Canada – Ontario Canada-wide Early Learning and Child Care Agreement - 2021 to 2026

4.8 Payment

4.8.1 Subject to Parliamentary approval of appropriations, Canada's contribution will be paid in approximately equal semi-annual installments as follows:

• the full payment of the designated amount set out in section 4.7.2 for fiscal year 2021 to 2022 will be made within 30 days after the signatures from both Parties are affixed to the agreement
• beginning in fiscal year 2022 to 2023, the first installment will be paid on or about June 15 of each fiscal year. The second installment will be paid on or about November 15 of each fiscal year once conditions in section 5.2 are satisfied

4.8.2 Beginning in fiscal year 2022 to 2023, the amount of the first installment will be an amount equal to 50% of the total amount of Canada's maximum contribution to Ontario for the fiscal year, which will be calculated using Statistics Canada 0 to 12 population estimates from the previous year.

4.8.3 Beginning in fiscal year 2022 to 2023, the amount of the second installment will be an amount equal to the balance of Canada's contribution to Ontario for the fiscal year based on the actual amount of the contribution determined under sections 4.7.3 and 4.7.4 for the fiscal year.

4.8.4 Canada will notify Ontario at the beginning of the fiscal year of their notional amount. The actual amount under sections 4.7.3 and 4.7.4 will be based on the Statistics Canada quarterly preliminary children (0 to 12) population estimates on July 1 of the preceding fiscal year.

4.8.5 In fiscal year 2024 to 2025, Canada shall withhold payment of its first installment if Canada has not received from Ontario its planned action plan for fiscal year 2024 to 2025, in accordance with requirements outlined in section 5.1. In fiscal year 2025 to 2026, Canada shall withhold payment of its first installment if Canada has not received from Ontario its planned action plan for fiscal year 2025 to 2026, in accordance with requirements outlined in section 5.1.

4.8.6 Starting in fiscal year 2023 to 2024, Canada shall withhold payment of its first installment for a fiscal year if Canada has not received from Ontario all information requested under section 4.8.8 for the payment of its second installment from the previous fiscal year.

4.8.7 Starting in fiscal year 2022 to 2023, Canada may withhold amounts payable in respect of fiscal year if Ontario is unable to meet the objectives of the agreement, in accordance with section 2.1.1.

4.8.8 Starting in fiscal year 2022 to 2023, Canada shall withhold payment of its second installment for that fiscal year until Ontario provides an annual progress report outlining data and results achieved from the previous fiscal year and its annual audited financial statement of the previous fiscal year in accordance with section 5.2.

4.8.9 In such an event that payment is being withheld, Canada will provide Ontario with a minimum 60 days written notice of its intention to withhold payment amounts, and the procedures for dispute resolution will be followed in accordance with section 8.

4.8.10 The sum of both semi-annual installments constitutes a final payment and is not subject to any further adjustment once the second installment of that fiscal year has been paid, unless there is a debt due to Canada, which requires repayment in accordance with section 4.11.

4.8.11 Payment of Canada's funding for each fiscal year of this Agreement is subject to an annual appropriation by the Parliament of Canada for this purpose. Likewise, use of the funding by Ontario is subject to an annual appropriation by Ontario's Legislature.

4.9 Maximum annual contribution in respect of administration costs

4.9.1 Canada's contribution in respect of Ontario's administration costs referred to in section 2.2.3 shall not exceed:

• in the fiscal years covered under this Agreement an amount up to 10% of the maximum amount payable for those fiscal years

4.10 Carry forward

4.10.1 For fiscal year 2021 to 2022, at the request of Ontario, and subject to the approval of Canada's Treasury Board, Ontario may retain and carry forward to the following fiscal year any unexpended funds remaining from Ontario's annual contribution payable under section 4.7 up to a maximum of 100% of the contribution payable.

4.10.2 In fiscal year 2022 to 2023, at the request of Ontario, and subject to the approval of Canada's Treasury Board, Ontario may retain and carry forward to the following fiscal year unexpended funds remaining from Ontario's annual contribution payable under section 4.7, up to a maximum of 95% of the contribution payable. Any unexpended funds in excess of 95% of the contribution payable represents an overpayment subject to section 4.11.

4.10.3 In fiscal year 2023 to 2024, at the request of Ontario, and subject to approval of Canada's Treasury Board, Ontario may retain and carry forward to the following fiscal year any unexpended funds remaining from Ontario's annual contribution payable under section 4.7, up to a maximum of 75% of the total contribution payable. Any unexpended funds in excess of 75% of the contribution payable represents an overpayment subject to section 4.11.

