Budget

Friday April 29, 2022

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday April 29, 2022

How Doug Ford’s budget sets the tone for his Ontario PC election campaign

For a guy who came to power in 2018 on a promise to rein in the size and cost of government, Ontario Premier Doug Ford is heading into his 2022 election campaign with a completely different pitch. 

May 23, 2019

That pitch can be seen in the Ontario budget tabled Thursday by Finance Minister Peter Bethlenfalvy, a budget that he described as “Premier Ford’s vision.” 

That “vision” is in reality less a provincial budget than it is a Progressive Conservative election platform. In case there’s any doubt, Bethlenfalvy recited the PC campaign slogan “Get it done” no less than 10 times during his budget speech. 

Also, minutes after the speech wrapped, the legislature was adjourned until well after the June 2 election, so the budget won’t pass unless the PCs win a majority. 

Beyond the sloganeering, the budget’s tone and messaging appear crafted to assure Ontario voters that Ford and the PCs are not just willing to spend the money that’s needed on crucial government services, but actually eager to spend it, to the extent of actually forecasting a deficit higher than in each of the past two pandemic years. 

It also appears to be an attempt to persuade voters that Ford has been changed by the COVID-19 pandemic and that cutting government spending is no longer a big concern for the PCs.

Saturday April 9, 2022

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday April 9, 2022

What Toronto wanted in the federal budget for housing — and what it got

April 7, 2017

One of the central pieces of the federal budget unveiled Thursday was affordable housing — $10 billion earmarked to tackle the crisis country-wide.

It’s a mix of funding for projects and policy changes aimed at making housing more affordable.

So what was Toronto looking for and what did it get?  And what will the budget mean for one of the least affordable cities in the country?

Much of the $10-billion investment focuses on boosting the supply of homes, something that is key for Toronto. 

February 1, 2017

The city was eyeing an extension of funding for a project it’s partnered on with the federal government: the Rapid Housing Initiative (RHI).

That wish was granted. The budget proposes to extend the program, which creates new affordable rental housing for marginalized people experiencing, or at risk of, homelessness, at a cost of $1.5 billion over two years.

May 7, 2014

The largest portion of the $10-billion budget pledge is $4 billion dedicated to what the government is calling a “Housing Accelerator Fund.” The money will be for municipalities like Toronto to speed up housing development by slashing red tape, and the federal government estimates it can create 100,000 new units over five years.

When it comes to speeding up development, Bailão says the city has projects on the go for which they’d like to partner financially with the Canada Mortgage and Housing Corporation (CMHC) — mainly its Housing Now initiative, which activates city-owned sites for the development of affordable housing within mixed-income, mixed-use, transit-oriented communities.

November 20, 2019

“I think all orders of government need to work together because if they really want to build 100,000 units … we have 15,000 here in the pipeline that need their financing and we need to make sure that financing is there,” said Bailão.

The question among many advocates is how quickly some of these measures can be implemented in big cities like Toronto, and how much coordination there can be between different levels of government.

“For this city, what’s needed is significant amounts of money and funding that can be spent quickly,” said Matti Siemiatycki, director of the Infrastructure Institute and a professor of geography and planning at the University of Toronto.

“We’re in this crisis. We need all hands on deck, and we need that real coordination and we need a sense of urgency to back it up.” (CBC) 

 

Friday April 8, 2022

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday April 8, 2022

Budget doesn’t address lessons learned during the pandemic, health groups say

March 23, 2022

After a pandemic that has left Canada’s health-care system buckling under the strain of staffing shortages and surgical backlogs, Thursday’s federal budget drew criticism from health groups, while committing billions to a national dental plan.

Dental care, a pillar of the governing agreement struck between the Liberals and New Democrats two weeks ago, emerged as the centrepiece of the federal government’s health-care spending. The government committed $5.3 billion over the next five years to launch the national program.

But urgency around the plight facing health-care workers in this country was absent from the budget, experts said.

“The big miss in this budget was providing care for Canadians. Everything from health care to long-term care to home care is in crisis,” said Armine Yalnizyan, an economist and an Atkinson Fellow on the Future of Workers. “There’s just no reference to the people that provide the care that are burning out and dropping out.”

December 24, 2021

The Canadian Federation of Nurses Unions (CFNU) has argued that COVID-19 exacerbated long-standing issues already slamming the health-care system. According to Statistics Canada, 70 per cent of health-care workers reported their mental health worsened during the public health crisis, with about 32,000 regulated nurse positions needing to be filled.

The federal government has estimated that the pandemic delayed approximately 700,000 surgeries and other medical procedures, leading to wait-lists and backlogs for medical care.

CFNU president Linda Silas said the budget largely ignores health-care workers, something she said came as a “surprise” given assurances from Ottawa that retaining and recruiting talent is a priority.

“We’ve been having meetings with every politician of every stripe, at every level of government, and everyone understands that we’re dealing with a health human resource crisis in this country,” Silas told the Star. “Those words and actions weren’t part of budget 2022.”

December 21, 2016

The budget also doesn’t offer additional top-ups in health-care transfer payments to provinces and territories.

The document instead repeats the commitment of a one-time top-up of $2 billion to the Canada Health Transfer to clear surgical backlogs. That falls short of the $6 billion the Liberals promised in their election platform to “immediately invest” in eliminating health system wait-lists.

Premiers have repeatedly called on Ottawa to increase its share of health-care costs from 22 per cent to 35 per cent — an additional $28 billion per year — with no strings attached.

