Funding Opportunities for Child Care Operators
Funding opportunities are available to child care operators who have a funding agreement with the City. The purpose of available funding is to provide stability to child care programs and support staff retention.
Learn more about applying for funding, eligible expenses, guidelines and reporting requirements for various funding opportunities.
General Operating for Wages and System Priorities Funding
The City of Hamilton’s Affordability Plan initiative, funded by the Province of Ontario, will continue to December 2022 to reduce the cost of child care for families who access licensed centre-based child care for children 0 to 3.8 years occupying an Infant, Toddler or Preschool space. Operators will be provided reasonable notice of when the initiative will end so that families can be informed.
General Operating for Wages Funding
- The wages portion of the funding allocation provides funds toward a wage increase for all eligible employees filling permanent positions within licensed child care service programs.
- Funding can only be used for salary costs over and above the operator’s regulatory requirements for minimum wage and mandatory benefits.
- Funding must be allocated as outlined in the distribution guidelines
System Priorities Funding
- Child care operators along with the City of Hamilton will develop goals to support each operator’s individual needs to achieve the system priorities.
- The funding will provide child care operators with the financial flexibility to meet their target goals by recognizing that operators have unique strengths and challenges.
All child care operators who have a funding agreement and Schedule “A” with the City of Hamilton are eligible to apply for the wages portion by submitting the funding request submission package by the deadline. Funding agreements are negotiated on an annual basis for the period of January to December and funding is distributed monthly.
The funding request submission package will be sent out by email to all existing childcare operators who have a funding agreement and Schedule “A” with the City of Hamilton.
In order to receive the system priorities funding operators must complete a system priority template which needs to be approved by the Hamilton Early Year Quality Program. The amount of funding is determined annually based on the total System Priorities budget and the number of applications received.
Quality - High quality programs that support children, parents and the early year’s environment. Working toward achieving the goals for children’s learning, development, health and well-being.
Sustainability - Re-evaluate current business model and operations to incorporate new ideas and strategies to build a sustainable business that is responsive to the needs in the community.
Accessibility - Creating an environment which minimizes the barriers for families.
Integration - Creating strong cooperative relationships with other service providers and all early year systems; engaging parents and children to provide seamless services.
The Hamilton Early Years Quality Program is a framework and process to guide continuous quality assurance for organizations providing early years programs through funding agreements with the City of Hamilton. The purpose of the program is to collectively make Hamilton the best place to raise a child and the best place to be a child, by cultivating high quality early years programs and services where children, families and educators are viewed as capable and competent.
The Hamilton Early Years Quality Program Guide provides a framework for quality and outlines our collective commitment, vision and goals for early years programs in Hamilton.
Hamilton Early Years Quality Program System Priority Template
A System Priority Template is used by early year’s organizations to document their quality goals and achievements.
This template should be completed annually by operators and submitted by email to [email protected].
The program is enhanced and supported through access to professional learning, consultation and other community resources.
Participation in the quality program is mandatory for all licensed child care and EarlyON child and family centre operators that currently have a funding agreement with the City of Hamilton.
By the end of January child care operators who received funding for wages and system priorities for the previous year are required to complete and submit the financial reporting reconciliation templates verifying how they spent the funding issued. The reconciliation templates will be sent out by email to all operators prior to the due date.
Operators are required to maintain a record of the status of their goals and advise city staff of any changes. The final status update will be recorded on the following year’s template.
If an operator fails to meet the requirements as outlined in the service contract, funds may be recovered and the childcare operator may be ineligible to receive any future funding. Child care operators are required to advise the City of Hamilton of any changes to operating levels.
The City of Hamilton will conduct random audits to verify compliance with the guidelines.
Does the 20% maximum for employer benefits include the mandatory benefit costs?
Yes.The maximum total for mandatory and non-mandatory benefits combined is 20%. Any additional amount needs to be pre-approved by Hamilton staff.
Does the cap of $6.00 per hour up to a maximum of $10,920 per year include benefits?
No. The maximum is for wages. The benefits are separate.
As work hours vary, can the general operating for wages funding be issued as a lump sum payment at the end of the year?
The intent of the funding is for employees to be paid the money on their regular pays.If at the end of the year, there are undistributed funds, as long as it’s within the guidelines, a top-up can be issued.
What if my teachers are not getting the same amount, do I have to take away funding from staff and give to others?
