2007 Ontario Budget
CHAPTER I
Investing in People and Expanding Opportunity
Section A: Expanding Opportunities for Children and Families
Overview
Expanding opportunities for all helps build a strong and prosperous Ontario. The government recognizes that
giving everyone a fair chance to succeed is the right thing to do - for society and for the economy.
[Chart 1: Increases to Spending on Children's and Social Services Since 2003-04.]
If each and every Ontarian is to be able to participate in the province's prosperity, the appropriate support and
opportunities must be available. That means giving children who are growing up in low-income families in Ontario
a better start in life. It means helping low-income families and those receiving social assistance. It means more
affordable housing for low-income Ontarians and additional supports for seniors.
[Chart 2: 2007-08 Program Expenses. The government spends 13 cents of every program dollar to help the most vulnerable.]
The government proposes new programs to expand opportunities for families and vulnerable Ontarians that, upon
maturity, would result in an increase in annual funding of $1.2 billion. First among these initiatives is a new
Ontario Child Benefit (OCB), which would provide an additional $2.1 billion in benefits cumulatively over
the first five years. This new measure would benefit nearly 1.3 million children annually. The new OCB would help
remove the barriers that social assistance recipients face when returning to work.
The government is further enhancing early childhood learning by committing an additional $25 million in 2007-08
and $50 million annually starting in 2008-09 to support Best Start programs, in addition to the $63.5 million in
annual funding announced in the 2006 Ontario Budget. To address local service gaps facing vulnerable children and
youth with mental health needs, the government is increasing funding by a further $8 million annually.
For the third time, the government is increasing social assistance rates. This year's two per cent increase would
provide an additional $83 million in benefits annually to over 420,000 Ontario families with more than 196,000
children, as well as families receiving Temporary Care Assistance and Assistance for Children with Severe
Disabilities. In addition, the government proposes to permanently flow through all future increases to the
federal National Child Benefit Supplement (NCBS).
Since 2003, the government has increased the minimum wage by 17 per cent to $8.00 an hour. This Budget proposes
to increase the hourly minimum wage to $10.25 in 2010, with three annual increases of $0.75 starting on March 31,
2008.
Low-income families need affordable housing. The government proposes three new initiatives: $127 million to
municipalities for new affordable housing or to rehabilitate existing housing;
a five-year, $185 million housing allowance, which would bring the total number of new housing allowances
for low-income families to 35,000; and $80 million for off-reserve aboriginal housing.
To help provide security for seniors, the government proposes three initiatives. The government proposes to give
seniors enhanced access to their locked-in accounts, which originate with funds transferred from pension plans.
The government would also, for the fourth consecutive year, enhance the Ontario Property and Sales Tax Credits
for seniors. In 2007, about 745,000 senior families would benefit from an estimated $104 million in improvements
since 2003 to these credits. This Budget also proposes to parallel proposed federal tax changes to allow couples
with pension income to pay less income tax by splitting certain pension income for tax purposes.
Other measures in this section include proposed changes to the Workplace Safety and Insurance Act, such as an
increase in benefits for about 155,000 injured workers. The government will also provide an additional
$51 million over three years, starting in 2007-08, to enhance access to legal aid services for vulnerable
Ontarians.
The government will invest more than $200 million over four years to enhance community services and supports for
people with a developmental disability and their families.
New Ontario Child Benefit
Expanding opportunities for children and families is an important investment in Ontario's future. All children
must be given the best possible start in life if they are to seize opportunities for success. Families must be
given the support they deserve to secure their most basic needs and be equipped to participate in Ontario's
economic prosperity.
The government recognizes the importance of investments to help children and families. The goals of these
investments are clear - to provide more assistance to more children and help families make the transition from
social assistance to employment.
The government is entering a transformative era in social policy, by fundamentally changing how benefits for
children in low-income families are provided.
The current system is not meeting the needs of Ontario's children.
• Most income support for children is provided through the social assistance system and excludes
the majority of low-income working families.
• Providing children's benefits through social assistance makes it more difficult for parents to
leave the welfare system for employment.
• Social assistance benefits treat children differently as benefits vary widely by the age and
birth order of the children.
This Budget proposes the new OCB, which constitutes a major reform in the way benefits are provided to all
low-income families with children.
The OCB program would:
• help nearly 1.3 million children in low-income families annually - many more than the 196,000
children in families currently receiving social assistance and the 271,000 children in families currently receiving
the Ontario Child Care Supplement for Working Families (OCCS)
• provide similar benefits to all children under age 18 in low-income families, whether their
parents work or receive social assistance
• help parents receiving social assistance make the transition to work because they would continue
to receive children's benefits after beginning employment.
The new OCB program would provide an additional $2.1 billion in benefits cumulatively over its initial five years.
Key Features of the OCB
The OCB initiative would consolidate social assistance benefits for children and the OCCS into one benefit that
would be paid to all low-income families with children. Unlike social assistance, which is means tested, the OCB
would be income tested, meaning many more families would be eligible to receive it. The OCB would be delivered
through the personal income tax system.
[Chart 3: Number of Recipient Families with Children by Income Security Program.]
The OCB would assist all low-income families with children under age 18. This means that, when fully implemented,
the OCB would benefit about 800,000 more Ontario children than the current OCCS and social assistance programs
combined. (See Chart 3.)
Relationship to Federal Child Benefits
Since taking office in 2003, the government has flowed through all incremental increases to the NCBS, providing
an additional $56 million in 2006-07 to families receiving social assistance. In this Budget, the government
proposes to flow through all future incremental increases to the NCBS permanently.
Further, upon implementation of the OCB, neither the OCB nor social assistance benefits would be reduced by any
portion of the NCBS.
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Improving Equity
When fully phased in, the OCB would improve the equity of the
child benefits system in three important ways:
• Ontario Works recipients with children under age 13
would receive the same benefits as those with children
aged 13 and older (currently children under 13 receive
less)
• OCCS recipients would continue to receive the OCB
until their child turns 18 (currently OCCS benefits
cease when a child turns seven)
• all children in families with similar incomes would
receive the same OCB benefit regardless of whether
their parents are employed or receiving social
assistance (currently, social assistance recipients
receive more child benefits).
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Five-Year Phase-In
To deliver benefits earlier, the government proposes to issue an OCB down payment of up to $250 per child under
age 18 in July 2007, providing an additional $190 million to nearly one million children in more than 460,000
families. This down payment would be made in addition to social assistance and OCCS payments. It would be reduced
by 3.4 cents for every dollar of adjusted family net income over $20,000.
Beginning in July 2008, OCB payments would begin to flow monthly. Social assistance benefits would be
restructured so that most child-related payments would be consolidated with the OCB. In July 2008, the maximum
OCB annual benefit level would be $600 per child under age 18, providing an additional $230 million in 2008-09 to
low-income families with children.
The maximum OCB payment level would increase annually through 2011. (See Table 1.) Once the OCB is fully
implemented, families would receive annual OCB payments of up to $1,100 per child, providing nearly 1.3 million
children with an additional $765 million in support annually.
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Maximum Annual Ontario Table 1
Child Benefit Payment
($ Per Child Per Benefit Year(1))
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- ------------------------------- ------- ------- ------- -------
2007 2008 2009 2010 2011
- ------------------------------- ------- ------- ------- -------
- --------------------- --------- ------- ------- ------- -------
Benefit Level 250 600 805 900 1,100
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(1) Benefit year is from July 1 to June 30.
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OCB Example
When the new system reaches maturity, the total income of a
single parent with two children under age 13 who is receiving
Ontario Works benefits would be $4,515 (26.8 per cent) higher
than it was in 2003-04. (See Chart 4.)
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Families with adjusted family net income of up to $20,000 a year would receive the full OCB amount. After July 1, 2008,
OCB payments would be reduced by eight per cent of adjusted family net income over $20,000.
In July 2008, OCCS payments would also be consolidated with the OCB. If a family's OCCS entitlement is larger
than their OCB payment, the family would still receive the extra OCCS benefit. This guarantees that all OCCS
recipients would be at least as well off under the new system as they were before. Once the OCB is fully
implemented in July 2011, the OCCS would be phased out over seven years.
Social assistance shelter allowances, Temporary Care Assistance and Assistance for Children with Severe
Disabilities would not be affected by the OCB.
[Chart 4: Supporting Families Receiving Social Assistance Single Parent with Two Children Under Age 13. Change in Annualized Income
Since 2003-04 ($).]
Lowering the Welfare Wall
The new OCB would help lower the welfare wall by removing children's benefits from the social assistance system.
This would:
• ensure families continue to receive children's benefits when parents leave social assistance for employment
• allow families receiving social assistance to keep a much larger portion of benefits for their children as their
earnings increase. This is because the OCB would be reduced by only eight per cent of adjusted family net income over
$20,000. By contrast, social assistance benefits are reduced by 50 cents for every dollar of earnings.
Uploading Child Benefits
Municipalities would also benefit from the OCB, as the Province would pay its entire cost, including administration.
This would save municipalities $15 million annually in social assistance costs once the OCB is fully implemented in
July 2011. Moreover, enhancements to the OCB in the future would not create new costs for municipalities.
Other Supports for Children and Youth
The government envisions an Ontario where children and youth have the best opportunity to succeed and reach their
full potential. That is why it is introducing additional initiatives to support families with children, children
with special needs and other vulnerable children.
Best Start
Best Start was designed by the Province, in partnership with the Government of Canada, as part of the Early
Learning and Child Care Agreement, which the federal government has since terminated. The Province is committed
to sustaining the progress made to date, including continuing to fund municipalities for almost 15,000 new
licensed child care spaces already announced. The government would go further by enhancing current child care
programs by $25 million in 2007-08, which would increase to $50 million annually starting in 2008-09. This would
be in addition to the $63.5 million in annual funding announced in the 2006 Ontario Budget. The government has
also introduced a new eligibility model for child care fee subsidies, based on adjusted family net income,
which simplifies and standardizes eligibility for fee subsidies across the province.
Healthy Babies Healthy Children
The government proposes to expand the Healthy Babies Healthy Children program with an ongoing investment of over
$5 million to support the needs of at-risk families with children. Building on Best Start, the expanded program
would address the health and social needs of these families through early intervention and intensive follow-up so
that their children arrive at school with the skills and abilities to succeed.
College of Early Childhood Educators
The Province is introducing legislation to establish a College of Early Childhood Educators to improve
and maintain consistent standards of quality in the child care system. The college would establish professional
standards of practice, qualifications and ongoing professional development for early childhood educators.
Family Literacy and Parenting Services
Family literacy and parenting services are free programs for parents, grandparents and caregivers of children
from birth to six years old. These programs help prepare children for successful school entry by supporting the
establishment of early positive connections to future schools and building a strong home-school partnership.
In 2007-08, the Province is committing an annual investment of $6 million, expanding services across Ontario.
Children With Special Needs
Children with special needs include those with autism, developmental delays, behavioural and emotional problems,
and mental and physical disabilities. The government supports children with special needs through a variety of
programs including programs delivered by Children's Treatment Centres, children's mental health agencies and the
Autism Intervention Program.
Children's Treatment Centres
Children's Treatment Centres are community-based organizations that provide about 40,000 children annually with
such services as physiotherapy and speech and language therapy. The government's total annual funding to these
centres will have increased by nearly $30 million between 2003-04 and 2007-08, including $10 million announced in
the 2006 Ontario Budget to provide services to almost 5,000 children and youth across the province, and an
additional $4 million starting in 2007-08.
Children's Mental Health
The Province is building on its previous investments in more than 250 child and youth mental health centres and
17 hospital-based outpatient programs by providing an additional $8 million in annual funding to address gaps in
local service needs and reduce wait times. As of 2007-08, the government will have increased funding for these
services by nearly $80 million since 2003-04, including enhancements announced in the 2004 Ontario Budget.
Autism
Breaking down the barriers that isolate children with autism from the world around them is an ongoing commitment
of the government. The Province has increased funding to nearly $130 million in 2007-08 - nearly tripling the
support for children with autism spectrum disorders (ASD) and their families since 2003-04.
The government's initiatives for children with ASD have included:
• increasing the pool of qualified autism professionals through the creation of an Ontario College Graduate
Certificate Program in Autism and Behavioural Science
• providing $6 million to the Geneva Centre for Autism to support the unique needs of children with ASD; this
funding has supported up to 1,600 resource teachers and home visitors
• providing $1 million to help Autism Ontario offer more supports to families of children and youth with ASD,
including parent support networks, training and resource materials.
Since July 2005, children receiving services through the autism intervention program have continued to benefit
from these services after reaching the age of six. Previously, children age six and older were ineligible for
these services.
In 2007, the government is providing investments to more than double the number of children receiving autism
intervention services since 2003. This will result in more than 1,100 children receiving these services.
At-Risk Youth
Ontario is committed to improving opportunities for young people, particularly those at risk of engaging in
violent behaviour. Research shows that young people are more likely to make positive choices if they are given
the right supports and opportunities in their communities.
In the 2006 Ontario Budget, the government announced significant investments in community programs to help
at-risk youth make sound decisions and become healthy and productive adults, including the following:
• Putting more than $28 million over three years into the Youth Opportunities Strategy to expand community programs
that help at-risk youth choose a better future; the strategy includes enhancing mentorship and youth leadership,
as well as promoting job-readiness, employment and skills training programs. Currently, the government is expanding
the strategy beyond Toronto to London, Ottawa, Thunder Bay, Windsor and Hamilton.
• Establishing the Youth Challenge Fund to support community-led programs in Toronto and offer young people
positive alternatives to guns and gangs, such as sports and community activities. The government is providing up to
$30 million over three years, which, with additional contributions by the private sector, would mean up to $45 million
for at-risk youth.
Children's Aid Societies
From 2003-04 to 2007-08, the Province increased investments in child protection services by nearly $260 million,
including an additional investment of $34 million in 2007-08. In 2006, legislation was approved to help more
children in the child protection system grow up in stable, caring homes, and to make children's aid societies
stronger and more accountable to the families and communities they serve. The legislation was part of the
government's broad reforms to improve the lives of vulnerable children and strengthen Ontario's child protection
system by expanding adoption options and improving safeguards for children and youth referred to a children's aid
society.
The Province has also established an Accountability Office to strengthen accountability by including higher
standards in more detailed annual agreements with children's aid societies and all other government-funded
agencies. As well, the Accountability Office monitors whether children's aid societies meet legislated
requirements for the care and protection of children, and ensures that corrective action is taken as needed. The
Accountability Office also monitors the performance of children's aid societies through assessment and reporting.
Family Responsibility Office
The Family Responsibility Office helps families receive the court-ordered financial support to which they are
legally entitled.
Since 2003-04, the government has invested almost $5 million to improve the enforcement and collection of child
and spousal support and to enhance customer service. The government has also launched a new website
(www.goodparentspay.com) that identifies parents who fail to pay court-ordered support.
In addition, the government will propose legislation to improve the effectiveness of the enforcement and
collection of child and spousal support.
Increased Support for Families Receiving Social Assistance
The government proposes to increase support for Ontario's most vulnerable families and individuals by raising
social assistance rates by two per cent effective November 2007. By increasing Ontario Works and Ontario
Disability Support Program benefits in 2005, 2006 and now this year, the government would be helping families
receiving social assistance manage the increased cost of living. The proposed social assistance rate increase
would provide an additional $83 million in benefits to more than 420,000 Ontario families with more than 196,000
children in 2007-08 on a full-year basis. It would also benefit families receiving Temporary Care Assistance and
Assistance for Children with Severe Disabilities. Municipalities would not be required to contribute to the
proposed rate increase until January 2008.
Building on Previous Initiatives
The proposed OCB and social assistance rate increase would build on initiatives that the government
has introduced since 2003-04 to support low-income families and individuals, including the following:
• Increasing social assistance rates by three per cent in 2005 and two per cent in 2006.
Winter-clothing and back-to-school allowances for social assistance recipients were also raised by two per cent in 2006.
Combined, these increases provide over $137 million more to social assistance recipients in 2006-07.
• Permanently flowing through the July 2004, 2005 and 2006 increases to the NCBS. This measure provided an
additional $56 million to about 116,000 families that received social assistance in 2006-07.
The government has also worked to ensure that social assistance has not created obstacles for Ontario's most
vulnerable families and individuals to obtain jobs and fully share in the province's prosperity. The Ontario
Government's improvements since 2003-04 to help social assistance recipients make the transition to jobs include
the following:
• Introducing a straightforward exemption rate of 50 per cent on all earnings. This means that only half a
recipient's earnings from employment is deducted from his or her monthly social assistance cheque. Previously, social
assistance payments were reduced by at least 75 per cent of recipients' earnings above a small exempted amount,
creating a significant barrier to employment.
• Extending health benefits for recipients leaving Ontario Works for employment for six months (one year in
exceptional cases). Recipients leaving the Ontario Disability Support Program for employment receive health benefits
indefinitely or until employer health benefits become available.
Additional Support for Vulnerable Working Ontarians
The government believes it has a responsibility to help low-income workers obtain better jobs and achieve a
higher quality of life. The government has therefore invested in a variety of programs to help low-income workers
move ahead. These include investing nearly $1 billion annually for training and employment, working with the
federal government on the proposed Working Income Tax Benefit (WITB), and increasing the minimum wage for four
consecutive years since 2003.
Flowing Through the Working Income Tax Benefit
The proposed federal WITB would increase the incomes of low-income working Ontarians and encourage them to
increase their earnings.
Ontario is working with the federal government to ensure that the proposed federal WITB realizes its objective of
supporting vulnerable individuals in Ontario and the rest of Canada. As Ontario provides benefits to vulnerable
people through a variety of programs, it is critical that the proposed federal WITB be properly integrated with
existing provincial and territorial tax and transfer systems. Once the WITB is implemented, the Ontario
Government would help low-income working families and individuals by flowing the full amount of the benefit
through to Ontarians receiving social assistance.
Minimum Wage
The government recognizes that periodic increases to the minimum wage are an important part of helping those with
low incomes. The government has assisted low-income working families and individuals by increasing the minimum
wage every year since taking office in 2003. The minimum wage has risen by 17 per cent, from $6.85 per hour in
2003 to its current rate of $8.00. These increases followed a nine-year period, from 1995 through 2003, during
which the minimum wage in Ontario was frozen. Ontario now has one of the highest minimum-wage rates in Canada.
The government proposes to increase the hourly minimum wage to $10.25 by 2010, with three annual increases of 75
cents starting on March 31, 2008.
Employment Ontario
The minimum wage is one way to support low-income workers. Other measures such as training programs and
employment incentives can also be targeted effectively to help them.
Training and other employment support programs provide vulnerable Ontarians with the skills and experience they need to
take advantage of economic opportunity. Through its new nearly $1 billion annual training program, Employment Ontario,
the government is providing these critical labour-market services to the unemployed, the underemployed, new Canadians,
low-income workers and social assistance recipients. For more details, see Section F: Expanding Opportunities for
Economic Growth.
Affordable Housing
The government recognizes that many low-income Ontarians need affordable housing. That is why it proposes to
create more housing supports, including new housing units and additional funding for those eligible for housing
allowances.
New Housing Initiatives
With the $392 million federal Affordable Housing Trust and Off-Reserve Aboriginal Housing Trust, the Ontario
Government proposes to launch three new housing initiatives to assist low-income families in Ontario. The first
will immediately provide $127 million to municipalities for new affordable housing or to rehabilitate existing
housing.
To help low-income working families with children pay rent, the government's second new initiative would create a
new provincial housing allowance program that would provide up to $100 per month, for a maximum of five years, to
eligible families.
This five-year, $185 million program would begin in January 2008 and create more than 27,000 new housing
allowances for low-income working families. This would bring the total number of new housing allowances to 35,000.
Full details, including information about the application process, will be provided by the Ontario Minister of
Municipal Affairs and Housing later this spring.
The third new housing initiative would provide $80 million in funding for up to 1,100 off-reserve housing units
for aboriginal families that the government would allocate in partnership with aboriginal communities. This would
enable Aboriginal Peoples to participate in the determination of how affordable housing is delivered in their
communities, building a sustainable future and better quality of life.
Ongoing Housing Programs
The Ontario Government continues to work with the federal and municipal governments to provide adequate housing
for low-income families under the Affordable Housing Program. The program will provide 15,000 new affordable
housing units and 5,000 housing allowances by 2011-12. To date, over 7,400 housing units have been approved and
the Province has committed to providing nearly 4,500 new housing allowances. The Province also supports the
delivery of up to 6,600 affordable rent-geared-to-income rental allowances through the Strong Communities Rent
Supplement program.
In addition, the government is giving tenants more protection while keeping Ontario's rental housing market
robust through the Residential Tenancies Act, 2006, which came into effect on January 31, 2007.
Homelessness Prevention
To help low-income tenants avoid losing their homes, the government has invested nearly $19 million to support
municipal rent banks - short-term funding mechanisms through which low-income tenants may apply for assistance to
address rent arrears - across Ontario. This is an important part of the government's homelessness strategy, and
has prevented almost 8,000 evictions.
Supports for Seniors
Locked-in Accounts
The government is proposing to introduce a new life income fund (LIF) that would increase income for seniors in
retirement and permit up to 25 per cent of the funds to be unlocked. The new LIF, and other modifications to the
rules governing locked-in accounts, would give seniors who hold locked-in retirement savings transferred from
employment pension plans increased flexibility in managing their retirement income.
The new LIF would replace all existing LIFs and locked-in retirement income funds (LRIFs). This would give
seniors more flexibility by eliminating mandatory annuity purchase requirements and introducing:
• the right to an optional one-time unlocking of up to 25 per cent of locked-in funds no earlier than the
early-retirement date under the pension plan from which the money was transferred (in most cases, this is age 55)
• an amended annual payment schedule that would increase retirement income and permit withdrawal of the entire
remaining account balance when the LIF holder reaches age 90
• the opportunity to withdraw additional income based on investment returns in the previous year.
Additional changes would allow direct transfers of unlocked small amounts to non-locked-in accounts and unlocking
for non-residents of Canada. The changes would also introduce consistent rules for the waiver of spousal
entitlements to locked-in funds. Consultations will be initiated on the process for implementing the new LIF and
other changes to the rules for locked-in accounts. It is expected that implementation of these proposals would
begin as early as January 2008.
Ontario Property and Sales Tax Credits for Seniors
Ontario Property and Sales Tax Credits for seniors were established in 1992 to assist seniors with modest
incomes. These refundable credits remained unchanged until 2004, when the government enriched them by increasing
the underlying property tax credit amount for seniors by 25 per cent, from $500 to $625. The government also
increased the income threshold at which senior couples' benefits begin to be reduced to $22,250 for 2005 and
$23,090 for 2006.
The 2007 minimum level of income guaranteed by the Ontario and federal governments for eligible senior couples is
rising because of increases to Old Age Security (OAS) and Guaranteed Income Supplement (GIS) payments. This year,
the government is proposing to increase the 2007 income threshold for senior couples so that those receiving the
guaranteed minimum level of income from governments would continue to receive the full benefit of the credits.
The new threshold would be determined when the federal government finalizes OAS and GIS amounts for 2007.
Pension Income Splitting
Beginning with the 2007 taxation year, couples would be allowed to split certain types of pension income for
Ontario income tax purposes, subject to relevant federal proposals receiving Royal Assent. This would recognize
the special challenges of planning and managing retirement income, and assist pensioners by providing a
significant benefit to many couples with pensions.
Allowing individuals to split their pension income with a spouse or common-law partner for tax purposes would
provide Ontario income tax savings of about $170 million to Ontario couples with eligible pension income in 2007.
Other Supports for Vulnerable Ontarians
Improvements to Workplace Safety and Insurance
The health and safety of Ontario workers is a priority. The Workplace Safety and Insurance Board (WSIB), an
arm's-length agency of the government, is responsible for compensating injured workers, facilitating their return
to work, and promoting health and safety. In this Budget, the government is proposing a number of important
improvements in benefits for injured workers in the Workplace Safety and Insurance Act. These enhanced benefits
would be paid out of the Workplace Safety and Insurance Fund.
• Many injured workers receive benefits that are partially indexed to inflation. The legislative changes, if
enacted, would permit the WSIB to enhance the benefits of about 155,000 injured workers by 2.5 per cent
on July 1, 2007 and on January 1 in each of 2008 and 2009.
• The government also proposes to give the WSIB greater flexibility to review and determine injured workers' loss
of earnings benefits after the benefits are locked in at 72 months. Currently, if a worker's condition deteriorates
significantly, the legislation does not permit a review of the worker's situation more than 72 months after the date
of injury. This change would affect about 750 individuals annually.
• Another proposed amendment would require that earnings be based on what a worker would likely earn from suitable
as well as available employment, rather than the current more restrictive standard.
• The government proposes to raise the threshold below which a lump-sum instead of a monthly retirement benefit
payment is made, from $1,166.41 to $3,000. A threshold of $1,145.63 was established in the legislation in 1997 and has
been partially adjusted to inflation to the current level of $1,166.41.
A 2004 independent audit of the WSIB by Grant Thornton LLP recommended an increase in the size of the board of
directors to enhance its effectiveness. Acting on this recommendation, the government proposes to add up to four
more directors to the board.
If approved by the legislature, the implementation date for the amendments proposed above, with the exception of
the increase in board size, is July 1, 2007. The amendment relating to the board of directors would take effect
on the date it is proclaimed.
The Office of the Worker Adviser (OWA), an independent agency of the government, helps non-unionized injured
workers deal with the many complexities and levels of appeal in the workers' compensation system. The government
is increasing funding to OWA by $1.4 million in 2007-08 to improve and expand its services. This amount would be
fully recoverable from the WSIB.
Employment Standards Program
The government is committed to protecting the legislated employment rights of Ontario's most vulnerable workers
by dealing with the backlog of claims they have filed under the Employment Standards Act. This Budget provides
an additional $3.6 million annually to address the backlog of uninvestigated complaints. The result will be
improved frontline service and shorter claims-resolution times.
Legal Aid Ontario
A strong, accessible legal system is a cornerstone of Ontario's justice system. To help ensure that all Ontarians
have access to the province's legal system, the government would provide an additional $51 million over three
years, starting in 2007-08, to Legal Aid Ontario (LAO), the independent agency that administers the Province's
legal aid program. The agency issues certificates to clients who meet financial eligibility requirements,
enabling them to retain private counsel to represent them in court.
The new funding would:
• Enhance vulnerable Ontarians' access to family law services. Without such funding, women, including victims of
domestic violence, may have to go through the court system without a lawyer in complex proceedings involving child
support, custody and access cases. Additional funding would also ensure that more people could receive legal assistance.
