Ontario child care centres concerned about keeping doors open as costs balloon

Ontario child care centres are raising concerns about the ballooning costs of operating in what’s being described as an underfunded system.

Amy O’Neil, who is the executive director of Treetop Children’s Centre in Midtown tells CityNews she has reached a tipping point and if more funding doesn’t come in soon, she and many other childcare centres will be forced to close.

“This is a crisis … it’s absolutely critical that all levels of government listen to the child care sector. This money is not enough,” said O’Neil.

Unable to keep up with inflation, she said their accountant has given them two to three years before they’ll be forced to shut down.

“We cannot continue our operations at the funding level that we’re currently operating at, and centres will close.”

With a major shortage of child care spaces, they are closures the province cannot afford.

As of now, Ontario childcare centres that have opted into the $10/day daycare program have been told their funding formula will remain the same in 2024, but the actual level of funding is unknown.

“Programs don’t know, is it going be the same? Is it flat-lined? Is it going to increase again by that percentage? They don’t know. So it puts child care programs in a really difficult position as they try to budget for next year,” said Carolyn Ferns with the Ontario Coalition For Better Child Care.

Last year, funding increased from the year before by 2.75 per cent to account for inflation.

“[It is] quite frankly a real slap in the face because everybody knows 2.75 per cent is not enough to cover anything,” said O’Neil.

The price of food alone has gone up 5.5 per cent in Ontario compared to this time last year.

“Food costs have increased, but the biggest issue for childcare centres is actually staffing costs because that’s the biggest part of their budget and early childhood educators and childcare workers have been underpaid for years and the staffing crisis has just gotten worse,” said Ferns.

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Ontario Education Minister Stephen Lecce tells CityNews the Ford government will “absolutely ensure” provincial childcare operators enrolled in the program are cared for.

“I want operators small and large to know that we have got their backs,” Lecce said.

Industry experts warn the quality of care and even food will degrade if both the federal and provincial governments don’t pitch in.

“It has to account for inflation but it also has to account for ensuring quality so we’ve got to make sure we’ve got quality food, that we’re not making compromising decisions in nutrition for children,” said Marni Flaherty with the Canadian Child Care Federation.

“We have to make sure we have chefs in the kitchen, qualified people doing cooking, all that kind of stuff and it all costs money.