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.  


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