Canada-Ontario Early Learning and Child Care Agreement – 2021 to 2025

Official title: Canada-Ontario Early Learning and Child Care Agreement List of abbreviations CCEYA Child Care and Early Years Act, 2014 CMSM Consolidated Municipal Service Managers DSSAB District Social Services Administration Boards ECE Early Childhood Educator ELCC Early Learning and Child Care FLSA Ontario’s French Language Services Act FNMI First Nation, Metis, and Inuit F-P/T Federal-Provincial/Territorial RECE Registered Early Childhood Educator

Canada-Ontario Early Learning and Child Care Agreement – 2021 to 2025

• Her Majesty the Queen in Right of Canada (hereinafter referred to as “Canada” or “Government of Canada”) as represented by the Minister of Employment and Social Development (“Canada”) as represented by the Minister of Families, Children and Social Development (herein referred to as “the federal Minister”); and
• Her Majesty the Queen in Right of the province of Ontario (hereinafter referred to as “Ontario” or “Government of Ontario”) as represented by the Minister of Education (herein referred to as “the Ontario Minister”)

Referred to collectively as the “Parties”.

Preamble

Whereas, Canada and Ontario agreed to a Multilateral Early Learning and Child Care Framework on June 12, 2017 which articulated their shared vision for early learning and child care and describes their approach to achieve this vision.

Whereas, the Department of Employment and Social Development Act authorizes the federal Minister to enter into agreements with the provinces and territories, for the purpose of facilitating the formulation, coordination and implementation of any program or policy within the mandate of the federal Minister.

Whereas, the Child Care and Early Years Act, 2014 (CCEYA) authorizes the Ontario Minister to enter in agreements with the Government of Canada under which Canada undertakes to provide funding toward costs incurred by the Government of Ontario for the provision of early learning and child care programs and services.

Whereas, Canada has, pursuant to its Policy on Transfer Payments, established a transfer payment program to provide funds to the provincial and territorial governments for the development and delivery of regulated early learning and child care programs and services for children under 6 years of age, with consideration for families more in need.

Whereas, Canada and the Assembly of First Nations, Inuit Tapiriit Kanatami, the Métis National Council jointly released the co-developed Indigenous ELCC Framework in September 2018, which establishes overarching principles and sets a vision for happy and safe Indigenous children and families, strong cultural identity, and a comprehensive and coordinated system that is anchored in self-determination, and centered on children and grounded in culture, and can be used as a guide for all actors involved in Indigenous ELCC.

Whereas, Ontario invests in early learning and child care for Indigenous children.

Whereas, the Canada-Ontario Early Learning and Child Care Agreement was signed on June 16, 2017 (2017 to 2020 Agreement) and extended by 1 year on July 2, 2020.

Whereas, in accordance with section 3.0 of the Agreement signed in 2020, Canada and Ontario wish to extend the Agreement for a period of 4 years commencing April 1, 2021 and ending March 31, 2025, on the same terms and conditions as the Agreement, save and except for amendments as provided herein.

Whereas, intentions to extend the Agreement were stated in writing and negotiations had commenced prior to the expiry of the 2020 to 2021 Agreement.

Whereas, Canada and Ontario will discuss a Canada-wide child care system.

Now therefore, Canada and Ontario agree as follows.

1.0 Vision for early learning and child care

1.1 Canada and Ontario agree that the long-term vision, principles and objectives for early learning and child care, which are set out in the Multilateral Early Learning and Child Care Framework that is attached as Annex 1, will guide the investment of funds provided under this Agreement.

2.0 Early learning and child care objectives and areas of investment

2.1 Objectives

2.1.1 Canada and Ontario agree that over the period of this Agreement, with financial support from Canada, Ontario 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, affordability, flexibility and inclusivity in early learning and child care, towards achieving the objectives of:

• building on existing provincial investments in early learning and child care programs to support measurable and demonstrable expansion of services/programs that continue to support children, parents, families, and communities

Ontario’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.

2.2 Eligible areas of investment

2.2.1 Ontario agrees to prioritize funds provided by Canada under this Agreement in regulated early learning and child care programs and services, as per the Child Care and Early Years Act, 2014, 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 regulated early learning and child care programs and services, Ontario agrees to take into account the needs of official language minority communities in Ontario.

2.2.3 Acceptable investments under this Agreement may include, but are not limited to:

• 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
• certain administration costs incurred by Ontario in implementing and administering this Agreement

2.2.4 Canada and Ontario 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 Ontario agree that funding will be targeted toward regulated programs and activities, as described above, 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, and
• 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 the children’s official language.

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

3.0 Period of agreement

3.1 This Agreement shall come into effect upon the last signature being affixed and will remain in effect until March 31, 2025, unless terminated in writing by Canada or Ontario in accordance with the terms hereof in section 11. Funding provided under this Agreement, in accordance with section 4, will cover the period from April 1, 2021 to March 31, 2025.

3.2 Extension of bilateral agreements

3.2.1 Subject to Parliamentary approval of appropriations, Canada commits that the total annual allocation for all provinces and territories for the period 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 and informed by the assessment of the results achieved under the action plan set out in Annex 2.

