OLDS — One hundred-and-forty-eight families served by BGC Olds and Area will see an increase to their monthly child care fees, while 38 families will see a decrease as a result of a new provincial fee scale that took effect April 1.
If daycare revenue falls, that could force the organization to scale back at least some of the programming it offers, unless it can find funding for that programming elsewhere.
That’s the word from BGC Olds and Area executive director Letitia Gole.
As of April 1, the provincial government’s $15-a-day flat rate model for children kindergarten age and younger came into effect.
“This means families will now pay a flat monthly fee of $326.26 for full-time care or $230 for part-time care, regardless of household income,” Gole wrote in an email.
Previously, the fee scale was based on parental income, which meant that lower-income parents paid less – no fees in some cases -- than those who earned more money.
Jobs, Economy and Trade Minister Matt Jones announced the new system at the end of January, saying the flat fee would make the system more equitable and transparent.
He said some child care providers had been charging “radically different fees for children the same age” which was confusing for parents.
Jones said another goal of the change was to simplify the system so that child care providers could spend less time and money on paperwork.
Gole said the new fee system will have a direct impact on BGC Olds and Area.
“The most significant impact for our organization is the expected increase in the number of families who cannot afford their child care fees,” she wrote.
"As a result, we anticipate a rise in bad debt and are developing an internal subsidy program to offer discounted fees to the families most in need.
“Currently, we rely on a significant portion of our daycare revenue to support free after-school programming in Bowden, at Holy Trinity (Catholic) School, and through our youth centre.
“If a growing number of families are unable to pay their fees, it may reduce our capacity to sustain these important programs unless we can secure alternate funding sources.”
One way to make up the anticipated shortfall in revenue could be to charge additional fees for meals, programming, or experiences. However, Gole said BGC Olds and Area “will not be adding any supplementary fees.”
Gole said under the new system, the only families that will see a decrease in their child care fees are those with household incomes of more than $180,000. They were ineligible for subsidies under the previous system.
Under the previous system, families with household incomes less than $180,000 were eligible for a provincial subsidy and affordability grants.
“As a result, many of these families were paying either very low or even no fee. Under the new flat-rate model, these same families will now be required to pay significantly more,” Gole wrote.
BGC Olds and Area now operates licensed child-care programs in five locations in Olds and one in Bowden as well as free after-school and youth programming at its youth centre.
The organization looks after about 225 children and youth daily, and more than 725 annually through its daycare, preschool, pre-kindergarten, out-of-school care, youth programs, and summer camps.
“Our commitment remains strong — to provide safe, supportive places where children and youth can experience new opportunities, overcome barriers, build positive relationships, and develop confidence and skills for life,” Gole wrote.
Alex Nuspl, an Olds resident and mother of four, has two children in daycare.
She launched a petition on change.org entitled variations on new childcare program required. As of April 2, it had garnered 158 signatures out of the current goal of 200.
In her petition, Nuspl says while the provincial government’s goal to make the system more equitable is laudable, more changes are needed.
“Child care needs a base rate across the province, which does include rural and smaller municipality considerations. Many small towns operate non-for profit centres while large urban centres have the stronghold to effectively charge whatever they want,” she wrote.
Nuspl said the system should include standardized base rate, “followed by the income based child care subsidy. The maximum threshold for subsidy of $180,000 should have also been revised. This would ensure the program is equitable - for all.
“I am not saying this is the answer, but it needs to be revised,” she added. “This new program is causing an even greater divide amongst our friends and neighbours.
“I have seen ‘Just the rich stealing from the poor’ over and over again on social media. No one should be vilified for their income, just as no one should miss out on crucial social services for their income, whether too great or too little.
“Child care fundamentally at its core is education. Our child care providers require education in such fields.
“The environments provide many aspects for a healthy childhood development that is often overlooked. As such, child care should be treated no different than our government-funded education system.”
