The sustainability of The City of Kingston’s child care after 2013 is unknown. The city's child care benefits are expected to be reduce up to $500,000 a year. The reduction of the benefits will have an effect on the families, child care providers, and staff that rely on the subsidies funds. "If the subsides are lowered, then daycares could lose clients" (EMC New). These clients are parents that need those funds to put their children into licensed daycare centres while they work and attend school. The loss of clients and loss of subsidies will then impact the service level of the child care providers.
This change in the budget is a result of the new funding formula that was announce by the province in December. While the city has obtained a one-time grant from the province for nearly one million dollars to help with the transition, the money will be used within the next two years to stabilize the child care system. “City officials are studying the potential budgetary and service level impacts. Community services commissioner, Lanie Hurdle says the one-million dollar grant can be used to provide stable funding for two years, but the long-term sustainability is in question” (EMC New). The $500,000 shortage in provincial funding could also impact not only parents, providers, and staff but also property tax.
"Something is going to have to change," warned Hurdle at the January 22 council meeting (EMC New).
Read more at Funding crunch: City to lose $500K in annual childcare subsidies - Kingston EMC News– February 7, 2013