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GUIDELINES
AND PROCEDURES FOR DISTRIBUTION OF CHILDCARE WAGE SUBSIDIES (September
1999) We
have recently commented at length on guidelines for calculation and
distribution of pay equity grants. Childcare centres must continue to
distribute their direct operating grant and wage enhancement grant
subsidies (collectively referred to as wage subsidies) in addition to pay
equity grants. Rules for calculation and distribution of wage subsidies
were set by the Ministry of Community and Social Services on
implementation of the funding program in 1987. These rules are available
in a Guidelines and Procedures document and, in theory, have been sent to
every centre. They differ from pay equity rules and regulations. Effective
July 1, 1999 responsibility for funding and distribution of salary grants
has been downloaded to local area service providers. This, in most cases,
is the municipality involved (e.g. City of Toronto, Region of York). We
have been informed by representatives of the City of Toronto that, for the
present, there will be no changes in rules governing distribution of wage
subsidies to childcare staff. For
your information, we are quoting verbatim Sections III through V of the
Ministry of Community and Social Services Guidelines and Procedures for
Childcare Wage Subsidy. These sections specify (or leave vague as the case
may be) rules for distribution of wage subsidies. We recommend that you
compare your centre’s method of distribution with these rules and
regulations and ensure that your centre is in compliance with the current
municipal wage subsidy guidelines. III.
PERSONS ELIGIBLE Wage
subsidy is intended to improve the salary and benefit levels of employees
working in a child care program and amounts paid to home child care
providers. With respect to persons working in an eligible child care
program, the people who should benefit are those who fill permanent
positions (full or part-time). The
following list notes some of the types of permanent positions that are
typically found in a child care program: ·
Trained and
untrained teachers ·
Supervisors/Administrators
·
Home Visitors ·
Resource Teachers ·
Clerical Staff ·
Cooks ·
Housekeeping and
Janitorial Staff ·
Bus Drivers A
permanent position (full or part-time) is one which is part of a program’s
regular staffing component or under contract as a home child care
provider. For example, a child care program offers a music program for six
months of every year and employs an individual to conduct the six month
program every year. This position is a permanent position. If however, a
program offers a music program on a one time basis only, the position
would not be considered permanent. That individual would be working on a
short term project for the child care program. The full-time equivalent is
required for full and part-time positions. (e.g. 17.5 hours/week = .5 FTE
when 35 hours/weeks is the regular work week). The FTE is based on the
agency’s standard work week. Because
this payment is intended for employees in permanent positions (full or
part-time) or persons under contract as home child care providers, the
following staff should not be included: ·
Persons working on
a short term project. For example, an individual under contract with an
agency to develop a parent contract. ·
Students and staff
whose salaries are covered by employment programs such as
"Futures", "Social Services Employment Program" (SSEP)
etc. ·
Persons paid on a
fee-for service or contract basis. For example, someone who provides
accounting services, janitorial services. IV.
FUND The
Service Provider will use Wage Subsidy funds to increase the salary and
benefits of staff employed in licensed child care services, funded child
care resource services, and funded support for children with special
needs. The
Service Provider will only use Wage Subsidy funds to increase salary and
benefits of staff filling eligible positions unless non-salary related use
is specifically approved by the Ministry. Where a collective agreement
precludes increasing payments to staff, or other such exceptional
circumstance exists, non-salary use of wage subsidy funds may be approved
by the Ministry. The
Service Provider will ensure that each employee receives a reasonable
portion of Wage Subsidy, and that such distributions are consistent with
achievement of the service provider's pay equity plan. Distribution
of Wage Subsidy to employees will not exceed $9,030 per FTE position in a
non-profit organization and will not exceed $3,230 per FTE position in
commercially operated child care program (unless resulting from
transfer/sale of a child care centre previously operated by a non-profit
organization). The
Service Provider will ensure that all payments to employees, including
Wage Subsidy, are reflected in the job rates used by the Service Provider
in pay equity calculations. The
Service Provider is entitled to use a portion of Wage Subsidy funding to
cover mandatory employer contributions resulting from increased salary and
benefit costs which are related to implementation of Wage Subsidy funded
salary and benefit increases. Service
Providers that down-size a child care program may not redistribute Wage
Subsidy funding to remaining positions. Wage Subsidy funds distributed to
previously employed positions are to be declared surplus on the Child Care
Wage Subsidy Utilization Statement provided to the Ministry at the end of
funding year. The
Service Provider will immediately report to the Ministry any significant
child care program down sizing which is expected to be ongoing, and
acknowledges that such program and/or staffing changes will result in
recalculation of the amount of Wage Subsidy the Service Provider is
eligible to receive. Previously
approved Direct Operating Grant funding for non-salary use may continue to
be used for such purposes, subject to Ministry approval each year, but
must be at the 1993/94 level or lower. Service
Providers that operate a licensed home child care program shall distribute
a portion of Wage Subsidy to enhance payments to home child care
providers, as well as to employees of the home child care agency such as
home visitors. Unless the program has down sized, the amount distributed
to home child care shall be consistent with the total combined amounts of
the former Direct Operating Grant and Provider Enhancement Grant
previously distributed to home child care providers. The
Service Provider shall determine and administer distribution of Wage
Subsidy funds in accordance with the funding conditions herein and
Ministry policies, procedures, and guidelines governing Wage Subsidy and
Pay Equity in effect at the time of such distribution. The
Service Provider is required to communicate to staff and home child care
providers how subsidy funding is distributed, as well as any changes that
may occur in distribution. Wage
subsidy funds not utilized in accordance with the conditions outlined
above and current Ministry policies, procedures, and guidelines governing
Wage Subsidy and Pay Equity shall be returned to the Ministry. Failure
to comply with any of the funding conditions herein may result in a claim
for recovery of Wage Subsidy funding provided by the Ministry and
ineligibility to receive future funding under the Wage Subsidy program. The
Service Provider will submit a Child Care Wage Subsidy Utilization
Statement to the Ministry within thirty days of the end of the funding
year. V.
GUIDELINES FOR WAGE SUBSIDY DISTRIBUTION 1.
The purpose of Wage Subsidy funding is to enhance the salaries and
benefits of eligible staff. 2.
The Ministry strongly encourages that Service Providers include
Wage Subsidy funding in their ongoing salary and wage payments to staff
rather than distributing the funding as periodic payments during the year.
3.
Salary related wage subsidy refers to the combined amount of the
former Direct Operating Grant, Wage Enhancement Grant, and provider
Enhancement Grant. Only expansion that is part of the MCSS area child care
management plan will receive additional Wage Subsidy funding. Where
expansion is not part of the management plan, the service provider is
responsible for funding for 100% of the additional salaries, benefits and
home child care provider payments. 4.
The Direct Operating Grant portion of the Wage Subsidy may be
approved in year [SIC] by the area office for non salary use, i.e. affordability or staff
training. Existing approvals may not exceed the 1993/94 level. This amount
will be identified separately in the approval. Service Providers may use a portion of the Wage Subsidy grant to fund the increase in the employers’ share of benefits to the enhanced salaries. |
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