The budget primarily addresses the crisis facing health-care workers by pledging $26.2 million over four years, starting in 2023, to increase the amount of forgivable student loans by 50 per cent. That would result in up to $30,000 in loan forgiveness for nurses and up to $60,000 for doctors working in rural or remote communities.

March 31, 2021

There is also a promise to give $115 million over five years to Canada’s foreign credential recognition program to allow up to 11,000 health-care professionals trained abroad to find work here.

Canadian Medical Association president Dr. Katharine Smart said Thursday’s budget signals that Ottawa has similar priorities to the health sector, “but it’s very clear that much, much more needs to be done to actually bring about that change, and the deep investments that are going to be needed.”

The Mental Health Commission of Canada, meanwhile, had hoped to see movement on the Liberals’$4.5 billion campaign pledge to set up permanent transfer payments to the provinces and territories for mental health. (The Toronto Star) 

 

Tuesday April 20, 2021

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday April 20, 2021

Liberals promise $30B over 5 years to create national child-care system

December 7, 2005

After decades of broken promises and half measures on child care, Finance Minister Chrystia Freeland announced today the federal government will invest roughly $30 billion over five years to help offset the cost of early learning and child care services.

This federal investment — the single largest line item in the massive 739-page budget document tabled today — is designed to significantly reduce what parents pay for care in the coming years. The government’s stated goal is to make life more affordable and to drive economic growth by drawing more women into the workforce.

The federal government estimates the COVID-19 pandemic has driven at least 16,000 women out of the job market altogether, while the male labour force has grown by 91,000 over the same period.

Another recent analysis by RBC found that almost half a million Canadian women who lost their jobs during the pandemic still hadn’t returned to work as of January. Employment among women in Canada who earned less than $800 a week has fallen almost 30 per cent, the bank reported.

May 4, 2019

Freeland said this child care investment will help counter some of the gender disparities fuelled by the pandemic crisis.

Freeland said that, as result of the new spending, the next 18 months could see a reduction of up to 50 per cent in the average child care fees paid by parents. With child care expenses running nearly as high as rent or mortgage payments in some cities, the household savings could be significant.

But to get average fees down to that lower level, the provinces and territories would have to kick in more funding as well. The promise of additional federal money could be used as a bargaining chip to convince provinces and territories to boost their own spending in this area.

Freeland said such an affordable child care system could increase the overall size of the economy — as measured by the gross domestic product (GDP) — by some 1.2 per cent.

“It’s expensive, but it’s an investment worth making,” she said.

July 9, 2020

Of the $30 billion promised today, $27.2 billion will be used to “bring the federal government to a 50/50 share of child care costs with provincial and territorial governments,” says the budget document. 

The government’s stated goal is to drive down child-minding costs within five years to just $10 a day per child, nationwide — significantly less than what most working parents pay now in all jurisdictions outside Quebec.

The budget earmarks another $2.5 billion for the Indigenous early learning and child care system — to create new spaces, to build or renovate existing centres and to support after-school care programs on-reserve.

The budget also sets aside money to make over 400 existing child care centres nationwide more accessible for children with disabilities.(CBC) 

 

Friday March 26, 2021

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday March 26, 2021

Ontario has no clue how to get to fiscal sustainability

Somewhere in the bowels of Ottawa, officials are quietly preparing contingency plans for a fiscal bailout of Newfoundland, should that become necessary. They may wish to add Ontario to their plans.

April 16, 2020

Ontario’s fiscal situation was dire before the pandemic; it has grown much worse because of the pandemic; and it is going to get still worse after the pandemic is long past. That, mind, is the optimistic scenario – which is to say, the scenario on which the Ontario government has chosen to base its latest budget.

It shows the province’s net debt-to-GDP ratio rising, not falling, from the astronomic levels it has already reached, for as many years as the government can credibly project. From 47 per cent in the year just ended – more than three times what it was 30 years ago, and second-highest in the country after Newfoundland – it is forecast to continue to increase, to more than 50 per cent.

Only in the last years of this decade does it begin to recede, and then only on some heroically optimistic assumptions, a mix of the usual complacency about interest rates, fond hopes about economic growth and some truly herculean reductions in spending. We’ll come back to these in a minute. For now let us consider whether the government of Doug Ford even appreciates the gravity of the situation it is in.

May 16, 2020

The most the budget will allow is that the government “remains committed to developing a path back to sustainable public finances.” Not that public finances aresustainable; nor that they are on track to get there; nor even that the government has a plan to get us on that track; only that it is “committed to developing” such a plan.

Well, all right, there’s a pandemic on, and the government is focused on spending whatever it takes to get the province through it. First things first. But longer term? Does it even know what sustainable public finances look like, let alone how to get there?

The government’s choice of targets – not rules, or anchors, but targets – does not fill one with hope. It has three. First, it hopes to limit the debt-to-GDP ratio “to not exceed 50.5 per cent” over the medium term. Why 50.5? Because, one suspects, that is where the debt-to-GDP ratio was headed anyway – though if growth comes in below projections, the target will prove no obstacle.

As for the other two – debt interest to revenue, and net debt to revenue – the government declines even to pretend to have a target for these, other than “to slow their rate of increase.” (Slow it by how much? From what benchmark? It doesn’t say.)

Not only has the government assigned itself a sliding, indeterminate, non-binding target for fiscal sustainability, it seems in no hurry to get there. “Our return to fiscal sustainability,” the province’s Finance Minister, Peter Bethlenfalvy, said in his budget speech, “will take many, many years.” (Continued: Globe & Mail)