Childcare operators are voicing concerns about a provincial grant program. (Photo 95753695 © Fedecandoniphoto | Dreamstime.com)

By Justin Goulet

Child Care

Alberta childcare centres at risk of closing

Dec 21, 2023 | 6:55 PM

“I absolutely think that we’re going to see childcare centres closing in the next year.”

That’s according to Krystal Churcher, who is one of the childcare operators speaking out following a provincial announcement regarding childcare fees.

Earlier this month, the Government of Alberta announced a funding increase under the Affordability Grant, which is paid directly to eligible childcare providers. The province told Pattison Media that the greater grants will result in parents paying an average of $15 per day for childcare in 2024.

The increase comes as the provincial and federal governments work toward lowering the fees for daycare and day home services to an average of $10 a day by 2025-26.

Although the Affordability Grant agreement will result in lower costs for parents in the new year, it could lead to some issues for childcare operators.

Churcher, who serves as the chair of the Association of Alberta Childcare Entrepreneurs said, “As much as this is a discount for families and, you know, a really well-deserved affordable childcare program for Alberta, it comes with a massive burden on your operators.”

“After being in this program now for over two years, most operators are seeing the issues and really know what impact the $10 a day program has had on their centre.”

Churcher explained that operators, as part of the agreement, are asked to reduce their fees. She said that the government would then reimburse operators for the amount of revenue that was lost.

However, Churcher said, “They don’t pay us that back until about 40 to 45 days after [the start of the month]. So, with every increase of this program, we lose access to revenue that we would have normally had on the first of the month and now we have to wait 40 to 45 days past that to have access to that.”

She added, “So, for small businesses, it makes it really difficult to, you know, pay your operational costs, your wages, your rent and your insurance and all those things that are usually due on the first of the month, because you’re not able to access that income that you used to.”

Pattison Media has received letters sent out to parents by operators across the province, voicing their issues with the program. Concerns raised include the risk of canceling initiatives like meal programs, field trips and extra activities due to a lack of funds in order to meet the reduced fees for parents.

Churcher said they have raised their worries with the province, and she believes “that’s where the disappointment comes from.”

She explained, “I think that operators have been asking for support from the government for two years and we really thought we had built a relationship and that we were being understood, and I think that seeing this agreement come out the way it did is disappointing.”

Churcher noted the association has been in contact with its members, which include private and non-profit operators, as well as day home educators.

She added that they want parents to understand that, “As much as everybody wants affordable childcare, we have to make sure that we can keep the centres open and that the quality of childcare and the programs that parents are expecting are still going to be there, even with the discounted rates.”

The new contract with the province is due to take effect on January 1, 2024, with a signing deadline of January 31.