Agreement to amend the Canada – Alberta Canada-Wide Early Learning and Child Care Agreement - 2021 to 2026

Amendment 1

Between:

• her Majesty the Queen in Right of Canada (hereinafter referred to as “Canada” or “Government of Canada”) as represented by the Minister of Employment and Social Development (“Canada”) and as represented by the Minister of Families, Children and Social Development (herein referred to as “the federal Minister”), and
• the Government of Alberta (hereinafter referred to as Alberta) as represented by the Minister of Children’s Services herein referred to as “the Alberta Minister”)

Referred to collectively as the “Parties”.

Preamble

Whereas the Parties concluded the Canada-Alberta Canada-wide Early Learning and Child Care (ELCC) Agreement (“Agreement”) on November 14, 2021.

Whereas at the time of the signing of the Agreement, the Parties agreed that up to approximately 1,500 for profit spaces that were already planned and ready to open shortly would be eligible for federal funding under the Agreement.

Whereas Alberta indicates that the number of for profit child care spaces that were already planned and ready to open shortly, and that would be eligible for federal funding under this Agreement, was actually 2,700.

Whereas the Parties agree to increase the number of already-planned for profit spaces eligible for federal funding under this Agreement from 1,500 to 2,700 to reflect space creation initiatives already underway at the time of signature of the Agreement.

Now therefore, the Parties agree to amend the Agreement, as follows.

1. Section 2.0 is modified by replacing section 2.1.1 with the following

   “2.1.1 Canada and Alberta commit to the following objectives:

• affordability:
  • Alberta commits to using federal funding to reduce out-of-pocket parent fees for licensed ELCC spaces for children 0 to kindergarten by an average of 50% from 2019 levels by the end of 2022
  • Alberta commits to using federal funding to reduce out-of-pocket parent fees for full-time licensed ELCC spaces for children 0 to kindergarten to an average of $10 per day by the end of fiscal year 2025 to 2026
• access:
  • Alberta commits to using federal funding to increase the number of licensed child care spaces for children 0 to kindergarten. In creating these child care spaces Alberta agrees that:
    • federal funding to create 42,500 new child care spaces will be used exclusively to support licensed child care delivery in not-for-profit and public child care providers, as well as family-based child care
    • as per section 2.2.1 c), federal funding to create spaces for children 0 to kindergarten will be used to support licensed child care delivery in for-profit providers. The implementation committee described in section 6 will develop and propose a For-Profit Expansion Plan, including a cost control framework as described in section 6.3, for approval by Alberta and Canada. While the For-Profit Expansion Plan and cost control framework is being developed, up to approximately 2,700 for profit spaces that are already planned and ready to come online shortly could be created and eligible for federal funding under this Agreement. In addition, 1,000 more spaces could be created by existing providers within existing facilities; the providers of these 1,000 spaces will be eligible for federal funding referred to under this Agreement, except for the space creation support described in Alberta’s action plan. Alberta has established interim measures to manage the costs of for profit spaces that are eligible for funding under this agreement until a For-Profit Expansion Plan and cost control framework is implemented
  • spaces will be exclusively created in the regulated child care sector, delivered by licensed providers
• quality:
  • Alberta commits to use federal funds to:
    • continue to develop and implement evidence-based quality frameworks, standards, and tools for early learning and child care
    • continue to use Alberta’s existing wage scale, which includes wage top-ups for early childhood educators (ECE) as part of this Agreement
    • increase the percentage of child care workers providing regulated child care in the province who fully meet Alberta’s certification requirements to at least 60% and by at least 15 percentage points by fiscal year 2025 to 2026, whichever leads to a greater percentage
• inclusive:
  • Alberta commits that new space creation ensures diverse and/or vulnerable children and families, including those referenced in section 2.2.5, have equitable access to child care spaces, in proportion to their presence in the population of Alberta
  • in supporting inclusive child care, Alberta commits:
    • to track the number of inclusive spaces with inclusive programming created/converted as well as the annual public expenditures on child care programming dedicated to children from diverse and/or vulnerable families
• data sharing and reporting:
  • Alberta commits to share financial and administrative data as outlined in section 5 to measure progress on achieving objectives outlined in this Agreement”

