Canada-Prince Edward Island Early Learning and Child Care Agreement – 2021 to 2025

2.1. Objectives

2.1.1. Canada and Prince Edward Island agree that over the period of this agreement, with financial support from Canada, Prince Edward Island will further build its early learning and child care system by addressing local, regional and system priorities that have an impact on families more in need by increasing the quality, accessibility, affordability, flexibility and/or inclusivity in early learning and child care, towards achieving the objectives of:

1. increasing access for under-served children and children who are more vulnerable, including, infants, preschoolers, children whose parents work non-standard hours and/or seasonally, and children in Newcomer families
2. increasing early learning and child care supports for children who are more vulnerable, including children with unique abilities and children in Acadian and Francophone communities
3. increasing the quality of early learning and child care experiences provided to children from staff by offering training supports to Early Learning and Child Care staff

Prince Edward Island's vision for early learning and child care and approach to achieving these objectives is set out in their action plan attached as Annex 2.

2.2 Eligible areas of investment

2.2.1 Prince Edward Island agrees to prioritize funds provided by Canada under this agreement in regulated early learning and child care programs and services for children under the age of 6 where:

1. regulated programs and services are defined as those that meet standards that are established and/or monitored by provincial/territorial governments
2. early learning and child care programs and services are defined as those supporting direct care and early learning for children in settings including, but not limited to, regulated child care centres, regulated family child care homes, early learning centres, preschools and nursery schools

2.2.2 In developing and delivering its early learning and child care programs and services, Prince Edward Island agrees to take into account the needs of the official language minority community in Prince Edward Island.

2.2.3. Acceptable investments under this agreement may include, but are not limited to:

• capital and operating funding for regulated early learning and child care
• fee subsidies, training, professional development and support for the early childhood workforce
• quality assurance
• parents information and referral
• certain administration costs incurred by Prince Edward Island in implementing and administering this agreement in accordance with section 4.5.1

2.2.4 Canada and Prince Edward Island also agree to promote, define, and deliver identifiable innovative approaches to enhance the quality, accessibility, affordability, flexibility, and inclusivity of early learning and child care systems, with consideration for those more in need.

2.2.5 Canada and Prince Edward Island agree that funding will be targeted toward regulated programs and activities, as further described in sections 2.2.1 to 2.2.4, for children under the age of 6, that will have an impact on families more in need such as:

• lower-income families
• Indigenous families
• lone-parent families
• families in underserved communities
• those families with caregivers who work non-standard hours
• racialized families including Black families
• children with disabilities and children needing enhanced or individual supports

Needs also include having limited or no access to early learning and child care programs and/or services in the children's official language.

2.2.6 In fiscal year 2021 to 2022, given the extraordinary circumstances of COVID-19, Prince Edward Island may allocate funding under this agreement to support short-term measures to minimize the impacts of COVID-19 on Prince Edward Island's ELCC system. These measures must be aligned with the principles of the Multilateral ELCC Framework (Annex 1) and be used to sustain ELCC programs and services.

3.2 Extension of bilateral agreements

3.2.1 Subject to Parliamentary approval of appropriations, Canada commits that the annual federal allocation for all provinces and territories for the period of fiscal year 2025 to 2026 to fiscal year 2027 to 2028 will be no less than the total annual allocation for all provinces and territories for the fiscal year covered under the 2020 to 2021 agreement. Funding during the period of fiscal year 2025 to 2026 to the period of fiscal year 2027 to 2028 will be provided upon the execution of another extension of this bilateral agreement and conditional on Canada's acceptance of new action plans and informed by the assessment of the results achieved under the action plan set out in Annex 2.

3.2.2 The extension will provide Prince Edward Island and Canada the opportunity to review and course correct, if required, and realign new priorities in future bilateral agreements based on progress made to date.

3.2.3 In the event this bilateral agreement is extended in accordance with the terms of section 3.2.1, Prince Edward Island may continue to use funding provided thereunder to cover the same eligible areas of investment as those covered through funding received for the period of fiscal year 2021 to 2022 to fiscal year 2024 to 2025 subject to the terms and conditions of that extended agreement.

4.2 Allocation to Prince Edward Island

4.2.1 Canada has designated the following maximum amounts to be transferred in total to all provinces and territories under this initiative with a fixed base rate of $2 million per year for each province and territory and the balance of the funding on a per capita basis for the period starting on April 1, 2021 and ending on March 31, 2025:

1. $399,347,694 for the fiscal year beginning on April 1, 2021
2. $524,347,694 for the fiscal year beginning on April 1, 2022
3. $565,847,694 for the fiscal year beginning on April 1, 2023
4. $565,847,694 for the fiscal year beginning on April 1, 2024

4.2.2 Subject to annual adjustment based on the formula described in section 4.2.3, Prince Edward Island's estimated share of the amounts described in section 4.2.1 will be:

* Amounts represent annual estimates based on Statistics Canada population estimates.

