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PUT TITLE HEREOntario Association of School Business Officials

Finance Workshop Presentation: Early Learning Program - Extended Day Component

March 4, 2010

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Purpose

• The purpose of this presentation is to review issues regarding the Early Learning Program – Extended Day Component with reference to:

a) The EL2 memorandum on the Early Learning Program – Extended Day Component that was sent to the Directors of Education on January 13, 2010 .

b) Bill 242, the Full-Day Early Learning Statute Law Amendment Act, 2010.

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Background on Extended Day Component

• Beginning in September 2010, school boards would offer extended day programming to all four- and five-year-olds in schools selected to implement the Early Learning Program (ELP).

• The extended day component of the ELP would be a board program, delivered by employees of the board. This would provide a more integrated program model than wrap-around child care, which has children moving between programs and locations.

• The extended day component would be led by registered Early Childhood Educators (ECEs). As with the core ELP, the ratio of staff to students would be 2:26. However, only one staff person delivering the extended day component needs to be an ECE.

• The extended day components is a school-based program and participants are considered “pupils” under the Education Act. Therefore, extended day programs are not subject to the Day Nurseries Act.

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Background on Extended Day Component

• To support the implementation of the extended day component, the government is proceeding with legislative changes. Subject to the approval of the assembly, Bill 242 would amend the Education Act to give boards following abilities:

– Under s.259(2), boards would have the flexibility to offer extended day programs to non-ELP students (i.e. older children) where warranted.

– Under s.259(4), boards would have the flexibility to enter into agreements with coterminous boards to operate extended day programs for non-ELP students.

– Under s.260.2, principals would be able to delegate any of their duties that relate to the operation of extended day programs to a vice principal or another person approved by the board.

• The Ministry intends to release a program document to guide implementation planning for boards.

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Extended Day Fee Calculations

• The EL2 memo distributed on January 13, 2010 provided general direction to boards for implementation planning, including guidance on the setting of fees.

• Bill 242, provides more detail with respect to the operation of the extended day component and the setting of fees. Specifically:

– S. 260.1 (1) would require and authorize boards charge fees for the extended day programs.

• Collection arrangements can be determined by boards (e.g. it can be done directly or under contract or in partnership with a third party).

– S. 260.1 (2) states that rules around fees that a board may charge would be prescribed by regulation.

– S. 260.3 (2) states that while boards are required to offer an extended day component, it is not an entitlement program; therefore, there is no right to attend without payment of a fee.

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Extended Day Fee Calculations

General principles for setting fees:

• As per s.260.6 (2) of Bill 242, fees are intended to recover costs associated with the extended day program and must reflect a reasonable connection to the overall operating costs of the program.

• Extended day fees are not to be subsidized by other board revenues.• Fees are not to be designed to raise additional resources to supplement other board

revenues or offset school day costs.• Fee setting is to be transparent.

Key process requirements for the setting of fees (would be prescribed by regulation):

• Boards would be required to set fees annually and approve them through a regular, open meeting of the board.

• Boards would be required to publish fees for extended day programs on the board website.

• Prior to final approval, boards would be required to disclose proposed daily fees and fee calculations to the Ministry and their coterminous boards.

• Regulations prescribed under Bill 242 would outline the permissible costs and benchmarks for establishing fees.

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Extended Day Fee CalculationsCost components:

• The proposed provincially-set guidelines and benchmarks, as per EL2, for setting fees include (would be prescribe by regulation):

– Benefits for ECEs – as 24.32 percent of salary.– Vacation and Statutory Holidays for ECEs – as 13.4 percent of salary

and benefits.– Professional Development for ECEs and staff – as 2 percent of salary.– ECE Supply Allowance for extended day – as 5 percent of salary.– School Operations – as a per pupil, per hour amount derived from the

Grants for Student Needs benchmark to cover cost of utilities and custodial expenses associated with operating for extended hours ($0.60 per pupil).

– Vacancy Allowance – up to 10 percent of the fee to address potential revenue fluctuations associated with children leaving classes over the course of a year (due to normal turnover in school enrolments).

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Extended Day Fee Calculations

• Components of the proposed daily fee calculation that would be determined at the board level include:

– Staff (ECE) wage levels – an hourly rate to cover ECEs who lead extended day programs and any non-ECE program assistants if boards choose to use them.

– Program costs – an amount to address basic extended day program needs (for example, $1-3 per day per child).

– Snacks – an amount to cover daily snack costs for extended day, if provided (for example, $2 per day per child).