No. Operators may submit a transition plan to transition staff to equal amounts. For example: a plan could be to adjust the GOG when an employee leaves and a new employee starts.Operators can contact the child care system support team to discuss the transition plan.
If program staff works more than 1,820 hours in the year, are they eligible for GOG for all of the hours they work?
Yes, provided the total amount of funding per person does not exceed the maximum $10,920 and all front-line staff receive a minimum $3.00 per hour.
If the ministry approved supervisor also holds the position of Executive Director, are they eligible for GOG funding?
Yes, as long as the base salary is $35/hour or less. The ministry approved supervisor is eligible for GOG funding. The ministry approved supervisor is listed on the ministry licensing letter. Additional supervisors not listed on the license who are in ratio are eligible for GOG as front-line staff. Additional supervisors not listed on the license who perform administrative functions are eligible for GOG as administrative/other staff.
Are supply staff eligible for GOG funding?
If they are filling a permanent position, (i.e. filling in for the sick or vacation time of a permanent person) then they are eligible for GOG funding as long as they are an employee of the organization and receive a T4-Statement of Remuneration.
Are staff hired on a contract to fill a maternity leave eligible for GOG funding?
If they are filling a permanent position and they receive a T4 - Statement of Remuneration they can receive GOG funding. If they are paid on a fee for service basis (i.e. they are self-employed or working for another agency) they are not eligible for GOG funding.
Are we required to pay supply staff GOG funding?
Organizations should have a GOG distribution plan. It is up to each organization to determine how they will treat supply staff. A policy statement should be included in the GOG distribution plan to outline how supply staff will be treated. Supply staff who are filling in a permanent role on a long-term basis (i.e. maternity leave or sick leave) should receive GOG funding.
If staff have a base salary of $34.00 per hour, can they receive the maximum $6.00 per hour GOG funding?
Yes. To be eligible for GOG funding, eligible staff positions must have a base wage of $35/hour or less and meet the eligible criteria outlined on page 5 and 6 of the guidelines. The maximum amount of GOG funding per position is $6/hour.
If we hire someone new, do we have to take away some from other employees to give to a new employee to meet this guideline?
If the new person is replacing someone they should receive GOG funding. The amount received does not have to be the same as the person who left the position. This would be an opportunity for the operator to work towards leveling the GOG amount in their organization if there are discrepancies between people in the same position. The City of Hamilton would not expect child care operators to take funding away from other staff.
If the centre hires additional staff, but does not change service levels, will there be additional general operating for wages funding available?
No. The application for general operating for wages and system priorities is an annual process for the following year’s funding. The funding formula is based on the operating capacity of the centre.
If a centre hires additional staff because of an increase to operating service levels, will there be additional funding available?
Expanded programs may be eligible to receive the general operating grant to support wages if funding is available. Operators should contact the City of Hamilton if they are planning on expanding in their programs.
Child care operators will immediately report to the City of Hamilton any child care program change that is expected to be ongoing. Downsizing of a program will result in a recalculation of the amount of funding the childcare operator is eligible to receive to support wages.
When the funding cannot be fully distributed, what is the process to transfer the excess funding to the system priorities?
The expectation is that GOG for wages funding be distributed to eligible staff for wages. If funding cannot be distributed in accordance with the guidelines, a request can be made to transfer the excess amount to the system priority funding. This should be identified prior to or during the one-on-one system priorities meeting with City of Hamilton and approval will be part of the system priority goal plan. If this is identified after the one-on-one system priorities meeting, a follow up meeting with the City of Hamilton may be required. Child care operators must report any child care program change that is expected to be ongoing. Downsizing of a program will result in a recalculation of the amount of eligible funding to support wages, however, the child care operator can make a request at this time for permission to transfer the excess funding to the system priorities funding.
Can a portion of the general operating for wages funding be used to cover of cost of audited financial statements?
No. The wages portion of the general operating funding can only be used for wages and benefits. Child care operators can discuss any concerns and requests during the one-on-one system priorities meeting.
Will random audits be conducted on those who have already had an independent audit conducted?
Yes. The City of Hamilton will be auditing the process. This may include items outside of the scope performed by the accountant for the audit (i.e. payroll audit to verify amount paid to individual staff).