2. Section 12.0 is modified by replacing section 12.1 with the following

   12.1 This Agreement, including Annexes 1, 2 and the amendment, comprise the entire Agreement entered into by the Parties with respect to the subject matter hereof

3. Annex 2 (Alberta’s fiscal year 2021 to 2022 to fiscal year 2022 to 2023 Canada-wide action plan) is modified by replacing the section on Access with the following

• Access
• Space creation must be responsive to economic growth and recovery, and offer the level of flexibility that Alberta families require. Given this is only a 5-year commitment, spaces must be sustainable. Enrolment in Alberta currently hovers around 55%, and was around 80% prior to the pandemic.
• Alberta commits to creating spaces at a rate that matches enrolment changes. Our plan is also responsive to populations with extra needs including infants, children with disabilities, other vulnerable children, those in rural and remote communities, as well as select daycare deserts.
• Through space creation initiatives underway, we are creating 2,700 new licensed and regulated child care spaces in fiscal year 2021 to 2022. Alberta will leverage our current approach to expand and create more spaces through the federal funding. We will work with communities and partners to enhance access to high quality child care in areas where it is needed most. Building on existing and establishing new partnerships, where necessary, will ensure that child care in Alberta is reflective of the diverse communities and specific needs in our province.
• Alberta will look for opportunities to expand in a way that focuses on spaces for children aged 0 to kindergarten, but supports all child care types and providers to best meet the needs of Alberta families in our mixed market system. Based on definitions used by the Government of Canada, 44% of spaces in Alberta are considered non-profit (includes family based and public providers) and 56% of spaces are privately operated; and many by female entrepreneurs who provide high quality care that should not be excluded from participating in space creation or other initiatives.
• Alberta commits to creating a minimum of 42,500 not for profit spaces over the next 5 years.
• Alberta will prioritize not for profit space creation in year 2 and build in private sector space creation starting in year 3 of the Agreement once the For-Profit Expansion Plan and cost control framework have been developed by the Implementation Committee and agreed to by the federal government for receipt of federal funds for private operators. These operators will be able to fully participate in all aspects of the Alberta action plan no later than fiscal year 2023 to 2024, provided the For-Profit Expansion Plan and cost control framework developed by the Implementation Committee have been agreed to by the federal government.
• Alberta will work with providers of all types, including non-profit operators and community agencies, municipalities, faith-based and cultural organizations, as well as educational facilities, to create spaces starting in areas of high especially important in rural and remote communities.
• Alberta will also consider how it may incentivize unlicensed child care to join a licensed agency. Alberta has had several space creation initiatives spanning the last 12 years, providing historical data on Alberta’s ability to create new spaces. While Alberta has been successful in creating new child care spaces, the targets in this plan will require aggressive expansion efforts. Coupled with a requirement to ensure there is an adequate workforce to staff new spaces, Alberta will continue to explore how to address these demands.
• This allocation of funding per-space will enhance not-for-profit programs’ capacity to meet the range of responsibilities required to build new spaces and expand their services. Space creation funding will be available, on an application basis, to offset the costs of planning, renovations, and purchasing supplies, equipment and toys. This cost per space represents an average per space. These new spaces will also support children with specific learning, linguistic, cultural and other needs, as well as provide flexibility for families who need drop-in and 24-hour child care

4. The Agreement remains unchanged in all other aspects
5. This amending agreement shall take effect upon its signatures by the Parties

Signed on behalf of Canada by the Senior Assistant Deputy Minister of Strategic and Service Policy Branch at Employment and Social Development at Ottawa this 1st day of April, 2022.

[Signed by] Catherine Adam, Senior Assistant Deputy Minister of Strategic and Service Policy.

Signed on behalf of Alberta by the Deputy Minister of Children’s Services at Edmonton this 11th day of April, 2022.

[Signed by] Sherri Wilson, Deputy Minister of Children’s Services.

Approved Pursuant to the Government Organization Act.

[Signed by] Intergovernmental Relations, Executive Council on 25th day of April, 2022.