4.10.4 In fiscal year 2024 to 2025 at the request of Ontario, and subject to approval of Canada's Treasury Board, Ontario may retain and carry forward to the following fiscal year any unexpended funds remaining from Ontario's annual contribution payable under section 4.7, up to a maximum of 50% of the total contribution payable. Any unexpended funds in excess of 50% of the contribution payable represents an overpayment subject to section 4.11.

4.10.5 In fiscal year 2025 to 2026 at the request of Ontario, and subject to approval of Canada's Treasury Board, Ontario may retain and carry forward to the following fiscal year any unexpended funds remaining from Ontario's annual contribution payable under section 4.7, up to a maximum of 10% of the total contribution payable. Any unexpended funds in excess of 10% of the contribution payable represents an overpayment subject to section 4.11.

4.10.6 Ontario may only use the amount carried forward to the following fiscal year for expenditures on eligible areas of investment made under section 2.2 incurred that fiscal year.

4.10.7 For greater certainty, any amount carried forward under sections 4.10.1 and 4.10.5 is supplementary to the maximum amount payable to Ontario under section 4.7 of this Agreement during the fiscal year in which the funding is carried forward.

4.10.8 All amounts carried forward to the next fiscal year, pursuant to sections 4.10.1 to 4.10.5 must be spent by the end of that fiscal year. Ontario is not entitled to retain any such carried forward amounts that remain unexpended after the end of that fiscal year, nor is it entitled to retain any balance of Canada's contribution payable pursuant to section 4.7 that remains unexpended at the end of that fiscal year and is not carried forward in accordance with sections 4.10.1 to 4.10.5. Such amounts are considered debts due to Canada and shall be repaid in accordance with section 4.11.

4.11 Repayment of overpayment

4.11.1 In the event payments made to Ontario exceed the amount to which Ontario is entitled under the agreement and/or unexpended funding is in excess of the carry forward allowance, the amount of the excess is a debt due to Canada and shall be repaid to Canada upon receipt of notice to do so and within the period specified in the notice.

4.11.2 Canada shall, in addition to any other remedies available, have the right to recover the debt by deducting or setting-off the amount of the debt from any future contribution payable to Ontario under this Agreement.

Federal investments and support in Indigenous early learning and child care

The Indigenous Early Learning and Child Care Framework, co-developed with Indigenous partners in 2018, sees children and families supported by a comprehensive and coordinated system of ELCC policies, programs and services that are led by Indigenous peoples, rooted in Indigenous knowledge, cultures and languages and supported by strong partnerships. Building on this strong foundation and in addition to investments announced in the 2020 Fall Economic Statement, Canada's Budget 2021 included $2.5 billion over 5 years, starting in fiscal year 2021 to 2022, and $542 million ongoing, to advance First Nations, Inuit and Métis Nation specific early learning and child care priorities that meet the unique needs of Indigenous families. Approximately $54 million in Indigenous ELCC funding is reaching Ontario in fiscal year 2021 to 2022.

2.1 Highlights: Ontario's child care system

Child care is foundational to supporting early childhood development and student success. It is also a key enabler of workforce participation, particularly for women, both as parents and providers.

Ontario is home to almost 2 million children age 0 to 12, representing approximately 38% of Canada's child care age population. Ontario has approximately 860,000 children age 0 to 5 and 1,090,000 children age 6 to 12. These children are supported by a system of early learning and child care that is fully integrated with publicly funded schools to support access and seamless experiences for all Ontario families.

Ontario's child care system has a broad range of care options for families. There are more than 464,500 high quality licensed child care spaces in centres for children age 0 to 12 in the province. About 288,000 of these spaces are available for children age 0 to 5. Ontario's child care system also includes an estimated 10,000 spaces for children age 0 to 5 in licensed home child care, for an estimated total capacity of 298,000 spaces for this age group.

Quality and safety in child care programs are a priority for Ontario and are supported by a strong quality-focused licensing and enforcement regime.