– Fee collection and administration costs based on arrangements made by Boards to collect and administer the fees (for example, internal administration costs, costs of fee collection contract).

Ministry of Education’s Role:

• While the Ministry does not plan to approve proposed board fees, the Ministry would review the fees proposed and collect data on them.

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Sample Fee Calculation

Example of Fee Calculation*DAILY FEE ANNUAL FEE (194 days)

Before School After School BEFORE + AFTER7:00 am - 9:00 am 3:00 pm - 6:00 pm TOTAL

Benchmark # Hours / day -> 2 3 5ECE / STAFF COSTS

$ 19.48 (a) Wage compensation $ 3.00 $ 4.50 $ 7.50 24.32% (b) Benefits (including Pension contributions) $ 0.73 $ 1.09 $ 1.82 13.40% (c) Vacation + Statutory Holidays $ 0.50 $ 0.75 $ 1.25 2.00% (d) Professional Development $ 0.07 $ 0.11 $ 0.18 5.00% (e) Supply ECEs for Extended day $ 0.22 $ 0.32 $ 0.54

(1) ECE / STAFF COSTS (a+b+c+d+e) $ 4.52 $ 6.77 $ 11.29 $ 0.60 (2) School Operations (Utilities, Custodial) $ 1.20 $ 1.80 $ 3.00 $ 1.00 (3) Materials for Extended day $ 0.40 $ 0.60 $ 1.00 $ 2.00 (4) Food / Snacks $ 0.80 $ 1.20 $ 2.00

(A) ESTIMATED COST (1+2+3+4) $ 6.92 $ 10.37 $ 17.29 10.0% (B) Vacancy Allowance (up to 10% allowance) $ 0.69 $ 1.04 $ 1.73 2.0% (C) Administration (Fee collection, etc) $ 0.14 $ 0.21 $ 0.35

ESTIMATED FEE (A+B+C) $ 7.75 $ 11.62 $ 19.37

*Fields highlighted in green indicate costs that boards have flexibility in determining. Boards have the discretion to determine fee structures (i.e. separate morning and afternoon options or full-day only).

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Other Consideration for Fee Setting

• Boards would effectively be “system managers” with respect to ELP. Program costs and revenues should balance across a board’s service area, not necessarily on a site by site basis (e.g. individual sites could operate at a loss as long as others generated enough revenue to offset their counterparts’ deficits).

• Boards are encouraged to liaise with their Consolidated Municipal Service Managers (CMSMs) or District Social Services Administration Boards (DSSABs) regarding established best practices for setting child care fees.

• Since CMSMs and DSSABs are currently responsible for the administration of child care programs, they are valuable resources in this regard.

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Other Consideration for Fee Setting

• Boards can also consider the “value proposition” of their extended day components when establishing fees. For example:

– The extended day component is fully integrated with the education system, making it more streamlined and convenient.

– The curriculum for the extended day would complement the curriculum for the core ELP, contributing to enhanced learning outcomes for students.

– Boards would have the flexibility to tailor their programs to meet client needs in specific service areas (e.g. later end-times for extended day).

• The permissive powers that would be given to boards under Bill 242 would allow them to exercise flexibility and creativity what would enable them to create extended day programs that would reflect local needs and offer value for money to the families who would use them.

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Extended Day Fee Subsidies

Eligibility for Subsidies:

• The government’s intent is to apply the current subsidy eligibility rules and income test to subsidies for extended day. Bill 242 would enable the administration of extended day fee subsidies by municipalities.

• Parents in families in receipt of subsidy must be in training, working or an identified family or individual at risk.

• The amount a family pays for child care is a function of both the cost of care and a family’s net income. For the purposes of extended day fee subsidies, extended day fees would be considered costs of care. – Families with net incomes under $20,000 annually are eligible for a full

fee subsidy.– Families with net incomes above $20,000 but less than $40,000 are

expected to contribute 10 percent of net income to child care costs.– Families with net incomes over $40,000 are expected to contribute

$2,000, plus 30 percent of their net incomes over $40,000.

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Extended Day Fee Subsidies

Administration of Subsidies:

• Currently, the subsidy system and wait lists for child care are administered by Ontario’s 47 CMSMs and DSSABs.

• The preferred approach is to have municipalities administer subsidies for the extended day component, as they currently do for child care.

• Final arrangement for subsidy administration for Fall 2010 would be the subject of discussions with the municipal sector, school boards and other community partners.

• The Ministry intends to provide additional information regarding subsidy administration as soon as possible.