4.2.3 The final yearly amount to be paid to Prince Edward Island will be calculated using the following formula F x K/L, where:

• F is the annual total funding amount transferred to provinces and territories minus the base funding
• K is the total population of Prince Edward Island, as determined using annual population estimates from Statistics Canada
• L is the total population of Canada, as determined using annual population estimates from Statistics Canada

4.2.4 For the purposes of the formula in section 4.2.3, the population of Prince Edward Island for each fiscal year and the total population of all provinces and territories for that fiscal year are the respective populations as determined on the basis of the quarterly preliminary estimates of the respective populations on July 1 of that fiscal year. These estimates are released by Statistics Canada in September of each fiscal year.

4.3 In this agreement, "fiscal year" means the period commencing on April 1 of any calendar year and terminating on March 31 of the immediately following calendar year.

4.4 Payment

4.4.1 Subject to Parliamentary approval of appropriations, Canada's contribution will be paid in approximately equal semi-annual installments as follows.

4.4.2 In fiscal year 2021 to 2022, the first installment will be paid within 30 days after the signatures from both Parties are affixed to the agreement. The second installment will be paid on or about November 15.

4.4.3 Beginning in fiscal year 2022 to 2023, the first installment will be paid on or about June 15 of each fiscal year. The second installment will be paid on or about November 15 of each fiscal year.

4.4.4 The amount of the first installment will be an amount equal to 50% of the notional amount of Canada's maximum contribution to Prince Edward Island for the fiscal year, which will be calculated in the manner described in sections 4.2.3 and 4.2.4.

4.4.5 The amount of the second installment will be an amount equal to the balance of Canada's contribution to Prince Edward Island for the fiscal year based on the actual amount of the contribution determined under sections 4.2.3 and 4.2.4 for the fiscal year.

4.4.6 Canada will notify Prince Edward Island at the beginning of the fiscal year of their notional amount. The notional amount will be based on the Statistics Canada quarterly preliminary population estimates on July 1 of the preceding fiscal year. Canada will notify Prince Edward Island of the actual increased or decreased amount of the second installment in each fiscal year as determined under the formula set out in section 4.2.3 as soon as possible following the release in September of each year of the Statistics Canada quarterly preliminary population estimates referred to in section 4.2.4.

4.4.7 Starting in fiscal year 2022 to 2023, Canada shall withhold payment of its first installment for each fiscal year if Prince Edward Island has failed to provide its annual action plan in respect of that fiscal year in accordance with section 5.1.3 until such time as the annual action plan is provided.

4.4.8 In fiscal year 2021 to 2022, Canada shall withhold payment of its second installment for that fiscal year until Prince Edward Island provides its annual audited financial statement of the last fiscal year covered by the agreement signed in 2020 in accordance with section 5.2.1 (d) of the 2017 agreement that was amended in 2020.

4.4.9 Beginning in fiscal year 2022 to 2023, Canada shall withhold payment of its second installment for the fiscal year if Prince Edward Island has failed to provide its annual audited financial statement for the previous fiscal year in accordance with section 5.2.1 (d) until such time as the annual audited statement is provided.

4.4.10 The sum of both semi-annual installments constitutes a final payment and is not subject to any further adjustment once the second installment of that fiscal year has been paid.

4.4.11 Payment of Canada's funding for each fiscal year of this agreement is subject to an annual appropriation by the Parliament of Canada for this purpose. Likewise, use of the funding by Prince Edward Island is subject to an annual appropriation by Prince Edward Island's Legislature.

4.5 Maximum annual contribution in respect of administration costs

4.5.1 Canada's contribution in respect of Prince Edward Island's administration costs referred to in section 2.2.3 shall not exceed:

• in the fiscal years covered under this agreement, an amount up to or an amount equal to 10% of the maximum amount payable for those fiscal years

4.6 Carry forward

4.6.1 At the request of Prince Edward Island and subject to the approval of Canada's Treasury Board, Prince Edward Island may retain and carry forward to the following fiscal year any unexpended funds remaining from Prince Edward Island's annual contribution payable under section 4.2, up to a maximum of 10% of the contribution paid. Any unexpended funds in excess of 10% of the contribution paid represents an overpayment subject to section 4.7.

4.6.2 Prince Edward Island may only use the amount carried forward to the following fiscal year for expenditures on eligible areas of investment made under section 2.2 incurred that fiscal year.