Ontario shares with Canada the goals of a CWELCC system, including improved affordability, access, quality, and inclusion. Ontario has been working to advance these goals on many fronts, including:

• full-day kindergarten: Ontario invests $3.6 billion in universal full-day kindergarten, providing a full-day of free high-quality programming for all children age 4 to 5 in the publicly funded school system across the province. Ontario is the first Canadian jurisdiction to provide full-day kindergarten to both 4- and 5-year-old children and 90% of Ontario children age 4 and 5 attend full-day kindergarten
• fee subsidy for low-income families: Ontario's child care fee subsidy system provides $880 million annually to support low-income families to access child care. In 2019, the most recent year for which there is data available, fee subsidies supported 150,500 children in Ontario to access child care; 57,900 of these children attended child care free with full subsidy
• operator subsidies: Ontario invests approximately $700 million in operator subsidies to help offset costs that would otherwise result in higher child care fees. Support is provided for general operating costs, as well as wage enhancements for qualified staff
• Ontario childcare access and relief from expense (CARE) tax credit: introduced in 2019, this tax credit helps an estimated 300,000 families each year with up to 75% of their eligible child care expenses so they can work, run a business or study to acquire new skills
• child care spaces in schools: Ontario has committed up to $1 billion over 5 years (beginning in 2019) to create up to 30,000 new child care spaces in schools. As of March 31, 2021, 54% of licensed child care centres and 64% of licensed child care spaces were in publicly funded schools. 70% of primary schools have a child care centre
• wage enhancement grant/home child care enhancement grants: Ontario values the important role of child care and early years professionals. Since 2015, Ontario has supported recruitment and retention of RECEs in child care through the Ontario Wage Enhancement Grant. In 2021, Ontario invested $203 million to help attract and retain RECEs within Ontario's child care system and support access to stable, high quality child care programs
• Ontario's college of early childhood educators: Ontario values the important role of child care and early years professionals. The College is the self-regulatory body for the early childhood education profession in the province and is the only regulatory college for early childhood educators in Canada. As a result, Ontario is the only jurisdiction in Canada with title protection for the profession
• modern legislative framework and quality standards: the Child Care and Early Years Act, 2014 (CCEYA) is the legislation that governs child care in Ontario. The legislation requires that programming in licensed spaces is aligned with the provincial pedagogy, How Does Learning Happen?, which sets out a vision, values, foundations and approaches to guide practice for high quality experiences in licensed child care and early years settings
• licensing and enforcement: Ontario has a modern regulatory framework. The Ministry of Education issues child care licences under the CCEYA and is responsible for enforcement of that legislation
• annual data collection: Ontario has conducted an annual data collection of child care program operations from licensed child care centres and home child care agencies since 2012 and has been reporting on the Early Development Instrument (EDI) indicators since 2003
• EarlyON child and family programs: in addition to Ontario's robust child care system, Ontario also has 419 main sites and 664 mobile/satellite locations offering EarlyON child and family programs to provide key supports to caregivers and children

2.2 Overview: Ontario's child care system

Ontario sets overall policy, legislation, and regulations for the early years and child care sector (for-profit and not-for-profit) across the province. Ontario also issues licences, conducts inspections, and investigates complaints about licensed and unlicensed child care across the province.

There are 2 types of licensed child care in Ontario:

• child care centres are licensed by the Ministry of Education and include nursery schools, full-day and before- and after-school programs. Child care centres operate in a variety of locations including schools, workplaces, community centres and places of worship. The Ministry inspects child care centres at least annually to ensure they meet health, safety and programming requirements under the CCEYA
• home child care agencies are licensed by the Ministry of Education. Agencies enter into agreements with individual home child care providers and work with families to find the right provider for their child. Providers are screened, approved and regularly monitored by the licensed home child care agency. The Ministry also inspects home child care agencies and a sample of home child care providers annually to ensure licensing requirements are met and maintained

Ontario works with a broad and diverse range of partners to support the child care and early years system, including but not limited to Consolidated Municipal Service Managers (CMSMs), District Social Services Administration Boards (DSSABs), Child Care Licensees, the College of Early Childhood Educators, District School Boards, EarlyON Child and Family Centre Providers, First Nation communities, Indigenous and Francophone organizations, and Ontario Colleges of Applied Arts and Technology.

CMSMs/DSSABs are designated under the CCEYA as service system managers and are responsible and accountable for planning, implementing, monitoring, and reporting outcomes for child care and early years investments in their service area. CMSMs/DSSABs possess critical knowledge about community needs, maintain close connections with community partners, and are well positioned to plan and implement growth in the local child care system where it is needed the most.

2.3 Affordability supports for families

Child care fees have historically been market-driven, with higher fees associated with regions with a higher cost of living. Parent fees also vary by age group, with higher fees for younger age groups. Based on data as of March 31, 2021, estimated average daily child care fees for the 0 to 5 age group are over $46 per day. Average daily fees for the 6 to 12 age group are approximately $24 per day.