Amendment 2

Between:

• her Majesty the Queen in Right of Canada (hereinafter referred to as “Canada” or “Government of Canada”) as represented by the Minister of Employment and Social Development Canada (“Canada”) and as represented by the Minister of Families, Children and Social Development (herein referred to as “the Federal Minister”), and
• the Government of Alberta (hereinafter referred to as “Alberta” or “Government of Alberta”) as represented by the Minister of Children’s Services (herein referred to as “the Alberta Minister”)

Referred to collectively as the “Parties.”

Preamble

Whereas the Parties concluded the Canada-Alberta Canada-wide Early Learning and Child Care (ELCC) Agreement (“Agreement”) on November 14, 2021.

Whereas at the time of the signing of the Agreement, the Parties agreed that in fiscal year 2021 to 2022, at the request of Alberta, and subject to approval of Canada’s Treasury Board, Alberta may retain and carry forward to the following fiscal year any unexpended funds remaining from Alberta’s annual contribution up to a maximum of 70%.

Whereas Alberta indicates that since signing the Agreement, there have been challenges expending its fiscal year 2021 to 2022 allocation due to diverse implementation challenges.

Whereas the Parties agree to increase in fiscal year 2021 to 2022, Alberta’s carry forward allowance from 70% to 74.4% for fiscal year 2021 to 2022 into fiscal year 2022 to 2023.

Now therefore, the parties agree to amend the Agreement, as follows.

1. Section 4.0 is amended by replacing section 4.6.1 with the following

   “4.6.1 Starting in fiscal year 2021 to 2022, at the request of Alberta, and subject to approval of Canada’s Treasury Board, Alberta may retain and carry forward to the following fiscal year any unexpended funds remaining from Alberta’s annual contribution payable under section 4.2, up to a maximum of 74.4% of the contribution payable. Any unexpended funds in excess of 74.4% of the contribution payable represents an overpayment subject to section 4.7”

2. Section 12 is amended by replacing section 12.1 with the following

   “This Agreement, including Annexes 1 and 2, and amendments 1 and 2, comprise the entire agreement entered into by the Parties with respect to the subject matter hereof”

3. The Agreement remains unchanged in all other aspects
4. This Amending Agreement no. 2 shall be read in conjunction with the Agreement and shall take effect as if its provisions were an integral part of that Agreement
5. This Amending Agreement no. 2 shall take effect upon its signatures by both of the Parties

Signed on behalf of Canada by the Senior Assistant Deputy Minister of Strategic and Service Policy at Employment and Social Development Canada at Gatineau this 2nd day of August, 2022.

[Signed by] Catherine Adam, Senior Assistant Deputy Minister of Strategic and Service Policy, Employment and Social Development Canada.

Signed on behalf of Alberta by the Deputy Minister of the Ministry of Children’s Services at Edmonton this 19th day of December, 2022.

[Signed by] Sherri Wilson, Deputy Minister, Ministry of Children’s Services.

Approved Pursuant to the Government Organization Act.

[Signed by] Intergovernmental Relations, Executive Council on December 22nd, 2022.

Amendment 3

Between:

• his Majesty the King in right of Canada (hereinafter referred to as “Canada” or “Government of Canada”) as represented by the Minister of Employment and Social Development (“Canada”) and as represented by the Minister of Families, Children and Social Development (herein referred to as “the federal Minister”), and
• his Majesty the King in right of Alberta (hereinafter referred to as “Alberta” or “Government of Alberta”) as represented by the Minister of Children’s Services herein referred to as “the Alberta Minister”)

Referred to collectively as the “Parties”.

Preamble

Whereas the Parties concluded the Canada-Alberta Canada-wide Early Learning and Child Care (ELCC) Agreement (“Agreement”) on November 14, 2021.

Whereas at the time of the signing of the Agreement, the Parties agreed that up to approximately 1,500 for profit spaces that were already planned and ready to open shortly would be eligible for federal funding under the Agreement.

Whereas Alberta indicates that the number of for profit child care spaces that were already planned and ready to open shortly, and that would be eligible for federal funding under this Agreement, was actually 2,700.

Whereas the Parties agree to increase the number of already-planned for profit spaces eligible for federal funding under this Agreement from 1,500 to 2,700 to reflect space creation initiatives already underway at the time of signature of the Agreement.

