for a childcare system in Vancouver; - to lever other sources of childcare funding whenever possible. The budget ceiling for the Childcare Grants program is established annually, prior to the development of recommendations for specific grant allocations. PURPOSE The purpose of this report is: - to establish a budget ceiling for the 1997 Childcare Grants program - to recommend or re-affirm the priorities and funding guidelines for the seven grant categories within the Childcare Grants program. BACKGROUND In 1996, Council approved an overall Childcare Grants budget of $659,300. During the past year, Council approved 58 grant allocations. Total Allocated - 26 Program Enhancement $148,000 - 18 Inner-city Childcare 175,000 - 2 Program Stabilization 10,000 - 3 Program Development 13,533 - 3 Research/Policy Dev./Innovations 14,102 - 5 City-wide Childcare 246,265 - 1 Admin. of City-owned facilities 52,400 The 1996 funds directly supported and enhanced the quality of over 2,200 licensed childcare spaces and assisted in the creation of 75 new spaces. Through the funding of City-wide Childcare Support Services, parents, caregivers, childcare boards and community groups were able to access essential information about childcare, receive consultative and referral services and participate in activities, events and workshops which promoted and strengthened quality childcare throughout the City. City funding was key to accessing provincial dollars for: - continued funding of the childcare support services provided by Westcoast Childcare Resource Centre; - capital grants for 2 new childcare centres. DISCUSSION The Director of Finance has advised that the 1997 budget figure is to be adjusted by 1% inflation over the 1996 Childcare Grants budget of $659,300. It is proposed that the 1997 childcare grants ceiling of $665,895 be allocated as follows amongst the seven existing categories: Proposed Budget Actual 1997 1996 1996 Guidelines Program Enhancement 159,000 148,000 133,395 Inner-city Childcare 164,000 175,000 190,000 Program Stabilization 5,000 10,000 5,000 Program Development 14,000 13,533 10,000 Research/Policy Dev./Innovations 10,000 14,102 10,000 City-wide Childcare Support 245,300 246,265 254,000 Admin. of City-owned 62,000 52,400 63,500 This allocation reflects the City's continued strong commitment to support inner-city and other high need childcare services and our increased responsibility for supporting the administration of the City-owned childcare facilities created through major rezonings and City projects. It also reflects the need to respond to increased pressure on the city-wide support services which are providing financial and administrative management services to small non-profit childcare programs in Vancouver. DESCRIPTION OF GRANT CATEGORIES AND RECOMMENDED PRIORITIES The Childcare Grants program is divided into seven categories, each with its distinct priorities, eligibility criteria and granting process. 1. Program Enhancement Under this category, grants are provided in order to achieve greater equity in the delivery and quality of childcare services in the City. Last year funds were targeted at initiatives in high need group daycare and school-aged programs for food supplement programs, child/staff ratios, extended hours of operation and strengthened, co-ordinated administration. It is suggested that these priorities continue, and the maximum grant size be maintained at $10,500. The funding guideline, however, is being reduced by $15,000 to $133,395 and the money transferred to the Inner-city grant category (see below) in recognition that some of the past Program Enhancement applications better fit under Inner-city criteria. Collaborative proposals will be encouraged. The eligibility and granting process will remain the same. Recommendations will be brought to Council in July 1997. 2. Inner-city Childcare Sustaining Grants This grant program, established in 1992 as Phase I of a civic Childcare Direct Operating Grant program, is targeted at non-profit organizations providing licensed childcare services to low income, high need families in inner-city neighbourhoods and charging fees to parents that are at or below the City-wide average. In 1996, grants of up to $12,500 were allocated to 18 centres for basic operating costs such as staffing and food costs. Civic funds continue to be essential to the ongoing viability of these programs. For 1997, it is recommended that the priorities remain as originally established, the maximum grant level be maintained at $12,500 and the overall funding level for the category be raised by $15,000 to $190,000. This increase in the guideline reflects the need for continued support to inner-city childcare programs. It is anticipated that the 18 inner-city centres identified in 1996 will re-apply and that one or two more centres will be added to the program as noted above. Societies may also be eligible for Program Enhancement Grant monies so screening will occur concurrently and recommendations will be brought forward to Council in a July report. 3. Program Stabilization This grant program has in the past been very effective in preventing the closure of parent run, non-profit childcare centres which experience financial difficulties. Last year there were two requests for emergency funding under this category. It is considered advisable to keep $5,000 available. It is recommended that for 1997, the priorities, eligibility criteria and granting process established at the time of the Civic Childcare Strategy, be continued. Reports to Council for this category are brought forward as required. 4. Program Development This grant category provides some assistance to non-profit societies with the non-capital costs associated with developing new childcare services, particularly in high need areas of the city. Given the continued provincial freeze on childcare capital funding, we do not anticipate a significant call upon these funds in 1997. However, some small expansions within existing facilities may be possible so it is recommended that the funding guideline be established at $10,000 and the priorities, eligibility and granting process remain as established. Applications are brought forward to Council three times a year - March/April, July and November/December. 5. Research, Policy Development and Innovations Fund The purpose of this grant is to encourage and support new childcare research, policy or support service initiatives. In 1996, three projects were funded by the City: an inner-city family childcare training project, a family childcare expansion options paper and a multi-lingual translation project. For 1997, it is recommended that priority be given to examining innovative approaches to expanding flexible childcare options. Top priority will be given to projects which are of city-wide benefit. Co-ordination and collaboration with other organizations will be a prerequisite. A $10,000 funding level is recommended. The eligibility and granting process will remain as established. Projects are brought forward for Council consideration in March/April or July. 6. City-wide Childcare Support Services This grant category fund was created to support the basic infrastructure that is integral to developing a viable, effective, high quality childcare system in the City. Priority will continue to be given to those city-wide, non-profit organizations which have developed and are providing: - information and referral services to parents seeking childcare; - financial and administrative consultation services to childcare boards and staff; - information, referral consultation and staff training opportunities for childcare services related to ESL, multicultural and diversity issues; - information and resource materials related to establishing and operating childcare programs; - training, networking and collaboration opportunities within the Vancouver childcare community; - unique, innovative childcare services which serve as city-wide models. Services receiving funding under this category must agree to work closely with City staff to enhance childcare in Vancouver and further the civic childcare objectives. It is also assumed that they will seek additional funding from senior levels of government. Eligibility and the granting process remain as established. The overall funding guideline proposed is $254,000. This increase is primarily to address the need for expansion of co-ordinated bookkeeping services for small non-profit childcare operations. Recommendations will be brought forward to Council in April/May, 1997. 7. Grant for Administration of City-owned Facilities This grant category was established to support the administrative costs of new City-owned childcare facilities negotiated as conditions of rezonings, bonusing and development permit approvals. In December 1994, Council approved start-up funding for the newly created Vancouver Society of Children's Centres (VSOCC). VSOCC is now operating the recently opened Library Square Children's Centre. VSOCC is also working with City staff to design, develop and open the new City childcare facilities slated for Roundhouse and Coal Harbour Phase I. The society will be responsible for the ongoing management of these facilities. It is recommended that $63,500 be allocated to the Administration of City-owned facilities grant category. Details of VSOCC's workplan and budget will be reported to Council in April/May 1997. CONCLUSION The Director of Community Services, Social Planning recommends approval of a 1997 Childcare Grants Program budget of $665,895 to meet the priorities outlined for the seven grant categories. * * * * *