You are not crazy. My wife works as a tutor and gets paid a little better than that per hour, but the catch is she doesn't get paid for any prep time. So consider this: are you putting work in that you aren't getting paid?
I believe in Illinois (my home state) the minimum wage is $6.25 USD. That is pitiful if you ask me. That doesn't cover the cost of gas for me to get to work if I drive 20 mins, I would have to work at least 2 hours to make 1 hour of profit. Its sad.
Also are you working with multiple students? That is important to consider. If you are working with one, then I'd think a lower fee is ok, but multiple students can strain you more (I know its basic stuff, but it takes more than just coding knowledge to teach!)
So if you are being covered not by the students but by the province, then I think you should charge more appropriately. I don't do any thing like this, but really consider how much time it takes you and it probably means you will spend more time working than you expect (meaning if you have a higher hourly wage you get covered for the fringe times).
Thats my opinion, I think there is a time and place for charity, and a time and place for decent wages.
jeremy - gnomeontherun
Educated questions often get educated answers, and simple questions often get simple answers.