3.2.2 The extension will provide Ontario 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, Ontario may continue to use funding provided thereunder to cover the same eligible areas of investment as those covered through funding received for the period fiscal year 2021 to 2022 to fiscal year 2024 to 2025 subject to the terms and conditions of that extended agreement.

4.0 Financial provisions

4.1 These contributions are in addition and not in lieu of those that Canada currently pays to Ontario through the Canada Social Transfer in order to support early childhood development and early learning and child care within Ontario.

4.2 Allocation to Ontario

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, Ontario’s estimated share of the amounts described in section 4.2.1 will be:

a. Amounts represent annual estimates based on Statistics Canada population estimates.

4.2.3 The final yearly amount to be paid to Ontario 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 Ontario, as determined using annual population estimates from Statistics Canada
• 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 Ontario 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.

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.

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.

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

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 4.2.3 and 4.2.4 for the fiscal year.

Canada will notify Ontario 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 Ontario of the actual 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.

Starting in fiscal year 2022 to 2023, Canada shall withhold payment of its first installment for each fiscal year if Ontario has failed to provide 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.

In fiscal year 2021 to 2022, Canada shall withhold payment of its second installment for that fiscal year until Ontario provides its annual audited financial statement of the last fiscal year covered by the Agreement signed in 2020 in accordance with section 5.2.1 (d) of that Agreement. Beginning in fiscal year 2022 to 2023, Canada shall withhold payment of its second installment for the fiscal year if Ontario has failed to provide 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.

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.

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.

4.5 Maximum annual contribution in respect of administration costs

4.5.1 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

4.6 Carry forward

4.6.1 At the request of Ontario, and subject to the approval of Canada’s Treasury Board, Ontario may retain and carry forward to fiscal year 2021 to 2022 any unexpended funds remaining from the annual contribution payable to Ontario under section 4.2.3, up to a maximum of 15% of the contribution payable. Any unexpended funds in excess of 15% of the contribution payable represents an overpayment subject to section 4.7.

4.6.2 At the request of Ontario, and subject to the approval of Canada’s Treasury Board, Ontario may retain and carry forward to fiscal years 2022 to 2023, 2023 to 2024 or 2024 to 2025 any unexpended funds remaining from the annual contribution payable to Ontario under section 4.2.3, up to a maximum of 10% of the contribution payable. Any unexpended funds in excess of 10% of the contribution payable represents an overpayment subject to section 4.7.

4.6.3 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.

4.6.4 For greater certainty, any amount carried forward under section 4.6.1 and 4.6.2 is supplementary to the maximum amount payable to Ontario under section 4.2.3 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 or 4.6.2 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 4.2.3 that remains unexpended at the end of that fiscal year and is not carried forward in accordance with section 4.6.1 or 4.6.2. Such amounts are considered debts due to Canada and shall be repaid in accordance with section 4.7.

4.7 Repayment of overpayment

4.7.1 In the event payments made to Ontario exceed the amount to which Ontario 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 notice to do so and within the period specified in the notice.

4.7.2 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.

4.8 Use of funds

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

5.0 Accountability

5.1 Action plan

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

1. identifies specific priority areas for investment and objectives, within the Framework’s parameters, which builds upon the progress to date including maintaining and building on the more affordable spaces created under the 2017 to 2018 to 2020 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 Ontario 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 that federal investments will be incremental, and will not displace existing Ontario early learning and child care spending, in particular 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. identifies additional jurisdiction-specific indicators for tracking progress in relation to the objectives of the Agreement
8. a description of consultation processes referred to in section 5.1.2, the type of groups consulted and annual priorities related to stakeholder feedback

5.1.2 Ontario will consult with 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 By May 1 of each fiscal year during the period of this Agreement, starting in fiscal year 2022 to 2023, Ontario 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). 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 1 of each fiscal year during the period of this Agreement, Ontario agrees to:

1. report to the people of Ontario and to Canada on the results and expenditures of early learning and child care programs and services. The report shall include the number of children receiving subsidies, and the number of licensed early learning and child care spaces broken down by age of child and type of setting. 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 an annual report in the format and manner decided jointly by Canada and Ontario. 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, referred to in Annex 2
   4. results achieved on innovation referred to in Annex 2
   5. description of consultation processes, the type of groups consulted and annual priorities related to stakeholder feedback referred to in Annex 2
   6. any additional results of evaluation activities undertaken in the fiscal year, as available
   1. the revenue section of the statement shall show the amount received from Canada under this Agreement during the fiscal year
   2. the total amount of funding used for ELCC programs and services under section 2.2
   3. the administration costs incurred by Ontario in developing and administering ELCC programs under section 2.2.3
   4. if applicable, the amount of any amount carried forward by Ontario under section 4.6
   5. if applicable, the amount of any surplus funds that are to be repaid to Canada under section 4.7

   The financial statement shall be prepared in accordance with Canadian Generally Accepted Accounting Principles and the audit shall be performed by the Ontario Auditor General or his/her delegate, or by an independent public accounting firm registered under the laws of Ontario and shall be conducted in accordance with Canadian Generally Accepted Auditing Standards.

