Item - 2021.EC22.2

The Economic and Community Development Committee recommends that:

1.  City Council request the Government of Canada to include the City of Toronto as an official partner in the discussions on the new Canada-Wide Early Learning and Child Care Plan, including a role on the new National Advisory Council, as announced in the Federal Budget on April 19, 2021.

2.  City Council request the Federal and Provincial Governments to commit to additional Safe Restart Funding for the City of Toronto in 2021 to support the financial viability of the early years and child care sector through the COVID-19 restart and recovery period.

3.  City Council recognize the contributions that Early Childhood Educators have made throughout the COVID-19 pandemic in providing essential services to Toronto's communities, supporting children's healthy development and learning and contributing to economic recovery.

4.  City Council direct the General Manager, Children's Services to continue to invest funding from all levels of government in the targets identified in the Child Care Growth Strategy to increase capacity, improve affordability and support the workforce and to report to City Council, through the Economic and Community Development Committee, once the new funding commitments and eligibility criteria are confirmed.

5.  City Council request the General Manager, Children's Services to update the operating and capital cost projections for the Child Care Growth Strategy, using past and projected rates of inflation and based on existing model assumptions, for the purpose of intergovernmental negotiations.

6.  City Council request the General Manager, Children's Services to develop a strategy for expanding options for more flexible, regulated child care services to meet the changing employment and retraining needs for economic reopening and recovery, working in partnership with the early learning and child care sector and school boards, and to report in the fourth quarter of 2021 with any resource needs and funding policy changes required for implementation.

7.  City Council request the General Manager, Children's Services to develop a communications and outreach strategy to support increasing enrolment in the early learning and child care sector targeted for the fall of 2021, with funding to be identified in the 2021 in-year Operating Budget or an appropriate reserve for Children's Services.

8.  City Council request the General Manager, Children's Services to develop and implement a communications strategy that emphasizes the value of the early learning and child care profession and the contributions that these workers make to the well-being of children, families and communities.

The General Manager, Children's Services gave a presentation on Child Care and Early Years System Update: COVID-19 Response and Child Care Growth Strategy.

This report provides City Council with an overview of the current landscape of the child care and early years system in Toronto, including the impacts of the COVID-19 pandemic and the actions Children's Services is taking to support the sector. This report also responds to Council direction to provide an update on Phase One results of the Child Care Growth Strategy and advice on Phase Two given the impacts of COVID-19.

The COVID-19 pandemic has demonstrated the continued importance of the vision of the Growth Strategy, which aims to build capacity, make fees affordable for parents, and improve compensation to support a thriving workforce. Accessible, affordable child care delivered by well-compensated staff is the cornerstone of the recovery from the pandemic, and investments from other orders of government continue to be required to ensure spaces are available, fees are affordable so that parents return to child care, and that wages are sufficient to recruit and retain the child care workforce.

Recently, the Government of Canada released the 2021 Federal Budget which included a substantial, multi-year commitment of $30 billion over 5 years, and $8.3 billion ongoing thereafter, to build a national early learning and child care system. This announcement aligns closely with the Growth Strategy and will assist in achieving its goals to reduce fees for families, increase system capacity so more families can access licensed care, and increase wages for the early years workforce. This commitment could provide an opportunity to expedite the Growth Strategy in Toronto. Children's Services will report to Council on the City's share of new committed funding and policy and operating terms and conditions once they are known.

The COVID-19 pandemic has had significant and wide ranging impacts on the child care and early years sector and demonstrated that the child care sector's recovery is interdependent with economic recovery. Following a provincially mandated closure during the first wave of the pandemic, 94 percent of licensed child care centres in Toronto reopened with new health and safety guidelines. However, enrolment remains substantially below pre-pandemic levels. A combination of funding programs and supports from all three levels of government have assisted in ensuring the financial stability of child care centre operations. Ongoing access to funding supports from other levels of government will be critical to maintaining the viability of the system until full recovery from the pandemic is realized and enrolment returns.

This report also describes the priorities and actions of Children's Services to support families, child care operators, and the workforce during this unprecedented time. These actions are designed to support the stability of the child care and early years system, and protect the existing capacity of the system throughout the recovery period.