• Increase the hourly legal aid tariff rate (the hourly rate paid to lawyers who do legal aid work), helping to
ensure that more lawyers are available to accept legal aid cases. Rates were last increased by five per cent in 2003.
The legal aid tariff rate would increase by five per cent to about $94.50 per hour.
• Ensure that LAO has the funds to assist low-income Ontarians, including families and children, with access to
frontline family law services.
Developmental Services
The government is enhancing services and supports for people with developmental disabilities and their families
in communities across Ontario. The developmental services program helps adults with developmental disabilities
live, work and participate in a wide range of activities within their communities.
The government will invest more than $200 million in additional operating funding over four years to strengthen
capacity in the developmental services sector. This funding will help agencies sustain and enhance residential
and community services, and increase supports to families caring for family members with a developmental
disability at home. In addition, this Budget is announcing $7 million in new capital funding for developmental
services community agencies. With this new funding, the government will have invested more than $500 million in
developmental services since 2003.
Investments to Improve Social Infrastructure
This Budget is announcing $48 million in 2006-07 to support social and community infrastructure improvements,
increasing the capacity of the social sector to provide quality services. The funding will support hospices,
centres that assist new Canadians, community recreation centres, and social service agencies, including
developmental services facilities. See Section G: Investing in Ontario's Infrastructure.
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Improving the Social Infrastructure
• $10 million for hospices
• $5 million for community citizenship centres
• $15 million for community recreation centres
• $18 million for vulnerable populations,
including developmental services.
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Social Innovation Generation
A prosperous economy and society depends on great ideas being turned into great outcomes in both the private and
social sectors of the economy. The government is investing $6 million over four years to support the creation of
Social Innovation Generation based at MaRS (SIG@MaRS). SIG@MaRS will allow people with ideas to improve or offer
community services to access mentors and programs that will help turn their ideas into positive outcomes for
society. SIG@MaRS is part of a larger collaboration involving MaRS, the J.W. McConnell Family Foundation and the
University of Waterloo.
Section B: A Fair Property Tax System
Overview
Ontario residential and business property owners need property taxes that are fair and predictable. Homeowners
need to know they will not experience sudden or unmanageable tax changes from year to year and business property
owners need a system that treats them fairly and does not hamper competitiveness.
The McGuinty government is committed to an improved property tax system that is fair, transparent, predictable
and sustainable.
This Budget proposes a number of measures to enhance the fairness and predictability of the current property tax
system, including:
• cutting high Business Education Tax (BET) rates
• changes to the assessment system to introduce a four-year reassessment cycle and a mandatory
phase-in of assessment increases
• improvements to the fairness and effectiveness of the assessment appeal system.
This Budget also proposes to end Greater Toronto Area (GTA) pooling.
Introduction
Property tax contributes to the funding of key programs and services for residents and businesses across Ontario.
It is a primary source of revenue for municipalities and school boards.
There are two components to property tax:
• a municipal portion (based on tax rates set by municipalities)
• a provincial education portion (based on tax rates set by the Province).
Property taxes raise more than $19 billion per year in Ontario. The municipal portion of the tax raises
approximately $13 billion and the education portion approximately $6 billion.
Municipalities are responsible for the administration of the system, including the establishment of local tax
policies (within a Provincial framework), billing and collection.
The Municipal Property Assessment Corporation (MPAC) is responsible for the administration of the property
assessment system (within a Provincial framework), including the establishment of assessed values for all
properties in the province. It is a not-for-profit corporation that delivers assessment services on behalf of all
municipalities in Ontario.
The government has heard concerns from both residential and business property owners about different aspects of
the property tax system.
The key concerns expressed by business property owners relate to fairness and competitiveness. In particular,
businesses are concerned about the high level of taxes as well as the wide variation in BET rates across the
province.
Residential property owners are concerned about stability and predictability. In particular, residents want to
know that they will not experience sudden or unmanageable tax changes from year to year. Residents have also
expressed concern about fairness in the assessment appeal process.
Cutting Business Education Property Taxes
This Budget announces a plan to significantly reduce the wide variation in BET rates. Under the government's
plan, the Province will implement a $540 million cut to high BET rates over the next seven years. This will
reduce BET rates in 321 municipalities across the province and benefit more than 500,000 businesses of all sizes.
This initiative is a key element in the government's overall strategy to enhance Ontario's investment climate and
builds on the proposal in this Budget to accelerate the elimination of the capital tax to July 1, 2010. The BET
reductions will improve the competitive position of Ontario businesses, create new jobs and strengthen the
provincial economy.
Business education property taxes currently contribute $3.5 billion in funding to support elementary and
secondary education in Ontario. The Province's direct transfers to school boards are being increased to ensure
that BET cuts will not affect planned increases in overall education funding. See Section C: Expanding
Opportunities for Students, for further details on education funding.
The Economic Benefits of Reducing High BET Rates
Education taxes typically make up about 50 per cent of total property taxes levied on business properties.
When the Province first assumed responsibility for setting education tax rates in 1998, several hundred different
BET rates were established across the province. These rates were set for commercial and industrial property
classes in each upper- and single-tier municipality, based on existing 1997 education tax levels.
As a result, there is currently a wide range of BET rates that reflect historical assessment and tax inequities.
In fact, the highest BET rates in the province are currently four times the provincial average BET rate of 1.85
per cent.
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"The taxation of business properties in Ontario, with rare
exceptions, is grossly unfair… Within the business property
tax envelope, education property taxes are by far the greater
offender…."
Canadian Federation of Independent Business, October 2006
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Business representatives, including the Ontario Chamber of Commerce and Canadian Federation of Independent
Business, have criticized high BET rates as being unfair and as being a barrier to economic competitiveness. The
variation in rates distorts efficient business location decisions - placing many regions of the province at a
disadvantage and harming the provincial economy overall.
Cutting high BET rates will result in economic benefits to Ontario in terms of increased jobs, investment,
productivity and output. The economic benefits of this initiative will be widespread. In fact, businesses in
northern Ontario will be the largest beneficiaries of the BET cuts, with an average percentage decrease of 32 per
cent.
Details of Proposed $540 Million BET Cut
Over the next seven years, the government will cut Business Education Taxes by $540 million - lowering high BET
rates to a target maximum rate of 1.60 per cent. This new maximum rate is well below the current average BET rate
of 1.85 per cent.
BET rates that are currently below 1.60 per cent will not be increased under this plan.
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BET Annual Ceiling Rates Table 2
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Annual Estimated
Annual Commercial Industrial Business Tax
Year Ceiling Rate (%) Ceiling Rate (%) Cut ($ Millions)
- ----------------- ------------------ ----------------- -----------------
- ----------------- ------------------ ----------------- -----------------
2008 2.50 3.00 15
2009 2.35 2.75 35
2010 2.20 2.50 65
2011 2.05 2.25 105
2012 1.90 2.00 180
2013 1.75 1.75 350
2014 1.60 1.60 540
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Note: BET rates may need to be recalculated in 2009 and future years
to adjust for the impact of reassessment-related changes. Annual
ceiling and target maximum rates may also need to be managed to
account for these changes.
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Starting in 2008, the government will introduce an initial annual ceiling rate of 2.50 per cent for commercial
properties and 3.00 per cent for industrial properties. Each year, these annual ceiling rates will be reduced
until they reach the target maximum BET rate of 1.60 per cent on January 1, 2014.
All businesses with BET rates above the 1.60 per cent target maximum rate will benefit from tax rate reductions
each year - even those that are below the annual ceiling rates. Each year, BET rates that are below the annual
ceiling rate will be reduced by two per cent of the amount by which they exceed 1.60 per cent.
In addition, all new construction initiated after March 22, 2007, will immediately be subject to the 1.60 per
cent maximum BET rate. This measure will maximize the economic benefits of the initiative in terms of stimulating
new investment. It will also serve to immediately establish a more level playing field for businesses facing
decisions about where to build new manufacturing facilities or other business complexes.
Province-Wide Benefits of BET Cuts
Table 3 provides the projected BET cuts for commercial and industrial properties in each region of the province
and illustrates that the benefits will be broadly distributed. In fact, more than 50 per cent of the total $540
million reduction will benefit businesses outside the Greater Toronto Area (GTA).
The projected cuts are shown for 2014 when the planned BET cuts will be fully implemented.
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Business Education Property Tax Cuts Table 3
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Region Municipality Fully Implemented
(counts reflect lower- and Projected 2014 Projected 2014
single-tier municipalities) Property Class Tax Cut ($) Tax Cut (%)
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NORTH:
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Thunder Bay Industrial 5,499,000 55
Commercial 8,491,000 38
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Sault Ste. Marie Industrial 2,303,000 46
Commercial 2,451,000 23
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Timmins Industrial 2,104,000 46
Commercial 738,000 15
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Greater Sudbury Industrial 3,930,000 43
Commercial 4,402,000 19
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North Bay Industrial 177,000 14
Commercial 2,967,000 30
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North Region Industrial 6,571,000 42
80 Other Benefiting Municipalities Commercial 4,882,000 25
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EAST:
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Cornwall Industrial 1,035,000 46
Commercial 3,329,000 34
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Kingston Industrial 1,228,000 40
Commercial 4,610,000 19
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Belleville Industrial 700,000 33
Commercial 3,359,000 25
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Brockville Industrial 384,000 30
Commercial 1,565,000 29
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Ottawa Industrial 7,884,000 26
Commercial 25,753,000 12
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East Region Industrial 6,427,000 43
63 Other Benefiting Municipalities Commercial 4,894,000 13
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CENTRAL:
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Guelph Industrial 4,995,000 39
Commercial 3,417,000 17
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Waterloo Region Industrial 16,371,000 39
Commercial 19,586,000 22
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Toronto Industrial 26,428,000 22
Commercial 205,069,000 19
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Hamilton Industrial 1,690,000 10
Commercial 6,978,000 10
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Peel Region Industrial 12,096,000 10
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Central Region Industrial 38,649,000 18
86 Other Benefiting Municipalities Commercial 8,345,000 17
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SOUTHWEST:
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Oxford County Industrial 5,036,000 45
Commercial 3,002,000 22
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Lambton County Industrial 4,432,000 45
Commercial 2,877,000 16
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Windsor Industrial 9,719,000 45
Commercial 4,740,000 11
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London Industrial 5,657,000 44
Commercial 28,012,000 34
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Essex County Industrial 5,445,000 36
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Southwest Region Industrial 10,891,000 41
41 Other Benefiting Municipalities Commercial 7,570,000 17
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OTHER RURAL MUNICIPALITIES:
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Northumberland County Industrial 1,897,000 52
Commercial 1,647,000 19
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Elgin County Industrial 1,722,000 50
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Lennox and Addington County Industrial 1,254,000 49
Commercial 492,000 17
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Stormont, Dundas and Glengarry Industrial 765,000 45
County Commercial 1,023,000 21
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Renfrew County Industrial 967,000 45
Commercial 694,000 11
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Chatham-Kent Industrial 2,475,000 44
Commercial 2,400,000 18
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Grey County Industrial 1,158,000 40
Commercial 1,528,000 14
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Norfolk Industrial 642,000 39
Commercial 975,000 17
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OTHER RURAL MUNICIPALITIES: (cont'd)
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Haldimand Industrial 1,613,000 38
Commercial 384,000 12
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Simcoe County Industrial 3,996,000 35
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Rural Municipalities Industrial 31,087,000 39
173 Other Benefiting MunicipalitiesCommercial 13,143,000 16
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Note: Projections are based on 2007 BET rates and 2005 current value assessments. These rates may need to be
adjusted to account for the impacts of reassessment-related changes. Therefore, once the initiative is fully
implemented, actual cuts may vary somewhat from these projections. Rural municipalities are also included in the
appropriate regional section of the table. For example, the Counties of Oxford, Lambton and Essex appear as part
of both the Southwest region and the Rural summaries.
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Ending GTA Pooling
The government is announcing a plan to phase out GTA pooling over seven years beginning in 2007.
Greater Toronto Area pooling was established under the previous government in 1998 to share social assistance and
social housing costs across the GTA. The program results in a transfer of approximately $200 million in assistance,
primarily to the City of Toronto. However, this transfer places an additional burden on the municipal property tax
bases of contributing municipalities, including York Region, Peel Region and Halton Region.
For 2007, GTA pooling contributions will be rolled back to 2004 levels. Each subsequent year, costs will be reduced
by one-sixth of the 2004 levels, until the program is fully eliminated in 2013.
The government will also make provisions to ensure continued financial support for those municipalities currently
receiving assistance through GTA pooling. For example, any increases in the City of Toronto's social program
costs resulting from the elimination of GTA pooling will be eligible for provincial assistance through the
Ontario Municipal Partnership Fund.
Therefore, as GTA pooling is phased out, the Province will take responsibility for social assistance and social
housing costs currently funded under the program. This will eliminate a $200 million burden from the municipal
property tax bases of contributing GTA municipalities while ensuring continued financial assistance for recipient
municipalities.
Fair and Predictable Property Taxes
Property tax is based on the current market value of properties. This system of valuation is referred to
as current value assessment (CVA). Assessments based on market values are used widely across North America as the
basis for property taxation. Assessments based on current value provide clarity and transparency and establish an
equitable basis for distributing property taxes among property owners.
When the CVA system was introduced in Ontario in 1998, annual reassessments were planned to keep values up to
date to ensure that properties of equal value in the same community pay equal taxes. However, annual
reassessments can come at the cost of predictability and stability for many taxpayers in an active real estate
market when property values change rapidly and unpredictably from one year to the next. In recent years, there
have been rapid changes in property values, which have led to concerns about volatile property tax changes for
many homeowners. The government understands that the lack of certainty surrounding reassessment is a source of
worry for Ontario families.
There are a variety of tax policy mechanisms available to municipalities to help make assessment changes
manageable for property owners. For example:
• municipalities can reduce their tax rates to offset the average impact of reassessment
• the government has provided municipalities with the flexibility to avoid reassessment-related tax shifts between
property classes, easing the property tax burden on residential taxpayers
• municipalities are required to offer relief from reassessment-related tax increases to low-income senior and
disabled homeowners.
In addition, the Province provides property tax relief for low- and moderate-income individuals and families
through the refundable Ontario Property and Sales Tax Credits. These credits are delivered annually through the
personal income tax system. In 2007, this program is expected to provide an estimated $740 million in property
tax relief to Ontarians who own or rent their principal residences. This relief includes the impact of the
enhancement to the Ontario Property and Sales Tax Credits for senior couples proposed in this Budget. In 2007,
eligible seniors would benefit from an estimated $97 million in property tax relief as a result of improvements
to these credits since 2003. See Section A: Expanding Opportunities for Children and Families for more
information.
The government proposes to introduce three important changes to the assessment system to enhance the fairness and
predictability of assessments for property owners while continuing to revalue properties on a regular basis and
enabling municipalities to continue relying upon a stable source of revenue to fund important public services.
These proposed changes are:
• a four-year reassessment cycle
• a mandatory phase-in of assessment increases
• enhancements to the fairness and effectiveness of the assessment appeal system.
The implementation details of these proposed measures, as well as related programs and policies, will be the
subject of consultation with municipalities, the Municipal Property Assessment Corporation (MPAC), and the
Assessment Review Board (ARB).
Timing of Reassessments - A Four-Year Cycle
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A four-year cycle of reassessments, together with the
proposed mandatory phase-in program, would:
• provide stability and predictability to taxpayers
• help maintain equity between properties (updating
assessments with sufficient frequency so that similar
properties with similar values pay similar taxes)
• facilitate accurate, efficient and cost-effective
administration of the assessment system.
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The next reassessment is currently scheduled to take place for the 2009 taxation year, based on property values
as of January 1, 2008.
For the future, the government is proposing that subsequent reassessments would be conducted every four years,
coupled with the implementation of a mandatory phase-in program.
The timing of the four-year reassessment cycle would operate as follows:
• Upon the next reassessment for the 2009 taxation year, property assessments will be updated using a valuation
date of January 1, 2008. This valuation date would apply for 2009, 2010, 2011 and 2012.
• The cycle would continue accordingly every four years.
Mandatory Phase-in of Residential Assessment Increases
To provide an additional level of property tax stability and predictability for Ontario homeowners, the
government proposes to introduce a mandatory phase-in of future residential assessment increases over four
years.
The proposed four-year phase-in program would be implemented province-wide in 2009, following the next
reassessment. This approach would complement the proposed introduction of a four-year assessment cycle.
While assessment increases do not necessarily lead to tax increases, the proposed phase-in would provide
homeowners with greater certainty by introducing increases gradually over a four-year period. For example, a 20
per cent assessment increase would be phased in gradually in increments of five per cent a year over four years.
Even under a mandatory assessment phase-in, municipalities could continue to lower their tax rates to offset
average assessment increases, so that, on average, homeowners would not see an increase in their property tax
bills as a result of reassessment.
The phase-in program would apply to residential, farm and managed forest properties. The program would not apply
to assessment decreases. This avoids the possibility of a homeowner being taxed on an assessment greater than the
actual value of their property.
The government intends to consult with municipalities and MPAC as to whether the proposed mandatory phase-in
program should be expanded to other property classes, such as commercial, industrial or multi-residential.
Assessment Appeal System
The government has heard concerns from property owners and municipalities about the structure of the assessment
appeal system.
Currently, property owners who disagree with the accuracy of the assessment or tax classification that MPAC has
established for their property have two options: they can ask MPAC to reconsider their assessment through an
informal process known as the "request for reconsideration" or they can file an appeal with the ARB.
The deadline to submit requests for reconsideration to MPAC is December 31 of the taxation year. The deadline to
submit appeals to the ARB is March 31 of the taxation year (nine months earlier than the reconsideration
deadline). The Municipal Property Assessment Corporation is not obligated to respond to reconsideration requests
prior to the ARB's appeal deadline, leading many people to file protective appeals with the ARB that are held in
abeyance pending a response from MPAC on the reconsideration. The current appeal process often leads to
confusion, duplication of effort, and inefficient use of resources.
Another concern about the appeal process relates to the flow of information between MPAC and property owners.
There are no clear or consistent rules in place governing the sharing of information upon requests for
reconsideration or appeals. Due to this lack of clarity, the various participants in the appeal process do not
know what information they should be requesting from, or disclosing to, the other parties. This exacerbates the
confusion and frustration that many people experience when challenging their assessments.
In examining these concerns, the government has sought input from various stakeholders, researched the appeal
processes in other jurisdictions, and carefully considered the advice about the appeal system expressed by
Ontario's Ombudsman in a report dated March 28, 2006.
The government is proposing to introduce the following measures to improve the fairness and effectiveness of the
assessment appeal system:
• convert the optional request for reconsideration program into the mandatory first stage of the assessment appeal
process
• change the deadline for filing ARB appeals so that it follows the completion of the reconsideration process
• establish standard information disclosure requirements at both the reconsideration and appeal stages.
Establishing a two-stage appeal process with sequential filing deadlines and standardized information disclosure
protocols should:
• simplify the appeal process as only one avenue of review would be pursued at any time
• ensure that the reconsideration process is used effectively as a venue for the exchange of information
• reduce the number of appeals by resolving factual issues through the sharing of information at the
reconsideration stage
• provide parties with access to consistent information within consistent timelines.
The government proposes to implement these measures to dovetail with the timing of the next reassessment for the
2009 taxation year.
The government intends to consult with municipalities, the ARB and MPAC regarding the implementation of the
measures outlined above, as well as other improvements to enhance flexibility and transparency in the property
tax system.
Section C: Expanding Opportunities for Students
Overview
To compete effectively in the global marketplace, Ontarians must be among the best-educated, most highly skilled,
productive and innovative people in the world. The McGuinty government is committed to expanding opportunities
for all students - reaching every student from the early grades through to graduate school.
[Chart 5: Investments Since 2003-04]
Since taking office, the government has made significant investments to help ensure that children in the
all-important early grades can read, write and do math; that teenagers stay in school and are provided with the
resources to graduate; and that postsecondary students have improved access to quality education.
To build on the government's progress to date, this Budget is increasing Grants for Student Needs funding (for
kindergarten to Grade 12) by $781 million in the 2007-08 school year to a total of $18.3 billion - up more than
17 per cent from 2003-04.
Under the Reaching Higher plan, the Province is investing a cumulative $6.2 billion in the postsecondary
education sector by 2009-10. In this Budget, the government is announcing an additional $390 million for
postsecondary education to help with infrastructure improvements and rising enrolment.
When the McGuinty government came to office in 2003, primary school students were in overcrowded classrooms; only
54 per cent of Grade 3 and Grade 6 students met the provincial standards in reading and math; just 68 per cent of
high school students were graduating; school buildings were in need of repair; and colleges, universities and
apprenticeship programs were suffering from long-term neglect.
[Chart 6: 2007-08 Program Expense. The government spends 22 cents of every dollar on elementary, secondary and postsecondary
education.]
The government's plan is working:
• Test scores are up - almost two-thirds of Grade 3 and Grade 6 students now meet or exceed the provincial
standards in reading, writing and math.
• Class sizes are down - 65 per cent of primary classes have 20 students or fewer and 93 per cent have 23 students
or fewer.
• The high school graduation rate has risen to 73 per cent.
• There is labour peace and stability in our schools.
• Under the Good Places to Learn program, almost 6,800 school building improvement projects have been completed or
are underway.
The Reaching Higher plan for postsecondary education is making positive change by improving quality, access and
accountability. Accomplishments under Reaching Higher so far include the following:
• There are 86,000 more full-time students enrolled in postsecondary education.
• 145,000 students are benefiting in 2006-07 from enhancements to student aid.
• Graduate school spaces will increase by 12,000 by 2007-08.
• After two years of tuition freezes, tuition increases have been capped at an average of five per cent, or $100
for 90 per cent of college students and $200 for 70 per cent of university students.
Investments to Support Higher Student Achievement
The government understands that in today's globally competitive economy, high-quality public education is
essential to Ontario's prosperity. Since taking office in 2003, the government has been dedicated to building
a strong, stable and vibrant publicly funded education system that gives Ontario's students the opportunity to
develop into the best-educated, most highly skilled workforce.
Funded through a combination of education property tax revenues and direct transfers from the Province, annual
funding to school boards for elementary and secondary education is determined through the Grants for Student
Needs (GSN) funding formula.
[Chart 7: Grants For Student Needs (School Year)]
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Grants for Student Needs Table 4
Funding per Student
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School Year Funding per Student
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2003-04 $7,920
2004-05 $8,249
2005-06 $8,623
2006-07 $8,970
2007-08 $9,432(1)
2008-09 $9,669(1)
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(1) Based on projected student enrolment.
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Before 2003, funding for public education was limited, forcing school boards to make some very difficult choices
among competing priorities. The government established a plan for student success that provided predictable
multi-year funding, ensuring that school boards have sufficient resources to lower class sizes, hire more
teachers, meet rising operating costs, maintain school facilities, provide up-to-date textbooks and reach out to
more at-risk students. The government's plan also established a working partnership with public education
providers by bringing labour stability to public education in the province. The number of student days lost to
labour unrest has decreased 95 per cent during the tenure of the government.
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Investments for Higher Student Achievement
• GSN funding to school boards in the 2007-08 school year
will increase by $2.7 billion, from 2003-04, to $18.3 billion
• Average per-student funding will increase by $1,749, or
22 per cent by 2008-09, from $7,920 in 2003-04 to $9,669 in
2008-09
• French-language boards will receive more than $1 billion
in 2007-08, an increase of $73.5 million or 7.2 per cent
from 2006-07
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In the 2007-08 school year, the government will continue making substantial investments in education by providing
$18.3 billion, an increase of $781 million from last year, or more than 17 per cent, compared to 2003-04. By
2008-09, GSN funding will rise to $18.6 billion, an increase of $3.0 billion in new funding compared to 2003-04
levels. Average per-student funding will increase to an estimated $9,669 by 2008-09, up $1,749 or 22 per cent
from 2003-04.
These planned increases in GSN funding will not be affected by the government's plan to cut high Business
Education Tax (BET) rates. The Province's direct transfers to school boards are being increased to offset the
decrease in BET revenues.
Foundations for a Better Future
To ensure that Ontario's 1.25 million primary and junior school students have the opportunity to reach their full
potential, the government introduced its Literacy and Numeracy Strategy. Announced in 2005, this program is based
on several premises - the most important of which is that every child in the province should be able to read,
write, do math and comprehend at a high level by age 12. Key to achieving this goal is to ensure that every child
comes to school ready to learn. See Section A: Expanding Opportunities for Children and Families for more
information on support for children and youth.
Improved Literacy and Numeracy
More than ever, the ability to function, contribute and prosper in society requires a sound education, which
begins with solid literacy and numeracy skills. Individuals who are more literate and numerate are more likely to
have better jobs, have higher productivity and earnings, and be less vulnerable to long-term unemployment.
The government recognizes that every child learns differently and that schools need specialized resources to help
each student reach his or her full potential. To ensure that every child has the opportunity to succeed, the
government is investing $28 million in 2007-08 for elementary specialist teachers - bringing the total to an
additional 1,900 teachers over the last three years. These teachers focus on such key areas as literacy and
numeracy, music, the arts and physical education - giving elementary-school teachers more time to prepare
materials for the classroom, correct assignments and connect with parents.
Building on its commitment to provide Ontario schools with proven tools and resources that help children excel in
reading, writing and math, the government has implemented the Ontario Focused Intervention Partnership (OFIP).
Working collaboratively with school boards, OFIP targets elementary schools where at least two-thirds of students
have achieved below the provincial standard on Education Quality and Accountability Office (EQAO) tests over the
past three years. A team of dedicated curriculum specialists and instructional leaders goes to these schools to
provide hands-on support for school and board staff to improve student achievement. The government has invested
approximately $25 million to support the OFIP initiative.
[Chart 8: Percentage of Grade 3 and Grade 6 Students in Ontario Achieving Provincial Standards (School-Year Basis)]
Since implementing these strategies, which ensure that students receive the specialized and individual help they
need, students' scores on EQAO tests have improved significantly for the third consecutive year. Province-wide
test scores, which are available on EQAO's website (www.EQAO.com), show that in the 2005-06 school year,
64 per cent of Ontario Grade 3 and Grade 6 students have met or exceeded provincial standards in reading, writing
and math - up from 54 per cent in 2002-03. The achievements of Ontario's students demonstrate that the
government's targeted investments and strategies are working.
