Amendment no 1 - Canada – Prince Edward Island Early Learning and Child Care Agreement – 2020-2021

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 styled as the Minister of Families, Children and Social Development (herein referred to as “the federal Minister”)

And

The Government of Prince Edward Island (hereinafter referred to as “Prince Edward Island” or “Government of Prince Edward Island”) as represented by the Minister of Education and Lifelong Learning (herein referred to as “the provincial Minister”)

Referred to collectively as the “Parties”

Preamble

Whereas, Canada and Prince Edward Island agreed to a Multilateral Early Learning and Child Care (ELCC) Framework on June 12, 2017 which articulated their shared vision for early learning and child care and describes their approach to achieve this vision;

Whereas, Canada and the Assembly of First Nations, Inuit Tapiriit Kanatami, the Métis National Council jointly released the co-developed Indigenous ELCC Framework in September 2018. This Framework establishes overarching principles and sets a vision for Indigenous children and families;

Whereas, the Canada-Prince Edward Island Early Learning and Child Care Agreement was signed on August 29, 2017 (“Original Agreement”);

Whereas, in accordance with section 3.0 of the Agreement signed in 2017,>Canada and Prince Edward Island wish to renew the Agreement for a period of one year commencing April 1st, 2020 and ending March 31, 2021, on the same terms and conditions as in the Agreement, save and except for amendments as provided herein;

Whereas, intentions to renew the Agreement were stated in writing and negotiations had commenced prior to the expiry of the Agreement;

Whereas, Canada and Prince Edward Island will continue to work together towards a renewed Canada-Prince Edward Island Early Learning and Child Care Agreement.

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

All terms and conditions of the Original Agreement, which is hereto attached, are affirmed and shall remain in full force and effect except as follow:

1. Section 2 is amended by adding the following article after 2.2.5:

2.2.6 in 2020-2021, under extraordinary circumstances, 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 and be used to sustain ELCC programs and services

2. Section 3 is amended by replacing articles 3.1, 3.2.1, and 3.2.3 with the following:

3.1 this Agreement shall come into effect upon the last signature being affixed and will remain in effect until March 31, 2021, unless terminated in writing by Canada or Prince Edward Island in accordance with the terms hereof in section 11. Funding provided under this Agreement, in accordance with section 4, will cover the period from April 1, 2017 to March 31, 2021

3.2.1 Canada commits that the annual federal allocation for all provinces and territories for the period 2021-2022 to 2027-2028 will be no less than the federal annual allocation for all provinces and territories for the period 2017-2018 to 2020-2021. Funding for future years will be provided upon the renewal of bilateral agreements 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

3.2.3 In the event this bilateral agreement is renewed 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 2017-2021 subject to the terms and conditions of that renewed agreement

3. Section 4 is amended by replacing articles 4.2.1, 4.2.2, 4.4.1, 4.5.1, 4.6.6, 4.6.7 with the following, and adding articles 4.6.5 and 4.6.8

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, 2017 and ending on March 31, 2021

a) $399,669,692 for the Fiscal Year beginning on April 1, 2017
b) $399,347,695 for the Fiscal Year beginning on April 1, 2018
c) $399,347,695 for the Fiscal Year beginning on April 1, 2019
d) $399,347,694 for the Fiscal Year beginning on April 1, 2020

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:

* Amount represents annual estimates based on Statistics Canada population estimates

Canada commits that the annual allocation for all provinces and territories for the period 2021-2022 to 2027-2028 will be no less than the annual allocation for all provinces and territories of this current agreement under the conditions set in section 3.2.1.

4.4.1 Canada’s contribution will be paid in approximately equal semi-annual installments as follows:

The total payment for Fiscal Year 2017-2018 will be paid within 30 days of the Parties signing this Agreement.

The first installment for the Fiscal Years 2018-2019, and 2019-2020 will be paid on (or about) June 15 of each Fiscal Year. In 2020-2021, 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 of each Fiscal Year.

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.