   5.2.2 Canada, with prior notice to Ontario, 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 Ontario will ensure that expenditure information presented in the annual report is, in accordance with Ontario’s standard accounting practices, complete and accurate.

   5.4 Evaluation

   5.4.1 As per established policies and processes with respect to program effectiveness, Ontario will evaluate programs and services receiving funds provided under this Agreement and make public the results of any such evaluations.

   6.0 Long-term collaboration

   6.1 Canada and Ontario agree to share and release data as available, and knowledge, research and information on effective and innovative practices in early learning and child care, to further support the development of and reporting on quality and outcomes. Canada and Ontario agree to work together, and with stakeholders, towards the development of common quality and outcome measures that could be included in bilateral agreements in the future that could reinforce the Framework’s long-term vision.

   6.2 Canada and Ontario agree to work together to improve data collection and dissemination on key early learning and child care information for children under age 6.

   7.0 Communications

   7.1 Canada and Ontario agree on the importance of communicating with citizens about the objectives of this Agreement in an open, transparent, effective and proactive manner through appropriate public information activities.

   7.2 Each government will receive the appropriate credit and visibility when investments financed through funds granted under this Agreement are announced to the public.

   7.3 Canada reserves the right to conduct public communications, announcements, events, outreach and promotional activities about the Framework and bilateral agreements. Canada agrees to give Ontario 10 days advance notice of public communications related to the Framework, bilateral agreements, and results of the investments of this Agreement.

   7.4 Ontario reserves the right to conduct public communications, announcements, events, outreach and promotional activities about the Framework and the bilateral agreements. Ontario agrees to give Canada 10 days advance notice and advance copies of public communications related to the Federal-Provincial/Territorial ELCC Framework, bilateral agreements, and results of the investments of this Agreement.

   8.0 Dispute resolution

   8.1 Canada and Ontario are committed to working together and avoiding disputes through government-to-government information exchange, advance notice, early consultation, and discussion, clarification, and resolution of issues, as they arise.

   8.2 If at any time either Canada or Ontario is of the opinion that the other Party has failed to comply with any of its obligations or undertakings under this Agreement or is in breach of any term or condition of the Agreement, Canada or Ontario, as the case may be, may notify the other party in writing of the failure or breach. Upon such notice, Canada and Ontario will endeavour to resolve the issue in dispute bilaterally through their Designated Officials.

   8.3 If a dispute cannot be resolved by Designated Officials, then the dispute will be referred to the Deputy Ministers most responsible for early learning and child care, and if it cannot be resolved by them, then the federal Minister and Ontario Minister shall endeavour to resolve the dispute.

   9.0 Amendments to the agreement

   9.1 This Agreement, including all attached annexes, except for Annex 1, may be amended at any time by mutual consent of the Parties. To be valid, any amendments shall be in writing and signed by the Parties.

   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.

   10.0 Equality of treatment

   10.1 During the term of this Agreement, if another province or territory, except the province of Quebec, which is not part of the Framework, negotiates and enters into an Agreement with Canada to extend a 2021 Early Learning and Child Care Agreement, or negotiates and enters into an amendment to such an agreement and if, in the reasonable opinion of Ontario, any provision of that agreement or amended agreement is more favourable to that province or territory than terms set forth in this Agreement, Canada agrees to amend this Agreement in order to afford similar treatment to Ontario, if requested by Ontario. This includes any provision of the agreement except for the Financial Provisions set out under section 4.0. This amendment shall be retroactive to the date on which the agreement or the amendment to such an agreement with the other province or territory, as the case may be, comes into force.

   10.2 Canada will make publicly available up-to-date Early Learning and Child Care Agreements entered into with all provinces and territories, including any amendments, by posting them on a Government of Canada website.

   11.0 Termination

   11.1 Canada may terminate this Agreement at any time if the terms of this Agreement are not respected by Ontario by giving at least 12 months written notice of its intention to terminate. Ontario may terminate this Agreement at any time if the terms of this Agreement are not respected by Canada by giving at least 12 months written notice of its intention to terminate.

   11.2 As of the effective date of termination of this Agreement under section 11.1, Canada shall have no obligation to make any further payments to Ontario after the date of effective termination.

   12.0 Notice

   12.1 Any notice, information or document provided for under this Agreement will be effectively given if delivered or sent by letter, postage or other charges prepaid. Any notice that is delivered will have been received in delivery; and, except in periods of postal disruption, any notice mailed will be deemed to have been received 8 calendar days after being mailed.

   The address for notice or communication to Canada shall be:

   Social Policy Directorate
   140 Promenade du Portage
   Gatineau QC K1A 0J9
   NC-SSP-ELCC-GD@hrsdc-rhdcc.gc.ca

   The address for notice or communication to Ontario shall be:

   c/o Early Years and Child Care Division
   Ministry of Education
   315 Front Street West, 11th Floor
   Toronto ON M7A 08B

   13.0 General

   13.1 This Agreement, including Annexes 1 and 2, comprise the entire agreement entered into by the Parties with respect to the subject matter hereof.

   13.2 This Agreement is based on the Multilateral Early Learning and Child Care Framework, Annex 1, concluded on June 12, 2017.

