Edmonton Social Planning Council

Category: ESPC Publications: Research Updates

  • Research Update: Examining Child Care Fees Across Canada

    Research Update: Examining Child Care Fees Across Canada

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    Note: this is excerpted from the May 2020 edition of our “Research Update” publication. The Edmonton Social Planning Council, in collaboration with our volunteers, strives to provide stakeholders and community members with up-to-date reviews, prepared by our volunteers, on recently published social research reports and publications.

    Reviewed by Agatha Briglio

    In 2019 a survey was sent to 37 cities, including representation, at minimum, of one city from each province and territory. The survey was part of the sixth annual Canadian Centre for Policy Alternatives’ series that tracks and analyzes Canadian child care comparable fees paid to licensed child care providers across Canada. It examined child care fees across three groupings: infants, toddlers, and preschool children.

    On average, infants include newborns to the age of two. In British Columbia, infant and toddlers are a combined category (zero – three years of age). The infant category is the smallest among the three groupings. Toddlers extend from the age of two to the age of three. The preschool-age category includes ages three to school entry and is the largest group.

    Most centres in Saskatchewan, Manitoba, Quebec, Prince Edward Island, Newfoundland & Labrador, Iqaluit, and Yellowknife are not-for-profit licensees that follow provincial set-fee rates. A small number of for-profit centres exist, and charge at least 10% more for preschool space.

    In Quebec, parents receive a rebate through a tax credit that can reimburse up to 90% of their child care fees (depending on their income).

    In 2019, St. John’s, Newfoundland, became a majority set-fee city. However, 39% of its licensed spaces are still at market rates, which are 10% – 40% higher than provincial set-fee rates.

    Report findings: Infant care is most expensive in Toronto, with a monthly median cost of $1,774. The lowest rates are in Quebec, where the monthly fee is set at $170.

    Toddler care ranked highest in Toronto at $1,457. In Iqaluit, Nunavut, and Richmond, British Columbia, toddler care fees are more than $1,200 a month. In Iqaluit, space for toddlers and preschool age children are at the same fee. Quebec cities ranked lowest at a set-fee of $179 a month. Other rates, like Winnipeg at $415, and Charlottetown at $586, are located in set-fee provinces.

    Impact of policy initiatives: In 2017, a three year federal/provincial/territorial agreement initiative was introduced as a way to reduce child care fees, specifically preschool-aged fees. It established an action plan based on five principals: accessibility, affordability, quality, inclusiveness, and flexibility. Alberta introduced a limited number of $25/day fee spaces (roughly 7%) in Edmonton and Calgary. In British Columbia, a $10/ day fee was introduced, roughly 5% of available spaces. The survey results indicate public policy (such as province-wide fees), fee regulation, and public funding—not market demand—play a role in determining child care fees. In conclusion, child care fees are lowest when licensees receive public funding set out in public policy.

    Publication Source: Canadian Centre for Policy Alternatives. (2020). In Progress: Child Care Fees in Canada 2019. Retrieved from: https://www.policyalternatives.ca/publications/reports/progress

    Volunteer Research Reviewer: Agatha Briglio works as a policy analyst for the province. She is keenly interested in low-income issues and those most at-risk in our community. Through volunteer work she hopes to continue to grow professionally as a researcher, policy analyst, and facilitator

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  • Research Update: An Alberta Guaranteed Basic Income

    Research Update: An Alberta Guaranteed Basic Income

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    Note: this is excerpted from the May 2020 edition of our “Research Update” publication. The Edmonton Social Planning Council, in collaboration with our volunteers, strives to provide stakeholders and community members with up-to-date reviews, prepared by our volunteers, on recently published social research reports and publications.

    Reviewed by Kevin Beauchamp

    Wayne Simpson and Harvey Stevens examine the potential options for an Alberta Guaranteed Basic Income (AGBI). Simpson is a research fellow and economics professor at the University of Manitoba, and Stevens is a retired Government of Manitoba senior policy analyst. This paper was published through The University of Calgary’s School of Public Policy.

    Despite the economic booms Alberta has received, poverty persists in the province; an AGBI could help address this issue. Two arguments against implementing an AGBI relate to the financial costs and potential work disincentives. Simpson and Stevens propose an AGBI model that would improve the fairness of the tax system and not require significant funding, by making six currently non-refundable tax credits (NRTCs) refundable. The NRTCs proposed to be eliminated include the Basic Personal Amount, Age 65 and over, Pension Income, Education, Tuition, and Student Loan Interest, and would create an AGBI budget of $5.36 billion.

    The equation for determining the net benefit to the recipient is “Net Benefit = G – (Family Income x BRR),” where G = size of the guarantee and BRR = Benefit Reduction Rate. As BRR increases, the depth of the benefit increases but is targeted towards a smaller number of recipients. A BRR of 10% was chosen as it benefits a larger percentage of families, minimizes work disincentives, and reduces the poverty rate by 26.3%, and poverty depth by 25.3%. Annual guarantees of $6,389 would be allocated for single-parent families and $9,305 for two-parent families. Additional “top-ups” for persons with disabilities and caregivers of disabled adults were also included. When accounting for labour supply costs, the AGBI would end up costing the provincial government $154.3 million. Net benefits would be mostly distributed to individuals in the two lowest income deciles, while higher income deciles would receive a modest income reduction of approximately 2%. In general, single-parents and single persons benefit modestly at the expense of two-parent families.

    Simpson and Stevens also outline a joint Federal/Alberta GBI option. This option would remove the same NRTCs as the AGBI, along with the federal GST credit. A federally funded national GBI, with one G and BRR set for the entire country, would be complemented by a provincial GBI with its own G and BRR values. Simpson and Stevens propose a federal BRR of 15% and an Alberta BRR of 10% that would create a budget of $11.4 billion allocated for Albertans. The estimated net costs of the joint GBI would be $801.2 million.

