SUPPORTS ITEM NO. 6 CS&B COMMITTEE AGENDA FEBRUARY 1, 1996 ADMINISTRATIVE REPORT Date: January 18, 1996 TO: Standing Committee on City Services and Budgets FROM: Director of Social Planning SUBJECT: 1996 Childcare Grants: Funding Level RECOMMENDATION THAT Council approve a 1996 Childcare Grants Program budget of $659,300 to meet the grant category priorities outlined in this report. GENERAL 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 developmental and administrative services required for a childcare system in Vancouver; and - 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. Approval of grant recommendations requires eight affirmative votes. PURPOSE The purpose of this report is: - to establish a budget ceiling for the 1996 Childcare Grants program; and - to recommend or re-affirm the priorities and funding guidelines for the seven grant categories within the Childcare Grants program. BACKGROUND In 1995, Council approved an overall Childcare Grants budget of $646,310. During the past year, Council approved 56 grant allocations. Total Allocated - 27 Program Enhancement $181,310 - 16 Inner-city Childcare 138,360 - 0 Program Stabilization 0 - 4 Program Development 20,000 - 3 Research/Policy Dev./Innovations 9,650 - 5 City-wide Childcare 241,940 - 1 Admin. of City-owned facilities 55,050 The 1995 funds directly supported and enhanced the quality of over 2,200 licensed childcare spaces and assisted in the creation of 104 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 5 new childcare centres. DISCUSSION The Director of Finance has advised that the 1996 budget figure is to be adjusted by 2% over the 1995 Childcare Grants budget of $646,310. It is proposed that the 1996 childcare grants ceiling of $659,300 be allocated as follows amongst the seven existing categories: Proposed Budget Actual 1996 1995 1995 Guidelines Program Enhancement 159,000 181,310 159,000 Inner-city Childcare 150,000 138,360 164,000 Program Stabilization 5,000 0 5,000 Program Development 10,000 20,000 14,000 Research/Policy Dev./ Innovations 15,000 9,650 10,000 City-wide Childcare Support 245,310 241,940 245,300 Admin. of City-owned Facilities 62,000 55,050 62,000 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 recognizes that as new provincial dollars begin to stabilize childcare programs through a Wage Supplement Initiative, the city dollars originally set aside for emergency stabilization grants can continue to be shifted to other childcare priorities. The grant category guidelines allow Social Planning some flexibility to respond to new or emerging needs within the overall budget ceiling. 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 administration. It is suggested that these priorities continue, the funding guideline be established at $159,000 and the maximum grant size be reduced by $1,500 to $10,500. This reduction more accurately reflects the size of grant actually allocated in the past and allows an increase in the inner-city grant category (see below). The eligibility and granting process will remain the same. Recommendations will be brought to Council in July 1996. 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 1995, grants of up to $11,000 were allocated to 14 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 1996, it is recommended that the priorities remain as originally established, the maximum grant level be increased to $12,500 and the overall funding level for the category be raised to $164,000. This increase in the grant size and guideline reflects the need for continued support to inner-city childcare programs. It is anticipated that the 14 inner-city centres identified in 1995 will re-apply and that one or two more centres may be added to the program. 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. No requests for emergency funding under this category were required for the past three years, but it is considered advisable to keep $5,000 available. It is recommended that for 1996, 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. It complements the provincial childcare facilities and equipment program. We do not anticipate a significant call upon these funds in 1996 as many community groups have indicated that they wish to see the impact of all the new childcare projects that have recently opened (25% increase in spaces in past 5 years). It is therefore recommended that the funding guideline be established at $14,000 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 1995, three projects were funded by the City: a city-wide multilingual clearing house project, and two needs assessment projects. For 1996, it is recommended that priority be given to examining innovative approaches to expanding family daycare spaces. Top priority will be given to projects which are of city-wide benefit. Co-ordination and collaboration with other organizations will be a prerequisite. 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 $245,300. Recommendations will be brought forward to Council in March/April, 1996. 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 will also be working with City staff to design, develop and open the seven new City childcare facilities slated for False Creek North and Coal Harbour plus any other facilities that are built in the Downtown Peninsula through CACs and DCLs. The society will also be responsible for the ongoing management of these facilities. It is recommended that $62,000 be allocated to the Administration of City-owned facilities grant category. Details of VSOCC's second year workplan and budget will be reported to Council in March/April 1996. CONCLUSION The Director of Social Planning recommends approval of a 1996 Childcare Grants Program budget of $659,300 to meet the priorities outlined for the seven grant categories. * * * * *