Below is a chart that shows the average daily fees in licensed child care as of March 31, 2021:

Note: the figure below was modified for accessibility reasons.

• Note: The blue line represents Ontario's estimates of monthly fees of an average of $10 per day.
• Source: Canadian Centre for Policy Alternatives, 2021, as cited in the Federal Budget 2021.

Figure 1 – Text version

Canadian cities	Monthly toddler fees
Québec city	$181
Montréal	$181
Gatineau	$181
Winnipeg	$451
Charlottetown	$608
Regina	$675
St. John's	$716
Fredericton	$716
Moncton	$716
Saint John	$716
Saskatoon	$810
Whitehorse	$850
Halifax	$853
Windsor	$868
Lethbridge	$900
Kelowna	$925
Edmonton	$950
Yellowknife	$990
Burnaby	$1,000
Hamilton	$1,027
Surrey	$1,050
Ottawa	$1,140
Kitchener	$1,149
Vancouver	$1,165
London	$1,191
Iqaluit	$1,215
Vaughan	$1,250
Calgary	$1,250
Brampton	$1,269
Oakville	$1,280
Mississauga	$1,284
Markham	$1,300
Richmond	$1,300
Richmond Hill	$1,327
Toronto	$1,578

• Source: Canadian Centre for Policy Alternatives, 2021, as cited in the Federal Budget 2021.

Ontario invests in several initiatives to make child care more affordable for parents across the province but achieving the $10 per day target will be more challenging for Ontario given the higher costs.

2.4 Family choice and access to child care spaces

In Ontario, licensed child care is provided in centres and homes, and is delivered by a mix of not-for-profit and for-profit organizations as well as municipalities, school boards and First Nation communities.

As of March 31, 2021, there were approximately 5,500 licensed child care centres in Ontario. The total number of spaces in licensed centres was about 464,500, which included:

• 35,500 spaces in centres that provide services in French
• 7,200 spaces that provide bilingual services
• 3,300 spaces in First Nation communities

Out of all licensed child care spaces in centres, about 288,000 spaces are available for children age 0 to 5 and 176,300 are available for children age 6 to 12.

In Ontario, the average annual growth rate for child care spaces for children age 0 to 5 is about 5% in the past 10 years, and about 3% in the past 5 years.

As of March 31, 2021, a total of 139 licensed home child care agencies were operating in the province. These agencies were permitted to contract with a maximum of 8,600 homes.

Overall, Ontario's licensed child care sector continues to grow despite the slight decrease in the number of centres over the past year. Since fiscal year 2011 to 2012:

• the number of licensed child care centres increased by 12%, from 4,900 to 5,500. Licensed spaces have increased by 68%, from 275,000 to 464,500
• the number of spaces has grown across all age groups, including school age (77%), kindergarten (230%), preschool (12%), toddler (62%), and infant (58%)

Over the past 5 years, Ontario has seen a growth of about 75,000 licensed spaces across the province. The growth is primarily in the not-for-profit child care sector.

The number of licensed child care centres and number of spaces in licensed child care by age group from fiscal year 2011 to 2012 to fiscal year 2020 to 2021 are shown in the charts below.

• Data source: Child Care Licensing System, Ontario Ministry of Education (as of March 31 each year).

• *The total spaces in a given year may not equal the sum of the spaces by age group due to the exclusion of alternating spaces prior to fiscal year 2013 to 2014 and the inclusion of the family age group in fiscal year 2017 to 2018. The total number of spaces includes spaces for family age groups.

Since fiscal year 2011 to 2012, the number of licensed home child care agencies has increased by 5%, from 132 to 139, and the total number of homes these agencies can contract with has increased by 39%, from 6,100 to 8,600. Each home child care setting can provide child care for up to 6 children, with capacity within each home set by the home child care agency based on considerations including the size of the home, the skills of the provider and the needs of the children.

The table below shows the 10-year trend for licensed home child care agencies and homes from fiscal year 2011 to 2012 to fiscal year 2020 to 2021:

• Data source: Child Care Licensing System, Ontario Ministry of Education (as of March 31 each year).