4.6.3 For greater certainty, any unexpended funds remaining from Prince Edward Island's annual contribution payable under section 4.2., up to a maximum of 10% of the contribution payable to Prince Edward Island in the last year of the agreement signed in 2020, is eligible for carry forward to the first year of this agreement.

4.6.4 For greater certainty, any amount carried forward under section 4.6.1 is supplementary to the maximum amount payable to Prince Edward Island under section 4.2. of this agreement during the fiscal year in which the funding is carried forward.

4.6.5 All amounts carried forward to the next fiscal year, pursuant to section 4.6.1 must be spent by the end of that fiscal year. Prince Edward Island is not entitled to retain any such carried forward amounts that remain unexpended after the end of that fiscal year, nor is it entitled to retain any balance of Canada's contribution payable pursuant to section 4.2 that remains unexpended at the end of that fiscal year and that is not carried forward in accordance with section 4.6.1. Such amounts are considered debts due to Canada and shall be repaid to Canada in accordance with section 4.7.

4.7 Repayment of overpayment

4.7.1 In the event payments made to Prince Edward Island exceed the amount to which Prince Edward Island is entitled under this agreement, the amount of the excess is a debt due to Canada and shall be repaid to Canada upon receipt of written notice to do so and within the period specified in the notice.

4.7.2 Canada shall, in addition to any other remedies available, have the right to recover the debt by deducting or setting-off the amount of the debt from any future contribution payable to Prince Edward Island under this agreement.

4.7.3 In the event payments made to Prince Edward Island are less than the amount to which Prince Edward Island is entitled under the agreement, the amount of the underpayment is considered a credit due to Prince Edward Island and shall be paid upon receipt of written notice to do so and within the period specified in the notice.

4.8 Use of funds

4.8.1 Canada and Prince Edward Island agree that funds provided under this agreement will only be used by Prince Edward Island in accordance with the areas for investment outlined in section 2.2 of this agreement.

4.8.2 Canada and Prince Edward Island agree that, within each fiscal year of the period of this agreement, Prince Edward Island may move funding between the individual programming categories outlined in its action plan in Annex 2 to ensure the maximum use of funding. Prince Edward Island agrees to notify Canada in writing of any such change in funding allocation, including the rationale for the change.

5.1 Action plan

5.1.1 Prince Edward Island has completed and shared its action plan for fiscal year 2021 to 2022 with Canada, as set out in Annex 2 of this agreement. Upon signature of this agreement by both Parties, Prince Edward Island will publicly release their action plan which:

1. identifies specific priority areas for investment and objectives, within the Framework's parameters, which builds upon the progress to date, including maintaining and building on the more affordable spaces created under the 2017 to 2021 agreement, and further enhancing the quality, accessibility, affordability, flexibility and/or inclusivity of their early learning and child care system, with consideration for those more in need
2. describes how Prince Edward Island plans to address the early learning and child care needs of its children/families more in need, as described in section 2.2.5
3. outlines their planned innovation spending
4. demonstrates and confirms that federal investments will be incremental, and will not displace existing Prince Edward Island early learning and child care spending, in particular spending dedicated to Indigenous populations
5. outlines the indicators that will be reported on annually according to their planned investments
6. identifies specific targets for each indicator that will be reported on annually for tracking progress in relation to the objectives of the agreement
7. identifies additional jurisdiction-specific indicators for tracking progress in relation to the objectives of the agreement
8. includes a description of consultation processes referred to in section 5.1.2, the type of groups consulted and annual priorities related to stakeholder feedback

5.1.2 Prince Edward Island will consult with parents, child care providers, experts, Indigenous peoples, official language minority communities and other interested Canadians as an important step in developing and revising its action plan.

5.1.3 By May 1 of each fiscal year during the period of this agreement, starting in fiscal year 2022 to 2023, Prince Edward Island agrees to share with Canada an annual action plan. The annual action plan shall include the elements described in section 5.1.1 a) to h). Once the Parties agree that the annual action plan is final, it may be published by one or both of the Parties.

