20% OVER/UNDER AGE GROUPING AND AGE MIXING: Help or Hindrance to Cost Reduction? (March 1996)

20% Over/Under Age Grouping and Age Mixing are two different and often confused concepts. They are not the same thing and may have a much different financial impact on your centre. Both are related to how children and staff are grouped in your centre. Both have financial and programming implications that must be considered.

The 20% Over/Under Age Grouping provision of the Day Nurseries Act ("DNA") allows up to 20% of the children in a group to be from either the next youngest or the next oldest age group. This is sanctioned by Section 55(2) of the DNA. Example: You are licensed for up to 16 preschool children. Up to 3 toddler or up to 3 school age children could be included in your preschool group. This ratio stays at 1 to 8 and the group size remains at 16. You do not have to hire more staff.

Age Mixing allows for age groups to be mixed to reflect current enrolment patterns. Example: Your license includes a group of 16 preschool children. There are 5 vacancies in the room and you have 4 toddlers on your waiting list. To keep the group full you enroll the 4 toddlers. Age Mixing allows you to do this but because the 4 toddlers make up more than 20% of the preschool room the group becomes a toddler room. Ratios drop to 1 to 5 and the group size drops to 15. you must hire one more caregiver and have lost one fee paying spot. You have just created a very expensive preschool program!

Your license letter may give your centre automatic permission to use the 20% provision to register children who are either younger or older in existing programs. It may go further and give you blanket permission to age mix.

How can you make this work for you? The 20% rule can help make sure that infant and toddler rooms are full at all times as it permits some flexibility in the transfers of children between age groups. Extra staff need not be hired.

Age Mixing, on the other hand, could result in higher staff costs and reduced enrolment capacity. It is unlikely to help your cash flow and may instead hinder it.

Age Mixing and Over/Under Age Grouping is not part of your Purchase of Service Agreement with Metro. You must still discuss plans to Age Mix or use the 20% rules with your Children’s Services Consultant.

Remember that Metro has a policy of taking the best fee deal going. If you do move children up or down, you can assume that Metro will pay the lowest applicable rate (i.e. a school age rate if a preschooler is moved to a school age room or a preschool rate if a preschooler is moved to a toddler room.)

Finally, you should note that your centre is only permitted to Age Mix or Over/Under Age Group in one room for each age group. In other words, if you have three preschool rooms you can only have children of different ages in one of the three rooms.