Ministry of Education memo says new funding formula to be implemented in January 2025

A May 7th, 2024 memo from Ministry of Education Assistant Deputy Ministry Holly Moran to child care licensees announced that a new child care funding formula will be implemented in January 2025, and that further details on the "cost-based" funding approach will be released soon. 

"In September 2023, we announced that the existing revenue replacement approach to CWELCC funding was to remain in place for at least the first eight months of 2024, pending the announcement of the new funding approach. As we finalize plans for implementing the new funding approach, I want to provide an update on timing.

To ensure that our municipal partners and licensees have the time they need to prepare for the new CWELCC funding approach, and to align with municipal fiscal planning, I am writing to confirm that the existing revenue replacement approach to CWELCC funding will remain in place until December 31, 2024. A new, cost-based CWELCC funding approach will come into effect in January 2025. Detailed information about the new funding approach will be provided soon to allow for sufficient time to support smooth implementation."

In anticipation of the release of a new funding approach, the OCBCC and AECEO have published a policy brief by Dr. Gordon Cleveland that outlines what a new Ontario child care funding formula should do in order to be successful. This brief summarizes what elements should be considered, what options exist, and how to evaluate the efficacy of any new Ontario funding proposal. This brief will help inform the community’s evaluative processes, feedback and further refinements to Ontario’s forthcoming funding approach.