Affidavit of Michael Bear - Phoenix Sinclair Inquiry

[148] Another possible way to monitor a child is through the financial
monitoring or maintenance billings. It would appear this would not be
possible with a federal child (the responsibility of the federal government)
because the agency does not have access to the federal billing information.
[149] This led to evidence concerning the two different regimes and how
they impact on child welfare in the province.
[150] Federal agencies have two types of funding — operations and
maintenance. Up to 1993 there was also service and families funding
(support, etc.) but that was discontinued and allegedly placed in operations.
If not maintenance it must come out of operations funding. Maintenance is
any cost related to maintaining a child in care — that is — a child having a
legal in care status — apprehension, temporary ward, permanent ward,
voluntary placement. The federal government will pay maintenance
according to the provincial rates. They will pay on actuals on children in
care.
[151] The problem being that on the operations side it is formula funded
based on child population, not on caseload or service issues with respect to
caseload. It is not the number of children that dictates the cost but the needs
of those children and thus if the needs are great like in Little Grand Rapids,
the federal formula on the operations side will prove inadequate. A flat or
fixed rate does not answer the question of need. Because the federal grant
does not feel that child welfare is their responsibility as such they are only
interested in the financial information and numbers rather than the child
welfare issues involved. They are responsible for the fiduciary relationship
with First Nations but not the issues of specific ending issues related to
child welfare.
[152] As the result, one is left with the incredible result that the only way to
access sufficient funds is to put the child in care and therefore access the
maintenance side of the federal ledger. There are numerous other issues at
the negotiation table between First Nations and the federal government but
they have been there for some time and have been commented on in
previous inquests involving similar issues.
[153] The provincial government has three financial lines - operations,
maintenance and Family Services. The operations and maintenance are selfexplanatory
and the same as the federal government. The Family Services
financial line is money to families intended for services for kids in their own
home. There is also a Family Innovation Fund to support projects with
families to keep their kids in homes. Finally, Changes for Children
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