Reduced Primary Class Sizes
A key way to reach every student is reducing class sizes in the early primary grades (kindergarten to Grade 3).
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Class Sizes Are Down
Reducing class sizes improves achievement among Ontario's
youngest students by allowing more individual attention. To
reduce the size of primary classes, the government has:
• provided funds to hire approximately 1,200 new
elementary-school teachers this school year - which makes 4,800
more elementary-school teachers since October 2003
• provided funds to support over $700 million in capital projects
to date in order to support the reduction in primary class size
• reduced primary class sizes to 20 students or fewer in the
2006-07 school year for 65 per cent of classes across the province,
compared to 31 per cent in 2003-04.
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Since October 2003, the government has given school boards the necessary funding to add 4,800 elementary-school
teachers by the 2007-08 school year, resulting in smaller primary class sizes in all of Ontario's 4,000
elementary schools. According to the most recent data available, 65 per cent of primary classes in 2006-07 had
20 students or fewer - compared to 31 per cent in 2003-04. Ninety-three per cent of all primary classes have 23
students or fewer.
Smaller classes mean Ontario's primary students receive more individual attention, which is critical to improving
reading, writing and math skills. Students who do well in the early grades are far more likely to complete high
school and keep learning in a college, university, apprenticeship or training program.
Student Success Strategy/Learning to 18
To ensure that Ontario can respond to the challenges of today's knowledge-based economy, the government has made
investments and implemented programs in Ontario's high schools that address the individual learning styles and
career interests of all students. By meeting these needs, the government is giving its future workforce the
competitive advantage it needs to succeed.
Engaged and Targeted Curriculum
In 2004, the government announced the $1.3 billion multi-year Student Success Strategy to improve high school
graduation rates, reduce student dropouts and increase the number of students who pursue further education. The
strategy provides new ways for high school students to gain credits for graduation, and more learning
opportunities that address the individual learning style and career interests of all students.
As part of the Student Success Strategy, the government has introduced many innovative programs to Ontario's high
school curriculum that allow students to focus on career paths that match their skills and interests. Students
can earn credits by participating in apprenticeship training and postsecondary courses; access co-op placements
with strong links to classroom subject areas; and receive increased support, extra guidance and unique learning
opportunities. This comprehensive strategy has provided funding for 1,900 new high school teachers over the last
three years to support Student Success Strategy initiatives and provide every high school with a Student Success
Teacher to ensure that struggling students have access to the support they need. Results show that since the
implementation of the strategy in Ontario's high schools, student achievement is on the rise.
• The pass rate on the Grade 10 literacy test has increased from 72 per cent in 2002-03 to 84 per cent in 2005-06
for English-language students.
• In 2004-05, 93,000 credits were earned through co-op programs, which represents a 22 per cent increase over the
76,200 co-op credits earned in 2003-04.
• In 2005-06, 12,000 students participated in innovative local Student Success Strategy Lighthouse projects and
achieved 21,000 of the 27,000 credits attempted, representing a success rate of over 75 per cent.
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Transforming High Schools in Ontario
At the heart of the Student Success Strategy are six innovative programs that give Ontario high school students
more ways to accumulate credits to graduate:
• Student success teams - every student now has access to a dedicated team that includes a principal, a
Student Success Teacher and a guidance counsellor, who provide extra attention and support when needed.
• Specialist high skills major - this program lets students bundle six to 12 courses in a selected field, such as
hospitality and tourism or construction, to prepare for specific academic or skilled careers.
• Expanded co-op credit - students can earn two compulsory high school credits towards their core 18 credits through
hands-on work experience.
• Dual credit program - students can earn credits and put them towards their high school diploma and postsecondary
diploma, degree or apprenticeship certification.
• Lighthouse projects - these innovative local programs help students stay in school by providing guidance, support and
alternative learning environments.
• Grades 8-9 transition - Grade 8 and Grade 9 students have a higher risk of dropping out during the difficult transition
from elementary school to high school. This initiative includes more teachers, intensive professional development, and
improved tracking of struggling students and their progress.
-----------------------------------------------------------------------------------------------------------------
Increased High School Graduation Rates
Ontario's dropout rate is starting to decline, thanks to the government's aggressive plan to help students reach
their full potential. In 2003-04, the portion of students graduating from high school was an unacceptable 68 per cent.
The Student Success Strategy is reversing this dropout trend and helping more students build a better future for
themselves as shown by the increase in the 2005-06 graduation rate to 73 per cent. The government has set a graduation
target of 85 per cent by 2010-11 and Ontario's high schools are on track to meet this target, which will result in over
90,000 additional graduates between 2006-07 and 2010-11.
- ---------------------------------------------------------------
Targeted Investments in 2007
The government is taking specific steps for elementary and
secondary students to address issues that are important to
Ontarians:
• improving service provision in schools for students
with autism spectrum disorders
• investing $4.5 million to train almost 25,000
teachers and $1.2 million to train vice-principals and
principals to address bullying
• launching the Aboriginal Education Strategy and
investing $13 million to improve achievement by First
Nations, Inuit and Métis, students
• boosting funding for French as a Second Language as
part of the Canada-Ontario Official Languages in
Education agreement
• providing more than $4 million for school boards to
buy arts materials and musical instruments.
- ---------------------------------------------------------------
The Learning to Age 18 Act, which raises the compulsory school age to 18, was enacted in order to increase
graduation rates. The legislation will broaden the range of education opportunities to meet student needs and
interests, encouraging more students to keep learning in a classroom or pursue apprenticeship or workplace
training programs until they reach age 18 or graduate. Introduced in the 2006-07 school year, this legislation
includes new measures to foster partnerships among high schools, the community and postsecondary programs to help
students achieve success. This means more high school graduates will be well equipped to find success in the
labour market.
Better Schools for Better Learning
Good Places to Learn
By keeping Ontario's schools in good repair, the Ontario Government is fostering student success and helping all
children reach their full potential. In 2004 the government introduced the Good Places to Learn (GPL) initiative
- a school renewal program to help fund $4 billion of much-needed repairs, renovations and new school
construction across the province. See Section G: Investing in Ontario's Infrastructure for more information.
This program has significantly improved the condition of schools by responding to the most pressing needs
identified in an independent province-wide school-by-school facility review. This review made it clear that the
state of Ontario's school buildings was getting in the way of the instruction being delivered within them. This
initiative includes improvements to roofs, electrical and plumbing systems, technology workshops and labs,
heating and cooling systems, libraries and gyms.
Investments in the Good Places to Learn program are supporting critical repair and renewal projects in schools
across Ontario. Currently, almost 6,800 projects supported by GPL renewal funding have been completed or are
underway in schools across the province.
Textbook and Learning Resources
The Ontario Government has taken action to ensure that students have the resources they need to enhance their
achievements and enrich their learning experience. By providing such learning tools as new textbooks, magazines,
computer software and multimedia resources (such as CD-ROMs and DVDs), and library materials, the government is
giving students what they need to succeed. In addition to annual funding provided through the GSN, the Province
is providing over $50 million to schools for textbooks and learning resources. The government is also enhancing
and expanding online teaching resources, which provide students with web-based video assistance and online
support such as tutoring and course tips. This investment is part of the government's commitment to improving
literacy and numeracy achievement while also providing the learning resources that Ontario's students need to
reach their full potential.
Reaching Higher in Postsecondary Education
Ontario's progress depends on the skills and knowledge of its people. Ontario will be at its best and be prepared
to compete for higher-value jobs only when every Ontarian has the opportunity to achieve his or her full
potential.
The province's colleges and universities play a critical role in equipping people for success and preparing them
to generate the necessary ideas, products and jobs that will ensure future prosperity - the prosperity that funds
social progress and maintains a high standard of living.
The 2005 Ontario Budget announced Reaching Higher, the government's historic multi-year $6.2 billion investment
in postsecondary education by 2009-10.
The goals of Reaching Higher are:
• access - enhanced student financial assistance, increased enrolment and expanded opportunities for francophones
as well as Aboriginal Peoples, new Canadians, persons with disabilities and "first-generation" students whose parents
did not receive postsecondary education
• quality - achieving the highest standards in teaching, research and student learning experience, resulting in the
skills and innovation that support economic growth
• accountability - improved accountability and performance through defined targets and measures.
The government's education agenda also extends to training and lifelong learning. For additional information, see
Section F: Expanding Opportunities for Economic Growth.
Investing in Postsecondary Education
[Chart 9: Combined Operating Grants to Colleges and Universities]
By 2009-10, Ontario will provide $6.2 billion in new cumulative investments for postsecondary education and
training through the Reaching Higher plan.
Total base operating grants to colleges and universities will rise to $4.0 billion in 2007-08 and grow to
$4.2 billion by 2009-10, resulting in better learning environments.
Graduate education will also continue to grow, supported by $170 million in additional funding by 2007-08, rising
to $220 million annually by 2009-10. This will result in 14,000 new graduate spaces by 2009-10.
New Investments in Postsecondary Education
In this Budget, the government is announcing an additional $390 million in support for quality improvements in
higher education, including funding that could be used for investments in university and college infrastructure
and equipment. This time-limited federal funding supplements the Province's significant ongoing investments
through Reaching Higher which have been undertaken while awaiting a full and effective partnership with the
federal government.
This additional funding includes $210 million for universities to alleviate immediate cost pressures. It also
includes $105 million for college facilities renewal, including existing building maintenance costs, $15 million
in university capital projects and $35 million for college capital projects. This additional funding also
includes $25 million to support upgraded and new equipment in union-employer training centres, to meet the skills
training and apprenticeship needs of the economy. It will allow the centres to keep pace with changing
technological requirements, encourage collaboration and leverage additional training resources from industry
partners.
Solid Progress in Student Assistance
[Chart 10: Improvements in Student Assistance Under the McGuinty Government]
One of Reaching Higher's achievements has been improved access to postsecondary education through enhanced
student financial aid. The government has made substantive changes over the past three years to grant and loan
provisions, benefiting 145,000 students this year. In 2006-07, nearly 60,000 students have taken advantage of new
upfront grants re-introduced in the 2005 Ontario Budget. In 2007-08, the government will provide more than
$580 million to students through the Ontario Student Assistance Program (OSAP).
The government is also working with colleges and universities to establish a new Student Access Guarantee to
ensure no qualified Ontario student is prevented from studying due to a lack of financial support. As part of
this initiative, access will be further strengthened through the recent addition of an Access Window website
(http://accesswindow.osap.gov.on.ca), which gives students information about the approximate cost and potential
loan and grant assistance from OSAP for their program choice.
In addition, the government will propose amendments to the Ryerson University Act, 1977 to update governance
structures at the university.
-------------------------------------------------------------------------------------------------------------------
Creating Positive Change in Postsecondary Education
Ensuring Greater Access:
• increasing full-time enrolment by 86,000 since 2002-03, a 22 per cent increase
• doubling student assistance by 2009-10, benefiting almost 200,000 students this year, up 25 per cent from 2002-03
• re-introducing upfront grants, benefiting nearly 60,000 students; and limiting student debt to $7,000 per completed
year of study
• after a two-year freeze, limiting average tuition increases to an average of five per cent annually or $100 for 90 per cent
of college students and $200 for 70 per cent of university students
• committing $55 million by 2009-10 to create more opportunities for francophones and those traditionally underrepresented,
including persons with disabilities, Aboriginal Peoples and "first-generation" students
• increasing special access funding by $20 million in 2006-07 for small, northern and rural colleges, bringing total funding
to $65 million
• increasing first-year undergraduate medical enrolment by 23 per cent by 2009-10 over 2004-05.
Improving Quality and Accountability:
• increasing operating funding by 35 per cent between 2004-05 and 2009-10 as outlined in the Reaching Higher plan, to hire
new faculty, increase student/faculty interaction, and improve student services, libraries, laboratories and equipment
• expanding graduate spaces by 12,000 by 2007-08, reaching 14,000 by 2009-10
• supporting innovative research in cutting-edge fields such as biomaterials and mining innovation
• monitoring quality through a new Higher Education Quality Council of Ontario
• establishing three-year agreements with colleges and universities to identify and measure quality improvements
• the economic stimulus package announced in the 2006 Economic Outlook and Fiscal Review includes $30 million for infrastructure
projects at 15 colleges.
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Section D: Expanding Opportunities for Better Health
Overview
Expanding opportunities for Ontarians to achieve better health is one of the McGuinty government's top priorities.
Since taking office, the government's plan to achieve better health care has focused on four key strategies: shortening
wait times for key procedures, increasing access to health professionals, promoting wellness and preventing illness, and
improving efficiency and accountability.
[Chart 11: Priority Spending in Health Sector: Spending Increases Since 2003-04]
Building on the investments made to date, this Budget proposes $37.9 billion in health sector spending in 2007-08, a
29 per cent or $8.5 billion increase from the 2003-04 level of $29.4 billion. (See Chart 11.)
In 2007-08, this Budget includes additional funding of:
• $135 million to further reduce wait times, including wait times for pediatric surgeries
• $43 million to provide full-time employment opportunities for new Ontario nursing graduates and another
$14 million for more nurses in long-term care homes, to bring the total number of nurses hired since 2003 to over 8,000
by the end of 2007-08
• $34 million to improve access to health professionals
• $143 million to improve access to emergency care
• $2.5 million for the Communities in Action Fund to encourage Ontarians to participate in sports and other
physical activity, bringing the total investment to $7.5 million annually
• $64 million in e-Health initiatives
• $7 million to expand addiction treatment programs
• approximately $20 million, growing to approximately $40 million per year, to support a new colorectal cancer
screening program for all Ontarians aged 50 and older.
These new investments build on the results achieved to date, including:
• shorter wait times and more medical procedures. For example, cataract patients are being seen 128 days sooner
than in 2005 and the government has provided about 58,000 more cataract surgeries since 2003
• better access to primary care - more than 500,000 Ontarians who did not have a family doctor now have one and 150
Family Health Teams (FHTs) are planned to be up and running by the end of 2007-08; it is anticipated that these FHTs will serve
more than 2.5 million patients
• creation of Ontario's first Ministry of Health Promotion, which, among other things, has implemented the
Smoke-Free Ontario Strategy
• preventing illness by providing free-of-charge immunizations against three childhood diseases and putting the
Ontario breast screening program on track to complete over 600,000 screens per year by 2010-11
• funding insulin pumps and related supplies for children with Type 1 diabetes as well as creating 77 new and
enhanced community diabetes education teams
• establishing 14 Local Health Integration Networks (LHINs) to work with health service providers and community
members to act on local priorities.
Achieving Better Health
[Chart 12: 2007-08 Program Expense. The government spends 46 cents of every program dollar on health]
The Ontario Government has invested significantly in transforming the sector to meet patients' needs and create
a sustainable health care system. These investments are focused on four key strategies to achieve better health:
• shortening wait times for key procedures
• increasing access to health professionals
• promoting wellness and preventing illness
• improving efficiency and accountability.
The government has made significant progress on its key priorities and will continue to make important health
investments. Spending in the health sector will be $37.9 billion in 2007-08, rising to $39.8 billion in 2008-09
and $41.5 billion in 2009-10. The following details the progress made to date on these priorities and proposed
new investments in 2007-08.
Shortening Wait Times
Ontario's Wait Time Strategy improves access to health care and reduces patient wait times in five areas: cancer
surgery, cardiac procedures, cataract surgery, hip and knee replacements, and magnetic resonance imaging and
computed tomography (MRI/CT) scans. In this Budget, the government is announcing that it plans to add pediatric
surgeries to the strategy.
- ----------------------------------------------------------------
More Procedures to Shorten Wait Times
The number of procedures has increased significantly since
2003-04:
• MRI scans: increase of 78 per cent
• hip and knee replacements: increase of 50 per cent
• cataract surgeries: increase of 39 per cent
• cardiac surgeries: increase of 27 per cent
• CT scans: increase of 15 per cent
• cancer surgeries: increase of 11 per cent
- ----------------------------------------------------------------
From 2003-04 to 2006-07, the Ontario Government invested nearly $1 billion in its Wait Time Strategy, primarily
to provide more procedures, improve surgical efficiency, and develop a comprehensive wait time information system
to track and monitor wait times. The government also invested in the creation and expansion of hospital
facilities. See Section G: Investing in Ontario's Infrastructure for further details.
Ontario's Wait Time Strategy is working. Wait times are down for all procedures included in the strategy.
Key wait times reductions since 2005:
• cataract surgeries: wait times down 128 days or 41 per cent
• knee replacements: wait times down 133 days or 30 per cent
• cancer surgeries: wait times down 13 days or 16 per cent.
With this Budget, the government's Wait Time Strategy would:
• provide approximately 11,900 hip and knee replacements, 31,900 cataract surgeries, 6,300 cancer surgeries,
151,000 MRI exams and 71,800 CT scans per year
• increase rehabilitation services to support patients who have received hip and knee replacements
• provide funding to reduce wait times for pediatric surgery; this would include more than 10,000 surgeries over
four years
• expand the Wait Time Information System to eventually capture all surgeries in hospitals currently receiving wait
times funding. Ontarians can access wait times data for the five key areas through www.ontariowaittimes.com.
Improving Access to Nurses, Doctors and Other Health Professionals
Ontarians depend on nurses, doctors and other health professionals across the province to provide care. The
government's innovative health-human-resource strategy, HealthForceOntario, helps facilitate the right mix,
supply and distribution of human resources across the province. Key components of this strategy include:
• hiring over 8,000 more nurses since 2003 - in this Budget, the government delivers on this commitment through
an additional $43 million, bringing the total to $89 million, to provide every new Ontario nursing graduate with an
opportunity for full-time employment, and an increase of $14 million for more nurses in long-term care homes
• training more doctors - first-year medical school enrolment is being increased by 23 per cent between 2004-05 and
2009-10; assessment positions for international medical graduates have more than doubled to 200 per year, up from 90 in
2002
• supporting other health professions - the government has supported a diverse range of health services by
regulating traditional Chinese medicine and proposing legislation to regulate naturopathy, homeopathy, kinesiology and
and psychotherapy
• attracting qualified health care professionals - through the HealthForceOntario Recruitment Centre and a listing
of current employment opportunities, available at www.healthforceontario.ca.
--------------------------------------------------------------------------------------------------------------------
Revitalizing the Nursing Workforce
Hiring More Nurses
• bringing the number of nurses hired since 2003 to over 8,000
• providing an additional $43 million, bringing the total to $89 million, to support full-time employment opportunities
for Ontario nursing graduates in 2007.
Creating a Better Working Environment
• increasing the share of nurses working full time from 50 per cent in 2004 to 60 per cent in 2006
• supporting late-career nurses so that new nurses benefit from their knowledge, skills and experience
• purchasing $103 million of safety equipment - such as patient lifts, electric beds and safety alarms.
Expanding Education and Training
• increasing nurse practitioner spaces from 75 in 2004 to 150 in 2006 and ongoing
• providing critical care training to 450 nurses per year
• purchasing $20 million for clinical simulation equipment.
--------------------------------------------------------------------------------------------------------------------
Improving Access to Emergency Care
Emergency departments are a critical point of access in the health care system. The government is improving
access to emergency care by investing an additional $143 million in 2007-08 through the Emergency Department
Action Plan. The plan is:
• improving physician coverage in, and increasing the efficiency of, emergency departments across the province
• providing more care in the community, by investing $35 million in more home care services and supports to keep
people healthy at home
• supporting the development of 1,750 new long-term care beds and replacement of 662 long-term care beds to help
discharge patients from hospitals.
Better Access to Primary Care
Primary health care is often the initial point of contact for patients in the health system. The government is
transforming and improving the delivery of primary care through FHTs. Family Health Teams consist of doctors,
nurse practitioners, nurses, dietitians, pharmacists, social workers and other health providers, who provide
comprehensive care, seven days a week.
• By the end of 2007-08, 150 FHTs are planned to be fully operational across the province in both urban and rural
settings.
• Family Health Teams will provide care to more than 2.5 million Ontarians in 112 communities.
• By 2007-08, the number of Community Health Centres (CHCs) will rise to 76 from the current 54 and the number of
satellite CHCs will rise to 27 from the current 10. These new CHCs and satellites will serve an additional 200,000 people.
Promoting Wellness and Preventing Illness
Preventing Ontarians from getting sick is central to the government's plan for health care. This is why the
government is focusing on healthy and active living, illness prevention and health promotion. Over the long term,
these investments will help manage health care costs.
Healthy and Active Living
The government created the Ministry of Health Promotion, the first in the history of Ontario, to develop programs
to promote healthy and active living. The ministry has implemented several initiatives including:
• The Smoke-Free Ontario Act, which prohibits smoking in all enclosed workplaces and enclosed public places. The
act also strengthens restrictions on the sale of cigarettes and phases out the display of tobacco products. Displays are
to be completely banned by May 31, 2008. Since 2003, the percentage of individuals aged 25 and older who smoke has decreased
from 19 per cent to 16 per cent in Ontario.
• Healthy Eating and Active Living, a comprehensive plan to promote healthy lifestyles across the province
• ACTIVE2010, a strategy to enhance opportunities for physical activity with the goal of 55 per cent of Ontarians
being physically active by 2010.
With this Budget, the government is continuing to prioritize health promotion by:
• providing an additional $2.5 million to the Communities in Action Fund, raising the total to $7.5 million per
year, to encourage Ontarians to participate in sports and other physical activities
• continuing the Quest for Gold lottery, which provides about $10 million to amateur athletes to help with
high-performance training and enhanced coaching, enabling Ontario athletes to excel in competitions such as the 2008
Summer and 2010 Winter Olympic Games
• providing $2 million for the 2009 World Junior Hockey Championships to be held in Ottawa
• investing $41 million in community infrastructure and multi-use facilities to promote physical activity, sport
and wellness in various communities throughout Ontario including:
o $3 million for Port Colborne's multi-purpose sports complex
o $3 million for the Hunt Club-Riverside Community Centre in Ottawa
o $1.3 million for Cobourg's ice rink
o $1.3 million for the Moosonee multi-use facility.
Investing in Public Health
A strong public health system is important in preventing illness and promoting wellness. The government has
demonstrated its commitment to the public health system by:
• increasing the Provincial share of public health funding from 50 per cent in 2004 to 75 per cent
as of January 1, 2007
• adding, free of charge, three new vaccines to the roster of recommended childhood vaccinations, saving families
about $600 per child
• expanding the Province's Newborn Screening program to 28 tests for genetic disorders
• increasing its support for the Ontario breast screening program to complete over 600,000 screens per year by
2010-11.
In this Budget, the government is:
• providing approximately $20 million, growing to approximately $40 million per year, for colorectal cancer
screenings for those aged 50 and older - the first program of its kind in Canada
• providing funding for the Ontario Agency for Health Protection and Promotion, an arm's-length centre
of excellence that would provide support during any future public health emergency
• providing $1.5 million in 2008-09 - growing to $2.5 million by 2010-11 - to enhance the regional capacity of
communities to respond to HIV/AIDS. Funds will be allocated to community-based AIDS service organizations and
community-based HIV clinical services. This funding will see expanded programs and services for high-risk populations
• granting $3 million to the Heart and Stroke Foundation of Ontario, an organization that advocates using automated
external defibrillators in community centres and arenas to save lives
• investing approximately $7 million to expand addiction treatment programs. The government is also investing $1
million for a one-year pilot project in Stratford to target producers and traffickers of methamphetamine (crystal meth)
and dismantle their labs.
Improving Efficiency and System Integration to Meet Patients' Needs
The Ontario Government is implementing innovative strategies to provide health care services and improve patient
care, both now and in the future. Innovation includes making the best use of information technology and best
practices in accountability and governance.
Renewing Ontario's e-Health Strategy
E-Health involves the introduction of modern information technology that will better connect the entire health
care system and improve accountability. Providing the right information at the right time and in the right place
will improve outcomes, improve patient safety and make better use of existing health care resources.
Telemedicine is an example of how technology can be used to benefit patients. It provides the capability to
virtually connect a patient from a remote or rural area to a health specialist in another city located hundreds
of kilometres away. Today, this service is available at 359 sites and reaches more than 23,000 patients.
With this Budget, the government is providing an additional $64 million in 2007-08 to promote its comprehensive
e-Health strategy, including:
• continued progress towards a secure electronic health record for all Ontarians, which will ensure providers have
the information they need to care for patients safely, no matter where they treat them
• expanding systems that provide drug and lab information as well as diagnostic images while protecting the
security and privacy of patient information.
Patient-Centred Health Care
Improving the way health services are planned, integrated and delivered will improve patient care and allow the
cost of services to be managed more efficiently and in a way that is sustainable over the long term.
In 2005, the government created 14 Local Health Integration Networks (LHINs) to work with health service providers and
community members to provide an integrated and patient-centred health care system that is focused on local needs. The
LHINs will make it easier for patients to gain access to the health services they need because these services will be
coordinated locally - in their communities - with all the advantages that result from local awareness. Better service
integration and coordination on a community basis will mean better resource allocation.
- ------------------------------------------------------------------------
LHINs and Related Health Services Providers Table 5
- ------------------------------------------------------------------------
Share of Total LHINs' Transfer
Sector Payment Budget in 2007-08
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Hospitals 71%
Long-Term Care Homes 13%
Community Care Access Centres 9%
Community Mental Health 3%
Other 4%
- ------------------------------------------------------------------------
Source: Ontario Ministry of Health and Long-Term Care.
- ------------------------------------------------------------------------
The government will continue to work with the LHINs as they build on their planning activities and the role of
funding and integrating local health services. The government will work with LHINs to realize the local
priorities that the LHINs had identified in their Local Health Strategic Plans through their community engagement
efforts. The government will work with LHINs on their financial plans and will monitor and review these plans as
part of the government's annual budgeting process. In addition, accountability agreements between health service
providers and LHINs, and between LHINs and the government, will ensure the responsible use of health care
resources.
Creating a Sustainable Hospital Sector
This year, the government worked with hospitals to put the sector on a sound financial footing before LHINs take
over funding authority. Towards this goal, the government provided an additional $115 million to help hospitals
improve efficiencies and address operational pressures. As well, the ReNew Ontario plan includes funding for the
construction of new cancer treatment programs in Barrie, Newmarket, St. Catharines and Sault Ste. Marie, and for
the renovation and expansion of the centres in Ottawa and Kingston.
Creation of a sustainable hospital sector goes beyond funding. The government introduced and implemented Hospital
Accountability Agreements (HAAs) that set clear expectations around performance and funding for two years. For
each hospital, an HAA provides:
• negotiated performance targets on service volumes
• multi-year operating funding targets that facilitate better and longer-term planning.