Whereas the Parties have developed and proposed a For-Profit Expansion Plan and cost control framework, for agreement by Alberta and Canada, per section 6.3 of this Agreement.

Whereas Alberta indicates that expanding support of for-profit child care spaces in the province prior to fiscal year 2023 to 2024 would alleviate affordability pressures for families in Alberta.

Now therefore, the Parties agree to amend the Agreement, as follows.

1. Section 2.0 is modified by replacing section 2.1.1 with the following

   “2.1.1 Canada and Alberta commit to the following objectives:

• affordability:
  • Alberta commits to using federal funding to reduce out-of-pocket parent fees for licensed ELCC spaces for children 0 to kindergarten by an average of 50% from 2019 levels by the end of 2022
  • Alberta commits to using federal funding to reduce out-of-pocket parent fees for full-time licensed ELCC spaces for children 0 to kindergarten to an average of $10 per day by the end of fiscal year 2025 to 2026
• access:
  • Alberta commits to using federal funding to increase the number of licensed child care spaces for children 0 to kindergarten. In creating these child care spaces Alberta agrees that:
    • federal funding to create 42,500 new child care spaces will be used exclusively to support licensed child care delivery in not-for-profit and public child care providers, as well as family-based child care
    • as per section 2.2.1 c), federal funding to create spaces for children 0 to kindergarten will be used to support licensed child care delivery in for-profit providers. The implementation committee described in section 6 will develop and propose a For-Profit Expansion Plan, including a cost control framework as described in section 6.3, for approval by Alberta and Canada. While the For-Profit Expansion Plan and cost control framework is being developed, up to approximately 2,700 for profit spaces that are already planned and ready to come online shortly could be created and eligible for federal funding under this Agreement. In addition, 1,000 more spaces could be created by existing providers within existing facilities; the providers of these 1,000 spaces will be eligible for federal funding referred to under this Agreement, except for the space creation support described in Alberta’s action plan. Alberta has established interim measures to manage the costs of for profit spaces that are eligible for funding under this agreement until a For-Profit Expansion Plan and cost control framework is implemented
    • following approval by Alberta and Canada of the For-Profit Expansion Plan and cost control framework, per section 6.3 of the Agreement, Alberta may create up to an additional 22,500 for-profit child care spaces which would be eligible for federal funding under this Agreement, resulting in the creation of a maximum of 26,200 for-profit child care spaces between fiscal years 2021 to 2022 and 2025 to 2026
    • up to 6,000 of the 22,500 for-profit child care spaces which could be created and eligible for federal funding under this Agreement following the approval of the For-Profit Expansion Plan and cost control framework may be created in fiscal year 2022 to 2023, with the remaining spaces to be created between fiscal years 2023 to 2024 and 2025 to 2026
  • spaces will be exclusively created in the regulated child care sector, delivered by licensed providers
• quality:
  • Alberta commits to use federal funds to:
    • continue to develop and implement evidence-based quality frameworks, standards, and tools for early learning and child care
    • continue to use Alberta’s existing wage scale, which includes wage top-ups for early childhood educators (ECE) as part of this Agreement
    • increase the percentage of child care workers providing regulated child care in the province who fully meet Alberta’s certification requirements to at least 60% and by at least 15 percentage points by fiscal year 2025 to 2026, whichever leads to a greater percentage
• inclusive:
  • Alberta commits that new space creation ensures diverse and/or vulnerable children and families, including those referenced in section 2.2.5, have equitable access to child care spaces, in proportion to their presence in the population of Alberta
  • in supporting inclusive child care, Alberta commits:
    • to track the number of inclusive spaces with inclusive programming created/converted as well as the annual public expenditures on child care programming dedicated to children from diverse and/or vulnerable families
• data sharing and reporting:
  • Alberta commits to share financial and administrative data as outlined in section 5 to measure progress on achieving objectives outlined in this Agreement”

2. Section 12.0 is modified by replacing section 12.1 with the following

   “12.1 This Agreement, including Annexes 1, 2 and amendments 1, 2, and 3 comprise the entire Agreement entered into by the Parties with respect to the subject matter hereof”

3. Annex 2 (Alberta’s fiscal year 2021 to 2022 to fiscal year 2022 to 2023 Canada-wide action plan) is modified by replacing the section on Access with the following

