Note: This story has been updated to reflect new comments from the Department of Education, Culture and Employment.
Childcare providers and advocates in the Northwest Territories are lukewarm on the minister of Education, Culture and Employment (ECE)’s promise to re-evaluate existing childcare funding streams.
R.J. Simpson and his department are “currently assessing existing funding streams to determine how funding can be aligned to better support the early learning and childcare system as a whole,” according to an April 26 statement attributed to Simpson.
“We will provide further details about the changes after the department completes its assessment,” he stated.
No timeline was provided.
Childcare providers across the territory have been up in arms over the GWNT’s rollout of the new federal daycare subsidy, which aims to reduce fees to $10 per day in five years, and cut fees in half starting this year. Many say they were taken aback by the department’s decision to tie territorial funding to the federal subsidy, meaning providers would risk losing territorial funding if they didn’t sign on to the new subsidy. In doing so, they would have to cap their fee increases at 2.3 per cent as of April 1, 2022.
Yvette Cooper, a Yellowknife day-home operator, said she and her colleagues “appreciate that ECE is starting to acknowledge the deficiencies within the industry and roll out of the CCRF funding. As a group we value and support the goals of lowering the cost of childcare for families.”
However, she said, “We sincerely hope that (the department will) stop pushing providers into ever increasing dire circumstances and live up to their job of supporting childcare in the NWT.”
Cooper previously told NNSL Media she had been waiting since the beginning of the pandemic to increase her fees to avoid putting an extra burden on parents.
“Despite (the department’s) best efforts to make it seem like I don’t, I very much care about my families,” she said.
Krisdee Penney, who runs Dee’s Day Home, is less optimistic.
“They are certainly not restoring confidence or trust with day homes right now,” she said. “ECE seems to be placing more restrictions on day homes instead of addressing the fact they are severely underpaid.
“I won’t be surprised if more day homes close, and it’s unfortunate that children will miss out on people who truly love providing care.”
Patricia Davison, who sits on the board of directors of the newly-formed NWT Early Childcare Association, said she’s “cautiously optimistic” about the minister’s re-evaluation.
“I commend the GNWT for realizing that there might be some things they can look at to make it smoother and make it more successful for the programs,” she said. “It’s such a fragile sector as it is — it really needs support to ensure that it keeps going, and that it can grow.”
She said providers’ most common concerns are fourfold: a footnote in the federal-territorial agreement suggesting that childcare cost an average of $38 per day in the territory in 2019, which many providers say is a gross underestimate; the decision to tie territorial and federal funding together; the 2.3 per cent fee cap; and a lack of proper communication with service providers on the rollout. “Programs were getting questions from their families, and they have no idea,” said Davison.
On the decision to tie federal and territorial funding together, she said, “I can’t think of a centre or a program out there that would survive without the support from the GNWT.”
ECE Spokesperson Erin Mohr said the $38 an hour figure was not used to negotiate the subsidy despite being referenced in the final agreement; Instead, the department relied on the monthly averages for 2021-22, which are $1,060 for infants, $930 for toddlers and preschoolers, and $325 for out-of-school children.
On the alleged lack of communication with providers, Mohr said this was complicated by the timing of the rollout: “The Department signed the Canada – Northwest Territories Canada-wide Agreement in December and needed to have briefings with MLAs and internal preparations with the federal government prior to announcing the Subsidy. It would have been ideal to have more time to explain to programs that this would not cost them anything and that once this funding flowed to families, ECE would be focused on identifying ways to support licensed programs, including exploring ways to address issues such as increasing wages for early childhood educators.”
In the months since forming, Davison said her organization has had regular communication with the deputy minister and other staff members. She added that the department hasn’t yet reached out to consult with the association since announcing a review of the funding.
“I like to stay positive and say I’m sure the department will do their best,” she said.