Overall, as of March 31, 2021, licensed child care in Ontario consisted of the following:

• centre-based child care: 5,500 centres with a total of 464,500 licensed child care spaces
• home child care: 139 licensed home child care agencies with 8,600 approved homes

In Ontario, licensed child care is delivered by both for-profit and not-for-profit organizations. As of March 31, 2021:

• 75% of licensed child care centres were not-for-profit (operated by not-for-profit organizations and First Nation communities) and 25% were for-profit
• 76% of licensed home child care agencies were not-for-profit and 24% were for-profit
• 54% of child care centres and 64% of child care spaces were in publicly funded schools
• 79% of child care spaces were in not-for-profit centres and 21% were in for-profit centres. It should be noted that a higher percentage of age 0 to 5 spaces are in for-profit centres compared to age 6 to 12 spaces. The breakdown of spaces by auspice for the 0 to 5 and 6 to 12 age groupings is as follows as of March 31, 2021:
  • 30% of spaces for 0 to 5 age were in for-profit centres and 70% of spaces for 0 to 5 were in not-for-profit centres
  • 7% of spaces for age 6 to 12 were in for-profit centres and 93% of spaces for 6 to 12 were in not-for-profit centres

Distribution of for-profit child care varies across Ontario, with certain parts of the province, including the province's fastest growing regions, dependent on up to 44% of for-profit child care centres.

For more detailed information and an overview of the changes over time regarding the number of child care centres, spaces, agencies and approved homes between for-profit versus not-for-profit for age 0 to 12, please see tables below:

Table 7: Licensed child care centres and spaces by auspice from fiscal year 2011 to 2012 to fiscal year 2020 to 2021

• Data source: Child Care Licensing System, Ontario Ministry of Education (as of March 31 each year).

• Data source: Child Care Licensing System, Ontario Ministry of Education (as of March 31 each year).

• Data source: Child Care Licensing System, Ontario Ministry of Education (as of March 31 each year).

Table 9: Licensed home child care agencies and approved homes by auspice from fiscal year 2011 to 2012 to fiscal year 2020 to 2021

• Data source: Child Care Licensing System, Ontario Ministry of Education (as of March 31 each year).

• Data source: Child Care Licensing System, Ontario Ministry of Education (as of March 31 each year).

2.5 Licensing, enforcement and inspections

Ontario has an established licensing and compliance regime for child care programs that can be leveraged to support implementation of a CWELCC system.

All licensed child care programs, regardless of auspice (for example, for-profit and non-for-profit), must meet and maintain the same specific provincial requirements according to legislation, regulations and Ministry policy (for example, health and safety, age groupings and staff-to-child ratios). These standards provide for the health and safety, and quality experiences of children, including:

• staff qualifications (for example, number of staff who must be qualified as a Registered Early Childhood Educator (RECE) or otherwise Ministry approved)
• ratios of staff to children and maximum group sizes
• first aid, police record checks, and immunization requirements for staff working in child care
• space requirements to support care including minimum square footage requirements, and areas for play, food preparation and meals, toileting, outdoor play and rest
• provision and maintenance of building, equipment, and furnishings to support quality care, and safe storage, handling and administration of food and medicine (for example, nutritious food, anaphylaxis policies)

Ontario inspects licensed child care programs (centre-based and licensed home child care agencies) at least once every year to:

• determine if licensing requirements are being met
• renew licenses
• monitor licensees who are having difficulty meeting licensing requirements
• support licensees to achieve and maintain compliance

Licensed home child care agencies are required to ensure an RECE visits and inspects all active home child care providers at least quarterly, using a Ministry checklist that includes indicators related to health, safety and quality of programming.

Directors and inspectors under the CCEYA have legislated powers of entry and inspection for licensed child care centres and do not require a warrant to access the premises. Additional unannounced inspections may be completed at any time the Ministry believes an inspection is warranted.

The CCEYA includes enforcement tools that allow the Ministry to better respond to contraventions under the Act in a timely manner using a risk-based progressive compliance approach. These tools include compliance orders, protection orders, administrative penalties and restraining orders in addition to the Ministry's existing authority to prosecute.

The Ministry investigates complaints about licensed child care and unlicensed child care and maintains dedicated phone lines for public complaints about each type of child care.

The Ministry also has a serious occurrence process that requires licensees to report key operational issues that put children at risk.

2.6 Quality frameworks and workforce

Ontario has a provincial pedagogy which sets out a vision, values, foundation and approaches to guide practice for high quality experiences in licensed child care and early years settings. How Does Learning Happen? (HDLH), Ontario's pedagogy for the early years, is issued by the Minister pursuant to his or her authority under the CCEYA. Ontario requires every licensed child care centre and home child care agency to have a program statement that is consistent with HDLH. HDLH is premised on evidence-based pedagogical approaches for learning, engagement and well-being and is adaptable to diverse and evolving contexts. HDLH is a professional learning resource for those working in child care and child and family programs.

