Canada – Saskatchewan Early Learning and Child Care Agreement – 2021 to 2025

2.1 Objectives

2.1.1 Canada and Saskatchewan agree that over the Term of this Agreement, with financial support from Canada, Saskatchewan will further build its early learning and child care system by addressing local, regional and system priorities that have an impact on families more in need by increasing the quality, accessibility, flexibility and inclusivity in early learning and child care, towards achieving the objectives of:

• inclusivity: through new pilots for preschool children experiencing disabilities
• minority language inclusion: expand Francophone child care
• quality-focused initiatives: that help early learning and child care operators provide play-based, developmentally appropriate programs
• increased access to programs for families: by adding 2,515 new licensed child care spaces that are eligible for Saskatchewan’s Child Care Subsidy

Saskatchewan’s policy towards early learning and child care and approach to achieving these objectives is set out in their Action Plan attached as Annex 2.

2.1.2 Canada and Saskatchewan agree that in fiscal year 2021 to 2022, Canada will provide a one-time contribution to Saskatchewan that will be used to support the recruitment and retention of the early childhood workforce, in accordance with Annex 3.

2.2 Eligible areas of investment

2.2.1 Saskatchewan agrees to prioritize funds provided by Canada under this Agreement in regulated early learning and child care programs and services for children under the age of 6 where:

1. regulated programs and services are defined as those that meet standards that are established and/or monitored by provincial/territorial governments
2. early learning and child care programs and services are defined as those supporting direct care and early learning for children in settings including, but not limited to, regulated child care centres, regulated family child care homes, early learning centres, preschools and nursery schools

2.2.2 In developing and delivering its early learning and child care programs and services, Saskatchewan agrees to take into account the needs of Canada’s official minority language communities in Saskatchewan.

2.2.3 Types of investments include:

• capital and operating funding for regulated early learning and child care
• fee subsidies, training, professional development and support for the early childhood workforce
• quality assurance
• parent information and referral, and
• administration costs incurred by Saskatchewan in implementing and administering this Agreement

2.2.4 Canada and Saskatchewan also agree to promote, define, and deliver identifiable innovative approaches to enhance the quality, accessibility, affordability, flexibility, and inclusivity of early learning and child care systems, with consideration for those more in need.

2.2.5 Canada and Saskatchewan agree that funding will be targeted toward regulated programs and services, as further described in sections 2.2.1 to 2.2.4, for children under the age of 6, that will have an impact on families more in need such as:

• lower-income families, Indigenous families, lone-parent families, families in underserved communities
• families with caregivers who are working non-standard hours
• racialized families including Black families
• children from Official Language Minority Communities, and
• families with children with disabilities and children needing enhanced or individual supports

Needs also include having limited or no access to early learning and child care programs and services in Canada’s official languages.

2.2.6 In fiscal year 2021 to 2022, Saskatchewan may allocate funding under this Agreement to support short-term measures to minimize the impacts of COVID-19 on Saskatchewan’s ELCC system. These measures must be aligned with the principles of the Framework and be used to sustain ELCC programs and services.

3.2 Extension of bilateral agreements

3.2.1 Subject to Parliamentary approval of appropriations, Canada's goal is that the total annual allocation for all provinces and territories for the period of fiscal year 2025 to 2026 to fiscal year 2027 to 2028 will be no less than the total annual allocation for all provinces and territories for the fiscal year covered under the 2020 to 2021 Agreement. Funding during the fiscal year 2025 to 2026 to fiscal year 2027 to 2028 period will be provided upon the execution of another extension of this bilateral Agreement and conditional on Canada's acceptance of new action plans.

3.2.2 The extension will provide Saskatchewan and Canada the opportunity to review and course correct, if required, and realign new priorities in future bilateral agreements based on progress made to date.

3.2.3 In the event this bilateral Agreement is extended in accordance with the terms of section 3.2.1, Saskatchewan may continue to use funding provided thereunder to cover the same eligible areas of investment as those covered through funding received for the Term 2021 to 2025, subject to the terms and conditions of that extended Agreement.

