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Funding Formula

Child on Stack of BooksTransitioning to Ontario’s New Child Care Funding Framework 

In 2012, the Ministry of Education announced a new formula for funding early learning and child care centres in the province. This new funding formula is intended to provide greater flexibility, responsiveness, and stability in the current child care system and was developed based on 5 objectives:

  1. Efficiency – Informed by evidence and experience to address inequities in current funding allocations and distribute and simplify funding to maximize its impact on the sector.
  2. Responsiveness – Based on up-to-date data, allows for changes in the sector, and responds to the need for services
  3. Predictable and Transparent – Service managers are able to estimate their future year’s budgets with a reasonable degree of confidence.
  4. Quality - Support consistently in approach, access for families and provides high quality programs for children and child care operators.
  5. Accountability – Use reporting requirements which support the funding objectives.

The new funding formula includes three main allocation components:

1. General Operating Funding

The purpose of this allocation is to support the availability of licensed child care for all parents through:

  • General Operating (wage subsidies, wage improvements, rent, occupancy funds)
  • Fee Assistance
  • Ontario Works Formal/Informal Subsidy
  • Special Needs Resourcing

2. Special Purpose Funding

This category of funding is intended to respond to the unique costs of providing child care services in certain areas and to certain target populations. For example, aboriginal, rural/remote, repairs & maintenance and play-based materials. This allocation provides greater flexibility to respond to community needs.



3. Capital Funding

The capital allocation is provided to maintain and improve child care infrastructure across communities. This allocation will support capital retrofits to allow operators to re-purpose existing community-based centres to serve younger age groups.



To be eligible for funding organizations need to have a license and a purchase of service agreement with the municipality.

To learn more about funding opportunities read Section 4 of our Operating Criteria Manual

To view the Child Care Management and Funding Guidelines click here.

Current Funding Applications

Funding Cycle for Community Partners...stay tuned!