Ensuring Value for Money
The government has also initiated the Province's drug strategy, including the proclamation of the Transparent
Drug System for Patients Act, to reform the provincial drug system and deliver better value for money to
Ontario's taxpayers. This act improves patient access to drugs through new review processes for new drugs. It
also recognizes the valuable role that pharmacists play in providing enhanced patient counselling.
Details of Investments in the Health Sector
Since taking office, the government has made strategic investments and achieved tangible results.
The introduction of the Ontario Health Premium (OHP) has helped to ensure the government's ability to maintain
health services. Every penny of the OHP goes towards improving Ontario's health care system. In 2006-07, revenue
from the OHP generated $2.6 billion, representing 7.2 per cent of total expenses for the Ministries of Health and
Long-Term Care and Health Promotion.
[Chart 13: Cumulative Change in Health-Related Revenues and Expense, 2003-04 to 2009-10]
Health-related revenues, including federal transfer payments, Employer Health Tax, OHP and selected net proceeds
from the Ontario Lottery and Gaming Corporation, are expected to increase by $667 million to $17.4 billion in
2007-08. It should be noted that all health-related revenues contribute only a portion of total health-related
spending. In 2007-08, health-related revenues are expected to amount to 46 per cent of the $37.9 billion required
for the Ministries of Health and Long-Term Care and Health Promotion.
- -------------------------------------------------------------------------------------------------------------------
Expanding Opportunities for Better Health(1) Table 6
($ Billions)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------- ----------------------------
Change from
2003-04 to 2007-08
- -------------------------------------------------------------------------------------------------------------------
Hospitals - increase in payments for direct hospital activities, including funding 2.7
for additional surgical and diagnostic procedures related to Ontario's Wait Time
Strategy.
OHIP Services - to fund services provided by physicians and other health care 2.5
practitioners, including the implementation of 150 new Family Health Teams.
Ontario Drug Programs - primarily for increased utilization. 0.8
Long-Term Care - to enhance the quality of care provided to over 75,000 residents of 0.8
long-term care homes and to increase long-term care capacity.
Community Services - to expand home care, community support services and supportive 0.6
housing.
Public Health including Health Promotion - to increase funding for public health 0.5
programs including those delivered by public health units, immunizations, and for
health promotion and illness prevention activities.
Other - including Cancer Care Ontario, mental health, emergency health services and 0.6
other programs.(2)
----------------------------
Total Increase in Funding 8.5
- -------------------------------------------------------------------------------------- ----------------------------
- -------------------------------------------------------------------------------------------------------------------
(1) Figures reflect major operating transfer payments in the Ontario Ministries of Health and Long-Term Care
and Health Promotion.
(2) Includes changes in capital expense and the impact of consolidation of hospitals and other entities.
Sources: Ontario Ministries of Health and Long-Term Care and Finance.
- -------------------------------------------------------------------------------------------------------------------
Section E: Expanding Opportunities for a Greener Ontario
Overview
Ontario's future well-being and long-term prosperity depend on both a strong economy and a sustainable, healthy
environment. The McGuinty government is committed to expanding opportunities for a greener Ontario.
This spring, the government will present a plan to establish a greener economy in Ontario, including addressing
air quality and climate change in a way that also strengthens Ontario's economy.
To build on the government's sustained efforts to improve the environment and the economy, this Budget proposes
close to $125 million in immediate initiatives to further establish the foundation for environmental action.
To encourage individuals to support energy efficiency, the government will invest $24 million to provide Ontario
homeowners with rebates of up to $150 for home energy audits. The government will also allocate $1.5 million to
Project Porchlight, which delivers energy-efficient light bulbs to Ontario homes.
Trees help remove carbon dioxide from the air. In this Budget, the government is providing $2 million to the
Trees Ontario Foundation, an organization dedicated to planting trees throughout Ontario.
Innovation is key to a greener economy. The government is providing $6 million to the Ontario BioAuto Council, a
multi-industry initiative to position the province as a global leader in manufacturing auto parts and other
materials from agricultural and forestry feedstocks. The government is also investing $15 million in the Ontario
Centres of Excellence. Investments in lightweight and bio-based materials, along with the development of
alternative fuels, can lead to the clean car technologies of the future.
The government is providing $21 million to Queen's University, which is working in partnership with the private
sector to establish a convergence centre for bio-products and bio-materials. The Province is providing $6 million
to Lakehead University, which is building its capacity to contribute to the competitive and sustainable
development of Ontario's boreal forest. As well, the government is providing $3 million to the University of
Ontario Institute of Technology, which is developing its capacity in hydrogen technology research.
Green communities enhance Ontario's quality of life. Building on the Move Ontario priorities announced in the
2006 Budget, construction will begin on the Toronto-York subway, Brampton AcceleRide and Mississauga Transitway,
easing traffic and reducing greenhouse gas emissions. Provincial gas tax revenues to support municipal transit
will reach $313 million in 2007 and will total $1.6 billion by 2010. This Budget also announces a doubling of the
Rural Infrastructure Investment Initiative to $140 million. The initiative supports municipal water and
wastewater infrastructure.
The government recognizes that several Ontario communities have a high number of brownfield properties that may
act as a barrier to development in strategic locations and could be returned to productive use. The government is
providing $11 million to Hamilton, Cornwall, Brantford, St. Catharines and the University of Ottawa.
The Budget also increases the government's investments in Ontario's precious natural resources, including $28
million over four years to support the Drinking Water Stewardship Program to protect water sources from
contamination.
Since taking office in 2003, the McGuinty government has taken a number of significant measures to improve air
quality, protect water and land, manage waste and encourage a culture of conservation. Over the past three years,
generation from coal plants has fallen by about 30 per cent, representing a large reduction in greenhouse gas
emissions. The phase-out of coal-fired electricity plants will represent, when complete, a reduction of up to 30
million tonnes of greenhouse gas emissions, the single largest reduction of emissions in Canada.
Significant progress has been made, but more effort is required. The government's major plan to protect the
environment and establish a greener economy will be unveiled this spring.
The Clean Air and Climate Change Trust
The federal government has announced the establishment of a trust for clean air and climate change. The $1.5
billion trust recognizes the principle of equitable treatment of Canadians and is providing Ontario with
$586 million.
The federal trust is an important investment that will assist the Province with climate change initiatives.
Funding would be applied to ongoing and new Ontario projects and programs that support clean air.
To date, the Ontario Government has advanced significant climate change initiatives, including more than $84
million over the next three years to develop and implement policies to monitor, analyze and address smog and air
toxins; nearly $380 million over the next three years to expand the GO Transit system in key commuter corridors;
and $3.9 million to establish a bio-energy research centre associated with the Atikokan Generating Station. In
addition to the nearly $125 million in measures announced in this Budget, the government will have more than
$200 million over the next three years to fund further climate change initiatives.
Incentives for Early Actions
In addition to the measures introduced by the Ontario Government since 2003, this Budget introduces several new
initiatives to improve air quality and address the challenge of climate change. These measures take immediate
action in advance of an upcoming spring announcement of a plan to establish a greener economy in Ontario and
address air quality and climate change.
The government is providing $2 million to the Trees Ontario Foundation. Accelerated tree planting helps remove
carbon dioxide from Ontario's air.
The simple act of replacing a light bulb is the most accessible action available to people to conserve
electricity. Based on their proven success in Guelph, Thunder Bay, Ottawa and the Yukon, the government will be
providing Project Porchlight with $1.5 million to enable local volunteers to deliver an energy-efficient light
bulb to over 500,000 Ontario homes this summer. The energy savings from this will be enough to power over 5,200
homes a year.
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Tax Initiatives
The Ontario Government has several tax initiatives in place that
support energy conservation in the province.
• To promote the use of fuel-efficient hybrid vehicles in
Ontario and support the auto industry's efforts to develop
improved vehicle technology, the Province provides a retail
sales tax (RST) rebate for qualifying hybrid vehicles, to a
maximum of $2,000.
• The rebate for hybrid vehicles is an element of the RST
rebate for alternative fuel vehicles. The RST paid on
vehicles powered by alternative fuels is refunded, to a
maximum of $750 for propane vehicles and $1,000 for vehicles
powered by any other alternative fuel.
• There is also a temporary RST rebate for solar, wind,
micro hydro-electric and geothermal energy systems installed
into residential premises. See Chapter III: Ontario's Tax
System Supports Expanded Prosperity for more details.
Ontario's tax system also provides support for the conservation of
ecologically sensitive land certified under the Ecological Gifts
Program. Any gain arising from a qualifying donation of such land
made after May 1, 2006 is exempt from corporate and personal
income tax and from corporate minimum tax.
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To encourage homeowners to undertake energy audits, the government is providing $24 million over four years to
help lower the cost of a home energy audit by up to $150. This new initiative will complement the recently
announced federal ecoENERGY Retrofit Program, which provides financial support and information for energy
retrofits in homes, as well as in small buildings and industries.
In February 2007, the Province introduced Bag It Back, a new deposit return program for recycling wine, beer and
spirit containers, which encourages Ontarians to return empty containers for a refund, resulting in less waste
going to landfill. This program will help divert about 25,000 to 30,000 additional tonnes of glass from landfills
- which is equivalent to about 80 million bottles. The new container return program will also free up space in
Blue Boxes, giving municipalities the opportunity to expand recycling programs.
Innovation for Jobs and a Green Economy
It is well recognized that a key element in addressing climate change is investing in the development of new
environmental technology.
In this Budget, the government is providing $6 million to the Ontario BioAuto Council, a multi-industry
initiative to position the province as a global leader in manufacturing auto parts and other materials from
agricultural and forestry feedstocks. This builds on the Premier's announcement on March 8, 2007 of a $5.9
million investment in the Ontario BioCar Initiative, a research project to turn Ontario's harvest into viable
materials for the auto industry.
The government is also investing $15 million in the Ontario Centres of Excellence, which promotes linkages
between academia and businesses to bring energy innovations to market. Ontario is well positioned to tap into new
markets for low-carbon energy technologies, including alternative fuels such as hydrogen. Investments in
lightweight and bio-based materials, along with development of alternative fuels, can lead to the clean car
technologies of the future.
The government is providing $21 million to Queen's University, which is working in partnership with the private
sector to establish a convergence centre for bioproducts and biomaterials that will help make Ontario a global
leader in the field of high-value-added, environmentally sustainable manufacturing.
The Province is providing $6 million to Lakehead University, which is building its capacity to contribute to the
competitive and sustainable development of Ontario's boreal forest.
The government is providing $3 million to the University of Ontario Institute of Technology (UOIT), which is
developing its capacity in hydrogen technology research.
The government is also allocating $400,000 to the Durham Strategic Energy Alliance, an organization of industry,
academia, local and regional Durham governments committed to developing sustainable energy solutions for Ontario.
As of January 1, 2007, gasoline sold in Ontario is required to contain an average of five per cent ethanol,
helping reduce greenhouse gas (GHG) emissions equivalent to removing 200,000 cars from the road each year. The
government's $520 million Ontario Ethanol Growth Fund complements this measure by supporting the production of
ethanol fuel in Ontario.
Investments in Green Renewable Energy and Conservation
The government has set targets to double renewable energy sources including wind, solar and water to 15,700
megawatts (MW) by 2025 - making Ontario a leader in clean energy.
Seven energy-efficient combined heat-and-power cogeneration projects totalling 414 MW are among the new supply
projects currently underway. These projects include a Thorold paper mill, a Ford plant in Windsor, and a plant to
serve a Sault Ste. Marie steel mill.
To encourage smaller-scale, distributed generation in Ontario, the government has passed a regulation on net
metering to enable homeowners, farms and businesses generating renewable electricity to receive credit for the
excess electricity they produce. In addition, the Ontario Power Authority (OPA) has a standard offer program aimed
at small-scale generation that will be connected to the lower-voltage distribution system, increasing the
availability of renewable power and promoting economic development within communities. As of February 27, 2007, 22
projects representing more than 140 MW had been awarded under this program. The program is the largest of its kind
in North America and is expected to add 1,000 MW of clean energy to the grid over the next 10 years.
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The government has also directed that an aggressive conservation and demand management goal be built into the OPA's
plan, with a reduction in projected peak electricity use by 1,350 MW across Ontario by 2007, an additional 1,350 MW
by 2010, and 3,600 MW more by 2025 - for a total of 6,300 MW by 2025.
• The government has so far set in motion conservation programs and initiatives representing more than $2
billion over the next several years.
• To promote conservation, the government is also proceeding with the installation of 800,000 smart meters in Ontario homes
and businesses by the end of 2007, and all homes and businesses by the end of 2010, allowing electricity consumers to reduce and
shift their electricity demand in response to electricity prices, and helping to meet the Province's conservation target.
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Building Green Communities
Sustainable Transportation
New investments in transit across the province through the government's Move Ontario program will help reduce
gridlock, air pollution and GHG emissions by providing alternatives to driving. For example, the Toronto-York
subway will help reduce 250,000 tonnes of GHG annually and eliminate 30 million car trips annually.
Overall, the Move Ontario transit projects have the potential to enable 42 million more transit rides in the GTA,
resulting in 35 million fewer car trips on Ontario roads and highways each year. These projects have the
potential to create 27,000 jobs. See Section G: Investing in Ontario's Infrastructure for further details.
Brownfields Reform
Cleaning up brownfield properties has both environmental and social benefits and is important to the economic
vitality and growth of Ontario's communities.
Several Ontario communities have a high number of brownfield properties that may act as a barrier to development
in strategic locations and could be returned to productive use. The government is providing $11 million to
Hamilton, Cornwall, Brantford, St. Catharines and the University of Ottawa.
The government is announcing a comprehensive reform package that would, if passed, address the regulatory and
liability barriers to brownfield redevelopment and help ensure that the public interest remains protected. The
package includes:
• legislative reform proposals to address liability barriers to brownfield redevelopment for the Crown,
municipalities, purchasers/developers and those engaged in site remediation work
• improved provincial oversight to support existing and new liability protection, including updating environmental
standards, certification of Qualified Persons (such as engineers), and making technical amendments to the existing
regulatory framework.
The government is committed to changing patterns of land development to support the redevelopment of brownfields.
To date, initiatives to support brownfield redevelopment include removing provincial Crown liens on brownfield
properties; providing tax relief through the Brownfields Financial Tax Incentive Program (BFTIP); establishing
Brownfields Ontario; and providing funding to the Ontario Centres of Excellence, for the evaluation and testing
of new brownfields remediation technology.
Water and Wastewater Infrastructure
Investing in drinking water and wastewater systems is essential to ensuring healthy, sustainable communities into
the future. The government is providing support for municipalities in meeting their water and wastewater needs
through initiatives such as Infrastructure Ontario's OSIFA loan program, the Canada-Ontario Municipal Rural
Infrastructure Fund (COMRIF) and the Rural Infrastructure Investment Initiative.
Ontario is also working with municipalities and other stakeholders to help ensure the long-term financial
sustainability of drinking water and wastewater systems. See Section G: Investing in Ontario's Infrastructure for
further details.
Energy and Climate Change
Ontario remains committed to phasing out coal-fired electricity generation and replacing it with cleaner sources
of energy. The Province's comprehensive energy plan will achieve a healthy balance by moving away from coal in
favour of conservation and greener forms of energy. When complete, the phase-out of coal-fired plants will
represent a reduction of up to 30 million tonnes of GHG emissions, the single-largest reduction of emissions in
Canada.
The Province is working with neighbouring U.S. jurisdictions to reduce transboundary air pollution. More than
half of the Province's air pollution comes from transboundary sources.
The government has also set targets that will double the installed capacity of renewable electricity generation
by 2025.
The Energy Conservation Responsibility Act, passed in February 2006, facilitates the implementation of smart
metering for residential and small business consumers across the province, which will help consumers better
manage their energy costs.
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Progress on Air Quality and
Climate Change
Ontario is making progress on GHG emissions. Over the past
three years, generation from coal plants has fallen by about
30 per cent, representing a large reduction in GHG emissions -
equivalent to the emissions from more than two million cars.
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Ontario's Conservation Bureau is leading the Province's efforts to continue to build a culture of conservation
and energy efficiency. Six of Ontario's largest local electricity distribution companies work cooperatively with
the government to deliver the powerWISE campaign, a multi-year initiative designed to promote energy conservation
to consumers and reduce electricity demand.
Ontario is continuing to move forward on a potential investment to construct an East-West electrical transmission
interconnection with Manitoba to allow for the importation of clean hydroelectric power.
As well, the new Ontario Building Code, which took effect on December 31, 2006, introduced the most
energy-efficient building standards in Canada.
The government is providing $3 million to the Ontario Sustainable Energy Association (OSEA). The OSEA is a
non-profit association of local organizations developing sustainable energy projects in and for their communities.
The government is also providing $150,000 to the Ontario School Bus Association. The Association is undertaking a
pilot program to investigate training, education and technical means to reduce emissions from school buses in
Ontario.
Waste Diversion
The Province has introduced several measures to increase waste diversion, including directing Waste Diversion
Ontario to develop and fund diversion programs for household hazardous and special materials, and streamlining
the approval requirements for converting certain types of waste into alternative fuels to keep it out of
landfills and put it to beneficial uses. The government has also streamlined the approvals process for pilot or
demonstration projects to encourage innovative waste technologies, such as energy-from-waste facilities.
Toronto, Windsor, Hamilton, Region of Peel, London and Quinte West are undertaking apartment recycling pilot
projects. The government is providing $305,000 to these six municipalities.
The Recycling Council of Ontario is working to develop a zero waste toolkit for upcoming community information
events, as well as encouraging the use of reusable plastic bags. The government is providing $325,000 to the
Recycling Council.
Places to Grow
The population of the Greater Golden Horseshoe region in southern Ontario is expected to grow by approximately
four million over the coming decades. Through the Places to Grow initiative, the government is committed to
ensuring that this growth contributes to prosperous, healthy and diverse communities, which benefit all parts of
the province.
The government's Places to Grow: Growth Plan for the Greater Golden Horseshoe is a comprehensive 25-year strategy
to maximize the benefits of growth and maintain Ontarians' high quality of life. It is a plan to grow in a more
complete way - so communities are good places to live, work, shop and play. It is a growth strategy that will
create communities where it is easier for people to get around on foot, bike or transit.
The Growth Plan sets clear standards for growth and development, while giving local governments the flexibility
they need to address local circumstances.
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Leading by Example
The Ontario Government is reducing its own electricity
consumption by 10 per cent through innovations such as deep
lake-water cooling, extensive energy retrofits across the
government's real estate portfolio, and engaging the
Province's civil service in energy conservation initiatives.
The government has also asked Canadian astronaut and
scientist Dr. Roberta Bondar to chair a working group that
will review how the environment and conservation are being
taught in elementary and secondary schools.
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On December 19, 2006, the American Planning Association (APA) announced that the Growth Plan had won the Daniel
Burnham Award, making it the first non-U.S. plan to win this prestigious award. This award is given to the plan
that best illustrates progress, community benefit and contribution to the advancement of the planning profession.
The APA is the pre-eminent professional planning organization in the United States, representing over
39,000 professional planners, officials and citizens.
Natural Resources Stewardship
Protecting Ontario's Water
Ontario's extensive networks of ground and surface waters are a significant part of Ontarians' quality of life
and the province's economic prosperity.
Clean and safe drinking water is essential to daily life. Protecting it remains a top priority of the government.
The government's commitment to ensuring that Ontarians have safe clean drinking water is founded on the approach
to drinking water protection embodied in the recommendations of Justice Dennis O'Connor's Report of the Walkerton
Inquiry. As a result of actions taken since the report was issued, a strong safety net of drinking water
protection has been put in place - one that Ontarians can rely on.
The government is committed to fulfilling all of Justice O'Connor's recommendations arising from the Walkerton
Inquiry and is on track to meet all of the recommendations; so far, 87 of the total of 121 recommendations have
been implemented and all others are underway.
Great Lakes
The government has been a leading champion of Great Lakes protection. In December 2005, Premier McGuinty signed
the Great Lakes-St. Lawrence River Basin Sustainable Water Resources Agreement to prevent diversions and large
removals of water from the Great Lakes Basin.
Under a proposal to renew the Canada-Ontario Agreement Respecting the Great Lakes Basin Ecosystem with the
federal government, Ontario would invest more than $30 million to help restore and sustain the Great Lakes. The
government will also prepare for new and emerging challenges as it fights climate change, invasive species and
habitat destruction in the Great Lakes aquatic ecosystems.
Drinking Water Stewardship Program
Ontario will invest $7 million this year in its new Drinking Water Stewardship Program under the Clean Water Act.
This will allow incentives for early action to protect drinking water sources across the province, and for
outreach and education to help all Ontarians do their part to protect drinking water sources from contamination.
The government will invest another $21 million for the following three years in the Drinking Water Stewardship
Program.
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Ontario a Leader on Drinking Water Protection
The Sierra Legal Defence Fund has ranked Ontario the leading
jurisdiction in Canada in terms of protecting drinking water
on the basis of its high treatment standards, containment
standards, accredited labs for quality testing, operator
certification and public reporting.
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The Province has also committed $120 million from 2004 to 2008 to fund source water protection planning to
protect drinking water sources across the province.
The government supports the public's right to know about their drinking water systems. Its Drinking Water Portal
provides, for the first time, a single user-friendly point of access to all critical drinking water information.
Natural Spaces and Resources
Ontario is blessed with some of the most enviable natural resources, forests, farmland and green spaces in North
America. The Province is committed to working with municipalities and others to protect this rich natural
heritage and economic resource.
The government is providing $2 million to the Rouge Park Alliance. The Alliance works to protect, restore and
enhance the natural, scenic and cultural values of the park in an ecosystem context, and to promote public
responsibility, understanding, appreciation and enjoyment of this heritage.
The government will propose amendments to the Niagara Escarpment Planning and Development Act to allow better
enforcement of the restrictions in the statute, further ensuring that development on the Niagara Escarpment is
compatible with the natural environment.
In 2005, the government also launched the Natural Spaces Program, which recognizes the need to restore and
protect natural areas across southern Ontario.
Biodiversity
Over the past year, the government has taken action on biodiversity by regulating new parks and conservation
reserves, supporting natural heritage protection, launching an update of the Province's species-at-risk
legislation, and working to protect and restore many fish and wildlife species.
Greenbelt
The Greenbelt Act, 2005 enabled the creation of a Greenbelt Plan to protect from urban sprawl about 1.8 million acres of
environmentally sensitive and agricultural land in the Greater Golden Horseshoe. The Greenbelt extends 325 kilometres from
the eastern end of the Oak Ridges Moraine, near Rice Lake, in the east, to the Niagara River in the west. It includes
800,000 acres of land protected by the Niagara Escarpment Plan and Oak Ridges Moraine Conservation Plan.
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Progress on Protecting Ontario's Natural Heritage
Today, Ontario's vast system of parks and protected areas
totals 9.5 million hectares, and includes areas of
magnificent old-growth forest, woodland caribou ranges,
wilderness rivers, wetlands, and habitat for rare and
endangered plants and animals.
In 2005, about 3.0 million tonnes of municipal and
industrial, commercial and institutional waste were diverted
through the 3Rs (reduce, reuse and recycle) program.
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The Greenbelt is a key part of the government s commitment to environmental protection. It permanently helps to
protect the water Ontarians drink and the air they breathe as well as some of Ontario's most valuable green
spaces, farmland, forests, wetlands and watersheds. It also means that farmers can continue to grow food closer
to home. Ontarians and visitors alike enjoy the Greenbelt's many recreation opportunities, including its trails
and parklands.
The Province also provided $25 million to the Friends of the Greenbelt Foundation, which is a not-for-profit
organization that coordinates and funds activities such as the promotion of agriculture and viniculture,
research, public education, land stewardship and land acquisition across the Greenbelt.
Looking Ahead
While solid progress has been made on the environment, the Province recognizes that it needs to continue its work
to sustain the high quality of life that Ontarians enjoy. This spring, the government will present a plan to
establish a greener economy in Ontario, which addresses air quality and climate change.
Section F: Expanding Opportunities for Economic Growth
Overview
A strong economy is the foundation of Ontarians' quality of life. Well-paying jobs are key to the prosperity and
health of the province's families and communities.
In 2003, Ontario needed to improve its global competitiveness and was not investing in the skills and knowledge
of its people.
Since taking office, the McGuinty government has pursued a balanced economic plan, investing strategically to
strengthen the capacity of Ontario's people and businesses to compete in the global economy. By managing its own
resources prudently and making needed investments in health care, education and infrastructure, the government
has positioned Ontario as an innovative economy.
This Budget's initiatives build on the government's accomplishments through:
• fostering a strong business climate by proposing to accelerate the elimination of the capital tax to July 1, 2010
and reduce high Business Education Tax (BET) rates, and by continuing to modernize business and financial regulation
• enhancing research and innovation by providing support to innovation centres in Durham region, Kingston, Sudbury,
Thunder Bay and Toronto
• building a skilled workforce through $390 million in additional investments to promote quality in postsecondary
education; strengthening the recently launched nearly $1 billion per year Employment Ontario strategy by proposing the
extension of the Apprenticeship Training Tax Credit; and increasing funding for the integration of new Canadians
• investing in communities by continuing the government's commitment to the Provincial-Municipal Fiscal and Service
Delivery Review; doubling the Rural Infrastructure Investment Initiative; investing in transit infrastructure and
affordable housing; and encouraging brownfield development
• strengthening key sectors by expanding access to advanced manufacturing funding and creating a new Ontario
Manufacturing Council; providing ongoing support for forestry and agriculture; increasing funding for key cultural and
tourism initiatives; and increasing training funding for small businesses.
These initiatives build on the government's progress, which includes:
• phasing out of the capital tax
• a $1.7 billion commitment to boost innovation and commercialization
• a 22 per cent increase in postsecondary enrolment since 2002-03
• Employment Ontario - a nearly $1 billion annual investment to provide seamless and coordinated training,
apprenticeship and employment services
• an annual investment of $146 million to help new Canadians get settled and join the labour market
• an auto strategy that has attracted over $7 billion in total new auto investments
• $350 million leveraged from the private sector in advanced manufacturing investments
• ongoing support for key sectors such as forestry and agriculture.
A Changing Global Context:
Fostering a Strong Business Environment
Maintaining a high standard of living in a world of increasing global competition is an ongoing challenge that will take
the best efforts of the private sector, assisted by the government's contributions to a competitive business environment.