    Federal collaboration would have a more significant impact, as federal tax credits are about 50% higher than provincial tax credits. Single-parent families would receive annual guarantees of $13,674 while two-parent families would receive over $19,000. Reductions in poverty rates (44%) and depth of poverty (54%) would be more pronounced, and the gains/losses for each income decile level would also be approximately doubled, compared to the AGBI option. The relative impacts based on family unit type would remain consistent with the AGBI option.

    A limitation to the two models is that they had to resort to the traditional method of measuring poverty, using Low Income Cut-Offs (LICOs) which have been criticized as a poverty measure; Simpson and Stevens acknowledge that the Market Basket Measure (MBM) is currently Canada’s official poverty measure. I also noted a large discrepancy in both models regarding the percentage change of disposable incomes between elderly singles and elderly couples in the lowest income decile level, with elderly couples benefiting more. The differences between single-parent/two-parent families and non-elderly singles/non-elderly couples at the same income decile level are much more modest.

    A potential flaw in these models is that disposable income losses aren’t completely progressive along income decile levels. Higher income earners would lose a smaller percentage of disposable income compared to middle-income earners. In the joint Federal/Alberta model, the 4th and 5th income decile levels, on average, would lose more disposable income in pure terms compared to the income earners above them. Further income redistribution may be necessary to increase the equity of the GBI models for middle-income earners.

    The models presented appropriately account for changes in the labour supply and tax revenue. However, if a GBI model is ever enacted, it would be worth considering the reduced costs (healthcare, social services, policing, etc.) that would likely result from a more equal society. However, these measures were beyond the scope of the research and would be very speculative at this juncture.

    Publication Source: Simpson, W. & Stevens, H. (2019). An Alberta Guaranteed Basic Income: Issues and Options. University of Calgary. Retrieved from: https://journalhosting.ucalgary.ca/index.php/sppp/article/view/53021

    Volunteer Research Reviewer: Kevin Beauchamp spent the past year as a Human Geography student at the University of Alberta and will be entering a Master of Urban and Regional Planning program this fall. Kevin plans to explore topics such as affordable housing, social marginalization, and community development throughout his Masters studies.

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  • Research Update – May 2020

    Research Update – May 2020

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    Download the Research Update – May 2020 issue here!

    Inside this update:

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  • 2020 – January – Research Update

    2020 – January – Research Update

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    • Public Engagement on Affordable Housing in Edmonton Reviewed by Akshya Boopalan
    • Supporting Vulnerable Tenants in Non-Profit Housing Reviewed by Agatha Briglio
    • A Critical Time: Special Report on Emerging Adults Leaving Children Services Care Reviewed by Alysia Elliott
    • Review of Educational and Labour Market Outcomes of Children with an Immigrant Background by their Region of Origin Reviewed by Hanna Nash
    • Alberta Proves Yes We Can! Reduce Poverty Reviewed by Shawna Ladouceur
    • Indigenous Early Learning and Child Care in Edmonton Reviewed by Reem Saraya

    Download our 2020 – January – Research Update

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    By getting involved with the Edmonton Social Planning Council, you add your voice to our message of positive social development and policy change.

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    Edmonton Social Planning Council
    10544 – 106 Street NW, Suite 200 (Bassini Building)
    Edmonton, Alberta T5H 2X6
    780-423-2031.

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    Business Hours: Monday – Friday 8:30 am – 4:30 pm
    Please note our office is temporarily closed to the public.

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    Due to the COVID-19/Coronavirus pandemic, the Edmonton Social Planning Council (ESPC) is taking precautionary measures to do our part in slowing the spread of the disease.

    The ESPC physical office will be closed effective March 16, 2020, until further notice. We will continue to work and serve our community and clients remotely. All of us at ESPC have the necessary resources to work remotely with little disruption to our scheduled project deliverables.

    Please note that by working remotely, emails will be answered, but phone calls may take longer to respond too. We would recommend email or our website contact form as the quickest way to connect with us.

    Additionally, all in-person ESPC events and meetings have been cancelled. We will be monitoring the situation and decide soon on the status of our Annual General Meeting and the scope of our 80th Anniversary celebrations.

    The COVID-19 pandemic is a rapidly changing issue, we recommend you stay informed, please refer to the Alberta Government website and the City of Edmonton website for local updates.

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    * Please note that we are not a government department or direct service provider. We do not provide individuals with information about social benefit programs (i.e. AISH, workers compensation benefits, etc.). If you have questions about these services, please dial 211 or access online by clicking here. For assistance with provincial programs, Alberta Supports can help you access more than 30 programs and 120 community services https://www.alberta.ca/alberta-supports.aspx.

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  • ESPC RESEARCH UPDATE October 2019

    ESPC RESEARCH UPDATE October 2019

    INSIDE THIS UPDATE

    Basic Income for Canadians Reviewed By: Agatha Briglio – 1

    Report on Homeless Encampments on Public Land Reviewed by Debyani Sarker – 3

    Social Isolation of Indigenous Seniors in Canada Reviewed by Jenna Horning – 5

    Towards Justice: Tackling Indigenous Child Poverty in Canada Reviewed by Natty Klimo – 7

    Housing Conditions of On-Reserve Aboriginal Households Reviewed by Shawna Ladouceur – 9

    Immigration is Key to Canada’s Growth Strategy Reviewed by Zahro Hassan – 11

    ESPC Documents/RESEARCH UPDATES AND REVIEWS/ESPC_RESEARCH_UPDATE_October_2019.pdf