General Operating Market Rate Reduction Funding
The City of Hamilton’s Affordability Plan initiative, funded by the Province of Ontario, will continue to December 2022 to reduce the cost of child care for families who access licensed centre-based child care for children 0-3.8 years occupying an Infant, Toddler or Preschool space. Operators will be provided reasonable notice of when the initiative will end so that families can be informed.
The Child Care Affordability Plan is intended to:
- Support families to access quality child care in Hamilton;
- Make licensed child care more affordable to families; and
- Reduce the overall vacancy rates in the 0 to 3.8 age group for operators
Eligible operators will receive $10 per day for each occupied Infant, Toddler, and/or Preschool space for fee-paying families; and the continued expectation is that these families will receive a $10/day fee-reduction.
Child Care Operators in the City of Hamilton are eligible for this funding if they meet the following criteria:
- Provide care to Infant, Toddler, and/or Preschool age groups;
- Operate a minimum of nine hours of care daily;
- Have a Funding Agreement and Schedule “A” with the City of Hamilton;
- Are up to date with all required documentation; and
- Be in good standing with the City of Hamilton Quality program.
Operators must submit monthly attendance records for all families receiving Market Rate Reduction. Monthly payments will be determined based on the actual number of days families paid for the month for each eligible occupied space.
Operators must sign a Schedule “F” which includes the reporting requirements and attestation statement that they agree to reduce rates accordingly. Operators will sign off on the schedule to receive funding.
Operators must have all current and new families complete an acknowledgement letter outlining that if the funding level is not maintained that the reduction in child care rates will be discontinued. A copy of this letter is to be placed in the child’s file at the centre.
Operators must submit monthly attendance records for all families receiving Market Rate Reduction. Currently operators report their operating capacity and vacancies on a monthly basis through the OCCMS billing process. We will use this reporting to provide us with the information we need for Ministry reporting requirements.
Year-end reconciliation of the grant will be built into the current reconciliation process that operators are already completing.
How will payments be issued?
Monthly payments will be determined based on the actual number of days families paid for the month for each eligible occupied space. Operators are required to submit monthly attendance records for all eligible children.
What are the requirements for the funding?
Operators will receive $10 for each infant, toddler and preschool operating space and are required to reduce their market rates for each of these spaces by $10 per day. In addition, operators cannot charge parents any additional fees; or increase the market rates without City approval.
What if I charge different fees for children attending less than five days per week?
Operators are required to reduce the daily rate by $10 per day, the weekly rate by $50/week for infant, toddler and preschool space.
What if I plan to increase parent fees?
The intent of this funding is to increase affordability of child care for the families, therefore operators must contact the City to discuss any plans to increase fees prior to implementing the increase.
Will I receive funding for kindergarten and school-age spaces?
No. This funding is for child care spaces servicing children 0 to 3.8 years of age.
What happens if funding does not continue?
Ongoing sustainability of this initiative will be dependent upon the Ministry of Education’s funding to the City of Hamilton. Operators will be notified well in advance if the funding level is not maintained so that they can communicate with families.
How does this affect fee subsidy families?
Fee subsidy families will continue to pay the same rate that they are currently paying per the fee subsidy authorization. Fee subsidy families receive a reduced rate based on their income. If a family has a higher contribution than the new market rate they will no longer receive fee subsidy and will pay the reduced rate directly to the operator.
Provincial Wage Enhancement and Home Child Care Enhancement Grant
On January 19, 2015 the provincial government announced that the Ministry of Education is increasing wages for eligible Registered Early Childhood Educators (RECEs) and front-line child care professionals in licensed child care settings. The City of Hamilton administers the Provincial Wage Enhancement (WEG) and Home Child Care Enhancement (HCCEG) funding for all licensed child care and home child care agencies in Hamilton.
The purpose of this funding is to:
- Close the wage gap between RECEs working in the publicly funded education system and those in the licensed child care sector.
- Help stabilize child care operators by supporting their ability to retain RECEs and non-RECE program staff.
- Reduce poverty by supporting greater employment and income security.
Wage enhancement funding is available to eligible child care program staff whose positions can be counted toward adult to child ratios under the Child Care and Early years Act (CCEYA) working in all licensed child care centres, including Supervisors, as well as licensed home child care home visitors and providers.
Provincial Wage Enhancement funding cannot be used to meet minimum wage requirements.
In order to be eligible for funding, operators must complete the applicable wage enhancement funding application.