Competitiveness
Strengthening Ontario's competitiveness means creating a positive climate for business investment while ensuring
that the government has the resources to invest in the people and future of the province. The overall cost of
doing business in Ontario (including taxes paid by business) is lower than in most other major centres in North
America and industrialized countries.(1)
Ontario's competitiveness stems from the skills and education of its workforce; the quality of its public
infrastructure and health care; the overall quality of life; and the health of the environment.
----------------------------------------------------------------------------------------------------------------
Expanding Trade Opportunities
To help promote trade and competitiveness, the Ontario Government has undertaken a number of important
initiatives, including expanding the number of Ontario international marketing centres in other countries.
Premier Dalton McGuinty led a trade mission to India and Pakistan in January 2007 that resulted in the signing
of numerous cooperation agreements, including several by universities, colleges and research organizations.
Ontario trade missions to Alberta are providing opportunities for Ontario manufacturers to build business
relationships with the oil-sands sector.
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Eliminating the Capital Tax in 2010
[Chart 14: Ontario Has Competitive Corporate Income Tax Rates]
The government is taking steps to further enhance the competitiveness of Ontario's tax system. In 2004, it
legislated a plan to gradually phase out Ontario's capital tax by 2012. Recognizing the importance of attracting
new investment to the province, in this Budget the government is proposing legislation that would eliminate the
capital tax sooner - on July 1, 2010. See Chapter III: Ontario's Tax System Supports Expanded Prosperity.
Business Education Tax Reduction
The government is announcing a $540 million cut to high BET rates over the next seven years. This initiative will
significantly enhance the competitive position of many Ontario businesses and strengthen the provincial economy
overall. See Section B: A Fair Property Tax System for further details.
Building on Ontario's Innovation Advantage
Ontario's future prosperity depends more than ever on investment in research and innovation. Whether created in public
institutions or the private sector, it is critical that new innovative ideas achieve their commercial potential in a
manner that is beneficial to the Ontario economy.
The government has made a strong commitment to research and commercialization by investing $1.7 billion over five
years to 2009-10, including $527 million for the Ontario Research Fund and $279 million for the Ontario Institute
for Cancer Research. Highlights of new initiatives in this Budget include:
• $21 million for Queen's University, which is working with the private sector to build an advanced research and
innovation centre specializing in bioprocessing and biomaterials
• $18 million for the Canadian Institute for Advanced Research, which is strengthening Canada's and Ontario's
reputation for collaborative international research
• $15 million to the Ontario Centres of Excellence, whose Energy Centre is helping business and academia work
together to bring energy innovation to market for a cleaner environment
• $15 million to the University of Toronto, which is advancing research in structural genomics - the study of human
proteins to treat diseases such as cancer
• $6 million to Lakehead University in Thunder Bay, which is building its capacity to contribute to future
innovation for the new northern economy and to the competitive and sustainable development of Ontario's boreal forest
• $3 million to the University of Ontario Institute of Technology, which is enhancing its ability to explore
opportunities in hydrogen technology
• $2 million to the Northern Centre for Advanced Technology in Sudbury, which has a solid track record for helping
northern Ontario companies bring innovative products to market.
Ontario universities and research hospitals continue to perform cutting-edge research. The Province's 24 colleges
of applied arts and technology are also increasingly engaged in applied research and innovation activities. While
their primary role is technical and applied education to meet industry needs, they have continued to expand their
applied research and development (R&D) activity in collaboration with industry and community partners.
The government is committed to strengthening the conditions that support and reward innovation. Through its
$160 million Ideas to Market strategy - announced in the 2006 Budget - the government is helping innovative
companies develop and implement cutting-edge technologies that will strengthen Ontario's economic advantage.
The government is providing $20 million in 2006-07 to the University of Toronto, which is working to develop its
capacity for interdisciplinary research on the creation of jurisdictional economic advantage. The university's
efforts will also be supported by an additional $6 million per year in each of the next five years.
The Ontario Research and Innovation Council (ORIC) is a group of business and academic leaders formed to advise
the Premier on Ontario's innovation agenda. Based on ORIC's recommendations and input from the broader research
community, the Ministry of Research and Innovation released for consultation a draft strategic plan to strengthen
innovation in Ontario. The government intends to release the results of this consultation, an Ontario Innovation
Strategy, this spring.
Building an Innovative Economy through a Skilled Workforce
Knowledge and skills are among Ontario's most important competitive advantages. An estimated 70 per cent of jobs
in the future will require postsecondary education. The government's economic plan therefore focuses on
strengthening Ontario's knowledge and skills advantage.
Ontario faces difficult labour-market challenges in the coming years. Rapid technological change is reshaping
jobs in all sectors of the economy at an unprecedented pace. At the same time, mature workers are retiring in
large numbers and labour-force growth will slow.
Ontario is meeting these challenges and nurturing the full potential of its citizens through effective
postsecondary education, creative employment integration initiatives for new Canadians, and a responsive training
and employment strategy.
Ontario's investments to date include:
• a historic $6.2 billion investment in postsecondary education, through Reaching Higher; for further details on
postsecondary education, see Section C: Expanding Opportunities for Students
• negotiating landmark federal-provincial agreements and new funding for employment, training and other services,
including services for new Canadians
• modernizing and expanding the training system and launching Employment Ontario for easy access and more job
opportunities
• improving training and job opportunities for new Canadians to help them use their skills in the labour market
• creating economic opportunity for at-risk youth, social assistance recipients and low-income workers through
training and employment programs.
Modernizing and Expanding the Training System
A prosperous, knowledge-based economy needs skilled workers, which requires a strategy for effective and relevant
skills training and other labour-market services. Through its employment and training strategy, the government
also aims to improve economic opportunities for vulnerable Ontarians, including the unemployed, the
underemployed, new Canadians, low-income workers and social assistance recipients.
The centrepiece of Ontario's new approach is Employment Ontario, launched in January 2007. It will provide
seamless and coordinated training, apprenticeship and other employment services. The Province has increased
funding for its services to nearly $1 billion annually through the transfer of $525 million in resources under
the Canada-Ontario Labour Market Development Agreement.
Through Employment Ontario, the number of people and businesses receiving services this year will grow from
500,000 to 900,000, and the number of service providers will grow from 470 to 1,200 - reaching all parts of the
province. Job-threatened or laid-off workers will benefit from better coordination through a special Rapid
Re-employment and Training Service. Workers, new Canadians and youth will have access to more flexible programs
that support lifelong learning to meet changing workplace demands. Employers will have access to expanded
services to help find the workers they need and encourage their investment in skills development.
Although the federal government has been slow to come to the table with the full amount of funding previously
committed for labour-market training, Ontario has moved forward to expand its services to new clients and has
made a number of innovative investments in priority areas. These include the introduction and extension of a tax
credit for hiring apprentices; significant investments in bridge training and other labour-market integration
services for new Canadians; and measures to assist at-risk youth, Aboriginal Peoples and many other Ontarians who
face barriers but are ineligible for Employment Insurance.
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Expansion of Apprenticeship
• $100 million in annual funding for apprenticeship; on
track to meet the annual goal of 26,000 new registered
apprentices by 2007-08
• $4.5 million for 1,500 scholarships of $1,000 and
employer signing bonuses of $2,000 to help at-risk youth
enter apprenticeships
• $8.25 million for the Ontario Youth Apprenticeship
Program, providing opportunity for 24,000 students in
2006-07, up from 12,700 in 2002-03
• proposed extension of the Apprenticeship Training Tax
Credit and the addition of the following skilled trades:
entertainment industry power technician; process
operator-power; tractor-trailer commercial driver; exterior
insulated finish systems mechanic; information technology
call centre inside sales agent; and information technology
call centre customer care agent.
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Apprenticeship helps ensure that Ontario has skilled tradespeople and gives young people more opportunity.
Several government initiatives increase access to apprenticeship, including a 25 to 30 per cent refundable
Apprenticeship Training Tax Credit (ATTC) to encourage businesses to hire and train apprentices, introduced in
2004. This Budget proposes to extend the ATTC to eligible apprentices who start employment before January 1, 2012
and adds six more qualifying skilled trades. See Chapter III: Ontario's Tax System Supports Expanded Prosperity
for further details.
The 2006 Economic Outlook and Fiscal Review announced assistance to workers and communities most affected by
slower growth in the economy through a targeted economic stimulus package. It includes over $20 million in
2006-07 to assist laid-off workers with training, job placement and other employment services. Rapid
re-employment services are helping laid-off workers in such communities as London, Windsor, Smiths Falls and
Nipigon.
Through programs that improve skills and provide other employment supports, Ontario is also helping social
assistance recipients find jobs and fully share in the province's prosperity. For additional information, see
Section A: Expanding Opportunities for Children and Families.
Success for Students is a key education policy that will ensure more Ontario youth graduate from high school with
improved future job prospects and earnings. See Section C: Expanding Opportunities for Students for further
details. In addition, the government is providing community-driven safety and employment initiatives for at-risk
youth. These are discussed in Section A: Expanding Opportunities for Children and Families.
Breaking Down Barriers for New Canadians
New Canadians account for 29 per cent of Ontario's labour force. Their successful integration into the job market
becomes increasingly important as they bring needed skills and international connections.
Ontario is investing $146 million annually in services and new programs to help newcomers get established and
speed up their successful integration into the labour market.
In November 2005, Ontario negotiated the first-ever Canada-Ontario Immigration Agreement, providing $920 million
over five years for settlement and language training. In 2006-07, the federal government committed $182 million
to jointly planned services in Ontario.
The government will implement a pilot Provincial Nominee Program allowing Ontario to nominate individuals for
permanent residence, based on its labour-market priorities. The government will be proposing legislation to
assist in the implementation of this pilot. The Province is also negotiating a Temporary Foreign Workers annex
with the federal government, to identify workers required to fill short-term skills needs.
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Breaking Down Barriers: How Ontario Supports New Canadians
Better Information and Settlement Support
• Global Experience Ontario, a new resource centre to help new Canadians enter regulated professions
• a new web portal, www.ontarioimmigration.ca
• three new sites providing Employment Ontario services in Brampton, Markham and Toronto
• an ongoing public awareness campaign to promote services for newcomers
• a 29 per cent increase in funding, reaching $5.3 million, for the Newcomer Settlement Program, administered through
81 community settlement agencies.
Training and Job Access
• a new Fair Access to Regulated Professions Act, 2006
• a new Office of the Fairness Commissioner established and Jean Augustine nominated as first-ever Commissioner
• $53 million invested in over 90 innovative bridge-training programs
• $53 million annually for English as a Second Language/French as a Second Language classes
• expansion of programs that connect employers with newcomers
• $53 million in 2006-07 for the international medical graduates (IMG) program, up from $16 million in 2003
• a new six-month internship program in the Ontario Public Service and Crown agencies
• new loans of up to $5,000 to cover training, assessment, textbooks and exam costs.
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Modern Business and Financial Regulation
Ontario is modernizing its business and financial regulation to maintain an attractive business climate, stay
ahead of global markets and build on Ontario's economic advantage. A competitive regulatory framework protects
consumers and investors, and supports a positive business climate and growing economy.
To help support a growth-oriented business environment, the Ontario Government:
• has passed the Mortgage Brokerages, Lenders and Administrators Act, 2006, which replaces the Mortgage Brokers
Act, and has asked the Financial Services Commission of Ontario to develop new educational requirements in consultation
with stakeholders
• is proposing amendments to the Credit Unions and Caisses Populaires Act, 1994, to modernize the regulatory
framework so the sector can continue to compete effectively in the financial services marketplace; consequential
amendments to other statutes are also proposed
• is proposing amendments to the Pension Benefits Act to permit categories of multi-employer pension plans to be
established to, among other things, parallel certain categories of pension plans in the Income Tax Act (Canada)
• has established an Expert Commission on Pensions to review pension plan funding requirements, consult with
Ontarians and make recommendations to ensure the Province's employment pension system remains sustainable
• has passed legislation to allow Ontario farm mutuals and other Ontario-incorporated insurers to operate under
investment and corporate governance rules similar to those at the federal level and is proposing to implement these
changes this year; as a result of changes made to the Insurance Act, consequential and technical amendments are
proposed for several statutes
• is investing $0.5 million annually starting in 2007-08 through the Ministry of Economic Development and Trade, to
streamline approval processes and modernize the regulatory regime, making it more efficient and effective for business
• has implemented the Securities Transfer Act, 2006 to update Ontario's laws on the transfer of securities held in
electronic form
• has signed a memorandum of agreement with the federal government that would transfer administration of Ontario's
corporate income tax and capital tax to the Canada Revenue Agency, effective for taxation years ending after 2008.
Enabling legislation, if approved, would lead to one tax form, one tax administration and one set of tax rules.
Corporations would save $90 million annually in Ontario corporate income tax and up to an additional $100 million
annually in compliance costs. See Chapter III: Ontario's Tax System Supports Expanded Prosperity for additional information
• is working with its partners to offer a wide range of government information for business through ServiceOntario
- improving access to important information, government forms and services, including registering, changing and
searching for information; see Section H: Expanding Opportunities through a Modern and Efficient Government
• is engaging other jurisdictions to move to a common securities regulator
• is streamlining securities regulation by working to expand harmonized approaches across jurisdictions, pending a
common securities regulator; the government is proposing measured reforms to the Securities Act in relation to the
regulation of takeover bids and issuer bids, prospectus disclosure requirements and other technical changes
• is protecting investors through implementing civil liability for secondary-market disclosure, more robust
corporate and investment fund governance, and enhanced financial reporting
• has approved new securities rules to ensure more timely processing of securities trades in our capital markets.
Completing trades in a tighter timeframe will mean more efficient markets and reduced financial system risk.
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Sharpening Canada's Competitive Edge through a Common Securities Regulator
Efficient capital markets are critical to underpin strong economic performance in today's global economy.
In Canada's relatively small equity market, only 16 per cent of public companies benefit from access to
investors in all provinces. Fragmented regulation makes it unduly difficult and costly for the rest, including
many small companies, to raise money.
Canada's current framework of 13 provincial and territorial securities regulators administering 13 sets of
securities laws fosters duplicative, inconsistent and burdensome regulation.
Recent reports have noted the success of principles-based regulation in the United Kingdom. Calls for a similar
regulatory approach in U.S. capital markets underscore Canada's need for a responsive regulation framework that
can keep pace with the competitive global economy. A common securities regulator would help drive change and
develop a coherent Canadian response to providing sound investor protection while facilitating the raising of
capital.
Canada needs a common securities regulator to fully realize its economic growth opportunities. Gerry Phillips,
as the Minister responsible for securities regulation, will continue to spearhead Ontario's leadership role in
moving towards a common securities regulator.
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The government is committed to strengthening Canada's economic union by eliminating barriers to interprovincial
economic activity, and is studying the merits of the 2006 Alberta-British Columbia Trade, Investment and Labour
Mobility Agreement.
Investing in Strong Communities
Ontario's ability to provide a high quality of life and seize opportunities for prosperity depends on diverse
communities where individuals, businesses and governments interact. The government is promoting strong and
adaptable communities by investing in strategic infrastructure projects, improving health and education
resources, fostering a positive business climate, and working with them to address unique local challenges.
The government will continue to make investments in local communities and regions across the province and work
with municipal partners to determine the best approach to funding and delivery of high-quality programs and
services for citizens.
Provincial-Municipal Fiscal and Service Delivery Review
The Province and municipalities are undertaking a review of the provincial-municipal relationship aimed at
identifying a new fiscal and service delivery partnership for the 21st century.
A report will be released in the spring of 2008, and will include recommendations for next steps and
implementation. The government is committed to the Review, which will set the stage for a sustainable approach
for both orders of government to deliver and fund services in Ontario in the 21st century.
A website outlining the Review's progress and seeking public input can be accessed through the Ministry of
Municipal Affairs and Housing at www.mah.gov.on.ca.
Support for Communities
The government is announcing a plan to cut high BET rates by $540 million. The economic benefits of these cuts
will be widespread and result in increased investment, jobs and productivity. See Section B: A Fair Property Tax
System for further information.
The government is also announcing a plan to phase out Greater Toronto Area pooling, which will eliminate the $200
million burden that this program places on the municipal property tax bases of contributing municipalities. For
more details, see Section B: A Fair Property Tax System.
In 2006-07, Ontario will invest $277 million for transit infrastructure, distributed to municipalities on the
basis of transit ridership. Ontario will also provide $75 million to municipalities, also to be distributed on
the basis of transit ridership, for public transit capital.
To assist low-income families, the government proposes to immediately provide $127 million to municipalities for
new affordable housing or to rehabilitate existing housing.
Municipalities would also benefit from the proposed Ontario Child Benefit (OCB). The Province would pay the
entire cost of the OCB, including its administration. This will save municipalities $15 million annually in
social assistance costs when the OCB is fully implemented in July 2011. Moreover, enhancements to the OCB in the
future would not create new costs for municipalities.
The government is announcing a comprehensive reform package that would, if passed, address the regulatory and
liability barriers to brownfields redevelopment and help protect the public interest. The government is providing
$11 million to Hamilton, Cornwall, Brantford, St. Catharines and the University of Ottawa. See Section E:
Expanding Opportunities for a Greener Ontario for further details.
In 2007, through the following initiatives, the government is investing more than $1.9 billion in ongoing IC OMITTED]
operating support to municipalities:
• the Ontario Municipal Partnership Fund (OMPF), which will transfer $843 million in 2007, or $225 million more
than 2004 transfers under its predecessor program, the Community Reinvestment Fund (CRF)
• making two cents per litre of provincial gasoline tax available for public transit. In 2007, $313 million is
being distributed to 86 transit systems that provide service in 104 communities across the province, for a total of more
than $1.6 billion by 2010
• increasing the Province's share of public health funding from 50 per cent in 2004 to 75 per cent in 2007
• moving towards a 50:50 sharing of the cost of municipal land ambulance services by 2008.
In addition, the following initiatives implemented since 2003 exemplify the Province's commitment to building
strong communities through new, more effective partnerships with municipalities:
• investing $1.2 billion in public transit, roads and bridges through Move Ontario, which includes $400 million in
2006 for municipal roads and bridges, with an emphasis on rural and northern communities; see Section G: Investing in
Ontario's Infrastructure
• providing a predictable source of funding for the renewal of municipal bus fleets
• contributing $298 million towards the $900 million Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF);
see Section G: Investing in Ontario's Infrastructure
• the City of Toronto Act, 2006, which sets out a broad, permissive legislative framework for Toronto
• the Municipal Statute Law Amendment Act, 2006 - providing local governments with broad new powers and legislative
freedoms that allow municipalities to better deliver services to their communities
• the Planning and Conservation Land Statute Law Amendment Act, 2006, which reforms the Ontario Municipal Board and
enhances community participation in local planning.
Healthy and vibrant urban areas are key to the Province's global competitiveness and, increasingly, are also
where most Ontarians live and work. They offer large markets and populations, institutions, facilities and
infrastructure that support diversification, efficient knowledge transfers, and a large and diversified workforce.
Community Justice
The government is committed to making Ontario's communities safer and is providing more than $3 billion annually
for the Justice Sector, primarily for prosecuting crime and for court services, legal aid, policing and
correctional facilities. This funding will continue to strengthen communities, increase access to frontline
services and enhance community safety.
In this Budget, the government is also announcing additional funding, starting in 2007-08, of $27 million for key
initiatives that include:
• $15 million for Legal Aid Ontario, primarily to provide additional legal services for vulnerable Ontarians,
including women and children, to increase the legal aid tariff rate and address the impact of guns/gangs cases
• $4 million to promote a healthier and more diversified correctional services workplace
• $4 million for 30 new justices of the peace to assist municipalities in addressing backlogs relating to
Provincial Offences Act matters
• $3 million to modernize the human rights system, including additional funding for legal services through a new
Human Rights Legal Support Centre and funding for public education, public advocacy and research
• $1 million for a one-year pilot project in Stratford to target producers and traffickers of methamphetamine
(crystal meth) and dismantle their labs.
Justice Sector spending will continue to be focused on strengthening communities, improving frontline services
and building stronger, safer communities.
This new funding builds on the $51 million announced in 2006 for the Enhanced Anti-Gun and Gang Violence
Strategy, which included funding to help police and prosecutors investigate and prosecute gun crimes.
Strong Rural Communities
The government is making strategic investments that will help rural communities foster partnerships and pursue
innovative approaches to challenges and opportunities. These investments promote vibrant rural communities
through better health, a greener environment, success for rural students, improved infrastructure and support for
key sectors. For example, Ontario recognizes the important role of the farming and food processing sector through
investments in market development, skills training and farm income stabilization.
In the 2007-08 fiscal year, base expenditures by the Ontario Ministry of Agriculture, Food and Rural Affairs
(OMAFRA) will reach a new high of $876 million.
New initiatives announced in this Budget include:
• investments in rural infrastructure, such as an additional $70 million for the Rural Infrastructure Investment
Initiative - doubling the $70 million announced in September 2006 -and $10 million to help expand broadband coverage in
rural southern Ontario by leveraging community and private-sector investments; see Section G: Investing in Ontario's
Infrastructure
• the $540 million plan to cut high BET rates. Businesses in rural municipalities will benefit from an average 26
per cent reduction in provincial business education taxes by 2014.
In 2007, rural municipalities will receive $472 million through the Ontario Municipal Partnership Fund (OMPF).
Ontario's Rural Plan, "Strong Rural Communities: Working Together for Success," first published in 2004, outlines
a framework under which the Province and rural municipalities can partner to support sustainable rural economies.
On February 26, 2007, Ontario released its second progress report on the Rural Plan. It highlighted examples of
recent investments, such as:
• investments in rural youth through the Rural Summer Jobs Service program; in 2006, more than 3,600 students, aged
14 to 24, gained valuable experience and work skills from community employers with the help of this program
• $28.2 million, since 2004, through the Rural Economic Development Program to help communities complete local
economic development projects
• significant investments in rural infrastructure in 2006, with $188 million under Move Ontario for roads and
bridges; and $85 million for repairs and renovations in schools under the Good Places to Learn renewal initiative.
A Strong Northern Economy
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Northern Employment on the Rise
Over the past year (February 2007 compared to February 2006),
employment in northern Ontario increased by 12,900 jobs
despite the negative effects of the high Canadian dollar and
restructuring in the forest products sector.
Sources: Statistics Canada and Ontario Ministry of Finance.
- ---------------------------------------------------------------
The government is working with northerners to create a dynamic future for the region by investing in initiatives
that build on its rich resource base; and in health, education, youth, infrastructure and northern businesses.
Northern communities and businesses are committed to transforming the region's economy and realizing its
potential. This Budget announces strategic investments to support these efforts and build the foundation for the
region's new economy, including:
• $2 million to the Northern Centre for Advanced Technology in Sudbury
• $6 million to Lakehead University, which is building expertise in the bioeconomy related to the boreal forest and
is positioned to make even more significant contributions to the new northern economy; see Section E: Expanding
Opportunities for a Greener Ontario
• providing an additional $3.6 million in 2007-08 to increase the operating subsidy of the Ontario Northland
Transportation Commission (ONTC) to $19.7 million; this will allow ONTC to improve rail service
• the $540 million plan to cut high Business Education Tax (BET) rates. Businesses in northern municipalities will
benefit from an average 32 per cent reduction in provincial business education taxes by 2014.
In addition, Ontario will continue to work with the federal government, the Northern Ontario Heritage Fund Corporation
(NOHFC) and other partners to establish the Molecular Medicine Research Centre in Thunder Bay.
Northwestern Ontario business and community organizations are working together to build a prosperous future in
the face of restructuring in key sectors. The government will appoint an economic facilitator to engage in
discussions with local stakeholders and governments at all levels to help the northwest find solutions to their
challenges and build a successful future.
These investments build on existing government initiatives in northern Ontario, such as:
• $1.8 billion, through ReNew Ontario, for the renewal and expansion of highways in northern Ontario; key projects
include the widening of Highways 11 and 69 to North Bay and Sudbury respectively; building a new Highway 11/17 corridor
west of Thunder Bay; and widening Highway 17 to four lanes east of Sault Ste. Marie
• $283 million through the Ontario Municipal Partnership Fund in 2007 to support northern communities
• ongoing investments of the NOHFC, which works with northern entrepreneurs and businesses to foster private-sector
job creation
o in January 2007, the NOHFC announced a renewed focus for its Emerging Technology Program to encourage investment
in projects aimed at bringing broadband Internet and cellular service to most of the north within three years
• the Northern Ontario School of Medicine, which opened in 2005 and is the first new medical school to open in
Canada in over 30 years
• $15 million to support geological mapping, which will help open the mining potential of the Far North
• $10 million to support the launch of the new Centre for Excellence in Mining Innovation at Sudbury's Laurentian
University
• $4 million to establish a Bio-Energy Research Centre in Atikokan
• $2.2 million funded by the NOHFC towards the development of the Thunder Bay Cancer and Cardiac Research Centre
• Go North's Communities Investment Readiness program, which has provided funding to 31 initiatives for the
development of community tools to attract investors. Participating municipalities include North Bay, Timmins, Sault
Ste. Marie, Thunder Bay and Sudbury.
Aboriginal Peoples
The government is working on initiatives to close the socioeconomic gap between Aboriginal Peoples and other
Ontarians.
• In June 2006, the government released draft guidelines for ministries on consultation with Aboriginal Peoples
related to rights and treaty. This Budget includes $7 million to support the government's capacity to engage in
productive consultations with Aboriginal Peoples.
• The government launched the Aboriginal Education Strategy, investing $13 million to improve achievement by First
Nations, Inuit and Métis students.
• The government is allocating $80 million to housing for Aboriginal Peoples living off reserve; see Section A:
Expanding Opportunities for Children and Families.
• The Province is investing $2 million to support the implementation of "Keeping the Land, a Land Use Strategy" for
the Whitefeather Forest in Ontario's Far North, in collaboration with the Pikangikum community. Keeping the Land has
been created in good faith between Pikangikum First Nation and the Government of Ontario. Rooted in mutual respect for
the aspirations of both partners, this strategy provides guidance for future land use activities in the Whitefeather
Forest and adjacent areas.
The First Nation community of Attawapiskat will benefit from the construction of Ontario's first diamond mine and
from the creation of 375 full-time jobs once the facility begins operations in the spring of 2008.
A Strategy to Further Boost Jobs and Economic Renewal
The slowdown in economic growth in the second half of 2006 prompted the government to provide additional
assistance to laid-off workers and accelerate infrastructure investments to promote job creation in areas of the
province most affected. In its 2006 Economic Outlook and Fiscal Review, the government allocated over
$190 million in new funding to strengthen the economy in four areas.