   13.3 This Agreement shall be interpreted according to the laws of Canada and Ontario.

   13.4 No member of the House of Commons or of the Senate of Canada or of the Legislature of Ontario shall be admitted to any share or part of this Agreement, or to any benefit arising therefrom.

   13.5 If for any reason a provision of this Agreement that is not a fundamental term is found by a court of competent jurisdiction to be or to have become invalid or unenforceable, in whole or in part, it will be deemed to be severable and will be deleted from this Agreement, but all the other provisions of this Agreement will continue to be valid and enforceable.

   13.6 This Agreement is drafted in English at the request of the Parties.

   Signed on behalf of Canada by the Minister of Families, Children and Social Development at Ottawa this 13th day of August, 2021.

   [Signed by] The Honourable Ahmed Hussen, Minister of Families, Children and Social Development.

   Signed on behalf of Ontario by the Minister of Education at Toronto this 13th day of August, 2021.

   [Signed by] The Honourable Stephen Lecce, Minister of Education.

   Annex 1: Multilateral Early Learning and Child Care Framework

   Federal, Provincial and Territorial Ministers most responsible for Early Learning and Child Care (ELCC) agree on the importance of supporting parents, families and communities in their efforts to ensure the best possible future for their children. For more details, please consult the Multilateral Early Learning and Child Care Framework.

   Annex 2: Ontario’s action plan for fiscal year 2021 to 2022

   In this section

   • Introduction
   • A) Objectives and specific priority areas for investment within the Framework’s parameters, with consideration for those more in need
   • B) Describes how Ontario plans to address the early learning and child care needs of its children/families more in need
   • C) Outlines provincial/territorial planned innovation spending
   • D) Demonstrates that federal investments will be incremental, and will not displace existing provincial/territorial early learning and child care spending
   • E) Outlines the indicators that will be reported on annually according to planned investments
   • F) Identifies specific targets for each indicator that will be reported on annually for tracking progress in relation to the objectives of the Agreement
   • G) Identifies additional jurisdiction-specific indicators for tracking progress in relation to the objectives of the Agreement
   • H) A description of consultation processes, the type of groups consulted, and annual priorities related to stakeholder feedback

   Introduction

   Due to the COVID-19 pandemic, Ontario’s ability to deliver on the initiatives outlined in the fiscal year 2021 to 2022 Action Plan may be affected. As such, the targets may not be achieved and expenditures may differ.

   The 2016 Federal Budget committed $400M in fiscal year 2017 to 2018 to support the establishment of the Multilateral Early Learning Child Care (ELCC) Framework with provinces and territories. Additionally, the 2017 Federal Budget committed $7B over 10 years, starting in fiscal year 2018 to 2019. A portion of this investment will be dedicated to early learning and child care programs for Indigenous children living on- and off-reserve.

   In 2017, Ontario entered into a 3-year ELCC agreement with the Government of Canada, and the agreement and associated annual funding was subsequently renewed in 2020 for a 1 year term, and in 2021 for a 4 year term.

   In fiscal year 2021 to 2022, subject to annual population estimates by Statistics Canada, Ontario is expected to receive $146,740,842 under the renewed agreement.

   To maintain the gains achieved through the ELCC investments in the past 4 years, Ontario plans to continue the 3 initiatives outlined in the action plan under the initial agreement to support:

   • increasing access to affordable, high quality licensed child care
   • increasing access to EarlyON Child and Family Centres
   • innovative approaches to providing access to high quality training and professional learning opportunities for the early years and child care workforce

   Provincial funds are normally allocated to Consolidated Municipal Service Managers (CMSMs) and District Social Services Administration Boards (DSSABs) on a calendar year basis. Updates with regards to the fiscal year 2021 to 2022 Agreement may be implemented in the next calendar year.

   A) Objectives and specific priority areas for investment within the Framework’s parameters, with consideration for those more in need

   Ontario’s proposed action plan is consistent with the parameters established under the Multilateral ELCC Framework. The action plan is reflective of the Framework’s guiding principles to increase quality, accessibility, affordability, flexibility and inclusivity in early learning and child care, with consideration of those more in need. The action plan is also reflective of diversity, and respectful of language and culture.

   The Framework also aligns with Ontario’s current early years and child care priorities and vision that children and families are well supported by a system of responsive, high quality, accessible, affordable and increasingly integrated early years programs and services that contribute to healthy child development today and a stronger future tomorrow.

   The proposed investments under Ontario’s action plan build on existing provincial investments in early learning and child care and are focused on programs that are regulated and/or monitored by the provincial government. The action plan supports both regulated centres and home based child care, as well as early learning programs.

   Ontario’s 2 priority areas are:

   1. increasing access, affordability and inclusivity to high quality child care with consideration for 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, and 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 the children’s official language
   2. quality early learning opportunities, with consideration for those more in need

   Note: This table was changed for accessibility reasons.

