Child Care Wage Enhancement

The Municipality of Chatham-Kent

The Municipality of Chatham-Kent, Children's Services

The 2014 Provincial Budget included an investment of $269 million over three years to support a wage enhancement for child care staff.

The wage enhancement initiative has three key goals:

◦ To close the wage gap between RECEs working in publicly funded education systems and those in the licensed child care sector;

◦ To help stabilize child care operators by supporting their ability to retain RECE#s and non-RECE program staff; and

◦ To support greater employment and income security.

What is it?

The Municipality of Chatham-Kent, Children's Services

In 2015 qualifying program staff working in licensed child care centres and earning less than $26.27 per hour will receive a wage enhancement of up to $1 per hour plus up to 17.5 percent benefits with an additional increase in 2016.

Qualifying home child care providers working with a licensed Private Home Day Care (PHDC) agency will receive an increase of up to $10 per day in 2015, with an additional increase in 2016 under the Home Child Care Enhancement Grant (HCCEG)

How much funding is available?

The Municipality of Chatham-Kent, Children's Services

Wage enhancement/HCCEG funding is an enveloped allocation. The Municipality will be required to only forward the funding for the intended purposes of:◦ Increasing wages of eligible centre-based staff by

$1 plus up to 17.5% benefits or providing a daily increase of up to $10 for licensed home child care providers.

Wage enhancement/HCCEG funding must be paid to child care staff and may not be spent on any other program expenses.

Allowable Expenses

The Municipality of Chatham-Kent, Children's Services

RECEs, PHDC home visitors and other child care program staff quality for the 2015 wage enhancement if they are employed in a licensed child care position that:◦ Existed in a licensed child care center or home care

agency between January 1, 2014 and October 31, 2014;

◦ Has an associated wage of less than $26.27 per hour;◦ Is categorized as a required child care supervisor

under the DNA, an RECE, home child care visitor, or can be otherwise counted toward adult to child ratios under the Day Nurseries Act.

Who qualifies for wage enhancement?

The Municipality of Chatham-Kent, Children's Services

Home child care providers with a licensed Private Home Day Care agency are eligible to receive an increase of $10 per day under the HCCEG if they:◦ Hold a contract with a licensed home child care agency

between January 1, 2014 and October 31, 2014;◦ Serve the equivalent of two full-time children enrolled in

their program who have been assigned to them by a licensed home child care agency; and,

◦ Receive less than $262.70 per day in fees from their agency.

Providers that serve less than two agency placed children are eligible for a partial enhancement of $5 per day

Who qualifies for the Home Child Care Enhancement Grant?

The Municipality of Chatham-Kent, Children's Services

• Operators must clearly indicate on staff paycheques and home child care provider fee transfers, the portion of funding that is being provided through the wage enhancement/HCCEG, labeled as follows: – Provincial child care wage enhancement – Provincial home child care enhancement grant

• Wage enhancement/HCCEG funding should be provided to eligible staff as soon as the operator/agency is notified that their application for funding has been approved and they have received the funds from the municipality.

• It is expected that this wage enhancement will be included in regular payments made to employees as soon as possible in 2015, however, this may not occur until September 2015 in some cases.

• Following the transition year of 2015, the wage enhancement/HCCEG funding should be included on staff pay cheques and home provider payments beginning January 1, 2016.

• The wage enhancement/HCCEG funding will be provided to eligible child care professionals in addition to their existing compensation and in addition to planned raises.

• Wage enhancement funding must be provided in addition to pay equity payments agreed to under the pay equity memorandum of settlement.

Distribution to eligible staff

The Municipality of Chatham-Kent, Children's Services

What is the application process mandated by the Ministry? Child care operators are required to apply for wage

enhancement funding from municipal service managers.

Applications must be posted on municipal websites by May 1, 2015 for 45-60 days. The application process must close by June 30, 2015.

Sample application forms for wage enhancement and HCCEG funding were provided as part of the 2015 child care and family support program service agreement package.

The Municipality of Chatham-Kent, Children's Services

Step 1: Operators are to submit a Letter of Intent, indicating that they intend to apply for the Wage Enhancement Grant by April 13, 2015. This letter of intent will be available on the website by March 31, 2015.

Step 2: The Municipality will forward you via email an application form. Staff names will be pre-populated into the form based on your 2014 wage subsidy submissions (if applicable). It is up to the Operator to complete the form in its entirety. We will schedule one-on-one meetings to review your application and answer any questions regarding the completion of the form between April 14 and May 30, 2015.

Step 3: All applications should be submitted by June 7, 2015 so there is sufficient time to review.

Step 4: Applications will not be accepted after June 30, 2015. Step 5: The Municipality will calculate final Wage Enhancement Grant

allocations and send a Grant Letter indicating the eligible amount and your obligations for receiving the funds.

Step 6: Once the signed Grant Letter has been received, funds will be issued within 45 days.

Step 7: Operators will then increase staff wages who are working in the eligible positions, retro-active to January 1, 2015.

What is the application process laid out by the Municipality?

The Municipality of Chatham-Kent, Children's Services

Administration Funding To support Consolidated Municipal

Service Managers (CMSMs) and District Social Services Administration Boards (DSSABs) and First Nations with the implementation of the wage enhancement initiative, the ministry will provide a one-time grant equivalent to ten per cent of projected 2015 wage enhancement allocation to support administration.

The wage enhancement and administration allocations are based on existing licensed child care capacity.

The Municipality of Chatham-Kent, Children's Services

Implementation Timelines

January 2015

Municipalities

Receive Service

Agreements

January - May 2015

Develop local

application process -

seek council

approval

May 1, 2015Post

operator applications online for

a 45 -60 day period

June 30, 2015

All applications are due to CMSMs/

DSSABs

August 31, 2015

Submit wage

enhancement data to

EDU in Revised

Estimates

Fall 2015 The

Ministry will adjust

wage enhancem

ent allocations

The Municipality of Chatham-Kent, Children's Services

Operator Accountability Wage enhancement/HCCEG funding must be paid to child care staff and not spent on other child care operator expenses.

Operators will be required to complete an attestation form (in the form of a signed grant letter) to ensure that funds are provided directly to program staff.

Operators will be asked to distribute an information communique from the Municipality to staff with their first wage enhancement payment. This will be available at a later date.

Any funding that is not expended by an operator in accordance with the funding criteria for wage enhancement must be recovered by the Municipality.

We will be doing a reconciliation process at the end of the year.

The Municipality of Chatham-Kent, Children's Services

Reporting Requirements of

CMSM’s to the Ministry The municipality will be required to report on the

following service data elements in their EFIS Revised Estimates and Financial Statement submissions:

◦ Number of FTE’s and total wage enhancement funding as follows:

RECE’s receiving full and partial enhancement funding

Supervisor receiving full or partial enhancement funding

Other program staff receiving full and partial enhancement

Home Visitor’s receiving full or partial funding

All reporting requirements are included in the application forms provided by the Ministry.

The Municipality of Chatham-Kent, Children's Services

The following resources will be posted on the CK Website http://www.chatham-kent.ca/ChildrensServices/Pages/WageEnhancement.aspx to support the wage enhancement implementation:◦ Application Process◦ Letter of Intent◦ Questions and Answers (as they become

available)

Tools and Resources

The Municipality of Chatham-Kent, Children's Services