In 2020, the Ministry released Building on How Does Learning Happen? Pedagogical Approaches to Re-opening Early Years and Child Care Programs in Ontario to support providers and staff in engaging with children and families while adhering to health and safety measures.

The CCEYA sets out the minimum requirements for licensed home child care agencies and home child care providers. Home child care agencies are licensed by the Ministry and contract individual home child care providers to care for children in their own homes. Agencies must ensure these providers meet the requirements as set out in the CCEYA, including the maximum number of children and health, safety and quality requirements as set out in the CCEYA and its regulations. Licensed home child care agencies are also required to employ an RECE home visitor.

The CCEYA sets out the minimum requirements for the workforce in licensed child care centres, including requirements for the ratio of employees to children, the maximum number of children in a group, the proportions of employees that must be qualified employees in licensed child care centres (which varies for different age groups, see below), and the qualifications of home visitors in licensed home child care agencies.

Licensees must ensure that they have hired enough individuals with the appropriate qualifications. In most cases, this is a minimum of 1 qualified staff per licensed age group; however, depending on the age and size of the group, 2 qualified staff may be required.

A qualified employee for any licensed age group shall be a person who is:

• an employee who is a member in good standing of the College of Early Childhood Educators
• an employee who is otherwise approved by a director

If a licensee is unable to hire enough qualified staff, they must apply for Ministry approval of an individual to take the place of an RECE. These approvals are considered on a case by case basis and the Ministry considers a variety of different things when reviewing the request, including:

• need for specialized training (for example, accredited Montessori training)
• unique circumstances (for example, Francophone program)
• licensee's efforts to recruit an RECE

Approvals can be time-limited (for example, to cover a parental leave) and are reviewed at each licensing inspection. The approved staff's name will appear on the licensing letter and an approval letter. The approval letter may also include conditions imposed on the approval, such as additional training requirements. Approvals are generally not transferable and may apply to only a specified licensed age group.

In Ontario, the College of Early Childhood Educators (College) is the regulatory body for Early Childhood Educators (ECEs). The College was established under the Early Childhood Educators Act, 2007 (ECEA) in February 2009 and is the only regulatory body for ECEs in Canada. The College regulates and governs Ontario's RECEs in the public interest. It regulates the profession by establishing and enforcing:

• registration requirements
• ethical and professional standards
• requirements for continuous professional learning
• complaints and discipline processes for professional misconduct, incompetence, and incapacity

A strong, qualified child care workforce is pivotal to providing high-quality experiences for children under a CWELCC system. Health and safety in child care settings has required a concerted, sector-wide effort and child care leaders, supervisors, Early Childhood Educators, and program staff have been instrumental in helping to keep children safe, families supported, and child care settings healthy places for our children to learn and thrive. As of March 31, 2021, there are 52,200 individuals working in the licensed child care centres and 25,600 are RECEs.

There are a broad range of staff who support the licensed child care system:

• registered early childhood educators (RECEs): trained professionals specialized in the early development and learning of children and registered with the College of Early Childhood Educators. To become an RECE, an individual will typically need to undertake a 2-year program at an Ontario College of Applied Arts and Technology (OCAAT) or private career college. In accordance with s.2 of the Early Childhood Educators Act, 2007, RECEs are responsible for the planning and delivery of inclusive play-based learning and care programs for children to promote the well-being and holistic development of children. RECEs in Ontario can work in several different settings and provide a range of services for children and families
• child care supervisors: supervisors play a key leadership role in licensed child care centres. In addition to having the role and duties of an RECE, supervisors are also required under the CCEYA, to be responsible for a wide range of other duties, including planning and directing the program of a child care centre, being in charge of children, and overseeing the staff employed within that centre
• resource consultants: consultants, who are typically RECEs, who have specialized training and/or qualifications in providing individualized supports for children with special needs. They support program staff, providers and parents in working with children with special needs who attend licensed child care
• home child care visitors: RECEs who are employed by licensed home child care agencies. They check that homes are safe for children before children are enrolled in care and check in routinely to make sure that home child care providers are following the provincial requirements and the home child care agency's policies and procedures
• licensed home child care providers: individuals who are contracted by licensed home child care agencies to provide child care in their homes. These providers are screened, approved and monitored by a licensed home child care agency. Licensed home child care providers may be RECEs or have other skills and qualifications helpful to supporting children in a home child care setting
• other program staff working directly with children: individuals who work with children and families in licensed child care but are not registered members of the College of Early Childhood Educators. Titles in this role can include early childhood assistant, child care worker, day care worker, family support worker, and child care assistant. In addition, program staff can include program assistants or enhanced staff who work with children with special needs