   • Minimum of 80% of this investment will be allocated to support access to affordable, quality child care through increased subsidies and/or community-based capital funding to improve quality for community-based early years providers (for example, facility improvements and new equipment) for children 0 to 6 years of age. Community capital may be allocated on a ratio of 75% to not-for profit providers and 25% to for profit providers, reflecting the operating split in Ontario
   • Maximum of 20% of this investment will be allocated to support system access to affordable child care based on local priorities
   • In fiscal year 2021 to 2022, Ontario may allocate funding under this investment to support short-term measures to minimize the impacts of COVID-19 on Ontario’s ELCC system
   • Access to no cost high-quality early years experiences through EarlyON Child and Family Centres
   • Access to high quality training and professional development opportunities to support a high-quality early years and child care workforce, such as the Early Childhood Education Qualifications Upgrade Program

   High quality child care

   For fiscal year 2021 to 2022, Ontario is proposing the following allocations:

   • $100M related to regulated child care initiatives, including:
     • at least $80M to support access to affordable, quality child care through increased subsidies and/or community-based capital funding for children aged 0 to 6
     • up to $20M to support system access to affordable child care based on local priorities

     Affordability is a key challenge for many families in Ontario. This investment in high quality child care will support families in need through increased investment in subsidies, with a prioritization for children under 6.

     • Fee subsidies are available for children in licensed child care, as well as for school-age children enrolled in before and after school programs, including approved recreation programs
     • In many parts of the province, the demand for fee subsidies exceeds available funding. Access to fee subsidies is based on availability of subsidy funds within the budget of the CMSM/DSSAB, as well as availability of space
     • CMSMs and DSSABs determine eligibility based on provincial requirements, including a regulated income test; and a policy statement outlining how CMSMs/DSSABs are to determine the number of hours of child care that may be subsidized, which generally speaking is based on periods of time when neither parent is available to look after a child because of engagement in approved activities such as employment or education/training
     • In addition to the income test, CMSMs/DSSABs have historically undertaken local planning processes to assess the socio-economic factors and to determine the appropriate allocation approach for fee subsidy funds that best meet the needs of their community; this allows them the flexibility to weigh factors differently based on local community needs. Local policies are already in place to support the distribution of fee subsidies to children and families; however social assistance participants (such as Ontario Works) should be prioritized where possible. CMSMs/DSSABs also have additional local requirements to determine the amount of subsidized child care for each eligible family, which must be consistent with the provincial Minister’s Policy Statement: Access to Subsidized Child Care. Local policies allow for prioritization for certain socio-economic factors such as income levels of families with children (including low income or single parent families), geographic areas (such as wards, lower tier municipalities, territory without municipal organization, high growth areas), children’s age groups, cultural and linguistic groups (such as Indigenous peoples and Francophone)

     Quality early learning

     For fiscal year 2021 to 2022, Ontario is proposing the following allocations:

     • $41.7M annually to support access to no cost, high quality early years experiences through the EarlyON Child and Family Centres, which are tailored to meet diverse populations with a focus on families in need
     • $5M to support innovative approaches that provide access to high quality training and professional development opportunities for the early years and child care workforce. This includes:
       • $2M to increase the number of students supported through the Early Childhood Education Qualifications Upgrade program. This program currently supports individuals in need working in licensed home child care or centre-based agencies, early learning programs, or publicly funded schools to obtain an Early Childhood Education diploma and become eligible to apply for membership with the College of Early Childhood Educators. It also provides opportunities for leadership development, targeted to those working in supervisorial roles or who aspire to do so, and who already are a registered early childhood educator
       • background
         • Ontario currently invests $3.5M annually in the Early Childhood Education Qualifications Upgrade Program and requires the program to allocate a minimum of 20% of the annual funding to Francophone and First Nation, Metis, and Inuit (FNMI) applicants
         • to date, the Grant Program has received over 9,080 applications and has approved 6,001 part-time and 1,545 full-time applications. Since its inception, in 2007, approximately 1,343 full-time and 4,974 part-time grant recipients have successfully completed the Early Childhood Educator (ECE) diploma program with the financial assistance offered through the program
         • additionally, 29 individuals have been supported through the leadership development stream
         • for the fiscal year 2015 to 2016, the program allocated 23.74% of its funding to Francophone and FNMI students with approximately 60% of this funding allocated the Francophone students and 40% to FNMI students
         • based on this additional investment, Ontario will be working towards building on this program to find innovative ways to increase uptake and expand access to the program to increase the number of registered early childhood educators in child care and early years programs
         • development of and support networks to connect practitioners, capacity building leaders, education institutions, and employers within regions and across the province focused on strategy sharing, collaborative inquiry, communities of practice and peer to peer mentorship
         • mobilization of existing early years professional learning resources for equal access to all early years professionals across the province
         • support to make connections to and implement the principles of How Does Learning Happen? Ontario’s Pedagogy for the Early Years
         • provincial programs have to align with the requirements under Ontario’s French Language Services Act (FLSA). The FLSA requires provincial programs to reflect the needs of the 26 areas in the province with a significant Francophone population. However, regardless of FSLA designation, the Ministry of Education would support professional learning opportunity to individuals in the official language of their choice

         It is important to note that the province currently allocates early years and child care funding based on a funding formula. The funding approach includes the use of Statistics Canada data to provide a special purpose allocation to supplement core funding and reflect the unique local and regional costs of providing services and increasing access to child care and early years programs. For example, communities that have a higher Francophone population can access a special purpose grant on top of their core funding in order to provide services to official language minority communities.