4.2 Allocation to Saskatchewan

4.2.1 Canada has designated the following maximum amounts to be transferred in total to all provinces and territories under this initiative with a fixed base rate of $2 million per year for each province and territory, and the balance of the funding on a per capita basis for the period starting on April 1, 2021 and ending on March 31, 2025:

1. $399,347,694 for the fiscal year beginning on April 1, 2021
2. $524,347,694 for the fiscal year beginning on April 1, 2022
3. $565,847,694 for the fiscal year beginning on April 1, 2023
4. $565,847,694 for the fiscal year beginning on April 1, 2024

4.2.2 Subject to annual adjustment based on the formula described in section 4.2.3, Saskatchewan’s estimated share of the amounts described in section 4.2.1 will be:

• *Amounts represent annual estimates based on Statistics Canada population estimates

4.2.3 The final yearly amount to be paid to Saskatchewan will be calculated using the following formula F x K/L, where:

• F is the annual total funding amount transferred to provinces and territories minus the base funding
• K is the total population of Saskatchewan, as determined using annual population estimates from Statistics Canada, and
• L is the total population of Canada, as determined using annual population estimates from Statistics Canada

4.2.4 For the purposes of the formula in section 4.2.3, the population of Saskatchewan for each fiscal year and the total population of all provinces and territories for that fiscal year are the respective populations as determined on the basis of the quarterly preliminary estimates of the respective populations on July 1, of that fiscal year. These estimates are released by Statistics Canada in September of each fiscal year.

4.3 In this Agreement, “fiscal year” means the period commencing on April 1 of any calendar year and terminating on March 31 of the immediately following calendar year.

4.4 Payment

4.4.1 Subject to Parliamentary approval of appropriations, Canada’s contribution will be paid in approximately equal semi-annual installments as follows.

4.4.2 In fiscal year 2021 to 2022, the first installment will be paid within 30 days after the signatures from both Parties are affixed to the Agreement. The second installment will be paid on or about November 15.

4.4.3 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.

4.4.4 The amount of the first installment will be an amount equal to 50% of the notional amount of Canada’s maximum contribution to Saskatchewan for the fiscal year, which will be calculated in the manner described in sections 4.2.3 and 4.2.4.

4.4.5 The amount of the second installment will be an amount equal to the balance of Canada’s contribution to Saskatchewan for the fiscal year based on the actual amount of the contribution determined under sections 4.2.3 and 4.2.4 for the fiscal year.

4.4.6 Canada will notify Saskatchewan at the beginning of the fiscal year of their notional amount. The notional amount will be based on the Statistics Canada quarterly preliminary population estimates on July 1 of the preceding fiscal year. Canada will notify Saskatchewan of the actual increased or decreased amount of the second installment in each fiscal year as determined under the formula set out in section 4.2.3 as soon as possible following the release in September of each year of the Statistics Canada quarterly preliminary population estimates referred to in section 4.2.4.

4.4.7 Starting in fiscal year 2022 to 2023, Canada shall withhold payment of its first installment for each fiscal year if Saskatchewan has not provided its annual Action Plan in respect of that fiscal year in accordance with section 5.1.3 until such time as the annual Action Plan is provided.

4.4.8 In fiscal year 2021 to 2022, Canada shall withhold payment of its second installment for that fiscal year until Saskatchewan provides its annual audited financial statement of the last fiscal year covered by the Agreement signed in 2020 in accordance with section 5.2.2 (d) of the 2020 Agreement.

4.4.9 Beginning in fiscal year 2022 to 2023, Canada shall withhold payment of its second installment for the fiscal year if Saskatchewan has not provided its annual audited financial statement for the previous fiscal year in accordance with section 5.2.1 (d) until such time as the annual audited statement is provided.

4.4.10 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.

4.4.11 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.

4.5 Maximum annual contribution in respect of administration costs

4.5.1 Canada’s contribution in respect of Saskatchewan’s administration costs referred to in section 2.2.3 shall not exceed:

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

4.6 Carry forward

4.6.1 Saskatchewan may retain and carry forward to the following fiscal year any unexpended funds remaining from Saskatchewan’s annual contribution paid under section 4.2, up to a maximum of 10% of the contribution paid. Any unexpended funds in excess of 10% of the contribution paid represents an overpayment subject to section 4.7.