5.2 Reporting

5.2.1 By no later than October 1 of each fiscal year during the period of this agreement, Prince Edward Island agrees to:

1. report to the people of Prince Edward Island and to Canada on the results and expenditures of early learning and child care programs and services attributable to the funding provided by Canada under this agreement
2. continue to provide to Canada data required for the publication of the joint Federal-Provincial-Territorial report on Public Investments in Early Childhood Education and Care in Canada. This shall include the number of children receiving subsidies, number of licensed early learning and child care spaces broken down by age of child and type of setting
3. provide to Canada an annual report in the format and manner decided jointly by Canada and Prince Edward Island. The report shall show separately the results attributable to the funding provided by Canada under this agreement and shall include:
   1. brief description of the activities, expenditures and results of the agreement as set out in Annex 2
   2. results achieved according to the indicators and targets referred to in Annex 2
   3. the impact on families more in need, as described in section 2.2.5
   4. results achieved on innovation referred to in Annex 2
   5. description of consultation processes, the type of groups consulted and annual priorities related to stakeholder feedback referred to in Annex 2
   6. any additional results of evaluation activities undertaken in the fiscal year, as available
4. provide to Canada an audited statement of revenues and expenses received from Canada under this agreement during the fiscal year:
   1. the revenue section of the statement shall show the amount received from Canada under this agreement during the fiscal year
   2. the total amount of funding used for early learning and child care programs and services under section 2.2
   3. the administration costs incurred by Prince Edward Island in developing and administering early learning and child care programs under section 2.2.3
   4. if applicable, the amount of any amount carried forward by Prince Edward Island under section 4.6
   5. if applicable, the amount of any surplus funds that are to be repaid to Canada under section 4.7

   The financial statement shall be prepared in accordance with Canadian Generally Accepted Accounting Principles and the audit shall be performed by the Prince Edward Island Auditor General or his/her delegate, or by an independent public accounting firm registered under the laws of Prince Edward Island and shall be conducted in accordance with Canadian Auditing Standards.

5.2.2 Canada, with prior notice to Prince Edward Island, may incorporate all or any part or parts of the annual report referred to in section 5.2.1 c) into any public report that Canada may prepare for its own purposes, including any reports to the Parliament of Canada or reports that may be made public.

5.3 Audit

5.3.1 Prince Edward Island will ensure that expenditure information presented in the annual report is, in accordance with Canadian Generally Accepted Accounting Principles, complete and accurate.

5.4 Evaluation

5.4.1 As per established policies and processes with respect to program effectiveness, Prince Edward Island will evaluate programs and/or services receiving funds provided under this agreement and make public the results of any such evaluations.

10.2 Waiver

10.2.1 Failure by any Party to exercise any of its rights, powers, or remedies under this agreement or its delay to do so does not constitute a waiver of those rights, powers, or remedies. Any waiver by either Party of any of its rights, powers, or remedies under this agreement must be in writing; and, such a waiver does not constitute a continuing waiver unless it is so explicitly stated.

Early learning and child care in Prince Edward Island

In 2010 Prince Edward Island began the transition of moving from an early childhood sector to creating an early learning and child care system that is of high quality, accessible, sustainable and respectful of parental choice.

The Prince Edward Island Preschool Excellence Initiative, Securing the Future for Our Children, was the Government's first response and the beginning of a coordinated effort to establish a system of early learning and child care for Prince Edward Island children and families. This initiative identified a vision for Island children and initial areas of concentration as the development of an early learning and child care system took root.

A vision for Island children

Children in Prince Edward Island are healthy and happy, curious and creative, playful and joyous. They are loved and respected, and are safe and secure in their families, homes and communities. Children are our collective responsibility. They are valued for who they are today, and as the future parents and leaders of tomorrow.

Prince Edward Island's action plan

This action plan for this extension agreement will cover the period of fiscal year 2021 to 2022 to fiscal year 2024 to 2025 and will build upon the solid foundation set in the original 2017 to 2020 agreement. Funding provided under this agreement complements the Canada-PEI Canada-wide Early Learning and Child Care agreement. Prince Edward Island proposes to utilize the Government of Canada investments in early learning and child care in 2 main areas: access for under-served populations and for children who are more vulnerable; and, improving quality. These areas of investment are consistent with the direction Prince Edward Island is taking in the ongoing development of a high quality early learning and child care system for preschool children and with the principles of quality, accessibility, affordability, flexibility and inclusivity as outlined in the Multilateral Early Learning and Child Care Framework, with particular consideration for those children more in need. Indigenous children will be among those benefitting from these investments. Acadian and Francophone communities have also been supported through this action plan.

