CLUMSY EXECUTION
Parents looking forward to a reduction in child-care costs under a subsidy program introduced by the NDP government in the B.C. budget in February may be disappointed. Many child-care providers plan to delay opting into the program — or not opting in at all — arguing they’re uncertain about how the program will affect their business and the deadline of March 27 to sign up for an April 1 start is too tight.
The way the program is supposed to work is the government will pay licensed daycare operators $350 a month for each child (depending on age) and the savings are to be passed on to parents. The government claims the monthly benefits will help as many as 86,000 families.
Kelowna daycare operator Amanda Worms told Postmedia News this week that the program was rushed.
That, indeed, does appear to be the case. Like the plethora of tax changes introduced to address housing affordability, the childcare program hasn’t been thoroughly thought through. Daycare owners say there was little consultation and phone-in information sessions held last week, while somewhat helpful, raised as many questions as they answered.
Confusion reigned when fee-reduction contracts landed in email inboxes Monday, which the government’s frequently-asked-questions website page failed to resolve.
Child-care providers have good reason to worry. They understand that once they opt in, the fees they may charge will be capped. The government has set the maximum increase at 10 per cent for 2018-19. That increase could be more than offset by the payroll tax introduced to replace MSP premiums, which goes into effect April 1, three days after the opt-in deadline.
Finance Minister Carole James has suggested the government’s child-care program will entice unlicensed operators to become licensed. But unlicensed child-care providers can adjust fees to reflect their costs rather than be subject to government-imposed limits. They may decide the trade-offs aren’t worth it.
A simple tax-credit scheme could have achieved the same objective as this overly complicated program to subsidize child care, with its attendant administration costs for government and child-care providers alike.
The NDP government has been in power long enough now to realize eliciting input from all parties that may be affected by any policy is critical to getting it right. The government’s good intentions have foundered on clumsy execution.