4.6.2 Saskatchewan 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.

4.6.3 For greater certainty, any unexpended funds remaining from Saskatchewan’s annual contribution paid under section 4.2, up to a maximum of 10% of the contribution paid to Saskatchewan in the last year of the Agreement signed in 2020, is eligible for carry forward to the first year of this Agreement.

4.6.4 For greater certainty, any amount carried forward under section 4.6.1 is supplementary and shall not reduce the maximum amount payable to Saskatchewan under section 4.2 of this Agreement during the fiscal year in which the funding is carried forward.

4.6.5 All amounts carried forward to the next fiscal year, pursuant to section 4.6.1 must be spent by the end of the fiscal year. Saskatchewan 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 paid pursuant to section 4.2 that remains unexpended at the end of that fiscal year and is not carried forward in accordance with section 4.6.1. Such amounts are to be repaid to Canada in accordance with section 4.7.

4.6.6 In fiscal year 2021 to 2022, at the request of Saskatchewan, and subject to the approval of Canada’s Treasury Board, Saskatchewan may retain and carry forward to the following fiscal year any unexpended funds remaining from Saskatchewan’s annual contribution paid under section 3.3 of Annex 3, up to a maximum of 30% of the contribution paid. Any unexpended funds in excess of 30% of this contribution paid represents an overpayment subject to section 4.7 of this Agreement.

4.7 Repayment of overpayment

4.7.1 In the event payments made to Saskatchewan exceed the amount to which Saskatchewan is entitled under the Agreement, the amount of the excess is a debt due to Canada and shall be repaid to Canada upon receipt of written notice to do so and within the period specified in the notice, which will not be less than 30 days.

4.7.2 In the event that the second installment payment made to Saskatchewan is determined to be less than the amount to which Saskatchewan is entitled under the Agreement, Canada agrees to pay to Saskatchewan the amount determined to be outstanding upon receipt of written notice to do so and within the period specified in the notice, which will not be less than 30 days.

4.8 Use of funds

4.8.1 Canada and Saskatchewan agree that funds provided under this Agreement will only be used by Saskatchewan in accordance with the areas for investment outlined in section 2.2 of this Agreement.

4.8.2 In the event that the annual funding allocation for each individual programming category as described in the Action Plan set out in Annex 2 is not fully utilized within the fiscal year, Saskatchewan may move the funding between categories to ensure the maximum use of funding. In this instance, Saskatchewan agrees beforehand to notify Canada in writing accompanied by an explanation or rationale for this change in funding allocation.

5.1 Action plan

5.1.1 Saskatchewan has completed and shared its Action Plan for fiscal year 2021 to 2022 of federal funding with Canada as set out in Annex 2 of this Agreement. Upon signature of this Agreement by both Parties, Saskatchewan will publicly release their Action Plan which:

1. identifies specific priority areas for investment and objectives, within the Framework’s parameters, which builds upon progress to date, including maintaining and building on the more affordable spaces created under the 2017 to 2021 Agreement, and further enhancing the quality, accessibility, affordability, flexibility and/or inclusivity of their early learning and child care system, with consideration for those more in need
2. describes how Saskatchewan plans to address the early learning and child care needs of its children/families more in need, as described in section 2.2.5
3. outlines their planned innovation spending
4. demonstrates and confirms that federal investments will be incremental, and will not displace existing Saskatchewan early learning and child care spending, including spending dedicated to Indigenous populations
5. outlines the indicators that will be reported on annually according to their planned investments
6. identifies specific targets for each indicator that will be reported on annually for tracking progress in relation to the objectives of the Agreement
7. may identify additional jurisdiction-specific indicators for tracking progress in relation to the objectives of the Agreement, and
8. includes a description of consultation processes referred to in section 5.1.2, the type of groups consulted and outcomes of the engagement

5.1.2 Saskatchewan will consult with provincial stakeholders which may include parents, child care providers, experts, Indigenous peoples, official language minority communities, and other interested Canadians as an important step in developing and revising its Action Plan.

5.1.3 The Parties agree that, where they appear in this Agreement, the words “consult”, “consulted” and “consultation” are not used for the purposes of fulfilling the Crown’s duty to consult and accommodate with First Nation and Métis communities and that nothing in this Agreement is intended to derogate or abrogate from the Crown’s legal duty to consult and accommodate.

