Updates to 2025 Ontario Child Care and Early Years Funding Guidelines - Issue Report

Report To: Manitoulin-Sudbury District Services Board

From:            Lori Clark, Director of Integrated Human Services and
                          Amy Winnington-Ingram, Integrated Human Services Manager

Date:            May 15, 2025

Re:                 Updates to 2025 Ontario Child Care and Early Years Funding Guidelines - Issue Report

Purpose

To update the Manitoulin-Sudbury District Services Board (DSB) on changes to the 2025 space creation targets and funding allocations, including an update on the Early Learning and Child Care (ELCC) Infrastructure Fund. These adjustments reflect the recent recalibration exercise and are part of Ontario’s ongoing efforts to ensure that space creation targets align with actual capacity and needs within communities.

Background

As part of Ontario's ongoing efforts to meet the Canada-wide Early Learning and Child Care (CWELCC) space creation target of 86,000 new spaces by the end of 2026, a space target recalibration exercise was conducted. This exercise aimed to make the targets more achievable while ensuring resources are directed to the areas with the most urgent need for growth in child care services.

The recalibration led to several key changes:

• 16 of 47 service managers saw an increase in space creation targets.

• 27 service managers, (including the Manitoulin-Sudbury DSB) saw a reduction in space creation targets.

• The remaining 4 service managers saw no change.

• The total number of spaces created was adjusted to ensure a higher proportion of not-for-profit licensed spaces for children aged 0 to 5, in alignment with the CWELCC agreement.

As a result of these changes, Manitoulin-Sudbury DSB's space creation target was adjusted downwards for the 2024-2026 period. This adjustment aligns with a broader shift in the allocation of resources and space targets based on local capacity for growth, as determined in the recalibration.

Comparison: Previous vs. Current Space Creation Targets

Clarification from the Ministry of Education has confirmed that the revised CWELCC space targets are applicable only for 2024, 2025, and 2026, and do not affect new spaces created prior to December 31, 2023. Therefore, any growth realized prior to 2024 is in addition to the revised space targets.

As noted in the previous issue report on Space Creation Targets, our original space allocation for the 2022-2026 period included a total of 183 new spaces across community-based and school-based programs. This allocation was revised in May 2023, and the updated figures are shown below. 

The comparison is as follows:

Note: The 2022 and 2023 space counts (10 and 69 respectively) reflects spaces already created and are in addition to the revised 90-space target for 2024-2026. This means that by the end of 2026, the Manitoulin-Sudbury DSB is expected to support a total of 169 new spaces, 14 less than originally intended.. 

The previous allocation has been divided into 173 Community-Based Spaces and 10 School-Based Spaces. The new allocation is divided into 18 Community-Based Spaces and 72 School-Based Spaces. 

A comprehensive review of our Directed Growth Plan is required to align with the recalibrated space creation targets. Once staff have had the opportunity to thoroughly assess all relevant information, we will return to the Board with a detailed update and any necessary adjustments. A thorough assessment of child care needs will be conducted, drawing on results from the Child Care Needs Survey (closed May 9th), and current waitlist data to guide evident-based planning.

Comparison: Funding Allocation (January vs. Revised March 2025)

As noted in the previous issue report on the 2025 Funding Allocation, the initial and revised allocations are shown below: and revised allocation are noted below:

The ELCC Infrastructure Fund (New)

The Canada-Ontario Early Learning and Child Care (ELCC) Infrastructure Fund aims to support infrastructure projects that enhance inclusion in child care for underserved communities by funding new, licensed spaces.

Key Features of the Fund:
•    Supports not-for-profit and municipal child care providers.
•    Funds centre-based, community-based, and non-school-based child care spaces.
•    Requires enrolment in CWELCC.
•    Prioritizes rural, remote, and high-need communities.
•    Excludes: School-based expansions and licensed home child care agencies (though home child care providers remain eligible for Start-Up Grants).

With the introduction of the ELCC fund, it will be essential to evaluate eligibility based on the guidelines to ensure that projects considered for this fund align with Ontario’s goals for creating non-profit licensed spaces in underserved areas. Given the specific requirements for not-for-profit spaces, a review of the eligibility criteria before proceeding with any infrastructure-based projects is required. 

To ensure that we are making informed decisions and addressing actual community needs, the DSB is conducting a survey to confirm where the highest needs are, determine which age groups require the most support, and explore further opportunities. This will allow staff to take all factors into consideration before proceeding with any infrastructure-based projects.

Next Steps 

Given the adjustments to space creation targets and the introduction of new funding mechanisms for 2025, it is recommended that the Manitoulin-Sudbury DSB:

1.    Adjust Planning with Revised Space Targets
Update operational plans to reflect the revised space creation target of 90 spaces for 2024-2026, focusing on areas with the highest need.

2.    Monitor Funding Impact
Track the effect of the funding changes, including the new ELCC Infrastructure Fund, and adjust strategies as needed to ensure effective use of resources.

3.    Engage with the Ministry of Education
Continue working with the Ministry to ensure alignment between space creation and funding targets with local needs.

Conclusion

Staff will continue to prioritize affordability, access, quality, and inclusion and will provide ongoing updates to the Board. Staff recommend that the Board accept the issue report as presented.