MEMORANDUM TO: Canada Ontario Job Grant (COJG) Service Providers
FROM: Teresa Damaso, Director, Program Delivery Support Branch
DATE: February 10, 2016
SUBJECT: COJG 2016–17 Budget Allocation Changes
We would like to share with you upcoming changes to the COJG administration budget allocation for service providers.
The Canada-Ontario Job Fund Agreement (JFA) provides a key source of funding for Ontario employers to develop their workforce through employer-driven training. As per the JFA, Ontario’s COJG financial requirement will grow from $57.6M in 2015-16 to $86.4M in 2016-17.
The JFA outlines the terms of the Canada-Ontario Job Grant, along with the total investment for the program. It also states the maximum amount for program administration costs is 15% for the first two years (2014–15 to 2015–16) and 10% for the remaining four years (2016–17 to 2019–20) of the agreement.
This means that effective April 1, 2016, the service provider budget for administrative costs will be based on 10% of the COJG budget allocation.
To support this transition, the ministry has reduced administrative tasks and streamlined the application approval process by:
Ministry staff will provide the revised allocations before the start of the 2016–17 fiscal year. Future allocations for COJG service providers will be informed by current COJG commitments and tiers application data.
The Ontario government has heard service providers’ concerns about the reduction of funding for administrative costs, and will discuss this with the new federal government in the context of the Year 2 review of the Canada Job Grant.
If you have any questions, please contact your Employment and Training Consultant.
Sincerely,
Original signed by
Teresa Damaso
Director
Program Delivery Support Branch