Budget

Friday April 27, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday April 27, 2018

Auditor’s deficit allegations could be bad news for all parties

History, like politics, has a way of repeating itself. Especially at election time.

February 18, 2017

In opposition 15 years ago, Ontario’s Liberal Party smelled a rat. They accused the Tory government of the day of cooking the books.

Playing the reformist card in the 2003 campaign, Dalton McGuinty’s Liberals proposed that all future pre-election budgets be reviewed by the auditor. Upon winning power, McGuinty ordered a special audit that uncovered a deficit of more than $5 billion “hidden” by the previous Progressive Conservative government.

Fast forward to 2018. Now, the PC opposition is accusing the governing Liberals of playing with numbers — and this time, the auditor general of the day, Bonnie Lysyk, is on their side.

December 11, 2014

Lysyk held a news conference Wednesday to declare the Liberals are understating the true deficit by $5 billion.

The law of unintended consequences has a way of catching up to you. All that Liberal reformist zeal from 2003 is now fresh ammunition for the PCs as they accuse McGuinty’s successor as of fudging the numbers.

There is nothing new in the auditor’s latest report. But in auditing as in politicking, timing is everything. Which makes the Liberals electorally unlucky.

Few paid the auditor much heed two years ago when Lysyk suddenly declared she was reversing the accounting rules established by previous auditors: Accumulated surpluses in major public sector pension plans could no longer be counted as budgetary assets, as they had been since Tory times.

The effect of her ruling was to produce a gaping multibillion-dollar hole in the government’s accounting framework at the very moment they were striving to meet a 2017-18 target for deficit elimination. The government convened an outside panel of accounting and pension experts, who declared that Lysyk couldn’t have it both ways: Just as pension shortfalls count as a liability on the balance sheet, a pension surplus should count for something — not nothing, as the auditor insisted.

Lysyk still wouldn’t budge. But Bay Street didn’t bite, ignoring the auditor’s alarm bells. Credit rating agencies also looked at the books but didn’t buy into her alarmist assessments. (Continued: Hamilton Spectator) 

 

 

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Thursday March 29, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator (www.mackaycartoons.net) – Thursday March 29, 2018

Ontario Liberals bet big on seniors’ care, drug and dental coverage in 2018 pre-election budget

Ontario’s Liberals will plunge back into the red for at least the next six years to fund an array of big-ticket commitments outlined in the government’s pre-election budget on Wednesday.

August 17, 2016

The Liberals already unveiled a number of priority items in a series of commitments in the run-up to budget day, including major investments in health care, pharmacare and $2.2-billion over three years for free licensed daycare for preschool-aged children.

The primary themes of the 308-page budget were telegraphed in a Throne Speech last week that included the word “care,” or some variation of it, upward of 50 times.  It was clear that the budget would include substantial spending after Finance Minister Charles Sousa admitted the province would return to deficit to pay for it all, after running a $600 million surplus this year.

Despite Premier Kathleen Wynne’s recent flurry of announcements, there were a number of surprises revealed on Wednesday, many of them geared toward the elderly and affordability.

February 26, 2016

The budget includes billions in funding for seniors, including a $750 yearly benefit for those 75 and over who still live at home. The “Healthy Home Program” will cost $1 billion over three years. Another $650 million will go toward boosting the number of visits by caregivers to client’s homes.

For seniors in long-term care facilities, the Liberals plan to spend $300 million over three years to hire a registered nurse in every home in Ontario and provide an average of four hours of personal daily care for each resident by 2022.

The Liberals also plan to introduce a program to help cover costs of pharmaceutical drugs and dental care for Ontarians without workplace benefits, regardless of income or pre-existing OHIP+ coverage. (Source: CBC News) 

Letter to the Editor

Every Ontarian should be afraid

RE: March 29 editorial cartoon, Hamilton Spectator

I have just read a portion of the 2017 Ontario Auditor General’s Report. One excerpt from this document should scare every voter in this province.

In referring to the province’s accounting practices, she says, “As such, they obscure, or will obscure, the true state of the Province’s annual deficits and net debt reported on its consolidated financial statements at a time when Ontario already has the highest subsovereign debt in the world.”

Knowing this, the present government continues to buy our votes with our own tax dollars with no consideration as to how the next generation is going to pay this debt off. I applaud Mr. MacKay’s editorial cartoon. It really tells it like it is.

Ron French, Hamilton

Thursday March 1, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday March 1, 2018

Canada budget holds fire amid NAFTA clouds, focuses on women

Canada’s Liberal government tackled long-term growth challenges on Tuesday in a budget aimed at boosting women in the workforce and diversifying trade, while keeping its fiscal powder dry in case of an economic shock like the demise of NAFTA.