5.1.4 By May 1st of each Fiscal Year during the Term of this Agreement, starting in fiscal year 2022 to 2023, Saskatchewan agrees to share with Canada an annual Action Plan. The annual Action Plan shall include the elements described in section 5.1.1 a) to h) and once the Parties agree that the annual Action Plan is final, it may be published by one or both of the Parties.

5.2 Reporting

5.2.1 By no later than October 1st of each fiscal year during the Term of this Agreement, Saskatchewan agrees to:

1. report to the people of Saskatchewan and to Canada on the results and expenditures of early learning and child care programs and services. The report shall show separately the results attributable to the funding provided by Canada under this Agreement
2. continue to provide to Canada data required for the publication of the joint Federal-Provincial/Territorial report on Public Investments in Early Childhood Education and Care in Canada
3. provide to Canada, and the people of Saskatchewan and Canada, an Annual Report in the format and manner decided jointly by Canada and Saskatchewan showing the results of the Action Plan as outlined in Annex 2 and as described in 5.1.1. The report shall show separately the results attributable to the funding provided by Canada under this Agreement and shall include:
   1. brief description of the activities, expenditures and results of the Agreement as set out in Annex 2
   2. results achieved according to the indicators and targets referred to in Annex 2
   3. the impact on families more in need, including families that have limited access to programs and services in their official language as described in section 2.2.5
   4. results achieved on innovation referred to in Annex 2
   5. a description of consultation processes, the type of groups consulted and outcomes of the engagement referred to in Annex 2, and
   6. any additional results of evaluation activities undertaken in the fiscal year, as available
4. provide to Canada the reports and audited financial statements required for each fiscal year covered by this Agreement, approved by an individual duly authorized by Saskatchewan, including:
   1. Saskatchewan shall provide the financial statements and reports in the manner it considers to be most appropriate to its particular circumstances to meet the requirements set out in this section
   2. the revenue section of the statement shall show the amount received from Canada under this Agreement during the fiscal year
   3. the total amount of funding used for ELCC programs and services under section 2.2
   4. the administration costs incurred by Saskatchewan in developing and administering ELCC programs under section 2.2.3
   5. if applicable, the amount of any amount carried forward by Saskatchewan under section 4.6
   6. if applicable, the amount of any overpayment that is to be repaid to Canada under section 4.7
   7. if, following presentation of such information, there is a need, in the opinion of Canada, to clarify and determine the relevance of the information provided in the financial statements and reports, Saskatchewan agrees to hold discussions with Canada, and
   8. Saskatchewan agrees to keep accounts and documents up to date and in due form on receipts and expenditures related to the content of this Agreement, including all related invoices, receipts and useful supporting documents. For the purposes of this Agreement, Saskatchewan shall retain all financial accounts, source documents and other useful documents for a period of at least 5 years after the fiscal year end to which it relates
   The financial statement shall be prepared in accordance with Public Sector Accounting Standards and the audit shall be conducted by the Provincial Auditor General of Saskatchewan or their delegate, or by an independent public accounting firm registered under the laws of Saskatchewan and shall be conducted in accordance with Public Sector Accounting Standards.

5.2.2 Canada, with prior notice to Saskatchewan, may incorporate all or any part or parts of the said report into any public report that Canada may prepare for its own purposes, including any reports to the Parliament of Canada or reports that may be made public.

5.3 Audit

5.3.1 Saskatchewan will ensure that expenditure information presented in the Annual Report is, in accordance with Saskatchewan’s standard accounting practices, complete and accurate.

5.4 Evaluation

5.4.1 As per established policies and processes with respect to program effectiveness, Saskatchewan may evaluate programs and services receiving funds provided under this Agreement and will make them available to Canada.

9.2 Waiver

9.2.1 Failure by any Party to exercise any of its rights, powers, or remedies under this Agreement or its delay to do so does not constitute a waiver of those rights, powers, or remedies. Any waiver by either Party of any of its rights, powers, or remedies under this Agreement must be in writing; and, such a waiver does not constitute a continuing waiver unless it is so explicitly stated.

Introduction

Saskatchewan is extending the Canada-Saskatchewan Early Learning and Child Care Agreement for the Term of April 1, 2021 to March 31, 2025 in order to ensure continuity of programs and services under the existing Agreement.

