Sask. daycare faces uncertainty as new $10-a-day deal goes into effect this week

Saskatchewan’s new $10-a-day childcare program starts April 1, but some daycare centers still unsure of what it means for them. Donovan Maess reports.

A Saskatchewan daycare provider says it is facing financial pressures because it cannot increase its fees under the provincial-federal government’s childcare agreement.

As a mother, Bailey Fleck has welcomed $10 per day childcare - but as the director of Weldon Childcare in Bienfait, Sask., it has left her high and dry.

“When it was all rolled out, we knew there’d be some bumps in the road, absolutely,” she told CTV News Monday. “But I can say without a doubt, we did not expect to be in the financial position that we’re in now.”

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Fleck was quick to sign into the national agreement when it was created in 2021.

What she did not realize was some of the consequences she is still left dealing with today – including not being able to increase her fees and receive additional funding through the program to keep up with costs.

“When we initially signed on, fees were way lower.” Fleck explained, “Prices and everything in the economy was lower. It’s really kind of caught up with us now because we haven’t been able to increase our fees.”

“New childcare centers were able to set their own fees at different times and are profiting 50 to 70 grand a year,” she added.

Just to keep the doors open, Weldon has had to dip into its reserves and relies heavily on fundraising.

“If we stopped doing our fundraising, I would say we would have probably about two, maybe three years [before closing],” Fleck said. “We’d really have to cut some corners, cut some staff, that kind of stuff. But as long as we keep fundraising, we’re going to be okay.”

“The only flip side of that is we’re starting to see that parents aren’t able to provide the same support for fundraising as they once were,” she added.

New deal in effect Wednesday

The Government of Saskatchewan and federal government did reach a new agreement to keep childcare at $10 per day.

It also increased the age eligibility from five to six-years old.

• Sask. daycares say a sudden pivot from the province is increasing costs for some families

The agreement will provide more than $1.6 billion to Saskatchewan daycares over five years to support access to high-quality, affordable, flexible and inclusive early learning and child care programs and services across the province.

This includes an annual 3 per cent funding increase starting in 2027-28.

The new deal goes into effect April 1.

Days before falling under this agreement, Fleck says she is yet to see the full details.

“We’ve signed on to this new agreement but we have no details of what it holds for our future,” she said. “Without that knowledge and without it in writing right in front of us, it’s kind of scary to see.”

In an emailed statement, the Ministry of Education said the province is now focusing on negotiating a five-year-agree action plan with the federal government about initiatives and funding allocations that are in line with the child care deal’s terms.

“Once approved, this action plan will be shared publicly and will inform the path forward,” the ministry wrote.

“Saskatchewan remains committed to continuing our work to address any challenges within the sector and develop funding options that will provide predictable and equitable financial opportunities for regulated child care facilities.”

Fleck says the increase is not enough to sustain her centre as costs soar, and she is not the only one.

“There’s a center just down the road where staff are literally fundraising to pay their own wages right now, which is really, really sad,” she added, “I don’t think there is any place out there in the province people have to fundraise to pay their own wage.”

When asked if the province would be open to allowing centres that have previously entered the agreement to increase its fees, the ministry stated that the Canada-Saskatchewan extension agreement includes a three per cent annual escalator starting next year.

“However, there is no increase in federal funding for Saskatchewan in the current fiscal year,” the ministry wrote.

“The agreement also includes a federal adjustment mechanism that changes the total funding amount each year based on Saskatchewan’s rate of growth in the population of young children compared to other provinces and territories.”

The province said all child care facilities have seen an increase of more than 11 per cent to their fee schedules since 2021 and an extra $2.8 million has been directed to facilities with the lowest fees to ensure greater equity across the system.

The ministry also said that Saskatchewan received about $27 million less than anticipated as a result of the population-based adjustment.

“This means that even with the three per cent escalator included in the agreement framework Saskatchewan may not see an overall increase in federal funding,” said the ministry.

Fleck wants to see operators brought to the table and to join the conversations so her daycare may continue to serve her community.

“We are being told what to do by people who have never set foot in a childcare center,” she said. “We want to make sure childcare centers across the province are flourishing and not drowning. We want to make sure we’re playing a vital role in children’s futures.”