Alberta government calls child care closures a 'disappointing' tactic

Many Alberta parents received the unwelcome news Monday night that their daycares are planning to be part of a series of rolling closures starting Tuesday.

It's part of a campaign to bring attention to what many daycare operators call a financial crisis.

The Association of Alberta Childcare Entrepreneurs (AACE) warned that some daycares would participate in rolling closures to raise awareness of issues around the $10-a-day program.

They say the program's structure puts operators in a tough financial position, as daycare owners are expected to wait more than a month for reimbursement.

"Our industry is dedicated to finding solutions that prioritize children's welfare and maintain the excellence of our services," said Krystal Churcher, chair of AACE, in a news release.

"However, the government's current implementation of the $10/day childcare program is leading us down a path where the quality and choice of childcare in Alberta are at risk, with potential unintended consequences for children and families."

The AACE says the closures are "emergency actions" to match the challenges forced upon the industry by the provincial government.

"These closures are a sounding alarm, a wake-up call to make parents aware of the unintended negative impacts of the affordable childcare program," Churcher said.

CTV News Calgary is aware of at least three Calgary daycares and two Lethbridge facilities that plan to close on Tuesday.

One of those is The Imagination Tree Childcare Centre on Fisher Street S.E. Owner Sarah Hunter says the way the province has implemented its $10 per day plan puts the financial viability of daycares, like hers, at risk.

“The way this agreement has been rolled out is going to make it impossible to remain viable. To be honest, we are on the verge of bankruptcy under this program already. I've been having participated for the past two years. And so I'm fighting to keep the doors open for our families here,” said Hunter.

“Some of this special stuff I have here that help children that have need extra support, won't be able to be here anymore. And so that's really heartbreaking for me, because we pride ourselves on delivering quality programs for our children here.”

Hunter points her fingers at both federal and provincial governments for the problem.

She said the federal government turned up the pressure when it demanded a 3 per cent per annum cap on fee increases as part of the deal with the province.

“Under this new agreement, my center will have to cut all of the components that make us a quality program, our food program, a music program, or a program or art program," Hunter said.

The province also shoulders blame for the 45-day wait daycare operators must endure before being paid for the services they deliver.

“My account is crippling financially. I've had to have lines of credit and money that I've borrowed (that) I'm paying interest charges on.

“So basically, we've become the unpaid fiscal agents for the government.”

In a statement to CTV News, the province’s Minister of Child and Family Services Searle Turton defended the provincial child care program saying most operators like it.

“"The vast majority of child care operators are supportive of the federal-provincial agreement,:” said Turton

"It is disappointing that a small number of child care programs who do not support $10 per day care are choosing to scare families with random closures instead of engaging in good faith on the development of a new early learning and child care funding formula."

Premier Danielle Smith, in a statement on X, said the federal government was to blame for the situation faced by Alberta's child care operators.

"I recognize that child care operators are in an extremely difficult situation thanks to out of control spending by the federal government that has increased inflation and significantly impacted operating costs. The current cost control framework established by the federal government does not recognize the inflationary pressures child care operators are facin," she said.

In Ottawa, the federal Minister of Families, Children and Social Development Jenna Sudds weighed in Tuesday morning, saying the federal government was monitoring the Alberta daycare dispute.

“We're following closely what's happening in Alberta. All provinces and territories have signed on to these historic agreements to ensure that we can collectively move forward with building this national childcare system,” said Sudds.

“We fully expect that all provinces and territories will execute on their agreements. They'll follow through on the commitments and I'm sure Alberta will be no exception.”

Daycare operators say they feel they must take action to put pressure on the UCP government.

The AACE says parents also need to understand how devastating the program has been on child care providers.

"Our actions today are a plea to protect a childcare system that is integral to our children's future and upholds Alberta's values and beliefs," Churcher said.

"It's crucial for parents to understand the real costs and unintended consequences of the $10/day childcare program before it's too late."

The group is calling on the government to instead come up with "a balanced policy approach."

"Our commitment to affordable, high-quality childcare remains unwavering," she said.

"We are open to constructive discussions with the government to address these challenges together."

Hunter puts it more directly, saying without changes, a day care crisis looms.

“If something doesn't happen very quickly, there won't be any daycares to implement the $10 a day program because we'll all be bankrupt so there'll be nowhere to go. And that will be just a tragedy.”

In the meantime, Smith said she will be seeking a meeting with the federal government to urge officials to "consider changes to the framework."

"Child care is the responsibility of the provincial government and if the federal government doesn’t meet us at the table we will ensure Albertans can continue to access an affordable and sustainable child care system our way," she said.

Further details on the AACE's campaign can be found online.