Financial concerns have been raised by child care providers over the funding timelines for the Alberta government's affordability grant program. (Ross Lavinge/CHAT NEWS)

By Jesse Gill

Childcare providers in Alberta feeling financial stress over the government’s affordability grant program

Jan 19, 2024 | 4:42 PM

A local childcare provider has serious concerns about the provincial government’s affordability grant program

The province has a new funding model that providers are required to sign by the end of January.

Affordability rates are increasing by almost $200 per child.

But Little Owl Learning Centre in Medicine Hat said the transition to the new funding model is going to be very costly for providers.

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Owner and director Justine Mann said childcare fees are usually paid at the beginning of the month and this revenue is used to cover wages, rent, and other operational costs.

With this new agreement, there will be a mandatory five week wait for reimbursement from the government.

Something Mann said will create a huge shortfall in funding over that time period if they enter the program.

“We [would] have to refund our clients for the month of January,” Mann said.

“That costs us over $15,000. And then again, credit for the first of February,” she added.

“It’s our responsibility to come up with basically a $30,000 Float until we receive the full credit back, and we don’t expect that full credit back until about March 15.”

Mann adds they just finished paying back their Canadian Emergency Business Account loan.

Mann and a number of child care providers are meeting Monday to discuss their concerns.