In fiscal year 2021 to 2022, Ontario invested a total of $206.5 million provincially and $75.5 million in federal funding to support the early years workforce:

• $203 million in provincial funding to support the Wage Enhancement Grant/Home Child Care Enhancement Grant, which is intended to help retain RECEs within Ontario's child care system and support access to stable, high-quality child care programs. Since 2015, eligible program staff and home child care visitors working in a licensed child care programs could receive a wage enhancement of up to $2 an hour plus 17.5% in benefits. Eligible home child care providers contracted with a licensed child care agency could receive a HCCEG of up to $20 per day
• $3.5 million in provincial and $3.5 million in federal funding to support the ECE Qualification Upgrade Program, which provides grants (education, travel, training) for individuals working in the child care and early years sector who would like to obtain their ECE diploma and become registered with the College of Early Childhood Educators. There were approximately 2,000 participants approved for the fiscal year 2020 to 2021
• $2.25 million in federal funding to support the Targeted Professional Learning Strategies for Francophone and First Nation, Métis, and Inuit communities to meet the growing professional learning needs related to mental health, cultural diversity, mentorship and networking
• $35.75 million in federal funding to support the Workforce Capacity and Innovation Fund, which provides flexible funding to service system manager and First Nations to allow them to support local workforce priorities
• $34 million in federal funding to support the Professional Learning and Development Strategy, which provides service system managers and First Nations with funding to develop professional learning strategies that support professional learning days for staff in the sector and focus on creating access to mentorship opportunities

2.7 Inclusion

2.8 Full-day kindergarten and before and after school programs

A CWELCC system provides Ontario with an opportunity to build on the significant investments to date in full-day kindergarten and further strengthen the continuum of learning for children.

Full day kindergarten (FDK) is available to all of Ontario's children age 4 to 5 in publicly funded schools. This is the most inclusive program in Canada, with approximately 267,000, about 90%, of children age 4 to 5 participating in this program. Ontario's full-day kindergarten program has been fully implemented since fiscal year 2014 to 2015. Ontario continues to invest $3.6 billion annually in this program.

FDK is part of a continuum of learning from birth to age 5 where coherence across pedagogical approaches in child care and FDK leads to more seamless programs for children and families.

Ontario's FDK is a 2-year, full day program. Participation is an optional parental/guardian choice as compulsory registration in school is not required until age 6.

FDK is delivered by educator teams of 1 teacher and 1 RECE. Full-day kindergarten operates during the regular school day (approximately 9:00am to 3:30pm) over the school year.

The FDK delivery model is based on an average class size of 26 students to 2 adults (a teacher and a Designated Early Childhood Educator), or a child to adult ratio of 13:1. Kindergarten classes have a class size cap of 29.

2.9 Supporting data and measurement

2.10 Child care during the COVID-19 pandemic

The COVID-19 pandemic has resulted in unprecedented impacts on Ontario's early years and child care sector given child care operators in Ontario are mainly independent businesses and not-for-profit operators. Emerging from the COVID-19 pandemic, the child care sector continues to experience reduced enrolment and staffing pressures. Ontario's child care and early years system plays a key role in the province's efforts to reopen the economy by ensuring safe and accessible child care is available as Ontario's workforce returns to pre-COVID-19 activity.

Strategic funding approaches were taken throughout the COVID-19 pandemic to support operators in partnership with CMSMs/DSSABs and the federal government. The Ministry of Education also directly funded non-purchase of agreement operators who applied to the Ministry for funding.

As municipal service managers, CMSMs/DSSABs have played an important role in keeping the child care and early years system stable and ensuring child care and EarlyON environments are healthy and safe over the course of the COVID-19 pandemic. This includes their role in implementing 4 separate rounds of Emergency Child Care for a total of 32 weeks. At its peak in spring 2021, this program helped over 12,000 children of front-line workers access high-quality child care enabling these parents to work.

Most child care centres in Ontario have re-opened as a result of the dedication of child care workers in the province and the partnership between operators, municipalities in Ontario, the Ontario government and federal support. Over 96% of licensed child care centres reopened following the emergency closures resulting from the COVID-19 pandemic.