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Economic Stimulus in the 2006 Economic Outlook and Fiscal Review
Providing Focused Training and Job Services - over $20 million
• sending special rapid re-employment teams into communities where plants have closed to help develop
action plans for affected workers
• providing customized training, skills upgrading, job placement and job relocation services
• providing workplace literacy programs to help workers learn new processes and technologies
• helping laid-off apprentices find new placements and accelerate their in-school learning
• funding additional bridge training programs for new Canadians.
Fast-Tracking Infrastructure Investments - nearly $150 million
• fast-tracking a number of infrastructure investments, generating immediate economic activity and
job creation.
Encouraging Ontario Tourism - $22 million
• supporting conventions, festivals and events in the province, and introducing a new campaign to encourage
Ontarians to travel and vacation in Ontario, boosting economic activity and tourism-related jobs.
Strengthening Interprovincial Trade
• strengthening interprovincial trade links to match industrial needs in Alberta with industrial capacity in Ontario,
and exploring the merits of the Trade, Investment and Labour Mobility Agreement (TILMA) between British Columbia and
Alberta.
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While these investments were designed to target affected families and communities, the initiatives have bolstered
the province's overall economic performance and fast-tracked social, community and economic capital investments
to deliver immediate jobs and build vital infrastructure.
Through this strategy, the government has funded over 3,000 social infrastructure projects that benefit
vulnerable populations. Capital investments also included funding for over 20 courthouse and coroner's offices,
over 10 citizenship organizations, and nearly 35 municipal organizations such as community recreation facilities,
heritage facilities, art galleries, museums, libraries, and water and wastewater treatment facilities. Fifteen
colleges, including nine located in northern and eastern Ontario, have benefited from funding to improve their
facilities while creating local jobs. Rapid re-employment teams have stepped in to help laid-off workers in
communities such as London, Windsor, Smiths Falls and Nipigon.
New funding has supported Ontario festivals and events and a new campaign to market Ontario travel destinations
to Ontarians.
In this Budget, the government is further supporting the infrastructure needs of the province, accelerating
capital investments, building on Ontario's economic strengths and addressing government priorities. For more
details, see Section G: Investing in Ontario's Infrastructure and for investments in vulnerable populations, see
Section A: Expanding Opportunities for Children and Families.
Enhancing Growth in Ontario's Industrial Sectors
The composition of Ontario's economy continues to evolve, responding to changes in technology, demand and
competition, and reflecting long-term trends similar to other developed economies. While employment and output
have grown on the goods-producing side of the economy, the services sector has experienced much faster growth -
increasing its role and contribution to Ontario's employment and output.
Ontario's investments in infrastructure, postsecondary education and training, and innovation form the critical
foundation on which all sectors can build capacity to add value and improve competitiveness. The government has
also undertaken strategic initiatives to help Ontario sectors in their transition to higher-value-added
production and increased competitiveness.
Supporting Ontario's Small Business Sector
Small and medium-sized businesses are an important part of the Ontario economy, accounting for nearly 60 per cent
of employment in the province. The government is committed to encouraging a dynamic and entrepreneurial small
business sector.
Over 500,000 businesses across the province will benefit from the reductions in high BET rates. Ninety-seven per
cent of these are small businesses.
By 2008, capital tax will be eliminated entirely for more than 14,000 additional small and medium-sized businesses.
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Tax Measures to Help Small Business
• the $540 million plan to cut high Business Education Tax
(BET) rates
• the small business deduction, which reduces Ontario's
general corporate income tax rate for small Canadian-controlled
private corporations (2006): $900 million
• the Employer Health Tax exemption for businesses with fewer
than 50 employees (2006): $590 million
• Ontario's capital tax deduction and an exemption from
capital tax for credit unions, caisses populaires, family farm
corporations and family fishing corporations (2006): $300 million
• a 10 per cent refundable tax credit for small corporations
performing R&D in Ontario (2006): $180 million.
- ----------------------------------------------------------------------
In 2006-07, the government is providing $2.2 million to the Canadian Youth Business Foundation - an organization
that helps provide start-up mentoring, financing and business resources to young Canadians, ages 18 to 34, to
create their own successful businesses.
To help reduce tax compliance costs for business, Ontario and the federal government have signed an agreement
that would transfer administration of Ontario's corporate income tax and capital tax to the Canada Revenue
Agency. See Chapter III: Ontario's Tax System Supports Expanded Prosperity for additional information.
The Province's array of apprenticeship and skills training programs address potential skills shortages, and it is
taking further measures to expand Ontario's skilled labour supply. The new Ministry of Small Business and
Entrepreneurship, created in May 2006, is helping to promote the success of small and medium-sized businesses in
Ontario. It will also help encourage and promote the entrepreneurial spirit and skills that are vital to the
future prosperity of the province.
Manufacturing
Ontario's manufacturing sector is the second largest in North America after California. At present, some of
Ontario's manufacturing industries face serious competitive challenges from lower labour-cost jurisdictions while
adjusting to a stronger Canadian dollar and higher energy costs.
To expand the economic benefits leveraged through the Advanced Manufacturing Investment Strategy (AMIS), the
Ontario Government will lower the investment project-size threshold for loan applications to a minimum of $25
million or 100 jobs created or retained. This will enable more small and medium-sized manufacturers to participate.
The government recognizes that predictable and stable electricity prices enhance the competitiveness of Ontario's
manufacturing sector as well as other sectors. This includes initiatives to secure the province's electricity
supply as well as pricing measures such as the price regulation of Ontario Power Generation's (OPG) nuclear and
large hydroelectric assets and a transitional revenue limit on most of OPG's output from the rest of its
generating stations. See Section G: Investing in Ontario's Infrastructure for further details.
The government appreciates the challenges that manufacturers face and how difficult it has been for employees
facing job loss or uncertainty. In response, it is providing support for affected workers including retraining,
job search assistance and vocational counselling.
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Advanced Manufacturing Investment Strategy:
Supporting Modernization, Innovation and Energy Efficiency
The Advanced Manufacturing Investment Strategy (AMIS) is providing $500 million in loans to encourage manufacturers
to invest in leading-edge technology and processes that will attract investment; reduce waste, energy and
environmental emissions; and create jobs.
To date, about $34 million in AMIS loans have leveraged almost $350 million in private-sector investment, creating
and retaining 2,700 jobs.
Manufacturers receiving AMIS funding to date include various industries and areas of the province:
• Diamond Aircraft Industries in London; Messier-Dowty Inc. in Ajax; Procter and Gamble Inc. in Brockville;
FAG Aerospace Inc. in Stratford; Flakeboard in Sault Ste. Marie; Koolatron in Brantford; and Roxul in Milton.
The third round of calls for proposals from manufacturers for AMIS funding will close on April 12, 2007.
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[Chart 16: Ontario's Tax-Rate Advantage for Manufacturing Is Growing]
Low corporate income tax rates (CIT) for manufacturers keep Ontario competitive with neighbouring jurisdictions,
offering additional support for the sector. Ontario's combined federal-provincial CIT rate for manufacturers is
currently more than four percentage points below the average combined federal-state rate in the U.S. Great Lakes
States. As well, once the phased-in federal income tax rate cuts in both Canada and the United States are fully
implemented, the combined CIT rate for manufacturers in Ontario will be over six percentage points lower than the
combined average rate for manufacturers in the U.S. Great Lakes States. That, together with the proposed
accelerated elimination of the capital tax and the $540 million cut in high BET rates, would make for a tax
system that contributes to a positive investment climate for the manufacturing sector. The agreement to transfer
administration of Ontario's corporate income tax and capital tax to the Canada Revenue Agency would also benefit
the manufacturing sector. See Chapter III: Ontario's Tax System Supports Expanded Prosperity for further details.
This Budget is announcing the creation of a new Ontario Manufacturing Council that will provide regular updates
to the Minister of Economic Development and Trade on the state of this key economic sector.
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Tax Measures that Benefit Ontario's Manufacturing Sector
• a $540 million plan to cut high Business Education Tax (BET) rates
• a five per cent rate cut in Ontario's capital tax beginning in 2007
• a proposal to accelerate the elimination of the capital tax to July 1, 2010
• a doubling of the non-capital loss carry-forward period from 10 to 20 years
• a corporate income tax (CIT) rate that is two percentage points below the general CIT rate
• a 25 per cent refundable tax credit for hiring apprentices; 30 per cent for small businesses
• corporate tax incentives for R&D, including a proposed 4.5 per cent non-refundable tax credit for
taxation years ending after 2008
• a retail sales tax (RST) exemption for production machinery and equipment, reinforced concrete used to
make production machinery and equipment, and materials incorporated into goods for sale.
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The need for advanced manufacturing and innovation is particularly important in the auto sector. The Province
recognizes it must continue to work with key auto industry players to develop the automotive products of the
future.
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Ontario Automotive Investment Strategy (OAIS)
Ontario's strategic investments, including the $500 million Ontario Automotive Investment Strategy (OAIS), have
attracted over $7 billion in investments supporting skilled, high-paying jobs:
• General Motors: Oshawa, St. Catharines, Ingersoll - $2.5 billion
• Linamar: Guelph - $1.1 billion
• Toyota: Woodstock - $1.1 billion (first Ontario greenfield auto plant in almost 20 years)
• Ford: Oakville - $1 billion
• DaimlerChrysler: Windsor, Brampton - $768 million
• Navistar: Chatham, Windsor - $270 million
• Honda: Alliston - $154 million
• Nemak: Windsor - $100 million
• Valiant: Windsor - $93 million.
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Resource Industries
Mining
Ontario's dynamic mining industry is recognized throughout the world. Some of the earth's richest deposits of
nickel, gold, copper and silver have been discovered in the province. Recently, De Beers Canada started
construction towards opening Ontario's first diamond mine near Attawapiskat, with a planned total capital
investment of $982 million.
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Competitive Tax Regime Supports Ontario's Mining Sector
• a three-year mining tax holiday on the first
$10 million of profits generated by a new mine or a
major expansion of an existing mine
• a 10-year mining tax holiday on the first
$10 million of profits generated by a new mine opened
in a remote Ontario location
• a reduction in the Ontario mining tax rate from
10 to 5 per cent for new remote mines in Ontario
• a 25 per cent "resource allowance" deduction for
corporate income tax purposes
• to help mineral exploration companies raise capital,
Ontario offers a 100 per cent flow-through share
deduction for personal income tax purposes
• a five per cent refundable Ontario tax credit for
eligible mineral exploration expenses.
- ---------------------------------------------------------------
This Budget proposes to introduce a royalty on diamonds that will be competitive with other Canadian
diamond-mining jurisdictions. See Chapter III: Ontario's Tax System Supports Expanded Prosperity.
The mining industry is enjoying an exceptional boom and has a bright future, owing to robust global demand. In
2006, Ontario produced roughly $9.4 billion in metals, non-metallic minerals and aggregates. In addition, Toronto
is one of the world's premier centres of mining finance, with over 1,200 mining companies listed on the TSX
Group's Toronto-based stock exchanges.
Mineral exploration in Ontario roughly tripled between 2001 and 2006, helping to identify new reserves and extend
the life of existing mines.
Since 2003, the Ontario Government has worked to support the mineral sector through initiatives to attract
investment in exploration and mining, including:
• launching Ontario's Mineral Development Strategy to enhance the sector's global competitiveness, while creating
new opportunities for Ontarians
• investing $60 million over six years for the cleanup of abandoned mines to protect the public and the environment
• committing $15 million, over three years, for geological mapping in the Far North
• investing $10 million to help establish the Centre for Excellence in Mining Innovation at Laurentian University
in Sudbury
• helping create the Ontario Mineral Industry Cluster Council.
Forest Products Sector
Ontario's forest products sector is vital to the province's economy, particularly in northern Ontario, where it
provides employment for close to 25,000 people and is the mainstay of many communities.
Global demand for wood and paper products continues to grow at a healthy rate and Ontario has many experienced
workers, close proximity to key markets and a large resource base. Nevertheless, the industry is restructuring in
the face of a number of challenges: a strong Canadian dollar; increasing supplies of low-cost plantation-grown
fibre abroad; a slowing U.S. housing market; and weakening North American demand for newsprint and office papers.
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Over $1 Billion in Forest Products Sector Support Announced by Ontario
• $350 million in loan guarantees to stimulate new investments
in value-added manufacturing, energy conservation and energy
co-generation
• $150 million in Forest Sector Prosperity Fund grants to
leverage new capital investments in various areas
• $140 million in electricity price rebates for northern
Ontario pulp and paper mills that purchase a minimum of 50,000
megawatt hours annually and commit to increased energy efficiency
• $75 million annually for the construction and maintenance
costs of primary and secondary forest access roads
• $70 million in a one-time stumpage fee refund for 2005-06
• $10 million annually by 2007-08 to enhance the Forest
Resource Inventory
• $3 million annually for three years in reduced stumpage fees
for poplar veneer and white birch
• $1 million annually beginning in 2006-07 for an Ontario Wood
Promotion program to enhance value-added manufacturing.
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Since 2005, the government has announced more than $1 billion in assistance for the forest products sector, to
help lever investments and improve its competitiveness.
As well, the refund of softwood lumber duties under the Canada-U.S. Softwood Lumber Agreement should help improve
the situation of mills that were affected negatively by the softwood dispute.
Agriculture
Ontario has the largest agriculture sector in Canada, employing about 100,000 people in 2006. The sector is
highly diversified and benefits from proximity to markets, a favourable climate and good soils.
Like other sectors, farming is adapting to competitive challenges in a rapidly changing global marketplace.
The Province is therefore working to maintain a strong, sustainable farm sector. In the 2007-08 fiscal year, base
expenditures by the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) will reach a new high of
$876 million.
Ontario is helping farmers open new markets and enhance their presence in existing markets.
The use of farm and forest products in the auto sector is an emerging area of opportunity in the bioeconomy. The
government is providing $6 million in 2006-07 to the Ontario BioAuto Council, a multi-industry initiative to
position the province as a global leader in manufacturing auto parts and other materials from agricultural and
forestry feedstocks. This builds on the Premier's announcement on March 8, 2007, of an investment of over $5.9
million in the Ontario BioCar Initiative, a research project to turn Ontario's harvest into viable materials for
the auto industry.
The government is also providing $2.5 million to a number of Ontario agri-food organizations that fund marketing
initiatives for Ontario farm products, and $200,000 to the Organic Council of Ontario, which promotes industry
development activities. Going forward, Ontario will provide $10 million for a strategy to raise consumer
awareness and promote consumption of food produced in the province.
The Premier's announcement in 2006 of a $185 million investment in rural Ontario included new funding for the
Canadian Agricultural Income Stabilization program, which will bring total OMAFRA expenditures for farm income
stabilization and support to more than $1 billion over the 2003-04 to 2006-07 fiscal years. Ontario farmers also
receive favourable treatment under a number of taxes.
As well, as part of the broader rural community, the farm sector benefits from a number of other government
programs. Ontario's efforts to encourage ethanol production is one example. On January 1, 2007, Ontario's
Renewable Fuels Standard came into effect, requiring an average of five per cent ethanol in gasoline. To
complement this initiative, the government is providing $520 million over 12 years in capital and operating
assistance to encourage increased ethanol production in Ontario.
Another example is the government's commitment to the development of renewable sources of electricity generation
and efforts to encourage renewable energy production through programs such as net metering and the standard offer
program. See Section D: Expanding Opportunities for a Greener Ontario for further details.
The first recipients of the Premier's Award for Agri-Food Innovation Excellence - reported in the 2006 Ontario
Budget to recognize innovation in agriculture with awards totalling $2.5 million over five years - were announced
at the Premier's Agri-Food Summit on March 8, 2007.
• The $100,000 Premier's Award of Excellence for Agri-Food Innovation went to David VanderDussen. Mr. VanderDussen
developed Mite-Away II, an environmentally friendly product, which is exported around the world, to protect honeybees
from mite infestations.
• The $50,000 Minister's Award was presented to Fritz and Paul Klaesi, who pioneered the use of technology that
generates electricity from manure.
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Highlights of Ontario Support for Farmers
• OMAFRA Expenditures for Farm Income Stabilization and Support(1) (2003-04 to 2006-07): $1.12 billion
• Farm Property Class Tax Rate Reduction(2) (2006): $300 million
• Retail Sales Tax Exemption for Agricultural Goods (2006): $250 million
• Fuel Tax Exemption for Coloured Fuel Used in Farm Equipment (2004): $43 million
• $500,000 Lifetime Capital Gains Exemption (2006): $45 million
• Value to Farm Corporations of Small Business Corporate Income Tax Rate (2006): $27 million
• Expected OMAFRA Expenditures for Agricultural Drainage Infrastructure Management (2006-07): $6.5 million
• Expected OMAFRA Expenditures for Nutrient Management Assistance (2006-07): $5.6 million
• Land Transfer Tax Exemption for Transfers of Farm Land between Family Members (2006): $5 million.
(1) Four-year total for the 2003-04 to 2006-07 fiscal years using expected expenditures for 2006-07.
(2) Includes both municipal and education portions.
Sources: Public Accounts of Ontario 2003-04 to 2005-06; 2005 Ontario Economic Outlook and Fiscal Review, Background Papers;
Tax Expenditures and Evaluations 2005, Department of Finance Canada; Statistics Canada data and Ontario Ministry of Finance estimates.
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Ontario's Knowledge-Based Service Sectors
When it comes to creating high-value-added jobs that contribute to Ontario as a knowledge economy, services
industries continue to grow in importance and account for over half of all private-sector jobs. A broad range of
services industry jobs in the private sector generate higher wages than in manufacturing. They include
high-value-added sectors such as professional business services, financial services, information and
communications technology (ICT) services, and entertainment and creative industries.
Business and Financial Services
Business services and financial services are Ontario's two largest internationally competing sectors when
measured by employment, followed by auto manufacturing, according to the Institute for Competitiveness and
Prosperity. These fast-growing sectors employ almost one million Ontarians.
• Toronto led all North American cities in the creation of financial-sector jobs over the past five years, growing
on average by over five per cent annually. Toronto is the third-largest financial services centre in North America after
New York City and Chicago, based on employment.
• The Toronto region is home to just under 1,000 business head offices - almost twice as many as in Montreal and
almost three times as many as in Calgary. Its position as the nation's business and financial capital is helping support
strong job growth in these sectors.
• Employment in professional business services, such as advertising and accounting, grew strongly in 2006, and
generated high wages.
Ontario continues to support the growth of business and financial services in many ways, including public investments in
skills, education, modern infrastructure, and a competitive tax and regulatory climate.
Information and Communications Technology
The information and communications technology (ICT) services sector, led by computer software and telecommunications,
plays a major role in supporting a new generation of economic growth. It includes many leading technology companies,
and is a major source of innovation and new information technologies for other sectors.
Access to broadband and other telecommunications services is fundamental to allowing Ontario's businesses to
become more efficient and reach new markets, and indeed to transform their operations and move to the next level.
Broadband access is fundamental to enabling citizens to access government services, buy goods and services
efficiently, do online banking, or simply reach out to family and friends. The ICT sector has already brought
high-speed Internet access to 93 per cent of Ontario's population.
The government is investing to bring broadband access into more communities in northern and rural areas. It is investing
$10 million in 2007-08 to help expand broadband coverage in rural southern Ontario by leveraging community and
private-sector investments. In January 2007, the NOHFC announced that it will be encouraging investments in projects
aimed at completing broadband Internet and cellular service coverage for most of the north within three years.
Ontario continues to support the ICT services sector through a wide range of investments and policies that
further develop the knowledge economy. These include postsecondary education and skills development; support for
R&D and innovation; and a modern and competitive business, tax and regulatory climate.
Entertainment and Creative Cluster
Ontario's entertainment and creative cluster has also experienced significant employment growth. Between 1996 and
2006, this sector created almost 76,200 net new jobs in Ontario, or an increase of 38 per cent, compared with
25.7 per cent in the overall Ontario economy. It includes such industries as film and television production,
sound recording, book and magazine publishing, and new media (for example, digital special effects and interactive
products such as video and computer games). It also includes independent artists, authors, musicians and filmmakers.
The vibrancy and economic health of these industries and artists help make Ontario an attractive place to live, work
and invest.
To help Ontario's entertainment and creative industries take advantage of growing market opportunities, the
government offers numerous tax incentives and is investing in several initiatives.
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Tax Incentives for Ontario's Entertainment and Creative Cluster
• 30 per cent tax credit for domestic film and television
productions
• 18 per cent tax credit for foreign and non-certified domestic
film and television productions
• 20 per cent tax credit for creating computer animation and
special effects for film and television productions
• 20 to 30 per cent tax credit for creating, marketing and
distributing interactive digital media products
• 30 per cent tax credit for publishing and promoting literary
works by new Canadian authors
• 20 per cent tax credit for producing and marketing sound
recordings by emerging Canadian artists or groups.
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To recognize the contributions that artists make to Ontario's economy and quality of life, the government proposes to
introduce new legislation: the Status of Ontario's Artists Act, 2007. This will be an important step towards bringing
artists the profile and recognition that they deserve at the provincial level as well as in their local communities.
This legislation will help us retain the skills and talents of Ontario's artists, while empowering them to continue
transforming our cultural industries, economy and society into innovation-based world leaders.
The government will increase its annual funding to the Ontario Trillium Foundation by $20 million by 2009-10, an
increase of about 20 per cent. The foundation helps finance community-based initiatives in the arts and culture,
environment, human and social services, and sports and recreation sectors.
The government will increase its annual funding to the Ontario Arts Council (OAC) by $15 million by 2009-10, an
increase of nearly 38 per cent. Since 1963, OAC has promoted the arts and assisted artists for the benefit of all
Ontarians. In 2005-06, OAC provided $35.7 million to nearly 1,300 individual artists and 836 organizations in
253 communities across Ontario.
The government is making a one-time investment in 2006-07 of $10 million to enhance the Arts Endowment Fund,
which provides steady income to about 260 organizations for use in their operations.
The Ontario Media Development Corporation (OMDC) promotes and leverages investment, jobs and content creation on
behalf of the province's cultural media cluster, including the screen-based industries. Concept development and
cash-flow financing are useful support tools for the screen-based industries. The government is providing an
additional $5 million to OMDC in 2006-07.
Ontario's public libraries play a key role in supporting literacy and learning; fostering an appreciation of
literature and culture; and providing information resources to newcomers, job seekers, small businesses and
entrepreneurs. The government is providing $5 million to Ontario public libraries in 2006-07.
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Government Investments in Ontario's Cultural Sector
Ontario's cultural sector is benefiting from several capital investments that the government is undertaking as
part of the stimulus package announced in the 2006 Economic Outlook and Fiscal Review, including:
• $2.4 million in capital grants to the West Lincoln Public Library, Fort Frances Public Library,
Sault Ste. Marie Public Library, Nipigon Public Library and West Perth Public Library
• $1.9 million in capital grants to the Cobalt Mining Museum, Bonnechere Museum (Eganville), Iron Bridge
Museum (Huron Shores), Paipoonge Museum (Oliver-Paipoonge), Oil Springs Museum (Petrolia), Red Lake Museum,
Battlefield House Museum Park (Stoney Creek), Thunder Bay Historical Museum Society, Timmins Museum and Royal Canadian
Regiment Museum (London)
• $2.6 million for additional cultural capital projects, including arts and heritage facilities in Bracebridge,
Cornwall, Guelph, Hamilton, Minto, Napanee, Sault Ste. Marie and Thunder Bay.
On January 30, 2007, the government announced a $3 million investment in the Artscape Green Arts Barns. The barns
will include artists' live/work studios and offices for non-profit arts and environmental organizations.
These investments complement those announced in the 2006 Budget, including:
• $49 million to support Ontario's major cultural agencies and attractions: Royal Ontario Museum, Art
Gallery of Ontario, Canadian Opera Company, National Ballet School, Royal Conservatory of Music and Gardiner Museum of
Ceramic Art
• $10 million to the Ontario Heritage Trust
• $7.5 million to the Entertainment and Creative Cluster Partnerships Fund (launched in September 2006)
• $1 million to support Luminato - Toronto Festival of Arts and Creativity.
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To support Ontario's cultural heritage, the government will increase annual funding of the Community Museum
Operating Grants (CMOG) program by $2.3 million starting in 2007-08. This initiative is also in line with the
government's efforts to support tourism in the province, and will help museums across Ontario cope with a recent
cut to the Department of Canadian Heritage's Museum Assistance Program.
Also in support of Ontario's cultural heritage, the government is providing $1.2 million to the McMichael
Canadian Art Collection in 2006-07.
The first Luminato - Toronto Festival of Arts and Creativity - will take place from June 1 to 10, 2007,
showcasing local, regional and international artists. Luminato is currently marketing this new Ontario event, and
planning for the following years. In 2006-07, the government is providing $5.5 million to Luminato. This is in
addition to $2 million previously provided.
The government is also investing $12.5 million in 2006-07 to support the Toronto International Film Festival
(TIFF), completing the government's commitment. Each year, the TIFF presents numerous world premieres of Canadian
and international films - allowing filmmakers, producers, investors, distributors, artists and journalists to
connect. The TIFF is building a new Festival Centre.
To further support cultural diversity in Ontario, the government is investing $4.9 million in 25 citizenship and
cultural centres across the province in 2006-07. These projects will benefit a broad range of ethnic groups in
Ontario.
Tourism
Tourism is another important component of Ontario's economy. It contributed $6.3 billion to Ontario's real GDP
(1997$) in 2005. In 2006, the industry employed 170,500 workers across the province, representing 2.6 per cent of
total employment.
Ontarians vacationing in their own province are vital to the tourism industry. In 2005, Ontarians made over
90 million visits within the province and spent almost $9.2 billion. In the same year, Ontario received 27.4
million visits from other provinces, the United States and overseas. Their expenditures totalled almost
$8.2 billion.(2)
Since 2003, the government has consistently demonstrated its commitment to promoting the tourism industry.
Initiatives include $49 million in 2006-07 to support Ontario's major cultural agencies and attractions, $5
million in 2005-06 for the Cultural Tourism Marketing campaign, and $30 million in 2004 to revitalize Ontario
tourism.
In 2006-07, the government is providing $17.5 million to the City of Niagara Falls, and will provide an
additional $17.5 million in 2007-08. The city is planning to build a 230,000-square-foot conference and
convention facility that will help address the challenges of seasonality in the Niagara region.
