The Ontario Association of Day Care Operators says inconsistent funding for licensed child-care centres is holding back some facilities from re-opening or expanding.
The province continued its gradual reopening of licenced centres on Monday, allowing them to boost the number of children in a room from 10 to 15.
But the daycare association says some municipalities have not yet provided funding or a firm funding commitment to child care facilities so they can't afford to reopen.
Andrea Hannen, executive director of the Association of Day Care Operators of Ontario, blames issues at the local level which are causing delays in daycare reopening in some areas.
Hannen says Ontario is the only province that administers funding for child care through municipalities.
She says in some municipalities, daycare owners and operators haven't received funding or a firm commitment on how much they will receive, and thus can't afford the expense of reconfiguring their space and programming to fit public health guidelines and requirements.
Municipal Affairs Minister Steve Clark, said the province is working to ensure the money gets flowing so facilities can reopen safely and at an expanded capacity.
With files from the Canadian Press