The Progressive Conservative government is cutting $3.5 million out of the city budget that subsidizes tens of thousands of affordable child-care spaces across Hamilton.

But the province says those changes are outweighed by promised new child-care spaces in schools and tax credits for parents.

The cut to Hamilton's child-care budget represents the largest chunk of a $9-million total city budget shortfall created by controversial provincial cost-sharing changes that critics have labelled "downloading."

Hamilton services affected so far include child care, public health, ambulances, long-term care and social services.

Provincial funding is largely unchanged for recreation and affordable housing.

The city children's services budget is taking "the biggest hit," said director Grace Mater, adding council must now decide in a hurry whether to dip into reserves to cover the shortfall or cut service levels.

"We want to give everyone as much notice as possible of any changes," said Mater, noting parents and care providers are already planning for next year. "It (child-care expenses) can have a huge impact on your family's financial planning."

The affected budget provides grants to 90 licensed preschool and aftercare providers like the YMCA and Today's Family to provide 14,100 subsidized child-care spaces.

It also provides direct-to-family subsidies, top-up salary funding for early childhood educators and even $10-a-day child care discounts for parents across Hamilton.

Deborah James, a single mom of a nine-year-old son in west Hamilton, said the child-care subsidy "saved our lives" when she was desperately seeking work several years ago. Past studies show child care rates in Hamilton have been among the highest in the country.

James said the $40-a-day subsidy allowed her to find care for her then-preschool son and eke out an existence on an income of around $11,000. "Poverty is a pit ... I needed that (subsidy) to even think about trying to climb out," she said. "I hope they find a way to keep these programs ... they mean so much to people."

News of the city budget cuts circulated as the province announced the end of another $50-million fund to help child-care centres cover minimum-wage increases without passing on extra costs to parents.

Flamborough-Glanbrook Tory MPP Donna Skelly said the government must focus spending after being saddled with a $12-billion deficit by the previous Liberal government. "Not everyone will agree with (our decisions)," she said.

But Skelly also noted the province announced in its April budget it will create 30,000 new child-care spaces in schools and introduce a tax credit for parents.

The government billed the tax credit as "the most flexible child-care initiative ever introduced in Ontario" and suggested it could cover 75 per cent of eligible care costs for 300,000 families in the province.

Today's Family CEO Marni Flaherty noted nearly one in five children in Hamilton lives in poverty. "These (subsidized) spaces allow parents to go to work, or to school," she said.

Flaherty said she is eager to see details about promised new child-care spaces and supports any effort to relieve pressure on working parents. "But I'm not sure a tax credit is going to come close to covering the actual costs of child care," she said.

Hamilton's sudden budget hole could also have implications for the popular Child Care Affordability Plan.

That pilot program used provincial cash to cut the cost of licensed child care by $10 a day for all parents across the city who don't qualify for income-based subsidies. The discount saves some families around $200 a month. The city will now have to decided whether a shrinking funding pot can support a continuation of the program after June, Mater said. "We need to make a decision on that soon," she said.

Hamilton is increasingly realizing the importance of investing in child and maternal health and early childhood development, said Ward 1 Coun. Maureen Wilson, so "any cuts to services for children are cuts to a more productive and hopeful future."

mvandongen@thespec.com

905-526-3241 | @Mattatthespec

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