Fee assistance is paid directly to non-profit and for-profit service providers on behalf of eligible parents. In Ontario, municipal fee subsidy managers, approved corporations and Native Bands administer the fee subsidy program. Fee subsidy management is currently in transition. By January 2000, 47 Consolidated Municipal Service Managers (which in most cases are the municipalities) and Native Bands will administer fee subsidies. Municipalities are responsible for 20% of the approved cost of fee subsidies.

Eligibility is determined by a provincially-determined parameters needs test with income being only one of a number of items considered. Each municipality can determine the rates within a range, a situation which creates considerable variation across the province. There are no province-wide maximum income levels for full or partial fee subsidies.

The province does not set maximum subsidy levels per child. The maximum subsidy/child/day varies across the province due to actual cost of service, which varies by type and geographical region, and is at the discretion of municipalities.

There is no provincial minimum user fee.

The provincial government permits subsidization up to the full cost of the program. However, in practice, municipalities set maximum subsidy rates.

Municipalities may allocate a specified number of subsidized spaces to particular programs or may allow them to float.

There is a province-wide cap on the total subsidy budget rather than on the number of subsidized spaces available. Lengthy waiting lists of eligible parents exist in some communities but some communities do not maintain waiting lists.

Fee subsidies for all children including those with special needs are determined on the basis of 80% contribution by the provincial government and 20% contribution by municipalities. In 1998, municipalities could include the 20% they collect from subsidized parents as part of their 20% contribution. Special needs resourcing is split 80/20 between the province and municipalities. The province does not require that parents of children with special needs be needs or income tested for fee subsidy eligibility but some municipalities have imposed a needs test.