         EarlyON Child and Family Centres

         EarlyON Child and Family Centres help to improve child and family outcomes related to mental health and well-being, early learning and development, social inclusion, academic achievement, and employment to ensure the best possible future for children.

         They provide easily accessible and identifiable “one-stop shops” that provide a wide variety of relevant services and connections to specialized supports which ensure:

         • parents, caregivers and home child care providers have access to high quality services that provide rich early learning experiences and environments that support them in their role and enhance their well-being
         • children have access to inclusive, play and inquiry-based learning opportunities and demonstrate positive developmental health and enhanced well-being at entry to Grade 1
         • parents, caregivers and home child care providers have enhanced knowledge about early learning and development, experience ease and efficiency in accessing support and are provided with an accessible, non-stigmatized place to seek help
         • local services collaborate in an integrated way to meet the needs of children and families and actively engage parents and caregivers to increase their participation
         • connections are made to the broader continuum of early years programs available in Ontario, including licensed child care, full-day kindergarten and before-and after-school programs

         For some families, especially those in harder to serve populations, this may be the only access point to high-quality programs run by registered Early Childhood Educators in a regulated setting.

         At no cost to parents and/or caregivers, EarlyON Child and Family Centres offer a suite of core mandatory services. This includes:

         1. engaging parents and caregivers: For example, targeted outreach activities directed at parents and caregivers that could benefit from EarlyON programs and services but are not currently accessing services for a variety of reasons (such as newcomers to Ontario, teen parents, low-income families, linguistic minorities among others)
         2. supporting early learning and development: For example, have at least 1 registered early childhood educator (RECE) as part of their staff teams delivering services and adopt How Does Learning Happen? Ontario’s Pedagogy for the Early Years as their common pedagogical approach based on the 4 foundations of learning: belonging, well-being, engagement and expression, and view of the child, family and educators as capable, competent learners who are full of potential
         3. making connections for family: For example, information sharing about and facilitating connections with specialized community services (such as children’s rehabilitation services), coordinated service planning, public health, education, child care, and child welfare, as appropriate

         EarlyON Child and Family Centres offer programs and services through a variety of service delivery methods including: centres, mobile and virtual services, and local phone lines. While the requirement to establish centres is mandatory, providing mobile services, virtual resources and local phone lines is optional and at the discretion of individual CMSMs/DSSABs. EarlyON Child and Family Centres are intended to be community-based, including schools, community buildings/spaces, and common areas within residential areas.

         Training and professional development opportunities

         Ontario will build on the innovative ECE Qualifications Upgrade Program that supports individuals in obtaining their ECE qualifications. This program supports training of high-quality educators, as well as labour market participation for those in need. Expansion of this program will help to address the workforce shortage in early years and child care settings with targeted strategies for Indigenous and Francophone applications, while promoting greater access to supports for professional learning and leadership development opportunities.

         The Francophone Indigenous and broader sector early years professional learning will support transformational change in the sector, and signal both the provincial and federal commitment to long-term professional learning across the early years sector. These initiatives will take into account particular needs including cultural, language and geography (such as Indigenous, Francophone, rural) through the development of regional and provincial networks.

         • Unlike school boards in Ontario, the early years sector does not have a province-wide infrastructure in place to support the development of and access to consistent professional learning and capacity building activities for those working in early years settings
         • It would support a continuum of learning for educators from pre-service to in-service learning and development. Research shows that ongoing learning is strongly correlated with high quality programs
         • This approach would support consistent high quality programming in child care programs and EarlyON Child and Family Centres by providing a consistent approach to the understanding and use of How Does Learning Happen? Ontario’s Pedagogy for the Early Years

         COVID response

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

         Note: This table was changed for accessibility reasons.

         New: support early learning and child care during COVID-19

         Support ELCC during COVID-19 through sustainability measures by providing eligible licensed child care providers and EarlyON centres support for operating costs

         High-quality early learning and child care, accessible, affordable and flexible, Inclusive

         Redirect of funding as necessary.

         Up to $2.8M per week.

         Number of centres supported by the sustainability efforts.

         Number of licensed spaces supported by the sustainability efforts.

         This initiative is focused on protecting child care spaces for parents and programs at eligible licensed child care providers and EarlyON centres with a time-limited approach that includes:

         • support for operating costs for eligible child care
         • supports for operating costs for EarlyON Child and Family Centres, while providers are prohibited from charging parents fees while the Emergency Order is in effect and First Nation Child and Family Programs on-reserve
         • direct and rapid funding delivery through municipal service managers for eligible licensed child care providers and EarlyON centres that currently receive funding

         Ontario will report on the results and expenditures of the short-term measures put in place to support ELCC programs and services through the pandemic.

         Due to the COVID-19 pandemic, Ontario’s ability to deliver on initiatives outlined in the updated action plan for fiscal year 2021 to 2022 may be affected. Indicators for these initiatives will remain the same, but the pandemic may impact annual targets outlined in Part F. As such, the targets may not be achieved, and expenditures may differ.