Starting in 2007-08, the Province is committing an additional $2 million annually to the St. Lawrence Parks
Commission to support Ontario's Tourism industry and preserve the valuable heritage sites at Fort Henry and Upper
Canada Village.
The government is proposing to extend the RST exemption for Destination Marketing Fees for one year to June 30,
2008. This would continue to support Ontario's tourism industry and the hotel industry's initiative in funding
tourism marketing.
As part of the government's over $190 million economic stimulus package announced in December 2006, the Ministry
of Tourism received $22 million to advance initiatives to boost economic activity and tourism-related jobs. These
initiatives include a marketing campaign to encourage Ontarians to travel in the province, as well as support for
conventions, festivals and events in Ontario.
Section G: Investing in Ontario's Infrastructure
Overview
Public infrastructure is vital to Ontario's economic prosperity and quality of life. The McGuinty government is
committed to expanding opportunities for all Ontarians through infrastructure investments in transportation,
electricity, health, education, communications, and water and wastewater systems. These investments will benefit
Ontario's communities, both large and small.
This Budget builds on the government's current infrastructure investments by providing $5.9 billion in 2007-08.
The government's infrastructure investments speak to the needs and priorities of Ontarians:
• rebuilding Ontario's hospitals, through over 100 major projects to renew and expand health care facilities across
the province
• renewing schools and postsecondary facilities
• major new investments to make transit an attractive and green alternative for more people, including the
Toronto-York subway, Brampton's AcceleRide, Mississauga's Transitway, improved GO Transit services, and investments of
gasoline tax revenues towards municipal transit
• improving and expanding highways in southern and northern Ontario, as well as border crossings
• supporting rural and northern communities through local infrastructure programs such as the Canada-Ontario
Municipal Rural Infrastructure Fund (COMRIF) and the Rural Infrastructure Investment Initiative (RIII).
ReNew Ontario - the government's five-year, $30 billion plan to revitalize, modernize and expand Ontario's public
infrastructure - and Move Ontario - which provided $1.2 billion in one-time investments for public transit and
municipal roads and bridges - will together create nearly 400,000 jobs across the province.
The government is also securing Ontario's electricity future by expanding the province's electricity supply by
almost 12,000 megawatts, including almost $2 billion in conservation initiatives.
These investments in Ontario's infrastructure will support growing urban centres, strong rural and northern
communities, businesses that compete in the global marketplace, and citizens who value a sustainable environment
and economy.
Investing in Ontario's Infrastructure to Expand Opportunity
For Ontario to remain competitive in the global economy and achieve its full potential, the government must
provide strong and effective support for public infrastructure.
From 1955 to 1980, Ontario's public infrastructure growth outpaced both that in the rest of Canada and Ontario's
gross domestic product (GDP) growth. Since 1980-81, however, Ontario's infrastructure growth has lagged GDP growth.
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Selected Highlights of New Infrastructure Investments
• an immediate additional $70 million for the Rural
Infrastructure Investment Initiative to fund a total of
$140 million in projects in rural and northern communities
• new commitments to Greater Toronto Area (GTA)
transit and transportation priorities including York Region's
VIVA transit system, Durham's Regional Transit, Highway 7,
Highway 404 and the 407 East extension
• municipalities will immediately benefit from over
$350 million in investments for public transit
• strategic investment in Niagara regional development.
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To alleviate this infrastructure deficit, the government has strategically invested - and will continue to - in
Ontario's infrastructure. In the 2007-08 fiscal year, Ontario's infrastructure investments will amount to $5.9
billion in gross value. These investments are designed to upgrade and transform Ontario's 20th-century
infrastructure to meet the demands of the 21st century.
In May 2005, the government introduced its five-year infrastructure investment plan, ReNew Ontario, to better
address the Province's infrastructure needs. It provides for infrastructure investments of more than $30 billion.
ReNew Ontario provides for the revitalization, modernization and expansion of the province's public infrastructure
and major new investments in areas that are of primary importance to Ontarians. Highlights of the plan include:
• over $11 billion in transportation infrastructure initiatives, including $6.5 billion to improve the provincial
highway system and Ontario-U.S. border crossings and $4.5 billion for transit expansion and renewal across Ontario
• almost $1 billion for infrastructure initiatives to support clean water and the environment
• $5 billion to upgrade, expand and modernize health care facilities
• over $10 billion for elementary and secondary schools, colleges and universities
• $300 million to enhance the Canada-Ontario Affordable Housing Program, which will help create over 15,000 new
units of affordable housing; see Section A: Expanding Opportunities for Children and Families for further details
• $1 billion for justice sector infrastructure, to improve public safety and crime reduction
• spearheading a transformation of Ontario's cultural sector with major investments in cultural landmarks; see
Section F: Expanding Opportunity for Economic Growth for further details.
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Ontario's Infrastructure
Infrastructure contributes to Ontario's quality of life:
• a prosperous economy - transportation networks are critical to productivity
• high-quality health care - modern hospitals with up-to-date technology reduce wait times
• a culture of environmental responsibility - increasing rapid transit ridership will reduce greenhouse gas emissions
• a compassionate society - the quality of facilities for special-needs children, abused women, and people with
disabilities should reflect society's care for them
• integrated communities - infrastructure is fundamental to the culture, character and competitiveness of communities.
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Transportation Infrastructure
Highways, Roads and Bridges
Ontario recently announced progress on highway priorities such as:
• $55 million to widen Highway 7 in Durham Region
• $250 million to extend Highway 404 by 13 kilometres
• providing an environmental assessment for an eastward extension of Highway 407.
This year, the government is adding new projects to the plan to further improve traffic flow and safety on provincial
highways. Building on the success of the introduction of high occupancy vehicle (HOV) lanes on Highways 403 and 404 in
the GTA, the government will be proceeding with projects to add new HOV lanes on sections of Highways 400 and 427. This
is in addition to previously announced HOV projects on Highway 417 and the Queen Elizabeth Way (QEW) and is part of the
government's plan to develop a network of HOV lanes that will improve travel across the province.
Other new projects include widening of Highway 10 in Caledon, Highway 401 in Kingston and Highway 417 in Ottawa.
New safety and operational improvements are planned for Highway 17 between Thunder Bay and Kenora. The government
is also proceeding with a new alignment of Highway 26 between Collingwood and Wasaga Beach to improve traffic
flow and safety in the area.
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Improvements to Ontario's Highways, Roads and Bridges
The following are some expected results that will be achieved
under the ReNew Ontario plan.
• 602 kilometres of highway repairs and 82 kilometres
of new highway lanes in southern Ontario
• 87 repaired/new bridges in southern Ontario
• new HOV lanes on Highways 403 and 404
• 803 kilometres of highway repairs and 6 kilometres
of new highways in northern Ontario
• 69 repaired/new bridges in northern Ontario.
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The government is helping municipalities invest in highways and local roadways through Connecting Links. In
2006-07, the program invested $15.7 million to fund 37 projects. In this Budget the government is announcing an
additional one-time investment of $25 million that municipalities may use for municipal roads across the province.
This is in addition to ReNew Ontario's strategic investments in the provincial highway network, which extends
over 16,500 kilometres and includes more than 2,800 bridges. It carries goods worth over $1.2 trillion to
national and international markets annually. Unfortunately, the increasing volume of traffic throughout the
system slows the movement of goods and hurts productivity. Investing in Ontario's highway infrastructure will not
only reduce congestion, but will also help keep roads safe and ensure that the province remains an attractive
place to invest, providing for future economic growth and job creation.
Under ReNew Ontario, the government has developed the Southern Ontario Highways Program that sets out investments
totalling $3.4 billion to expand and improve the provincial highway network in southern Ontario. This will
provide for the construction of an additional 130 kilometres of highway, the replacement of 64 bridges, and the
repair of 1,600 kilometres of highway and 200 bridges. In 2007-08, the government is investing $899 million in
Ontario's southern highway network.
The ReNew Ontario plan has also led to the development of the Northern Ontario Highways Program, including
investments totalling $1.8 billion for the renewal and expansion of the highway network in northern Ontario. This
funding will allow for the expansion of the northern highway system by 64 kilometres; the construction of 54
bridges; and the repair of 2,000 kilometres of highway and 200 bridges. In 2007-08, the government is investing
$468 million in Ontario's northern highway network.
Borders, Gateways and Trade Corridors
Another key component of ReNew Ontario is the investment in the Province's border infrastructure. Through this
plan, the government has devoted over $800 million to increasing efficiency and capacity at Ontario's borders.
Under the plan, the first priority is increasing capacity at the Windsor corridor. This investment includes the
$300 million Let's Get Windsor-Essex Moving Strategy, which provides for infrastructure improvements in the
Windsor-Detroit Gateway. The Windsor Border Initiatives Implementation Group has been established to take
responsibility for the implementation of Phases I and II of the strategy. In addition, over $200 million is
planned to widen Highway 401 between Tilbury and Windsor, improving the traffic flow of the Windsor Gateway.
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Border Facts
Border issues are of integral concern for Ontario, with
international trade a major component of the province's
economy. Ontario's border crossings are critical to Canadian
export business.
• In 2005, 45 million vehicles, including almost
nine million trucks, used Ontario's 14 border crossings
into the United States.
• Approximately $420 billion in goods cross Ontario's
international bridges annually in two-way trade.
• Through the Windsor-Detroit gateway alone,
$140 billion worth of goods travel between Canada and
the United States annually.
• 40 per cent of Quebec exports by road to the United
States travel on Ontario highways.
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Ontario is also collaborating with the federal government and Quebec to establish a North America Gateway
Strategy. There is a need for an integrated set of investment and policy measures to facilitate the movement of
people and goods between Canada and the United States, between eastern Canada and the Pacific region, and between
Canada and trading partners around the globe. Central to this is establishing the North America Gateway - a
transportation infrastructure system encompassing Ontario and Quebec - as the best transportation network for
global supply chains between Canada and the rest of the world. Given its national significance, this strategy
must be a key component of the emerging federal gateway strategy and strongly aligned with the federal
government's Asia-Pacific Gateway Strategy. For the North America Gateway Strategy to achieve its full potential,
long-term federal funding is necessary.
The government is also moving forward with the environmental assessment of the Niagara to GTA Transportation
Corridor as part of the effort to add capacity to the transportation corridor that links Niagara to the GTA.
Border security issues are a major concern for both Canada and the United States. The government is taking steps
to protect this shared border. Ontario is introducing a new driver's licence card with technologies and security
features to protect holders from identify theft and make it more difficult to tamper with or counterfeit. This
new driver's licence is an important part of the Province's efforts to keep its border with the United States
safe while maintaining free-flowing trade and travel.
- ---------------------------------------------------------------------------------------------------------------------
Border Improvements
Achievements
• a new Sault Ste. Marie truck route has been opened
• additional lanes on the Queenston-Lewiston Bridge and Highway 405 have been opened
• improvements have been made to Brookdale Avenue in Cornwall near the border.
In Progress
• the Let's Get Windsor-Essex Moving Strategy, announced in March 2004, including $300 million to improve
local roads and highways, and improve the Windsor-Detroit Tunnel Plaza
• improvements to Highways 401 and 402 and the QEW
• environmental assessment studies and community consultation on a new Detroit River crossing and on
access-road options
• over $200 million invested to widen Highway 401 from Windsor to Tilbury, in partnership with the federal
government
• improving access to border crossings along the Niagara Frontier, through a $207 million partnership with
the federal government
• improving the Blue Water Bridge in Sarnia, as well as Highways 401 and 402, through a $115 million
partnership with the federal government.
Plans for the Future
• completion of a new Windsor-Detroit crossing by 2013
• completion of a Niagara to GTA corridor
• development of a North America Gateway.
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Transit and Regional Transportation
In the 2006 Budget, the government announced the Move Ontario initiative, which provided $1.2 billion in one-time
investments to public transit, municipal roads and bridge infrastructure projects. Through Move Ontario, the
government's investment in public transit could lead to projects totalling nearly $2.5 billion. This initiative
is also expected to create up to 27,000 jobs in Ontario. Highlights include:
• $838 million for the GTA, including
o $670 million to Toronto and York Region for new subway construction
o $95 million to the city of Brampton for transit expansion; Brampton will be able to apply this funding towards
the $285 million Brampton AcceleRide project
o $65 million to the city of Mississauga for transit expansion; Mississauga will be able to apply this funding
towards the $259 million Mississauga Transitway project. The Province is also providing support for the Transitway
with an additional $25 million in GO Transit investments
o $7 million to York Region towards detailed planning for Phase II of VIVA Transit express bus service.
On March 6, 2007, the federal government announced that it will provide almost $1 billion to support the
Province's Move Ontario initiative as well as Phase II of VIVA and Durham Region's plan for rapid transit on
higher-demand corridors. Ontario is also contributing $85 million to Phase II of VIVA and $2.5 million to Durham
Region's plan.
Waterloo Region is one of Ontario's fastest-growing and most innovative communities. The government is committed
to working with its municipal, regional and federal partners to complete the technical studies and environmental
assessment for the Kitchener-Waterloo Light Rail Transit system and to support the cost of one-third of the
project.
In 2006-07, Ontario will invest $277 million for transit infrastructure, distributed to municipalities on the
basis of transit ridership. Ontario will also provide $75 million to municipalities, also to be distributed on
the basis of transit ridership, for public transit capital.
The Ontario Government is also providing support for public transit infrastructure through ReNew Ontario. To
support public transit infrastructure, the government is providing municipalities with two cents per litre of the
provincial gasoline tax, as a source of long-term sustainable funding. With this transfer, between October 1,
2006 and September 30, 2007, the government will provide an estimated $313 million to 86 transit systems offering
services to 104 communities across the province. By 2010, the government will have provided over $1.6 billion in
gasoline tax funding to Ontario municipalities for their local transit priorities. This program gives
municipalities a dependable and stable source of financing for their public transit initiatives.
The government has also made other significant investments in the Toronto Transit Commission, including a
one-third contribution under the $1 billion Canada Strategic Infrastructure Fund initiative, to modernize and
expand bus, streetcar and subway services in Toronto. In this Budget, the government is providing $200 million
towards these announcements.
The Province supports public transit and remains committed to improvements to transit in the City of Ottawa in
cooperation with municipal and federal partners.
GO Transit ridership has increased by 7.2 per cent in the last two years. As part of its regional transportation
strategy, the government has made large and targeted investments in GO Transit that are producing results for
commuters around the Greater Golden Horseshoe, including:
• opening four new GO Transit stations
• purchasing 27 more fuel-efficient locomotives and 12 double-decker buses
• adding 500 new bus trips every day in the GTA
• adding 50 new bi-level railcars with the capacity to carry an additional five million passengers per year
• adding 6,000 new parking spaces at GO Transit parking lots.
Greater Toronto Transportation Authority
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Move Ontario Outcomes
• The Toronto-York subway extension will add 36 million
transit trips, eliminate 30 million car trips and reduce
250,000 tonnes of greenhouse gases each year. The Mississauga
Transitway will carry 5,000 to 10,000 passengers per hour in
peak commuter times by 2011.
• Brampton AcceleRide will use hybrid buses, running
on ultra-low sulphur diesel fuel, that can reduce fuel
consumption by up to 60 per cent and reduce greenhouse
gases by up to 50 per cent.
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To complement transit and transportation investments in the GTA, the Ontario Government established the Greater
Toronto Transportation Authority (GTTA) in 2006 to provide better coordination among the 10 different public
transit systems of the GTA and Hamilton. This agency ensures the delivery of an integrated and more convenient
transportation network to meet the growing needs of residents in these areas.
The GTTA's mandate includes:
• implementing the GTA Fare Card System, which will allow commuters to travel on public transit from Durham Region
to Hamilton using a single card
• integrating municipal and regional transit planning, and coordinating fares and transit service delivery to
improve convenience for commuters
• coordinating the purchase of transit vehicles on behalf of municipalities
• managing the future operation of GO Transit
• developing and submitting an annual capital plan and investment strategy.
The GTTA will work to reduce congestion by attracting more riders to area transit systems, and help ensure the
mobility of goods and people. This will increase productivity, reduce business costs and provide sustainable
economic growth.
The government will work with the GTTA to assess opportunities to provide it with long-term revenue sources.
The formation of the GTTA strengthens the government's Growth Plan for the Greater Golden Horseshoe and its
Greenbelt Plan. Together, these plans contribute to the foundation for the future growth of the GTA and
surrounding areas.
Ontario's Electricity Infrastructure
Investments in New Electricity Supply
Investments in Ontario's electricity infrastructure are essential to support and enhance the province's economic
competitiveness and quality of life. The government directed the Ontario Power Authority (OPA) to produce an
Integrated Power System Plan (IPSP) to ensure long-term supply adequacy, which will be submitted to the Ontario
Energy Board (OEB) for review and approval. The IPSP will have a 20-year horizon and integrate investments in new
renewable energy sources, conservation and demand management (CDM), and new or refurbished nuclear generating
capacity, as well as investments in Ontario's transmission infrastructure.
The government also remains committed to replacing coal-fired generation in Ontario. The Minister of Energy has
asked the OPA to develop a plan for replacing coal-fired generation in the earliest practical time frame, without
compromising reliability.
The government has already initiated one of the most ambitious near-term building programs in North America for
new electricity generation.
• Since October 2003, about 3,500 megawatts (MW) of power generation and CDM have come online - improving the
supply situation in Ontario, with enough power for about 1.9 million homes.
• About 7,300 MW of electricity supply projects are underway, adding enough power for about 3.3 million homes over
the next four years.
• In addition, the OPA has about 1,000 MW of CDM and renewable procurements either underway or in the planning
phase.
- -------------------------------------------------------------------------------------------------------------------
Electricity Supply Projects Table 7
- -------------------------------------------------------------------------------------------------------------------
Capacity (MW) Approximate Number of
Homes Powered(1)
Type ('000s)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
Projects Online
Renewables 412 108
CDM(2) 195 -
Gas 800 315
Nuclear 2,055 1,440
Subtotal 3,462 1,863
Projects in Progress
Renewables(3) 1,102 399
CDM 474 -
Gas 4,267 1,809
Nuclear(4) 1,500 1,051
Subtotal 7 ,343 3,260
Procurements Underway and Planned
Renewables 359 94
CDM 631 -
Subtotal 990 94
Total Projects in Progress and Procurements 8,333 3,354
Grand Total 11,795 5,217
- -------------------------------------------------------------------------------------------------------------------
(1) Annual household consumption assumed at 10,000 kWh/year. Estimated number of homes based on capacity factors
assumed: nuclear units at 80 per cent, gas at 45 per cent, renewable procurements at 30 per cent and
cogeneration at 80 per cent.
(2) Conservation and Demand Management. Number of homes powered excludes any estimates for contributions from CDM.
(3) Includes a notional 200 MW for the Niagara Tunnel project, which allows more energy to be produced from
existing capacity - 200 MW illustrates estimated average annual additional generation of 1.6 terawatt-hours.
(4) The Bruce Power Refurbishment Implementation Agreement also includes investments in the currently operating
Bruce A Units 3 and 4, which are intended to extend their operating lives.
Note: Numbers may not add due to rounding.
- -------------------------------------------------------------------------------------------------------------------
About $11.5 billion in investments are being made in the projects in progress for new and refurbished generation.
At the peak of construction activity, over 5,000 workers will be directly employed at these projects, and
including indirect jobs in factories supplying new materials and equipment to them, they will support about
20,000 jobs on average per year in Ontario over the construction period.
The government has also directed Ontario Power Generation (OPG) to start feasibility studies on refurbishing its
existing nuclear units, and initiate a federal approvals process for new nuclear units at an existing site.
- ---------------------------------------------------------------
New Electricity Generation Table 8
Projects in Progress
- ---------------------------------------------------------------
Investment
($ Billions)
- ---------------------------------------------------------------
- ---------------------------------------------------------------
Renewable Energy Supply 1.9
New Gas-Fired Generation 3.6
Co-Generation 0.8
Niagara Tunnel 1.0
Bruce Power Refurbishment Implementation 4.25
Agreement
Total 11.5
- ---------------------------------------------------------------
Note: Numbers may not add due to rounding.
Sources: Ontario Ministries of Finance and Energy.
- ---------------------------------------------------------------
On September 22, 2006, OPG started the federal approvals process by filing an application with the Canadian
Nuclear Safety Commission (CNSC) for a Site Preparation Licence for new nuclear units at OPG's Darlington Nuclear
site. In addition, on August 17, 2006, Bruce Power Limited Partnership filed an application with the CNSC to
prepare a site for the potential construction of new reactors.
Building new nuclear units will be guided by the following criteria:
• willing host community and appropriate site
• fixed price with performance guarantees
• turnkey agreement to limit the risk of cost overruns
• cost effectiveness over refurbishment.
The government has also directed the OPA to plan for nuclear capacity to meet baseload electricity requirements
in its IPSP, limiting the installed in-service capacity to 14,000 MW over the life of the plan. Nuclear energy
generated by OPG and Bruce Power currently supplies about 50 per cent of Ontario's electricity needs and is a
zero air-emissions source of electricity generation. A 1,000 MW nuclear power plant, compared to an equal-sized
coal-fired electricity plant generating the same amount of electricity, avoids about six to seven million tonnes
per year of carbon-dioxide equivalent emissions - a major greenhouse gas.
To promote reliable delivery of electricity, Hydro One plans to invest more than $4 billion from 2007 to 2009 to
sustain, expand and reinforce its transmission and distribution systems - significantly more per year than the
$823 million in capital expenditures invested in 2006.
The government is also promoting consolidation efficiencies in the municipal electric utilities sector through a
two-year exemption from the electricity transfer tax for sales of electricity assets between publicly owned
electric utilities. Previous transfer tax exemptions helped promote consolidations that led to estimated
efficiency savings of 10 to 30 per cent in operations, maintenance and administration costs.
Investments in Green Renewable Energy and Conservation
The government recognizes the importance of investments in sustainable and cleaner energy, including more
renewable capacity and CDM initiatives. As part of the government's directive to the OPA on its plan, the
Province's renewable energy sources are targeted to double by 2025, to 15,700 MW, making Ontario a leader in
clean energy.
Seven energy-efficient combined heat and power cogeneration projects totalling 414 MW are among the new supply
projects currently underway. They include a Thorold paper mill, a Ford plant in Windsor, and a Sault Ste. Marie
steel mill.
In addition, the government has initiated a standard offer program administered by OPA aimed at small-scale
generation projects - less than 10 MW each - increasing the availability of renewable power and promoting
economic development within communities. As of February 27, 2007, 22 projects representing more than 140 MW had
been awarded under this program.
The government has also directed that an aggressive conservation goal be built into the OPA's plan, with a
reduction in projected peak electricity use by 1,350 MW across Ontario by the end of 2007, an additional 1,350 MW
by 2010, and 3,600 MW more by 2025, for a total of 6,300 MW by 2025.
So far the government has set in motion conservation programs and initiatives representing over $2 billion to
reduce electricity use in the province.
Electricity Price Stability for Ontario Consumers and Businesses
- ----------------------------------------------------------------------
Electricity Price Stability Measure
The government extended and adjusted the transitional revenue limit
on most of the output from OPG's non-price regulated assets:
• 4.6¢/kWh from May 1, 2006 to April 30, 2007
• 4.7¢/kWh from May 1, 2007 to April 30, 2008
• 4.8¢/kWh from May 1, 2008 to April 30, 2009
The transitional revenue limit applies to approximately 20 per cent
of the province's power generation.
- ----------------------------------------------------------------------
Price stability enhances the competitiveness of Ontario's economy and promotes a more prosperous Ontario.
For residential and small business consumers, the government has established a regulated price plan (RPP), with
prices set periodically by the OEB. Reflecting the improved electricity supply situation in Ontario and lower
spot market electricity prices, the OEB reduced the RPP by 0.3 cents per kilowatt hour (¢/kWh) on November 1, 2006.
Electricity users benefit from increased price stability through the regulation of OPG's nuclear and large
hydroelectric assets and a transitional revenue limit on most of the output from the rest of OPG's assets.
Effective April 1, 2005, OPG's nuclear and large hydroelectric plants became price regulated and the government
set an initial average regulated price of 4.5¢/kWh on this output. The OEB will assume responsibility for
setting OPG-regulated prices after March 31, 2008.
Community and Social Infrastructure
Health Care
The government is taking action to modernize and upgrade Ontario's health care facilities and equipment, and
expand hospital capacity. Through ReNew Ontario, the government is investing more than $5 billion in health care
infrastructure by 2010.
This investment includes the funding of more than 100 major projects to create new hospitals, modernize older
hospitals and reduce wait times. This plan also calls for an investment of more than $200 million in new and
upgraded medical and diagnostic equipment. These investments reduce wait times and support the provision of
newer, more complex treatment methods, resulting in better health and safer care for Ontarians.
This year, the government is expanding the ReNew Ontario plan by funding the construction of two new hospitals.
Mental Health Centre Penetanguishene's Oak Ridges facility will be replaced, and a new state-of-the-art hospital
will be built in Smiths Falls. The new Perth and Smiths Falls District Hospital will ensure that eastern
Ontarians continue to have access to quality health care.
-----------------------------------------------------------------------------------------------------------------
Renewing Ontario's Health Infrastructure
• The Hôpital Montfort redevelopment project in Ottawa, which broke ground in June 2006, will double the
size of the facility to 417 beds.
• As of March 2007, the preferred teams have been selected for major Alternative Financing and
Procurement (AFP) hospital projects in Belleville, Sudbury and North Bay. In addition, three Requests for
Proposals (RFPs) are closed and under review for major hospital projects in Mississauga, London and Toronto.
Requests for Proposals, or Requests for Qualifications (RFQs), have been issued for a further 10 AFP projects.
• The government has improved access to diagnostic scans by adding seven new hospital-based magnetic
resonance imaging (MRI) services in Ontario since May 2004; provided funding for expanded hours of
service of an MRI machine at Halton Health Care from 8 to 12 hours per day, five days a week; and started
construction of a new MRI service at Soldiers' Memorial Hospital in Orillia. In addition, seven old
hospital-based MRI machines have been replaced with newer, more efficient ones.
• Since 2005, 31 old hospital-based computed tomography (CT) scanners have been replaced with the latest
CT scanner technology.
• Since 2005, 39 long-term care projects have been completed, 931 new long-term care beds have been
added, and more than 4,000 existing beds have been redeveloped.
• The government has invested $50 million to increase the number of spaces in Ontario's medical schools.
This will mean a 15 per cent increase in the number of doctors graduating each year, starting in 2011-12.
