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Federal - Provincial Funding of Childcare: Background Information

Public Interest Alberta (PIA) has been deeply concerned about the lack of provincial support for building a quality, affordable and accessible childcare and early childhood education system. One of PIA’s first advocacy campaigns dates back to the efforts to get the Alberta government to sign on to national childcare agreement with the Federal government back in 2005.

 

Alberta’s childcare spending is the lowest of all the provinces in Canada. We spent $1093 per regulated childcare space compared to the national average of $3259. (Childcare Resources and Research Unit, Early Childhood Education and Care in Canada, 2006, http://www.childcarecanada.org/ECEC2006/tables_long/ECEC06_Table31.pdf)

 

Over the past two year’s the province has significantly under spent the budgeted amount for childcare.

·         In 2005 – 06 the total actual spending was $78.3 million even though the projected spending was to be $100.4 million.

·         In 2006 – 07 the total actual spending was $103.7 million on a total budget of $147 million.

·         In the 2007- 08 budget document released in April 2007, the province had said they were going to increase the budget by $16 million over the projected actual spending of $116 million, to a total of $134 million. In fact, it turns out, they had spent only 103.7 million in 06 -07, a difference of 43 million dollars or 30% less than the total allotted budget.

 

The Federal government’s direct support for childcare in Alberta has allowed the Alberta government to spend even less provincial dollars on childcare. (The details are on the federal government site at http://www.fin.gc.ca/FEDPROV/fsce.html)

·         The “Early Learning and Child Care” agreement signed in 2003 sets out specific amounts that are transferred from the Canada Social Transfer (CST) to provinces for Childcare. This agreement has seen an increase in funding under the federal government and has been extended to 2012-13.

o        In 2005 – 06, Alberta received 22.8 million under this agreement,

o        in 2006 – 07, Alberta received 31 million and

o        in 2007 – 08 Alberta received 36.3 million.

·         The “Early Learning and Child Care” agreements that were signed in 2005 provided additional federal support for early learning and childcare. Alberta announced it’s “5 point plan” to use the federal dollars in September 2005. After the Conservative party won the last federal election, they cancelled the agreement as of April 2007. In total this agreement transferred

o        In 2005 – 06 Alberta received 70.4 million and

o        In 2006 – 07 Alberta received 66 million. 

When you combine the Early Learning and Child Care agreement and the childcare transfers from the CST, you see that the federal transfers have either exceeded or cover 95% of the total childcare budget over the past 2 years.

 

Childcare funding ($millions)

2005-06

2006-07

CST - Childcare

22.8

30.9

2005 Federal Agreement

70.4

66.0

Total Federal contribution

93.2

96.9

Total Actual Spent in Alberta

78.3

103.7