Funding model for daycare centers improved in plenary session

The Munich City Council has finally approved the controversial new funding model for non-profit and private daycare centers - albeit with several changes. For example, the catering fee has been increased, said a spokeswoman for the education department following the decision by the plenary session on Wednesday. The flat rate for administrative costs had also turned out to be higher than planned by the responsible committees.

The amount of this flat rate for administrative costs in particular had caused great unrest. The umbrella association of Bavarian daycare providers had feared that running a daycare center would hardly be economically viable and that the majority of private providers would therefore not switch to the new funding model - with drastically increased parental fees as a result. The Paritätische Wohlfahrtsverband Bayern had also called for "significant changes" on behalf of the independent welfare organizations.

The background: From the new kindergarten year in September, a "deficit compensation procedure" is to take effect for private and non-profit providers instead of the previous "Munich funding formula" for legal reasons. Put simply, the providers are to be compensated by the city for costs such as staff or rent in addition to state funding. To avoid creating an incentive for higher fees, any profits are also to be deducted from the funding.

The state capital provides massive support for parents of young children: thanks to the city's annual funding of around 170 million euros, around 83% of all Munich daycare children receive free or very affordable care compared to other municipalities. Currently, 618 daycare facilities in Munich are subsidized on the basis of the Munich funding formula.