-----------------------------------------------------------------------------------------------------------------
Education
As part of the economic stimulus package in the 2006 Fall Economic Outlook and Fiscal Review, the government
invested $30 million in renovation, new construction and energy-efficiency projects at colleges. Building on this
investment, this Budget confirms the government's additional investment of $390 million to support quality
improvements in postsecondary education. See Section C: Expanding Opportunities for Students for further details.
These investments are part of ReNew Ontario. Under ReNew Ontario, the government is investing more than
$10 billion to renew and expand schools and postsecondary institutions by 2010.
Key elements of the strategy include:
• establishing the Good Places to Learn initiative, which will provide approximately $4 billion to school boards to
help them address the backlog of repairs and build new schools
• investing approximately $1.4 billion for planned school construction and to accommodate projected new enrolment
growth
• providing $1.5 billion to school boards for ongoing renewal of school facilities
• investing $1.8 billion to support completed school construction
• investing $540 million to renew university and college facilities and buy new equipment
• investing $550 million to provide 14,000 new spaces in graduate programs across Ontario.
- -------------------------------------------------------------------------------------------------------------------
Education Challenges and Solutions Table 9
- -------------------------------------------------------------------------------------------------------------------
Challenge Solution
- ---------------------------------------------------------- --------------------------------------------------------
Aging school buildings (the average age of Ontario Almost 6,800 urgent repair and construction projects
school buildings is 42 years). are completed or underway as part of the Good Places
to Learn initiative.
Equipment must be continually refreshed and facilities Investment of $380 million since ReNew Ontario began,
require ongoing maintenance. to purchase and modernize equipment and maintain
buildings at Ontario's colleges and universities.
- ---------------------------------------------------------- --------------------------------------------------------
Need to expand graduate-school spaces. Creation of 12,000 new graduate-school spaces across
the province by 2007-08 and 2,000 more new spaces by
2009-10.
- ---------------------------------------------------------- --------------------------------------------------------
Infrastructure for Vulnerable Populations
- ------------------------------------------------------------------------
Economic Stimulus Package Investments for Table 10
Vulnerable Populations
- ------------------------------------- ----------------- ----------------
Approximate
Number of Investments
Projects ($ Millions)
----------------- ----------------
Development Services Agencies and 2,150 36.4
Violence Against Women Shelters
Facilities for Children with 950 37.2
Disabilities
- ------------------------------------------------------------------------
The economic stimulus package announced in the 2006 Economic Outlook and Fiscal Review provided funding for over
3,000 social infrastructure projects. These projects will help ensure that the agencies supporting Ontario's
vulnerable populations are delivering their services in safe and secure circumstances.
-----------------------------------------------------------------------------------------------------------------
New Infrastructure Investments to Aid Vulnerable Populations
In addition to the economic stimulus package investments, in 2006-07, the government is providing further
investments to help vulnerable populations. These investments include:
• $7.0 million to developmental services agencies including group homes
• over $2.0 million for shelters for women and children fleeing domestic violence
• $9.0 million for agencies that assist vulnerable children and youth
Examples of agencies receiving funding include:
• $2 million for the Ottawa Rotary Home Respite Centre. The agency provides respite services for children and
young adults with disabilities
• over $1 million for Kinark Child and Family Services in Newmarket. The agency provides programs and
space for complex-needs clients
• $1 million for the Catholic Family Counselling Centre of Waterloo Region. This agency provides support
to victims of domestic violence.
-----------------------------------------------------------------------------------------------------------------
Local Community Infrastructure
- ------------------------------------------------------------------------
Selected Economic Stimulus Package Table 11
Investments in Local Community Infrastructure
- ------------------------------------------------------------------------
Project Type Investments ($ Millions)
- ------------------------------------------------------------------------
Sport and Recreation Facilities 26.4
Citizenship and Culture Centres 2.1
Justice Projects in Small Communities 4.2
Heritage Facilities 1.9
Libraries 2.4
Museums 1.9
Other Municipalities 3.7
- ------------------------------------------------------------------------
Total 42.6
- ------------------------------------------------------------------------
Ontario has a wealth of community infrastructure: arenas, libraries, galleries, museums, and public waterfronts.
These assets improve quality of life, and make Ontario an attractive destination for cultural and recreational
tourism - a key contributor to the province's prosperity.
The government has taken action to ensure the care and upkeep of these important facilities. The economic
stimulus package announced in the 2006 Economic Outlook and Fiscal Review provided $42.6 million for community
infrastructure projects around the province. These projects include recreational facilities, multicultural
centres, senior facilities, museums and libraries.
Through ReNew Ontario, the government has also acted to revitalize cultural landmarks in Toronto and Ottawa, two
of Ontario's largest urban centres. Institutions receiving support include the Royal Ontario Museum, Art Gallery
of Ontario, Royal Conservatory of Music, Toronto International Film Festival, and Ottawa Chamber Music Society's
new Concert Hall. As a result of these investments, the Province's new world-class venues will enrich Ontario's
cultural life while bolstering its reputation as a destination for cultural tourism and enhancing its economic
prosperity.
-----------------------------------------------------------------------------------------------------------------
Selected Investments in Local Community Infrastructure
• 25 citizenship and culture centres, including the St. George Arab Culture Centre, will benefit from a
total of $4.9 million
• $9.9 million will further improve hospice facilities, including Hamilton's Dr. Bob Kemp House, Hospice
Windsor, Hospice Niagara, Bethel House in Caledon, Dorothy Ley Hospice in Etobicoke and the Yee Hong Hospice in Toronto
• sport and community recreation centres, such as the Port Colborne Multi-Purpose Sports Complex and
Cobourg Ice Rink, will benefit from almost $15 million in funding.
-----------------------------------------------------------------------------------------------------------------
Communications Infrastructure
A Communications System for the 21st Century
The government is investing in modern and effective public communications infrastructure, which provides many
economic and social benefits to the province. See Section F: Expanding Opportunities for Economic Growth for
further details. These investments include the following:
• The Northern Ontario Heritage Fund Corporation (NOHFC) is providing support to expand broadband and cellular
services to remote areas of northern Ontario. The NOHFC's Emerging Technology Program will encourage investment in
telecommunication infrastructure projects, which could enhance broadband Internet and cellular service and will strive
to connect most of northern Ontario within three years.
• The government is investing to bring broadband access to more communities in rural areas. It is investing $10
million in 2007-08 to help expand broadband coverage in rural southern Ontario by leveraging community and
private-sector investment.
• The government is transforming itself into an e-government, with a current focus on electronic service delivery
to citizens and businesses. See Section H: Expanding Opportunities through a Modern and Efficient Government for more
information.
Ontario-Municipal Infrastructure Investments
Long-Term Funding of Infrastructure
The government has introduced several initiatives to help municipalities finance their infrastructure projects.
Infrastructure Ontario provides innovative low-cost, long-term loans to help municipalities and other
public-sector partners finance local infrastructure projects. These loans are provided through the Ontario
Strategic Infrastructure Financing Authority (OSIFA) Loan Program. As of December 2006, this program has
committed to providing more than $2.8 billion in low-cost, long-term financing to over 200 municipalities and
universities. These loans have initiated more than 1,200 infrastructure projects.
In partnership with the federal government, the Ontario Government has established the Canada-Ontario Municipal
Rural Infrastructure Fund (COMRIF). The provincial and federal governments have each contributed up to $298
million to COMRIF. With municipal investments, this program is expected to stimulate up to $900 million in
infrastructure investments over five years to help meet local priorities.
The province's gasoline tax transfer program is providing a dependable, stable source of financing for municipal
transit projects. By 2010, the government will have provided over $1.6 billion in gasoline tax funding to
municipalities. As part of the government's Northern Prosperity Plan, the Northern Ontario Heritage Fund
Corporation provides funds for northern municipalities for infrastructure projects.
The Ontario Government has also established the Rural Infrastructure Investment Initiative (RIII). The Province
has doubled the initial $70 million planned for this initiative to $140 million to help rural and small
municipalities provide safe and reliable local infrastructure. Funding has been made available to eligible
municipalities for construction-ready projects in five priority areas: local roads and bridges; clean water and
wastewater; solid waste management; sports, recreation and cultural facilities; and community energy projects.
In addition to its investments, the Province will continue to work with its federal and municipal partners to
secure long-term investments in infrastructure. This includes funding for the North America Gateway, transit and
transportation in the GTA, and infrastructure for strong rural and northern communities.
Ontario's Municipal Roads and Bridges
Through the Move Ontario infrastructure initiative, the government has provided $400 million for municipal roads
and bridges projects. This investment is helping municipalities primarily outside the GTA, with special emphasis
on rural and northern communities. These funds are enough to resurface almost 3,000 kilometres of two-lane
municipal roads or repair up to 800 bridges - projects that could create up to 4,000 jobs.
The government has also provided funding and financing, through COMRIF and Infrastructure Ontario's OSIFA Loan
Program, to help Ontario's municipalities meet their local road and bridge infrastructure needs. To date under
COMRIF, the provincial and federal governments have committed almost $190 million for 197 road and bridge
projects. Since 2003, Infrastructure Ontario's OSIFA Loan Program has provided municipalities with over $465
million to finance more than 310 road and bridge projects.
Municipal Water and Wastewater Infrastructure
Through ReNew Ontario, the government has committed to invest almost $1 billion by 2010 for initiatives to
support clean water and the environment. Through all three intakes of COMRIF, the provincial and federal
governments have committed almost $380 million to help 60 small and rural municipalities across the province
upgrade their water and wastewater systems. The government is also supporting municipalities in meeting their
water and wastewater infrastructure needs through Infrastructure Ontario's OSIFA Loan Program. Since 2003, the
program has committed to providing over $1.2 billion in financing municipal water and wastewater projects.
The province is also preparing a financial plan regulation, under the Safe Drinking Water Act, as well as a
guidance document to help municipalities achieve financially sustainable water and wastewater systems. Further,
the government is developing a series of guides to showcase best practices in areas such as asset management and
business planning, and to promote continuous improvement. The series is intended to help municipalities prepare
for the transition to full accrual accounting and move towards financial sustainability of water systems.
Section H: Expanding Opportunities through a Modern
and Efficient Government
Overview
The government is delivering dynamic, modern and efficient public services, focused on priorities and results. It
is accomplishing this despite having inherited a fiscal deficit of $5.5 billion, plus deficits in health,
education and infrastructure. The McGuinty government has successfully tackled a dual challenge: to restore
Ontario's fiscal health while investing in the services and priorities that Ontarians value most - better health,
student success, a strong economy and expanded opportunities for all Ontarians.
The government has increased efficiency across all its operations, and reinvested in the services Ontarians need
most. It is freeing up resources through consolidated administrative services, better use of information
technology and streamlined purchasing processes. By reallocating efficiencies into key priorities - health care,
education, a prosperous economy and safe, strong communities - the government has been able to improve results
and services for Ontarians in these crucial areas.
- ---------------------------------------------------------------------------------------------------------------------
Total Program Review Savings and Efficiencies Table 12
($ Millions)
- ---------------------------------------------------------------------------------------------------------------------
2007-08
-------------
Supply Chain and Transaction Services 200
A more streamlined purchasing process, vendor rebates and new vendors of record are decreasing
procurement costs
Information and Information Technology 100
Consolidation of desktop management and rationalization of common services and applications across
the Ontario Public Service; reduced inbound toll-free and outbound long-distance telephone costs
Accommodation Savings Review 50
Reduced accommodation costs by better aligning real estate needs and retrofitting government
buildings so they use less energy
Revenue Savings 57
Improving the collection of the government's accounts receivable and increasing the use of electronic
funds transfers, resulting in more efficient management of government revenues
Salary and Wage Pressures Absorbed 366
Ministries have realized sufficient savings from program review to absorb costs
Ministry Efficiencies - Absorbing Inflationary Costs 18
Inflationary costs such as increased fuel and electricity
Central Agency Review/Integration 15
Integration of central agencies and streamlined decision-making through integrated systems and processes
- ---------------------------------------------------------------------------------------------------------------------
Total 806
- ---------------------------------------------------------------------------------------------------------------------
Since 2004, government ministries have contained growth in spending by absorbing hundreds of millions of dollars
in increased costs, including inflation, salaries and administrative expenses.
As a result of these efficiencies, the cost of administering government since 2004 has decreased from 15 per cent
to 14 per cent of total government spending.(3) In fact, according to Statistics Canada, Ontario's spending on
general government services, which includes general administration costs, was $119 per person in 2005-06 - the
second-lowest rate among provincial governments, and 34 per cent below the $181 average per-person expenditure of
other provincial and territorial governments.(4)
By restricting administrative spending and absorbing millions in cost increases, Ontario has been able to invest
in priority public services.
Considerable annual savings have already been achieved. The government is determined to continue looking for ways
to cut administrative costs and improve services. To that end, an annual year-end savings target of approximately
one per cent of total spending is now included in the Province's medium-term fiscal outlook.
Ontario continues to pursue opportunities to work across different levels of government. Citizens expect
different levels of government to work together to get the most out of their investments in public services.
Ontario is a national leader in government service integration, bringing together federal, municipal and
provincial services in one-stop locations, such as the Ottawa Government Service Centre. Ontario has also
successfully negotiated agreements with other levels of government to harmonize or rationalize how services are
delivered to citizens, in areas such as corporate tax administration, labour-market training and employment
services, and is working on an agreement for meat inspection. These and other examples of cross-government
partnerships are highlighted below. Further details are found in Section G: Investing in Ontario's Infrastructure.
Improving Services - Ontarians Benefit from Public Services Daily
- ---------------------------------------------------------------
Investing in Priority Public Services Yields High Returns
• The OntarioBuys program, announced in 2004, helps
hospitals, universities, colleges and other Institutions
consolidate and streamline purchasing processes.
• OntarioBuys has invested $38 million in 25 projects
in health care and education facilities, including
postsecondary institutions, involving more than 100 institutions
across the province.
• These sectors are expected to redirect $100 million
annually by 2009-10 to support public service priorities.
This means nurses can spend more time with patients, and
teachers can spend more time with students.
- ---------------------------------------------------------------
To ensure that public services focus on Ontarians' priorities and are delivered cost effectively, the government
has been modernizing its business practices. It has also been working with its health and education partners in
the broader public sector (BPS) to help them improve services to the public by using information technology more
effectively and streamlining business processes.
Health
The government is implementing key strategies and investments to transform the delivery of health services, as
outlined in Section D: Expanding Opportunities for Better Health. With this Budget, the government is providing
an additional $64 million in 2007-08 to further its comprehensive e-Health strategy, including a new secure
electronic health record.
In addition, the government is making improvements to the efficiency of back-office services that support better
patient care. To focus resources on direct patient care, the government, through OntarioBuys, has made a one-time
investment of $13.1 million in six electronic supply chain management projects involving 46 hospitals and health
care facilities. These projects are already reaping administrative savings, expected to reach $7 million annually
by next year, plus additional one-time savings that will be redirected to patient care. Annual savings from
supply chain modernization across the health care sector are expected to reach $50 million by 2009-10.
Highlights include the following:
• One-time funding of $1.4 million through the OntarioBuys program, allowing The Ottawa Hospital to replace manual
procurement with efficient electronic processes, immediately eliminating 11,000 paper cheques and 10,000 paper invoices
annually. These measures have resulted in annual savings of $1.2 million for reinvestment in health care services.
• A $1.7 million investment through OntarioBuys to help The Hospital for Sick Children in Toronto implement an
automated re-supply system that increases supply chain accuracy and streamlines the ordering process. As a result,
frontline staff have more time to do their jobs, with nursing staff alone having an estimated 300 additional hours a
week to devote to direct patient care.
• A joint venture involving London Health Sciences Centre and St. Joseph's Health Care has saved $5 million in
inventory costs and $1.7 million in administrative costs. This initiative has also freed up 40,000 square feet of
hospital space - the equivalent of two Olympic-sized ice rinks - through the creation of a common warehouse facility
serving several London-area hospitals.
Education
Ontario has made substantial investments in a strong education system, in part by achieving efficiencies
and reallocating resources. Initiatives include:
• implementing lower-cost, long-term financing totalling $758 million for school boards
• integrating technology systems across government and with school boards to foster more efficient financial
management and cost-effective service delivery
• introducing an e-learning strategy, which has allowed 55 school boards to save costs by accessing online courses,
a digital library and technical training
• providing seed money to nine colleges, universities and school boards, through OntarioBuys, to support the
formation of the Ontario Education Collaborative Marketplace (OECM), an electronic procurement initiative. These initial
participating institutions purchase over $1 billion in goods and services annually. Projected annual savings across the
education sector are $50 million by 2009-10 and $70 million by 2010-11
• investing to give students at the province's 20 universities 24/7 online access to more than
50,000 books.
Business
The government has introduced numerous efficiencies to improve Ontario's business climate - reducing the paper
burden, streamlining tax processes and modernizing the business law framework. Through these, and by working with
other levels of government and developing more efficient delivery channels, the Province continues to improve
Ontario's business environment.
• It is now possible to register Ontario businesses online in just 20 minutes - versus six weeks by mail. A
"one-window" Regulatory Registry for small businesses and an improved Business Registration and Change of Business
Information service allow businesses to simultaneously notify both the Province and the Canada Revenue Agency of any
changes, including address and status.
• Starting in 2007-08, the government is investing $500,000 annually, through the Ministry of Economic Development
and Trade, to modernize the regulatory regime for business and streamline approval processes.
• To make it easier and more convenient for businesses to comply with Ontario's tax laws, the government has
launched Modernizing Ontario's Systems for Tax Administration (MOST), one of its largest business transformation
projects. The MOST project will provide enhanced services enabling Ontario businesses to access and view tax-related
information, file returns and pay their taxes electronically. This will improve client service, ensure fairness in the
tax system and secure the Province's tax revenue stream.
• The Province and the federal government recently signed a memorandum of agreement on corporate tax
administration. Enabling legislation, if enacted, would transfer administration of Ontario's corporate income tax and
capital tax to the Canada Revenue Agency, effective for taxation years ending after 2008. Corporate tax harmonization -
with one tax form, one tax administration and one set of tax rules - is estimated to save corporations $90 million
annually in Ontario corporate income tax and up to an additional $100 million annually in compliance costs. See
Chapter III: Ontario's Tax System Supports Expanded Prosperity for more information.
• BizPaL, an online pilot project at www.bizpal.ca, simplifies and expedites the business permit and
licence process by providing one-stop access to permit and licence information for all levels of government.
• The government is continuing to modernize Ontario's corporate and commercial law framework to reduce undue
burdens on Ontario businesses, through a comprehensive overhaul of corporate law and updates to laws on the transfer of
securities held in electronic form.
• Ontario is leading the drive to establish a common securities regulator for Canada.
• Efficiencies allowed the hiring of 200 additional workplace health and safety inspectors without increasing
overhead costs, helping reduce time lost due to injuries.
• Other improvements benefiting workers include expanded regional and online access to information as well as
multilingual employment standards publications to ensure fair and improved access by the province's most vulnerable
workers for filing of their employment standards claims.
Improved Access and Response Times
Through focused resources, better use of technology and working with other levels of government, the Province has
greatly improved access and response times for the routine transactions that matter to individuals, families and
businesses.
• ServiceOntario, the government's one-stop modern retail service delivery network, offers high-quality, effective
accessible services for routine transactions, including birth, marriage and business registrations - both online and
through information centres. New centres have opened in Ottawa, Belleville, Peterborough, Geraldton, Owen Sound and
Windsor, bringing the total to 64 across the province.
• After inheriting a birth-certificate system with massive backlogs and delays, Ontario was the first government in
North America to offer a money-back service guarantee: 15 business days to deliver online birth certificates. As of
December 15, 2006, 99.7 per cent of requests have been met on time. Previously, Ontarians had waited up to 19 weeks for
regular delivery of birth certificates. As well, a single online process now allows parents to register their child's
birth and obtain the birth certificate and social insurance card, all at the same time. Even with a 20 per cent increase
in demand for certificates, to meet new U.S. border-crossing requirements, ServiceOntario has been able to manage the
increased workload without additional funding.
• The Province announced in January 2007 that it is expanding the money-back guarantee to apply to marriage and
death certificates. In February 2007, it announced a two-day money-back guarantee for a master business licence, which
businesses need to open a bank account and operate in Ontario.
• Ontarians can update their addresses online for drivers' licences, health cards and outdoor cards, and obtain
other commonly needed services, including licence renewal, used-vehicle information and customized licence plates,
through new features offered by ServiceOntario.
• The government has expanded public access to online information on government services at 42 public libraries and
13 First Nations public libraries across the province. This Budget invests a further $5 million in Ontario's libraries.
Ensuring access to justice is a cornerstone of Ontario's justice system and an obligation of the government.
Proposed amendments to the Justices of the Peace Act would streamline the process for considering applicants for
appointment as justices of the peace by the Justices of the Peace Appointments Advisory Committee.
Strengthened Transparency and Accountability
To enhance the transparency and accountability of government, the Province has:
• enacted the Fiscal Transparency and Accountability Act, 2004, which sets new standards for government resource
planning and reporting, and requires the Ministry of Finance to release a pre-election report on Ontario's finances for
review by the auditor general
• expanded the role of the auditor general to examine institutions in the broader public sector
• consolidated hospitals, schools and colleges into the Province's financial statements.
In light of newly fixed election dates, as detailed in Chapter II: Ontario's Economic Outlook and Fiscal Plan,
the government intends to further enhance transparency and accountability by proposing the Interim Appropriations
Act. If enacted, the act would give the government legal spending authority from the start of the fiscal year,
through the general election.
Management of Government Resources
Information and Information Technology
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Ontario Gets the Highest Ratings for Kiosks
The majority of Ontarians surveyed report that they are satisfied
or very satisfied with electronic access to government services,
such as kiosks (electronic self-service counters placed in malls
and other public areas), and online driver's licence and health
card renewals. For example, 73 per cent of Ontario kiosk users
find the service satisfactory or very satisfactory, versus
67 per cent in other provinces.
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Over the past two years, Ontario has progressed towards becoming an e-government, with a focus on expanding
electronic service delivery in order to provide cost-effective 24/7 access to government information and services.
By driving down costs and increasing efficiencies, the government has reduced spending on information and
information technology (I&IT) by $100 million.
High-volume public service transactions are less costly and faster now, using
e-channels rather than previous manual processing:
• Online legal aid billing has reduced costs by 25 per cent and processing time by 69 per cent from April 2005 to
May 2006.
• Online parental support payments cost 85 per cent less to process than paper cheque transactions and are posted
to client accounts within 36 hours - compared to 10 days for paper cheques.
Use of electronic channels for government service delivery is increasing. The Province's new Internet portals, whose
central site is www.ontario.ca, are growing in popularity. Other one-window portals serve the needs of various groups.
For example, www.ontarioimmigration.ca offers useful information for prospective and new immigrants on what they need to
know before and after they arrive, and provides links to programs and services to support their successful integration
into Ontario. Global Experience Ontario, recently established and funded from internal efficiencies, is a one-stop resource
centre to help internationally educated non-medical professionals find out how to qualify and apply for practice in Ontario.
Implementing the government-wide Integrated Financial Information System has been a major driver of improved operational
efficiency and program effectiveness. This system replaced three core financial systems and 73 other legacy systems.
Legislators and the public now receive complete and current financial information. Financial roll-ups are completed in
half the previous time. Improved forecasting and cash-flow management allow the Province to reduce borrowing costs.
Continued automation of the Ontario land registry system under contract with Teranet has dramatically increased
efficiency - now 85 per cent of land registrations are filed electronically and 87 per cent of Ontario property records are
automated. Although demand for registrations has risen 50 per cent over the past five years, new, more efficient processes
have met the demand without new funding.
The government is expanding the use of videoconferencing for more cost-effective interoffice meetings and interviews,
avoiding travel costs and time, particularly for offices in remote locations.
Human Resources
A modern public service values its employees and nurtures their capacity to learn, lead and thrive in a changing
environment. The government is developing future leaders, promoting effective partnerships with bargaining
agents, and working to ensure that public servants have the skills they need to transform government and deliver
excellent services, now and in the future. For example:
• Updated public service legislation strengthens the fundamental principles of public service: transparency,
accountability, non-partisanship, competency and professionalism.
• Settlements reached with the government's major collective-bargaining agents have meant uninterrupted services to
the public, with lower labour cost increases than in the BPS.
• The Ontario Public Service (OPS) Innovation Fund, established to promote innovation and transformation across
government, has supported 35 projects over the past two years with potential annual savings of up to $5 million - for
example, a victim services portal for victims of crime, service providers and the public; a useful video for disability
support applicants; and access to satellite images to assist in emergencies such as forest fires.
• The OPS has initiated a Youth and New Professionals Strategy to help attract and retain quality public servants,
with a special focus on students, including aboriginal youth, and internationally trained professionals.
Efficiencies have allowed the government to reinvest in the OPS by hiring more staff for priority programs,
including:
• 160 health care workers
• 185 social assistance workers
• 285 security, probation and parole officers
• 120 safe drinking water and nutrient management staff
• 155 food safety officers and meat inspectors
• 200 workplace health and safety inspectors
• 650 staff transferred from the federal government for employment training and services
• 130 natural resources staff.
As well, the government has hired 470 staff as a result of the government's decision to operate the Central North
Correctional Centre.
At the same time, Ontario has the second-lowest number of public-sector employees per 1,000 population among
the provinces and territories.(5)
To lower costs and retain skilled staff, the government has reduced reliance on expensive consultants for the
services Ontarians need by approving the conversion of 944 temporary positions to full-time posts,
with efficiencies of approximately $37 million annually.
Ontario's transformation to a modern, efficient government involves fostering a culture of continuous improvement.
Ministries review programs, services and administrative processes on an ongoing basis. This ensures that government
takes every opportunity to achieve efficiencies and reinvest in cost-effective and sustainable services for Ontarians.
(1) Competitive Alternatives 2006, KPMG's Guide to International Business Costs, www.competitivealternatives.com.
(2) Global Insight report prepared for Ministry of Tourism, "The Ontario Tourism Outlook: 2006-2010 - May 2006 Forecast," May 2006.
(3) Expenditure Estimates of the Province of Ontario, 2003-04 and 2006-07.
(4) Statistics Canada, Public Sector Statistics, Financial Management System, 2005/2006. Consolidated provincial and territorial
government revenue and expenditures.
(5) Statistics Canada, Public Sector Statistics, Financial Management System, 2005/2006. Consolidated provincial and territorial
government revenue and expenditures.