Provincial Wage Enhancement Grant
Home Child Care Wage Enhancement Grant
Application Deadline: Forms can be sent by email to [email protected] no later than April 30, 2022. Applications received after this date will not be eligible for funding in 2022.
All licensed child care centres and home care agencies, including those newly licensed in 2022 are eligible to apply for funding. Wage enhancement funding is available to eligible child care program staff whose positions can be counted toward adult to child ratios under the Child Care and Early Years Act (CCEYA) working in all licensed child care centres, including supervisors, as well as licensed private home day care home visitors and providers.
Consistent with the government's ongoing commitment, the 2022 Wage Enhancement Grant will continue to support an increase of up to $2 per hour, plus 17.5 per cent benefits for eligible centre-based staff and home visitors. The HCCEG will support an increase of up to $20 per day for home child care providers.
As the intent of the wage enhancement is to close the wage gap between RECEs working in publicly funded schools and RECEs, child care program staff and providers in licensed child care settings, the ministry has established an hourly wage maximum.
Staff earning more than $28.59 are not eligible for WEG, and providers earning more than $285.90 per day are not eligible for HCCEG. This wage cap is updated to align with the school based Early Childhood Educator (ECE) salary grid.
The eligibility criteria used to determine the 2022 entitlement is based on positions and hours worked in 2021.
To be eligible to receive the 2022 wage enhancement, child care professionals must:
- Be employed in a child care position that existed in a licensed child care centre or home child care agency, December 31, 2021; or have opened in 2022.
- Have an associated base wage excluding prior year’s wage enhancement of less than $26.59 per hour (i.e. $2 below the wage cap of $28.59); and
- Be categorized as a child care supervisor, RECE, Home Visitor, or otherwise be counted toward adult to child ratios under the Child Care and Early Years Act, 2014 (CCEYA).
In order to be eligible to receive Home Child Care Enhancement Grant, home child care providers must:
- Hold a contract with a licensed home child care agency as of December 31, 2021; and
- Provide services to one child or more (excluding provider’s own children).
To be eligible to receive the full HCCEG of $20 per day, home child care providers must:
- Provide on average full-time services (6 or more hours); and
- Receive base daily fees, excluding prior year’s HCCEG, of less than $265.90 (i.e. $20 below the cap of $285.90).
To be eligible to receive partial HCCEG of $10 per day, home child care providers must:
- Provide on average part-time services (less than 6 hours); and
- Receive base daily fees, excluding prior year’s HCCEG of less than $161.54 (i.e. $10 below the cap of $171.54).
Operators will be required to submit a 2022 Wage Enhancement reconciliation form in January 2023.
The reconciliation process will confirm that 100% of the Wage Enhancement Grant (WEG) / Home Child Care Enhancement Grant (HCCEG) was distributed directly for wages and benefits as per the ministry guidelines and that no portion of the WEG / HCCEG funding was used for any other purposes.
All unassigned funds must be reported and returned to City of Hamilton.
Are non-program staff (e.g. cook, custodial staff, and administrator) eligible for wage enhancement?
Non-program staff positions may be eligible for wage enhancement funding where at least 25 per cent of the non-program staff position is used to support CCEYA ratio requirements. In these instances, the enhancement will be provided for the hours worked in the eligible position supporting ratio.
What if a Supervisor only spends 25 per cent of their time working directly with children? Does that mean they are only eligible for 25 per cent of the wage enhancement?
Supervisors are required under the CCEYA, and are therefore eligible to receive the wage enhancement for 100 per cent of the time they are working in a licensed child care program, regardless of the amount of time they are working directly with children, provided they earn less than the cap.
Will wage enhancement funding be available to RECEs and other program staff employed by family support programs?
Wage enhancement funding is only available to child care professionals employed in licensed child care programs. At this time, there is no commitment for wage enhancement funding to be extended to staff in family support programs
Are Resource Teachers/consultants or supplemental staff employed to support the integration of children with special needs eligible for wage enhancement funding?
Resource Teachers/consultants or staff employed to support the integration of children with special needs are not eligible for wage enhancement funding as their positions may not be counted toward the required ratio of employees to children in regulated child care programs. In addition, Resource Teachers/consultants are typically hired through an agency and are not employed directly by licensed child care programs, and therefore are not eligible for wage enhancement.
The only exception to this provision is if the position is employed by a licensed child care program and at least 25 per cent of the position is used to support ratio requirements. In this case, the staff could be eligible for wage enhancement for the hours worked in the child care program supporting ratio.
