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Background: Prior to Local Services Realignment (LSR), administrative costs in the discretionary Children’s Services program were 80% provincial and 20% municipal. Following LSR, the Children’s Services programming became mandatory but cost sharing on administration was reduced. When Children’s Services were transferred to the District Social Services Administration Boards (DSSABs), the Ministry of Community and Social Services (MCSS) unilaterally set an amount for administration. The formula imposed by MCSS was to limit 50/50 cost sharing on administration to 11.5% of the transferred Child Care Fee Subsidy envelop. There was no equity among the Consolidated Municipal Service Managers (CMSMs) and DSSABs as the Fee Subsidy level was only a reflection of the Child Care Fee Subsidy in pay at the point of transfer. There was no province wide equity or rationale for the administration funding. There was limited recognition of exceptional administrative costs recognized for Northern Ontario. In addition, there was no administration amount allowed for the work associated with Family Resource Centres (FRC), Wage Subsidy, Special Needs Resourcing, Pay Equity nor any Children’s Services planning activities. This meant that the administration costs of all program components other then Child Care Fee Subsidy were 100% municipally funded. All of these other program components have seen considerable change, imposed by MCSS, over the ensuing years but there was never any recognition of the administrative costs of these other program components. The original unilaterally imposed cap on administration was inadequate at the point of transfer. The inadequacy has increased overtime as MCSS imposed new administrative requirements. These included mandatory annual service plans, implementing changes to eligibility determination and Ontario Early Years planning support. The inadequacy has further increased as a result of annual inflation (CPI) and wage settlements neither of which has been recognized by MCSS. The creation of the new Ministry of Children and Youth Services (MCYS) has not led to any efforts to correct this problem. Although MCYS is currently addressing client access / eligibility issues and is committed to addressing, in the longer term, provider viability the issue of appropriate administrative support has thus far been ignored. The only improvement since the time of the transfer has been the increase in the administration cap driven by new Fee Subsidy funding as part of the Early Learning and Child Care initiative. As DSSABs begin the huge amount of work associated with Best Start we need to address the core issue of adequate administrative funding for DSSAB Children’s Services departments. It is recognized that not all of these issues can be quickly resolved. Draft Resolution Whereas the present funding for District Social Services Administration Boards (DSSAB) Children’s Services departments is wholly inadequate Whereas the administrative caps associated with this program where unilaterally set at the point of the transfer of this program to DSSABs Whereas there have been no increase related to either workload increase or inflation Whereas the Best Start initiative requires new administrative costs for the DSSABs Therefore be it resolved that: 1. In 2005 and 2006, the Ministry of Children and Youth Services (MCYS) provide a grant to fully offset any Best Start planning and implementation costs. 2. In 2006, the MCYS increase the cap on administrative costs to 11.5% of the total Children’s Services budget including Fee Subsidy, Wage Subsidy, Pay Equity, Family Resource Centres and Special Needs Resourcing. 3. During 2006, MCYS meet with DSSABs to develop an administrative funding formula which recognizes the exceptional costs of administering these programs in Northern Ontario. David Court – Algoma District Services Administration Board – CAO Nancy MacLean – Algoma District Services Administration Board - Children’s Services Manager
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