Prince Edward Island will continue to invest federal funds:

• access:
  • increase the number of infant and preschool child care spaces
    • Prince Edward Island considers infants as an under-served population. Infant early learning and child care is typically provided in a licensed child care centre, providing service for 3 to 6 infants. Although the number of infant spaces has increased (by 125% in the first year of implementing the Preschool Excellence Initiative in fiscal year 2011 to 2012), survey data and provincial child care registry data indicates that 2 to 3 times as many infants are on a wait list compared to toddlers or preschoolers
    • target: $1,400,000 in funding under this agreement will continue to support 326 infant and preschool spaces across PEI. PEI will also look to increase infant and pre-school spaces, particularly for children who are more vulnerable, based on further analysis of demand
  • supports families who work non-standard hours
    • many parents who responded to the Prince Edward Island Early Childhood Education Survey indicated that they were having great difficulty finding a quality, regulated program for their children. These parents tended to have children who were younger than 2 years, and/or who worked non-standard hours
    • the First Year Implementation Report of the Preschool Excellence Initiative indicates that parents working in seasonal jobs, in shift or sporadic hours cannot access regulated early learning and child care services regardless of geographic location. Rural access to early learning and child care is of primary concern during the seasonal timeline but is not limited to seasonal hours
    • target: $210,000 in funding under this agreement for the Alternative Hours program to increase support to 115 families who work non-standard hours, thus extending the reach of this program
  • support children with unique needs through autism and special needs assistant (SNA) services
    • in Prince Edward Island children with unique needs have limited access to early learning and child care support through regulated child care. Early intervention is known to have a significant positive impact in the outcomes for children. Early intervention can have a direct impact in the child's language and literacy skills, intellectual development, and social and emotional development. Research has shown early intervention for children with unique abilities can result in as much as an 18 IQ-point improvement in receptive language. Improvements in these domains of child development will have a direct link to a child's readiness to learn. By providing the educational support required for the child's successful inclusion into an early learning and child care program Prince Edward Island will see an increase in the number of children benefitting from early intervention
    • target: $615,000 in funds received under this agreement will increase educational resources to support children with unique needs, impacting approximately 45 children utilizing services for children with unique needs through autism and SNA services
  • increases to access through subsidies to expand access for children from more vulnerable families
    • a gap in early learning and child care accessibility has been identified between existing programs for vulnerable children in Prince Edward Island. With federal funds received under this agreement, Prince Edward Island will address this gap, by increasing the child care subsidy program
    • target: $700,000 in funding under this agreement for subsidies to approximately 100 children annually
  • support for more vulnerable children through Handle With Care
    • federal funding will continue to support the Handle with Care program for vulnerable young children from birth to 6 years. The program consists of interactive strategies that build on the strengths of parents and care providers to support the early development needs of vulnerable children. The program has been successful and as a reflection of this success a coordinator is being hired to oversee the implementation. The number of sessions being held will decrease however the number of participants being invited to each session will increase
    • target: $179,796 in funding under the agreement for the Handle with Care program to run a minimum of 23 programs in fiscal year 2021 to 2022, impacting at least 130 caregivers and 400 children
  • support newcomer children and their families through training and development of early childhood educators and provision of resources:
    • Prince Edward Island is experiencing a growth of newcomer families to the Province. Prince Edward Island is taking proactive measures to address the unique needs of newcomer children: to address vulnerability; support transitions towards optimal school readiness; and, to equip early learning child care providers to respond to these challenges. This can include exploring the creation of culturally appropriate guidelines, building capacity, developing interpretation materials, and providing for cultural sensitivity training
    • target: $15,000 in funding under this agreement to continue to support training and development of early childhood educators and provision of resources to the sector to support newcomer children and their families
  • supports for francophone, Francophile and exogamous (such as mixed francophone and non-francophone) families
    • Acadian and Francophone parents who participated in consultations indicated that it is difficult to find the types of Early Childhood Education and Care programs they want for their children to ensure their continuing linguistic vitality. Parent's preference is to find a quality program delivered in French. As well, other communities are unable to attract and retain staff to offer early learning and child care programs in French
    • target: $52,000 in funding under this agreement to continue to support the Francophone Home Visiting and Francization to provide supports for francophone, Francophile and exogamous (such as mixed francophone and non-francophone) families. This program will work with over 65 francophone, Francophile and exogamous families and will have reached over 80 families by the end of 2022
• quality:
  • Prince Edward Island aims to continue to improve the quality and services provided to children in early learning and child care centres. To achieve this, Prince Edward Island will use federal funds under this bilateral agreement to incentivize individuals to achieve greater levels of education and increase the quality of early learning and child care experiences provided to children
    • target: $204,294 in funding under this agreement to continue to support increased credentials for educators through quality enhancement grants. These grants will support approximately 20 licensed, non-designated centres, family homes and preschools

Due to the COVID-19 pandemic, Prince Edward Island's ability to deliver on the initiatives outlined in the fiscal year 2021 to 2022 action plan may be affected. As such, the targets may not be achieved and expenditures may differ.

Reporting

Prince Edward Island will continue to report on the following indicators annually.