A report from staff provided an update on the current financial status of hostel operations in Durham Region. Numerous reports over the past two years have identified the inherent difficulties in the per diem funding formula and the financial and staffing challenges that hostel operators are experiencing.

An amount of $133,590.00 of 100% Regional funding to be directed to assist hostel operators was removed from the 2005 Regional budget. (Ajax Council on April 11, 2005 endorsed a motion for inclusion of this amount which would have increased the per diem amount by$3.00 per day for 2005 budgets).

All three hostels indicated deficits in their 2004 audited statements. A number of cost savings measures have been put in place. Some shelters now have management staff performing front line duties and overnight shifts. Retention of staff is becoming a serious issue. It also should be noted that the Region has implemented regulations that has involved increased costs in order to be compliant.

The Muslim Welfare Home and the YWCA Durham which serve women and children have experienced deficits well in excess of $100,000.00 in 2004. The YWCA projects a deficit of $37,021.00 despite cost saving measures of $111,364.00. The Muslim Welfare Home predicts a deficit of $108,850.00 for 2005. Cornerstone (men’s shelter) had a deficit of $24,253.00 in 2004 and is projecting a break even position after $85,000.00 in cost saving measures have been put in place.

A motion has been endorsed by Health & Social Services to waive the Regional no grants policy and provide a grant in the total amount of $61,000.00 to be allocated amongst the three hostel. A motion to consider redirecting funds in 2006 of $65,000.00 to provide a $2.00 100% Regionally funded increase for occupied beds at the three shelters and to provide some stable funding for each of the shelters in 2006 has also been endorsed.

Health & Social Services has also asked that the Ministry of Community and Social Services be requested to increase the per diem from $39.15 (while retaining their 80% share) to be reflective of the actual costs in providing shelter.

A similar motion was endorsed by the Region in April 2005 and the Regional Chair wrote to the Minister to request that funding for emergency hostels be increased but no action has been taken by the Province to date.

Two Service Managers in Ontario, the City of Toronto and Region of Peel have opted for a direct delivery model. The estimated 2004 actual per diem cost is $107.36 in Peel and $124.45 in

Toronto of which only $31.12 is Provincial funding (80% of the capped $39.15 Provincial per diem).

As noted in earlier reports Halton and Waterloo have provided additional regional dollars to assist shelters in their regions with their budgets.