4.1 Ontario's principles of implementation

Overarching principles for implementation of the goals and targets of a CWELCC system in Ontario include:

1. phased approach: a phased approach to implementation will be taken and is necessary to ensure stability and sustainability of the child care system while working towards the goals of improved affordability, access, inclusion and quality
2. ongoing communication and engagement with partners: moving towards a CWELCC System will require the commitment, knowledge and experience of Ontario's diverse range of child care and early years partners. Engagement with the sector and stakeholders will be key to a successful implementation
3. provincial framework and consistency: consistency in provincial and local approaches will be necessary to achieve targets under a CWELCC system and ensure equitable access to affordable child care for families across Ontario. CMSMs/DSSABs will play a key role in implementation and will be consulted on Ontario's approach with the goal of consistent standards and implementation approach across the province
4. family-focused: implementation will be guided by what works best for Ontario's families and ensuring child care in Ontario continues to meet the diverse needs of children and families
5. equity, inclusion and quality: implementation activities will capture the needs of diverse communities and preserve or enhance high quality early learning and child care programming for all

4.2 Early implementation activities

Upon ratifying the CWELCC agreement with Canada, Ontario will work with municipal service managers to initiate a child care operator enrolment process with the goal to secure participation of a broad range of child care operators in a CWELCC system. Operator enrolment will be confirmed, inclusive of requirements for parent fee reductions, fee maximum, workforce supports, and other accountability requirements and funding terms.

Following the signature of the Canada-Ontario CWELCC agreement, Ontario will issue 2022 funding allocations to municipal service managers to implement the 2022 requirements under the agreement. Municipal service managers will be directed to enter into agreements and allocate funding to child care operators for 2022 fee reductions and other requirements.

As a first step, all Ontario families with children age 0 to 5 in participating licensed child care will see a fee reduction of up to 25% (to a minimum of $12 per day), retroactive to April 1, 2022. Retroactive rebates will be provided to parents from May to December 2022. Parents can expect a further reduction by the end of December 2022. By December, these reductions will reduce child care fees in Ontario for ages 0 to 5, on average, by 50%.

Subject to provincial legislation and included in the 2022 funding allocation to municipal service managers, Ontario will provide funding to raise the wage floor to $18 per hour for Registered Early Childhood Educators (RECEs) and $20 per hour for RECE Supervisors to improve recruitment and retention in the child care workforce. In addition, in the summer of 2022, the Ministry of Education will work with sector partners and partner ministries on a comprehensive recruitment and retention plan. This will be supported by the release in the fall 2022 of an updated version of Ontario's leading pedagogical framework for the early years How Does Learning Happen? Ontario's Pedagogy for the Early Years.

In the summer and fall of 2022, the government will engage a broad range of partners on the space expansion and inclusion commitments in the CWELCC agreement. This engagement will be done in partnership with municipal service managers and include child care operators, First Nations, Inuit and Métis partners, Francophone stakeholders, organizations representing children with special needs and others and will focus on forming the basis of Ontario's space expansion and inclusion priorities. By the fall 2022, municipal service managers will be required to submit space expansion plans and inclusion plans to inform the provincial allocation of new child care spaces and to ensure a broad range of communities and populations have access to high quality, affordable and inclusive child care. In December 2022, based on space expansion and inclusion plans, Ontario will provide start-up grants to support the creation of new spaces in targeted regions and for underserviced communities and populations.

4.3 Implementation committee

Ontario will work with the federal government to establish an officials-level Implementation Committee that will discuss and exchange information and monitor progress toward the actions identified under this Agreement. Through mutual agreement, stakeholders may be invited to attend the Implementation Committee.

The Implementation Committee will also oversee a program review process in fiscal year 2024 to 2025. The purpose of the program review is to communicate progress and share information on the committed objectives. This includes a review of indicators and targets as well as an analysis of costs (including operator deficits if any) and cost drivers. The program review will be completed by June 30, 2024.

4.4 Funding and objectives/terms

4.5 Priority areas

To work towards the CWELCC system objectives, Ontario has outlined 5 broad priority areas of investments under this 2-year action plan and the sections following describe this implementation for each priority area:

• affordability
• access
• inclusion
• workforce and quality
• implementation and ongoing supports

These priority areas of investment will be implemented through Ontario's existing child care system, which includes 47 CMSMs/DSSABs who manage the funding and accountability relationship with child care operators.

4.6 Accountability and safe guards