         B) Describes how Ontario plans to address the early learning and child care needs of its children/families more in need

         Investments related to child care initiatives will support children and families through increased access to and affordability to licensed child care, by making more child care subsidies available and increasing capital funding that will allow for more responsive services that are flexible and can respond to the varying needs of children and families.

         Increased funding that supports access, affordability, quality and capital will provide for a mix of new and existing spaces.

         There is a high demand for access to licensed spaces; however, affordability is a challenge for many families and can be a barrier to accessing these spaces.

         • In some communities, the demand for licensed care spaces is high, and there is currently not enough spaces to meet this demand
         • Additionally, in some communities families cannot afford to access licensed care spaces without the support of a fee subsidy

         The continued investment in fiscal year 2021 to 2022 will help children and families in need access quality and affordable child care, and supports women’s labour market participation.

         • High-quality, affordable, accessible and flexible options for child care are an important part of women's economic empowerment and can help close the gender wage gap by supporting women's participation in, and re-entry to, the labour market

         By supporting both new and existing spaces, the $100M allocation for child care supports the principles of high quality, accessible, affordable, flexible, and inclusive as identified in the Multilateral ELCC Framework.

         This element of the action plan will provide services to 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, and 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 the children’s official language.

         Additionally, EarlyON Child and Family Centres provide targeted outreach activities directed at families in need that could benefit from programs and services, but are not currently accessing them for a variety of reasons (for example, newcomers to Ontario, teen parents, low-income families, among others). They build strong, responsive and respectful relationships that not only support optimal learning for children, but also have a role in making connections for families and information sharing about programs and services available for the whole family (beyond just the early years). For example:

         • targeted services to parents can include on-site child minding so they can participate in specific skills development courses (for example, resume workshops) to support labour-market participation. Additionally, these centres can provide information and offer support to parents as they look for child care
         • caregivers using these programs can include home child care providers. These programs can support providers in offering high-quality experiences to children in their care (for example, drop-in programs that foster responsive relationships and encourage children’s exploration, play and inquiry). Additionally, these centres can offer learning and development opportunities for these providers on various topics, including child development, nutrition, play and inquiry based learning

         EarlyON Child and Family Centres help to improve child and family outcomes related to mental health and well-being, early learning and development, social inclusion, academic achievement, and employment.

         This investment will grow the positive impacts being made by existing child and family programs across the province, and expand service in areas that have relatively few available services and/or have experienced significant population growth.

         This element of the action plan will provide services to families more in need such as lower-income families, Indigenous families, lone-parent families, families in underserved communities, families with caregivers working non-standard hours, racialized families including Black families, and 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 the children’s official language.

         C) Outlines provincial/territorial planned innovation spending

         Increased funding to support access to high quality licensed child care could support innovative service delivery, including more part-time or flexible care for non-standard hours.

         Innovative practices around part-time and flexible care for non-standard hours will help better meet the needs of some children and families, and allow for access to high-quality regulated care to support labour market participation.

         Innovative practices have been built into the foundation of EarlyON Child and Family Centres in both the services being offered to families (for example, targeted outreach to vulnerable families who are not currently accessing services) and actual delivery methods are used to connect with families (for example, physical centres, mobile services, and virtual services and resources).

         EarlyON Child and Family Centres build on the research evidence discussed earlier that demonstrates the positive, immediate and long-term, impact of existing family support programs.

         Innovation related to child care and early learning programs, as discussed above, also support program sustainability. Programs that have the flexibility to better meet the needs of children and families will also be more sustainable over the longer term.

         Through expansion of the ECE Qualifications Upgrade Program and the Indigenous, Francophone and broader sector early years professional learning initiatives, Ontario will be pursuing innovative solutions to address some of the barriers to accessing quality training, and professional development opportunities.

         High-quality education and professional development opportunities for educators have a great impact on a child’s learning experiences and environment and support positive lifelong benefits.

         D) Demonstrates that federal investments will be incremental, and will not displace existing provincial/territorial early learning and child care spending

         In fiscal year 2021 to 2022, the Ontario government is investing more than $2 billion in early learning and child care, including:

         • $1.52 billion for child care to municipalities and First Nations
         • $101 million for EarlyON child and family programs
         • $3.5 million for the Qualifications Upgrade Program

         Since fiscal year 2017 to 2018, the first year of the ELCC agreement, the Ontario government has increased its annual investment in early learning and child care by $660M.

         Federal funding under the ELCC agreement will provide an additional investment on early learning and child care: $100M for child care, approximately $41.7M for child and family programs, and approximately $5M for professional development (including $2M for the Qualifications Upgrade Program).

         E) Outlines the indicators that will be reported on annually according to planned investments

         Note: This table was changed for accessibility reasons.

