I could give you the reasons but part of the presentation by Mary Parker, retired head of child care for Waterloo Region, does it so much better.
“Growing the system” by ending the provision of care in one area and purchasing care from another is not as simple as it may seem.
I believe that the divestment of directly operated childcare centres and licensed home childcare program presents too many risks, barriers and disadvantages for this Region.
What are those barriers and risks?
The Region, as child care operator, has already invested in a long term capital strategy to fund the replacement of the five centres, three completed to date and two more over the next few years. Closure of these facilities represents the loss of invested tax dollars and uncertainty with respect to the future of the buildings. It is unlikely that community operators could afford to purchase these buildings or afford the actual leasing costs.
The Region employs approximately 65 staff in the five centres and 25 staff in the home child care program. Regional staff is unionized and receive pay equity salaries.
If the recommendations of the KPMG report were implemented, 90 Regional staff would lose employment. There are significant implications and risks for the Region’s obligations under the collective agreement and under labour law, especially if the facilities are sold or leased to other operators.
It is unlilkely that the childcare community has the capacity to absorb 450 childcare spaces. It is not a matter of simply expanding and transferring the spaces from auspice to another. This is a significant expansion, more than any current vacancies could assume.
There are no provincial capital or equipment grants to assist the childcare community to expand. There is no certainty that the current pay equity funding and wage grants could be transferred to new operators and it is not known if the province could provide wage grants for the 200 new fee subsidies.
There is not a subsidy wait list at this time. We know that this can change; it will increase and decrease as needs change. But without demand, there is no justification for expansion at this time.
Provincial funding relies, in part, on utilization of the fee subsidies. If the additional 200 fee subsidies are not utilized, the province will reduce its funding for the Region and re-allocate its resources. The Region risks losing provincial funding.
There are no tax savings for the Region in the divestment of the Regional centres and the identified savings resulting in the transfer of the home childcare program to a community agency are not substantial or verifiable.
The divestment could represent some increased costs for the Region. At the minimum, there will be expectations from the community for capital, equipment and operating grants to expand their operations. there will be compensation costs resulting from job losses and possible labour issues. There are no guarantees that care purchased from the community will continue to be less costly than care that is directly operated.
Reduced Parental Choice
Parents have chosen Regionally operated centres and the home childcare program. Many families have located close to the centres or have chosen a trusted caregiver in their neighbourhood. they have chosen these programs because of specific curriculums, accreditations and specialized services. Closing the programs will reduce parental choice.
The Region’s centres have been located in neighbourhoods with demonstrated need for care with consideration for other operators. Closure of the centres will leave some neighbourhoods without access for service.
Mary had a lot more to say about childcare generally. You can find her full presentation and the excellent presentation of other citizens here, http://www.regionofwaterloo.ca/en/regionalGovernment/resources/AF/FM2015-0930.pdf
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