Finance Minister Bill Morneau’s third budget outlined slight deficit improvements without much in the way of new spending, refusing to blink in the face of U.S. corporate tax cuts and trade uncertainty that strike fear into Canadian companies. 

“We will be vigilant in making sure Canada remains the best place to invest, create jobs and do business – and we will do this in a responsible and careful way, letting evidence, and not emotion, guide our decisions,” Morneau said in a prepared budget speech. 

The budget blueprint, which is bound to be implemented given the Liberal’s parliamentary majority, maintained a C$3 billion ($2.4 billion) fiscal cushion each year to guard against any unexpected event that could hurt the government books. 

Even with the cushion, the projected deficit in 2018-2019 declined to C$18.1 billion from C$18.6 billion forecast in October, a restrained target unlikely to have any impact on financial markets or the Bank of Canada’s rate tightening path.

The loss of NAFTA would sideswipe Canada, which sends 75 percent of exports to the United States, and the decision not to slash corporate tax rates in response to the U.S. move puts Canadian companies at a disadvantage.

The unspoken bet is that Canadian exports will benefit from a roaring U.S. economy, even if business investment is lured away by the U.S. tax cuts. Canadian growth is already leading G7 rivals, spurring three rate hikes by the Bank of Canada since July, and the unemployment rate is near a 40-year low.

The budget did not address concerns that voters could come under pressure as rising rates increase the burden of record household debt, which the central bank has flagged as a risk.

Opposition Conservative leader Andrew Scheer blasted Prime Minister Justin Trudeau’s Liberals for maintaining budget deficits far into the future and adding to the national debt.(Source: Reuters) 

 

Friday December 15, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday December 15, 2017

Overcrowded Ontario hospitals ‘on the brink,’ province warned

Overcrowding at Ontario hospitals has become so serious that the sector is “on the brink” of a “crisis,” warns its umbrella organization, using uncharacteristically alarming language.

Leaders from the Ontario Hospital Association (OHA) plan to go to Queen’s Park to plead their case for more funding on Thursday. They are seeking a 4.55 per cent increase in operating funding for 2018-19, according to their prebudget submission, an advanced copy of which has been obtained by the Star.

That amounts to an extra $815 million and would bring the sector’s total operating allocation for the next fiscal year to about $18.8 billion.

The organization’s submission to the province’s finance committee is titled “A Sector on the Brink: The Case for a Significant investment in Ontario’s Hospitals.” It states that patient occupancy at about half of the province’s 143 hospital corporations exceeded 100 per cent this past summer, normally a slower time of year for the sector. Occupancy at some hospitals was as high as 140 per cent while the international standard for safe occupancy is 85 per cent.

A section of the seven-page submission highlights the “warning signs of an imminent capacity crisis.” Among them: growing wait times, higher emergency department volumes, and infrastructure and equipment that is “run down, at the end of their life, or outdated.”

States the document: “Emergency departments, for example, are a critical barometer for how the health care system is functioning — and the warning alarm is sounding loudly.”

When wait times for the month of September are compared for the last seven years, they hit their highest level this year for patients admitted to hospitals through emergency departments. Ten per cent of patients waited about 32 hours before being moved to in-patient beds. (Source: Toronto Star) 

Tuesday July 11, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday July 11, 2017

Giant $300k city hall sign on way

It’s taken a little longer than expected, but the mayor’s plan for a huge eye-catching sign on the forecourt of city hall is finally going before councillors.

Fred Eisenberger says the sign, which will spell “Hamilton” in giant illuminated letters, will cost $250,000 to $300,000 to build and install but taxpayers will pay “zero” for it.

“This is gift from the private sector to the City of Hamilton for Canada 150,” he said.

Just like the one they have in Toronto

The design will be unveiled at Thursday’s public works meeting. It’s based on similar letter signs in cities such as Toronto and Amsterdam where they’ve proven popular photographic backdrops for tourists and residents alike.

“I think the design is unique in the sense that it’s stylized, but it’s in that vein. It’s the ‘Hamilton’ name, nothing more dramatic than that. It’s a particular font with lighting capability and variable lighting options.”

“Wow factor” September 1, 2010

Eisenberger says the designer is local but declines to reveal the name until council has seen the report.

He’s also keeping the private donors under wraps until the initiative is approved. The plan is to honour them with name plaques attached to the letters.

Eisenberger revealed he was rounding up private funding for the sign as part of Canada’s 150th birthday celebrations at the annual Chamber of Commerce mayor’s breakfast in May. (Continued: Hamilton Spectator) 

 

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