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.

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.

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.

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.

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

In Fiscal Years 2017-2018, 2018-2019, 2019-2020, 2020-2021 an amount up to 10% of the maximum amount payable for those Fiscal Years.

4.6.5 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 Fiscal Year 2020-2021, an amount of up to 10% of the contribution paid to Prince Edward Island for 2019-2020 under section 4.2.3 that is in excess of the amount of eligible costs actually incurred by Prince Edward Island in that fiscal year, and may only use the amount carried forward to 2020-2021 for expenditures on eligible areas of investment under section 2.2 incurred in that Fiscal Year.

4.6.6 For greater certainty, the amount carried forward to Fiscal Year 2019-2020 and 2020-2021 under this section is supplementary to the maximum amount payable to Prince Edward Island under section 4.2.3 of this Agreement in 2019-2020 and 2020-2021.

4.6.7 The amount carried forward pursuant to sections 4.6 and 4.6.5 must be spent by March 31, of the subsequent fiscal year. Prince Edward Island is not entitled to retain any such carried forward amounts that remain unexpended after March 31 of the subsequent fiscal year, nor is it entitled to retain any balance of Canada’s contribution for Fiscal Year 2019-2020 and 2020-2021 paid pursuant to section 4.2.3 that remains unexpended at the end of that fiscal year. Such amounts are to be repaid to Canada in accordance with section 4.7.

4.6.8 In the event that this amendment is approved after March 31, 2020, the parties agree that it is an extension of the April 1, 2017 to March 31, 2020 agreement from April 1, 2020 to March 31, 2021 and as such carry forward provisions still apply.

4. Section 5 is amended by adding the following article after 5.1.2:

5.1.3 Prince Edward Island submitted an updated Action Plan for fiscal year 2020-2021, as set out in Annex 2, updating their areas of investments and targets, as necessary, outlined in its Action Plan for Fiscal Years 2017-2018 to 2019-2020. This updated Action Plan may include changes to programming and program delivery provided that the more affordable child care spaces funded with federal support continue to be supported as much as possible, subject to extraordinary circumstances. Upon signature of this Agreement by both Parties, the updates to this Action Plan will be publicly released.

5. Section 12 is amended by replacing 12.1 with the following

12.1 Any notice, information or document provided for under this Agreement will be effectively given if delivered or sent by letter, postage or other charges prepaid. Any notice that is delivered will have been received in delivery; and, except in periods of postal disruption, any notice mailed will be deemed to have been received eight calendar days after being mailed.

The address for notice or communication to Canada shall be:

Social Policy Directorate
140 Promenade du Portage
Gatineau QC K1A 0J9

The address for notice or communication to Prince Edward Island shall be:

Department of Education and Lifelong Learning
Suite 101
250 Water St
Summerside PEI  C1N 1B6

6. Annex 2 is amended by adding 2020-2021 Prince Edward Island Action Plan

7. The Agreement remains unchanged in all other respects

8. This amending agreement shall be read in conjunction with the Agreement and shall take effect as if its provisions were an integral part of the Agreement

9. This amending agreement to the Agreement shall take effect upon its signature by the Parties

Signed on behalf of Canada by the Minister of Employment and Social Development styled as Minister of Families, Children and Social Development in Gatineau this 4th day of September, 2020.

[Signed by] The Honourable Ahmed Hussen, Minister of Families, Children and Social Development

Signed on behalf of Prince Edward Island by the Minister of Education and Lifelong Learning at Charlottetown this 16th day of September, 2020.

[Signed by] The Honourable Brad Trivers, Minister of Education and Lifelong Learning

Prince Edward Island’s Updated Action Plan For 2020-2021

Due to the COVID-19 pandemic, Prince Edward Island’s ability to deliver on the initiatives outlined in the 2020-2021 Action Plan may be affected. As such, the targets may not be achieved and expenditures may differ.

Estimates – Year 4 – Fiscal Year 2020-2021: $3,558,844 Allotment