The overall financial impact of provincial budget changes could be about $9.4 million, a report from the Region of Waterloo says.
In the new budget, cost-sharing for children’s services will drop from 100 per cent to an 80-20 split.
Altogether the region says the budget changes could cost $4 million for childcare in 2019 and 2020, totaling about $9.4 million over the next four years.
A spokesperson for Minister of Education Lisa Thompson’s office says the onus is on cities and regions to reduce their administrative costs.
“Municipalities need to change their administrative processes so money can go directly back to parents by providing subsidies for low-income families,” Kayla Iafelice was quoted in a statement.
But the region says funding for administrative costs is already capped at 10 per cent. In the new budget, costs will also be halved to five per cent and will be cost-shared evenly.
Another budget item for childcare was also scrapped.
“The province has also ended a $50 million fund that helps child care centres cover labour costs without passing them on to parents,” the report from the region says. “This means the Region may have to cover this funding gap and the cost of child care could rise for families.”
The Ontario government has pledged up to $1 billion over the next five years to create 30,000 new childcare spaces, but the details of that funding haven’t been made clear yet.
