The $10-a-day child care program in Canada has created a financial crisis for the Regina daycare. The Scott Centre for Infants and Toddlers is consuming its cash reserves to stay open.

The center has issued an urgent appeal for fair government funding solutions.

Having $10-a-day child care has been beneficial for parents across the board. This includes Kayla Schultz and her family.

Schultz told CTV News: "It is extremely helpful for us not to have very high upfront fees, and we are able to invest that money in other things." "You know, the cost of living or child care, sports, and things like that in our budget."

However, daycare centers like the Scott Centre for Infants and Toddlers in north-central Regina are feeling financial distress.

Center board chair Roman Moro said government funding has not kept up with rising operating costs since the program began in 2021.

He explained, "We have lost over $135,000 since then from our reserves. So the reality is that the funding model as it stands now for our center is only sustainable because of our reserves and cannot last in the long term."

The $10-a-day child care program is jointly funded by the federal government and provincial governments.

Genevieve Lemire, press secretary for the Minister of Family, Children and Social Development, said in a written statement:

"We will continue to advocate for a funding model that supports the long-term sustainability of daycare centers, providing parents with the certainty of care they need and deserve."

Under the funding model, the province is responsible for annual increases in operating grants that average 2.5 percent a year.

The Saskatchewan Ministry of Education said in a statement that it "has continued to increase individual grants and total investments in the child care sector year after year to address cost pressures."

The Scott Centre for Infants and Toddlers stated that funding is not keeping pace with rising costs, which may lead to closure.

Parents like Schultz are concerned.

She said: "I think getting a spot in daycare is more important than getting a fee of $220. If that means they’ll raise that money a little for parents and not provide support at the same level, then I think that's what they need to do."

Meanwhile, the family believes that the government should also contribute more to keep child care centers like theirs open.

At the current rate of financial loss, the center's reserve funds will run out in 30 months.