         • Number and percentage of program staff who are RECEs.
         • Percentage of licensed child care centres employing only RECEs for the positions requiring qualified employees.
         • Number of affirmations confirming programming alignment with How Does Learning Happen?
         • Percentage of children aged 0 to 12 for whom there are licensed child care spaces.
         • Number and percentage of children receiving child care fee subsidies.
         • Number and percentage of programs providing care during non-standard hours.
         • Number of additional licensed child care spaces created in licensed centres.
         • Number and percentage of children receiving child care fee subsidies by family income.
         • Number of French-language licensed child care centres.
         • Number of Indigenous-led centres in urban and rural communities.
         • Number of children funded through Special Needs Resourcing.
         • Number and percentage of children for whom a licensed space is available by income.
         • Qualification requirements for program staff working in child and family centres.
         • Service guideline requires programming alignment with How Does Learning Happen?
         • Number of EarlyON Child and Family programs offering full- and part-time hours.
         • Number of child and family visits to EarlyON Child and Family Centres.
         • Number and percentage of children served by EarlyON Child and Family Centres.
         • Number and percentage of EarlyON Child and Family programs that offer programming during non- standard hours.
         • Number of child and family centres that offer culturally relevant programming for Indigenous children and families.
         • Number of child and family centres that offer French- language programming for Francophone children and families.

         F) Identifies specific targets for each indicator that will be reported on annually for tracking progress in relation to the objectives of the Agreement

         The COVID-19 pandemic may impact Ontario’s ability to deliver on annual targets outlined in this section. As such, the targets may not be achieved, and expenditures may differ.

         For fiscal year 2021 to 2022, Ontario will aim to maintain the gains achieved over the past 4 years under the agreement. Below are the targets for the key indicators related to planned investments for fiscal year 2021 to 2022.

         Note: This table was changed for accessibility reasons

         Table 5: Ontario’s fiscal year 2021 to 2022 action plan by ELCC principles supported, indicators, and targets

         Principles	Indicator	Target
         High quality; accessible, affordable and flexible; inclusive	Children supported through additional fee subsidies	Maintain the approximate 11,100 children supported
         High quality; accessible, affordable and flexible; inclusive	Number of EarlyON Child and Family Centre rooms opened since fiscal year 2017 to 2018	Sustain the 81 locations opened
         Accessible, affordable and flexible	Number of child (0 to 6 years of age) and family visits to EarlyON Child and Family Centre locations	Maintain a similar level of approximately 33,000 visits
         High quality	Number of full-time and/or part-time students supported annually to complete their Early Childhood Education diploma	Maintain a similar level of approximately 175 students supported

         • Approximately, 11,100 Footnote 2 children will be supported through additional fee subsidies or equivalent financial supports that support families more in need
         • Sustain the 81 EarlyON Child and Family Centres rooms that have opened since the first year of the agreement in fiscal year 2017 to 2018
         • 33,000 child (0 to 6 years of age) and family visits to the EarlyON Child and Family Centres
         • 175 full-time and/or part-time students would be supported annually to complete their Early Childhood Education Diploma

         Ontario will closely monitor service provision of child care and early learning programs for diverse populations, including but not limited to children from French and English linguistic minority communities, Indigenous people off-reserve, as well as in low- and middle- income neighborhoods.

         G) Identifies additional jurisdiction-specific indicators for tracking progress in relation to the objectives of the Agreement

         Ontario has been taken evidence-based approaches to monitor how the system is responding to the needs of families as we move forward. On an annual basis, the Ontario Ministry of Education will release a report on its early years and child care system, which will also report on results from federal funding in the Canada-Ontario Early Learning and Child Care Agreement.

         The annual report aligns with the objectives of the Multilateral Early Learning and Child Care Framework, and includes reporting on the indicators under the Canada-Ontario Early Learning and Child Care Agreement.

         For more information, please refer to the most recent Early Years and Child Care Annual Report 2020.

         H) A description of consultation processes, the type of groups consulted, and annual priorities related to stakeholder feedback

         Ontario is committed to ongoing collaboration, dialogue and engagement with partners, families and stakeholders.

         The Ministry of Education, in partnership with service system managers, established the joint Provincial-Municipal Technical Working Group on Early Years and Child Care (Technical Table) to support confidential, technical-level discussions related to the development and implementation of key early years and child care initiatives.

         When asked to identify how to further enhance Ontario’s early years and child care system through ELCC investments, the Technical Table emphasized the need for system stability through sustained investments in future ELCC agreements, particularly given current sector instability, lower enrolment, and increased operating costs due to the COVID-19 pandemic.

         The Cross-Sectoral Early Years and Child Care Advisory Group was created to provide feedback, surface new ideas, and identify potential implications of proposed changes to support the ministry’s decision-making.

         The Ministry has also consulted stakeholders through the 5-year review of the Child Care and Early Years Act, 2014 (CCEYA). The review included:

         • a consultation with parents and with early years and child care stakeholders
         • 20 stakeholder sessions and received 45 submissions
         • 2 public surveys (1 for parents and 1 for sector partners) that received more than 15,000 responses

         Footnotes

         Footnote 1

         While the Government of Québec supports the general principles of the Early Learning and Child Care Framework, it does not adhere to the Framework as it intends to preserve its sole responsibility in this area on its territory. The Government of Québec expects to receive its share of the federal funding and will continue to invest significantly toward programs and services for families and children.

         This number is subject to change based on municipal plan approvals.