Investments of $13.579 million for fiscal year 2021 to 2022 will continue to be in the areas of access, inclusion, quality and minority language as per the Multilateral Agreement.

Saskatchewan’s focus on the early years

Saskatchewan’s integrated approach to early learning and child care recognizes high quality care and holistic, play-based approaches that best support the development of young children. Investments by Saskatchewan for young children and families are based on research that supports the social, physical, emotional and intellectual development of a child’s early years by helping them to reach their full future potential. Saskatchewan uses the Play and Exploration: Early Learning Program Guide as its foundational curriculum to guide quality practice and approaches in the sector. The guide lays out the principles of holistic, responsive and developmentally appropriate early learning and child care programs.

Saskatchewan, through the Ministry of Education, continues to invest in supports for licensed early learning and child care. This funding assists with the costs of developing and operating non-profit child care services, supports community programs to deliver programming to vulnerable children and families, supports Prekindergarten programs for vulnerable 3 and 4-year old children and supports additional programming requirements of children with intensive needs.

Federal investments support Saskatchewan strategic priorities

Saskatchewan is committed to maintaining current investment levels for early learning and child care. Investments made through the Canada-Saskatchewan Early Learning and Child Care Agreement are in addition to provincial investments and will work to build on existing strengths in the province’s early learning and child care system.

Saskatchewan’s Action Plan for fiscal year 2021 to 2022 for federal investment into early learning and child care will continue to provide families access and options for child care and early learning and improve access to healthy and safe child care environments. The plan will also continue to respond to the needs of families, citizens and early learning and child care stakeholders and provincial strategies.

Saskatchewan’s plan for investment

Over the course of this action plan, Saskatchewan will continue to build upon the main priorities from the existing Agreement. These priorities support the province’s strategic goals and align with the federal government’s early learning and child care funding criteria. Investments will continue to be made in the areas of quality, accessibility, inclusion and Francophone minority language inclusion.

Preamble

Whereas, Canada and Saskatchewan agree that the early childhood workforce is integral to providing high-quality ELCC.

Whereas, the Multilateral ELCC Framework is based on 5 key principles, one of which is ensuring ELCC systems are of high quality.

Whereas, the Multilateral ELCC Framework recognizes the importance of qualifications and training for the early childhood workforce as part of a high quality ELCC system.

Now therefore, the Parties agree as follows.

1.0 Purpose

1.1 Canada and Saskatchewan agree that in fiscal year 2021 to 2022, a one-time financial support from Canada to Saskatchewan will be used support the recruitment and retention of the early childhood workforce.

2.0 Area of focus

2.1 Saskatchewan agrees to utilize funding in regulated early learning and child care programs and services to support the attraction and retention of a qualified workforce, including through training, professional development, wages, bursary programs, tuition support and grants.

2.2 For greater clarity, activities that may support the objective of attracting and retaining a qualified workforce include but are not limited to:

2.3 Saskatchewan may use up to 10% of its workforce funding allocation towards administration costs incurred by Saskatchewan in implementing and administering this Annex.

3.0 Financial provisions

3.1 In fiscal year 2021 to 2022, to be paid concurrently with and in addition to the contribution provided under section 4.2 of the Agreement, Canada has designated the following maximum amount to be transferred in total to all provinces and territories under this initiative with a fixed base rate of $2 million per year for each province and territory, and the balance of the funding on a per child (0 to 12) basis:

3.2 The final amount to be paid to Saskatchewan is determined by the formula F x K/L:

3.3 Subject to adjustment based on the formula described in section 3.2 of this Annex, Saskatchewan’s estimated share of the amount described in section 3.1 (a) of this Annex will be:

For the purposes of the formula in section 3.2 of this Annex, the population of children aged 0 to12 in Saskatchewan for the 2021 to 2022 fiscal year and the population of children aged 0 to 12 in all provinces and territories for that fiscal year are the respective populations as determined on the basis of the quarterly preliminary estimates of the respective populations on July 1 of that fiscal year. These estimates are released by Statistics Canada in September of each fiscal year.

3.4 Sections 4.6.1 to 4.6.6 of the Agreement, respecting carry forward, apply to funds provided under this Annex.

4.0 Accountability

Annex 1: Saskatchewan early childhood workforce action plan