AACE Unveils New Report Highlighting Drastic Underfunding of Childcare Under CWELCC Agreement

Industry white paper analyzing the true costs of running a quality childcare program estimates a $60 billion annual cost to properly fund the CWELCC agreement.

CALGARY, ALBERTA, CANADA, September 10, 2024 /EINPresswire.com/ -- The Association of Alberta Childcare Entrepreneurs (AACE) has released a new report revealing the severe underfunding of the Canada-Wide Early Learning and Childcare (CWELCC) agreement and its devastating implications for childcare providers and families across the province. The report, based on a detailed analysis conducted by an experienced childcare operator, shows that the actual cost of running a high-quality childcare program in Alberta far exceeds the funding currently provided under the CWELCC.

The report highlights a critical funding gap of billions of dollars, demonstrating that the CWELCC agreement, while aimed at providing affordable childcare, falls drastically short of what is needed to sustain a quality childcare system. While the Government of Canada has provided $30 billion over five years for the CWELCC Agreement, the report shows that to properly fund a quality childcare program that supports every child in the country would cost approximately $60 Billion annually.

"The CWELCC agreement is grossly underfunded, and if it continues in its current form, the consequences for Alberta’s childcare industry, as well as for childcare across Canada, will be devastating," said Krystal Churcher, Chair of AACE. "Not only will it lead to the closure of childcare centres, but it will also have lasting impacts on the well-being of Alberta’s children, who deserve access to quality care during their most formative years."

Over the summer, the Government of Alberta conducted a detailed and highly intrusive survey of Alberta's childcare operators in an effort to understand the actual costs of running a childcare centre—three years after imposing the agreement and associated restrictions on childcare operators. While the government continues to analyze the survey data, AACE has taken the proactive step of conducting its own analysis. The report, conducted by an experienced childcare operator, is based on the actual cost of running a centre with 104 children. It compares the costs of operating a core program that meets the minimum regulatory requirements with those of running a quality program that aligns with Albertans' expectations for early childhood care.

Methodology and Concerns About Government’s Approach

The AACE analysis provides a comprehensive examination of the costs associated with running childcare programs in Alberta. The study looks at core programs, which meet the minimum legal standards, and compares them to enhanced programs, which reflect the quality of care that Alberta families expect. Costs such as staffing, rent, and facility maintenance are included in the analysis.

However, AACE has voiced concerns about the Government of Alberta’s own survey methodology. "While we await the Government of Alberta's analysis, AACE is concerned that the wide variety of operating circumstances across the province could result in skewed results," Churcher explained. "Some centres operate out of church basements, while others run out of commercial buildings with high rent. As an association, we worry that the government’s methodology may produce averages that do not reflect the true nature and diversity of the childcare industry, or the high standards Albertans expect for their children’s care."

AACE is urging the public, childcare providers, and parents to take immediate action. "We are calling on the Alberta government to reevaluate the CWELCC funding model and ensure it reflects the true costs of providing childcare," Churcher stated. AACE encourages everyone to visit https://aacenational.ca and sign the petition demanding the government reassess its funding model to secure the future of quality childcare in Alberta.

About AACE

The Association of Alberta Childcare Entrepreneurs (AACE) represents for-profit and nonprofit childcare centres and day home providers across Alberta. AACE advocates for policies that enhance the quality and accessibility of childcare services within a thriving mixed-market system, ensuring the well-being and development of children and offering childcare choice for Alberta families.
For more information, visit https://aacenational.ca.

Krystal Churcher, Chair
Association of Alberta Childcare Entrepreneurs (AACE)
+1 780-838-3103
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