Municipalities and Child Care

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Why should my community look to open a regulated child care service?

Through the Federal-Provincial Early Learning and Child Care Action Plan, the Provincial Government is looking to create approximately 5,800 new regulated child care spaces by 2025-26. Families in municipalities all throughout the province are in need of quality child care. Funding is available to towns and cities who are interested in helping their community through the creation of child care services.

What financial supports are available to me and my community?

Municipalities can avail of financial support to improve access to quality regulated child care. This includes:

  • The Child Care Capacity Initiative (CCCI): Provides funding for municipalities to increase the number of regulated child care services, particularly in underserviced areas, with a focus on rural, linguistic minority and indigenous communities. The funding supports applicants to ensure they meet legislative requirements that allow them to become licensed/approved to provide regulated, quality, and affordable child care throughout the province. The CCCI assists with the costs associated with start-up and renovation expenses such as the purchase of quality materials and equipment to meet health and safety requirement (e.g. egress windows, fire suppression systems) as well as developmentally appropriate materials and equipment to deliver an inclusive quality program.

  • Operating Grant Program (OGP): Helps to address the affordability of child care services for families with young children throughout Newfoundland and Labrador. Effective January 1, 2022, the OGP required participating regulated child care services to lower their rates to $15 per day for Infants, toddlers, preschoolers and full-day school-age children (part-time preschool/after school and before & after school rates are set as per subsidy policy). The Department of Education provides an operational grant to child care services participating in the $15/ day child care program. This operational grant is a range - all regulated services are eligible for at least the base rates and services that demonstrate that their operational expenses are higher due to considerations such as their location, higher staffing costs, etc. may be eligible for an enhanced rate up to the maximum amount as determined by policy.

  • Inclusion Supports Program: Provides assistance to regulated child care services to ensure children with exceptionalities (diagnosed or undiagnosed) can participate fully in a regular program. All regulated services can access grant funding when recommended by a Regional Inclusion Consultant that can support the hiring of replacement staff, wage and benefits funding for additional caregivers and professional learning.

  • Quality Enhancement Grant: All child care services participating in the Operating Grant Program have access to Quality Enhancement Grants to support a range of quality enhancements in their service, in consultation with program consultants, to cover professional learning, program design enhancement, technology and materials and equipment, furniture and material upgrades.

  • Early Learning and Child Care (ELCC) Supplement Program: Provides an income supplement directly to eligible Early Childhood Educators (certified Level I or higher) ranging from $12,900 to $16,900 per year depending on eligibility. The range is based on level of qualifications and the job held in regulated child care. As of Jan 1 2023 the wage supplement will be included in the wages paid to ECEs, to coincide with the wage grid increases. With these changes it is expected that many ECEs will receive a wage increase that reflects their important work and which will help with recruitment and retention. For example, Level II ECEs are expected to receive a combined wage in the $25-26 per hour range.

  • Child Care Subsidy: An income tested program designed to assist families with the cost of child care fees at regulated child care services. The Child Care Subsidy Program enables eligible families to access regulated child care services by eliminating or minimizing cost within available resources. The family net income threshold for full Child Care Subsidy is $41,000 - $77,000 per year, based on the number of children in regulated child care. Eligible families who attend a child care service participating in the Operating Grant Program receive free child care in those services.

We are interested in setting up a municipal child care service, how do we get started?

To learn more about starting a regulated child care service in your community, please contact (709) 729-4882 or cccapacity@gov.nl.ca

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