• Access
• Space creation must be responsive to economic growth and recovery, and offer the level of flexibility that Alberta families require. Given this is only a 5-year commitment, spaces must be sustainable. Enrolment in Alberta currently hovers around 55%, and was around 80% prior to the pandemic.
• Alberta commits to creating spaces at a rate that matches enrolment changes. Our plan is also responsive to populations with extra needs including infants, children with disabilities, other vulnerable children, those in rural and remote communities, as well as select daycare deserts.
• Through space creation initiatives underway, we are creating 2,700 new licensed and regulated for-profit child care spaces in fiscal year 2021 to 2022. Alberta will leverage our current approach to expand and create more spaces through the federal funding. We will work with communities and partners to enhance access to high quality child care in areas where it is needed most. Building on existing and establishing new partnerships, where necessary, will ensure that child care in Alberta is reflective of the diverse communities and specific needs in our province.
• Alberta will look for opportunities to expand in a way that focuses on spaces for children aged 0 to kindergarten, but supports all child care types and providers to best meet the needs of Alberta families in our mixed market system. Based on definitions used by the Government of Canada, 44% of spaces in Alberta are considered non-profit (includes family based and public providers) and 56% of spaces are privately operated; and many by female entrepreneurs who provide high quality care that should not be excluded from participating in space creation or other initiatives.
• Alberta commits to creating a minimum of 42,500 not-for-profit spaces under this Agreement. Alberta commits to creating a maximum of 26,200 new for-profit child care spaces under this Agreement, encompassing the following:
  • 2,700 for-profit spaces already planned and 1,000 for-profit spaces created by existing providers within existing facilities as referred to in section 2.1.1 above
  • up to 22,500 for-profit spaces, which may be created following the approval of the For-Profit Expansion Plan and cost control framework. Of this number, up to 6,000 spaces may be created in fiscal year 2022 to 2023, with the remainder to be created between fiscal years 2023 to 2024 and 2025 to 2026
• Alberta will prioritize not for profit space creation in year 2 and build in private sector space creation once the For-Profit Expansion Plan and cost control framework have been developed by the Implementation Committee and agreed to by the federal government for receipt of federal funds for private operators. These operators will be able to fully participate in all aspects of the Alberta action plan no later than fiscal year 2023 to 2024, provided the For-Profit Expansion Plan and cost control framework developed by the Implementation Committee have been agreed to by the federal government.
• Alberta will work with providers of all types, including non-profit operators and community agencies, municipalities, faith-based and cultural organizations, as well as educational facilities, to create spaces starting in areas of high need, especially important in rural and remote communities.
• Alberta will also consider how it may incentivize unlicensed child care to join a licensed agency. Alberta has had several space creation initiatives spanning the last 12 years, providing historical data on Alberta’s ability to create new spaces. While Alberta has been successful in creating new child care spaces, the targets in this plan will require aggressive expansion efforts. Coupled with a requirement to ensure there is an adequate workforce to staff new spaces, Alberta will continue to explore how to address these demands.
• This allocation of funding per-space will enhance not-for-profit programs’ capacity to meet the range of responsibilities required to build new spaces and expand their services. Space creation funding will be available, on an application basis, to offset the costs of planning, renovations, and purchasing supplies, equipment and toys. This cost per space represents an average per space. These new spaces will also support children with specific learning, linguistic, cultural and other needs, as well as provide flexibility for families who need drop-in and 24-hour child care

4. The Agreement remains unchanged in all other aspects
5. This amending agreement shall take effect upon its signatures by the Parties

Signed on behalf of Canada by the Senior Assistant Deputy Minister of Strategic and Service Policy at Employment and Social Development at Ottawa this 13th day of January, 2023.

[Signed by] Catherine Adam, Senior Assistant Deputy Minister of Strategic and Service Policy.

Signed on behalf of Alberta by the Deputy Minister of Children’s Services at Edmonton this 18th day of January, 2023.

[Signed by] Sherri Wilson, Deputy Minister of Children’s Services.

Approved Pursuant to the Government Organization Act.

[Signed by] Intergovernmental Relations, Executive Council on the 16th day of January, 2023.