Can a child care operator provide wage enhancement/HCCEG to current eligible positions or can it only be provided to eligible positions that existed last year?
Entitlements are based on previous years’ information however, operators have the flexibility to provide wage enhancement/HCCEG to current eligible staff/providers for their hours or days worked in 2022. They also have flexibility in the use of the supplemental grant.
Child Care Professionals
Do I need to re-apply for funding every year?
Yes, wage enhancement/HCCEG funding entitlement is allocated to operators based on the hours worked in qualifying positions for the prior year. In the case of home child care providers, the HCCEG entitlement is allocated to home child care agencies based on the actual number of days worked in the prior year. This means that operators will be required to apply for funding every year to update this information.
Why am I responsible for applying for funding on behalf of my staff?
All provincial child care funding is flowed from the Ministry of Education to municipalities and then from municipalities to operators through a service agreement process. The same process is used for wage enhancement funding. Applications are used to determine an operator’s wage enhancement funding entitlement.
What benefits are included as part of the 17.5% earmarked for employer-related benefits?
The Ministry of Education is funding 17.5% for mandatory benefits which includes six categories. Provincial Wage Enhancement is considered income and therefore all statutory deductions apply.
Note: This portion of the benefit funding covers the employer’s costs. It is not to be distributed as a payment to staff
- CPP (Canada Pension Plan), funded at 5.7% for the employer contribution portion
- EI (Employment Insurance), funded at 2.21% for the employer contribution.
- WSIB (Workers Safety & Insurance Board), funded at Sector rate. WSIB is optional for certain employers.
- EHT (Employer Health Tax), funded at variable rate based on agency’s total remuneration. Certain employers are exempt
Benefits payable to individuals in eligible approved positions
Note: This portion of the benefit funding is payable to staff
- Vacation Pay, funded at 4% of gross pay as per the Ontario Ministry of Labour's Employment Standards Act
- Public Holiday Pay, funded at 3.59%, representing the following nine days: New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Christmas Day and Boxing Day
My centre provides benefits at a rate higher than 17.5 percent. If I apply for the wage enhancement funding am I taking on a financial pressure for the benefits I provide over 17.5 per cent? Is there additional funding to support this cost?
Operators will be provided with a supplemental grant to support shortfalls related to wage enhancement. The funding can be used to provide wage enhancement for additional days/hours worked, sick time, off site professional development days, and/or additional benefits.
What is the supplemental grant and what can it be used for?
In addition to wage enhancement and HCCEG funding, in 2022 the ministry will provide a supplemental grant for operators, equal to $150 for each eligible centre based FTE or home visitor FTE and $50 for each eligible home child care provider. This grant will be automatically calculated on the application forms, based on the information provided by operators.
The supplemental grant must be used to support staff, home visitors and providers’ hourly/daily wage or benefits, and provides operators with the flexibility to cover salary shortfalls due to increased hours or staffing, and additional benefits (e.g. additional time in program, new staff or providers, vacation days, sick days or PD days and/or other benefits) once mandatory benefits are covered. Any funding that is not used for these purposes will be recovered.
As a child care operator, what impact does wage enhancement have on my historical pay equity obligations?
Wage enhancement funding must be provided in addition to pay equity payments agreed to under the pay equity memorandum of settlement.
Does the wage enhancement funding replace the funding that my program receives from the municipality to pay for staff wages, such as general operating grant?
No, wage enhancement funding is a new investment and will be provided in addition to other funding sources, where applicable.
I missed the application deadline. Can I request an extension?
Unfortunately, there are no extensions for the provision of wage enhancement and HCCEG funding in 2022. However, you can apply for funding in 2023.
When will the City of Hamilton provide wage enhancement funding to child care operators?
Operators must complete the Wage Enhancement funding application and return it to the City of Hamilton no later than April 30, 2022. Details of the allocations will be available no later than May 31, 2022.
Are licensed Head Start programs funded through Health Canada eligible for wage enhancement?
Yes, all licensed child care programs may apply for wage enhancement funding.
Family Support Programs
Will wage enhancement funding be available to RECEs and other program staff employed by family support programs?
Wage enhancement funding is only available to child care professionals employed in licensed child care settings. At this time, there is no commitment for wage enhancement funding to be extended to staff in family support programs.