Professional Documents
Culture Documents
The Honourable
CHARLES SOUSA
Minister of Finance
Budget Papers
For general inquiries regarding 2017 Ontario Budget: Budget Papers, please call:
Online: www.serviceontario.ca/publications
A Balanced Approach
The2017Budgetisabalancedbudget,thefirstonesincethe200809globalrecession.Thiswas
achievedthroughthehardworkanddeterminationofthepeopleofOntario.
Therecessionhadnegativeeffectsacrosstheworld,andOntariowasnotimmune.Manypeople
losttheirjobsandtheeconomyweakened,resultinginasubstantialdropintheProvinces
revenues.Facedwiththisnewreality,theOntariogovernmentembarkeduponaplantoinvestin
ourpeopleandreturntoabalancedbudget.Ratherthanslashtheprogramsandservicesupon
whichOntariofamiliesrelytoeliminatethedeficit,ourgovernmentchosetobuildOntarioup.
WechosetoimplementaplanthatreflectedthevaluesandaspirationsofOntarians.Wefocused
ongrowingtheeconomyandcreatingjobs.Welistenedtopeopleincommunitiesacrossthe
provinceandwecontinuedtoinvestinthethingsthatmattermosttothem,particularlyhealth
careandeducation.
Wechosetobuildforthefuture,insteadoftryingtoholdontothepast.Weexpandedand
renewedourinfrastructuretomakesuretheneedsofourgrowingpopulationaremetthrough
investmentsinhospitals,schools,publictransitandroads.Webuiltaclean,sustainableelectricity
systemandputourselvesattheforefrontoffightingclimatechange,leadingingreenand
cleantechnologies.
Ourplanwasrealisticandresponsible.Wemanagedourexpensesandbegantransforminghow
wedeliverpublicservices,makingthemmoreefficientandeffective.Wetookaimatthe
undergroundeconomytoensureeveryonepaystheirfairshare.Weembracednewopportunities
arisingfromaneconomyincreasinglybasedoninformationandknowledge.
Ourplanisworking.Overthepastthreeyears,oureconomyhasgrownfasterthanCanadasand
thatofallG7countries.Today,moreOntariansareworkingandourunemploymentrateisthe
lowestithasbeensince2007.Wehaveaddednearly700,000netnewjobssincetherecession.
Thevastmajorityofthesearefulltimejobs,intheprivatesector,andinindustriespaying
aboveaveragewages.Ourhouseholdincomeshaverisenandbusinessinvestmenthasincreased.
Ourexportsareup,alongwithgainsinmanufacturing,financialservicesandretailsales.
Ourplantoachieveabalancedbudgethasalsobeensuccessful.Lastyear,ourdeficitwas
$1.5billion,theeighthyearinarowthatwebeatourdeficitreductiontarget.Notonlyare
wepresentingabalancedbudgetthisyear;weareontrackforbalancedbudgetsin201819
and201920.
Foreword v
Withoureconomicgrowthprojectedtocontinueandbalancedbudgetsplannedforthe
foreseeablefuture,Ontarioisonceagaininastrongandhealthyposition.Acrosstheprovince,
peopleareworkinghardanddeservetoshareintheprosperitywerebuilding.Toomanystillfeel
uncertainaboutthefutureandtherisingcostofliving.Wewillcontinuetoinvestinprioritiessuch
ashealthcare,educationandmakinglifemoreaffordable,becausewhengovernmentmakessure
peoplecangetahead,thathelpsoureconomystayaheadtoo.InthisBudget,Ihopeyouwillsee
themanywaysthatweareworkinghardtomakethathappen.
Tomeettheneedsofourpatientstodayandinthefuture,weareimprovingaccesstocare,
reducingwaittimes,andenhancingtheirexperienceandrecovery.Ouradditionalinvestmentof
$7billionoverthenextthreeyearswillensurepatientsreceivecareclosertohome,seespecialists
faster,andhaveaccesstoexpandedmentalhealthandaddictionsservices.Thisincludesan
additionalinvestmentof$1.3billiontoreducewaittimesthroughouttheprovince.Targeted
investmentswillhelpmorepeoplereceivehighpriorityproceduresmorequickly,includingMRIs,
cataractandcardiovascularsurgeries,andhiporkneereplacements.Toprovidepatients
expandedaccesstocare,wewillinvestanadditional$518millionin201718inhospitals,
representingathreepercentincreasetothesector.
Tomeettheneedsofourgrowingandagingpopulation,wemustensureourhealthcareisbeing
providedinmodernfacilities.AcrossOntario,34majorhospitalprojectsarenowunderway.
Wereaddingtothat,with$9billionover10yearsinnewcapitalgrantstosupportthe
constructionofseveralnewmajorhospitalprojects.Wewillalsobeimprovingcommunityhealth
infrastructureacrosstheprovince.
Manyofusspendtimeeachdaycaringforlovedones.Wearecreatingbettersupportsforfamilies
caringforagingparents,sothatthepeoplewhoraisedusandlovedusreceivepropercarewhen
theyneeditmost.Caregiverswillbebettersupportedthroughaccesstorespitecare,anew
organizationfocusedonprovidingtrainingandresources,andasimplifiedapproachtocaregiver
taxcredits,recognizingtheiradditionalcostpressures.Aspartofanew,comprehensivedementia
strategy,morepeoplewillbeabletoaccessdayprogramsandrespiteservices,providingsafe
environmentsforthosewithdementiaandreducingstressforlovedones.
vi Foreword
Morefundingforhomeandcommunitycarealsomeansmorepatientswillbeabletocontinue
toliveathome.Expandedcommunityandpersonalsupportserviceswillhelpmeetincreased
demandandsupportfasterandmoreequitableaccesstoservicesacrosstheprovince.Tohelp
meettheneedforlongtermcare,weareencouragingoperatorstoacceleratetheredevelopment
ofmorethan30,000beds.Andforthoselivinginlongtermcarefacilitiestherewillbeincreased
comfortandprivacywiththeeliminationoffourbedwardsandmorenutritiousandculturally
sensitivefoodoptions.
Weallwantourkidstogetagreatstart.Byhelping100,000morechildrenaccessaffordable,
qualitylicensedchildcare,wearesupportingfamiliesacrossOntario,providingmoreparentswith
choicewhenitcomestoreturningtoworkandassistancewiththeirchildcarecosts.Thisyear,
ourinvestmentswillsupportaccesstolicensedchildcarefor24,000morechildrenthroughnew
feesubsidiesandspaces.
Peoplefromacrosstheprovincesharedtheirconcernsaboutrisingelectricitybills.Welistened
andweareresponding.Recognizingthatthereneededtobeafairerwaytosharethecostsof
buildingacleaner,moremodernandreliableelectricitygenerationsystem,wearetakingaction
toreduceelectricitycosts.ThroughOntariosFairHydroPlan,startingthissummer,household
electricitycostswouldbeloweredbyanaverageof25percent.Wearealsocappingrate
increasestoinflationforthenextfouryears.Lowincomefamilies,andthoselivinginrural,
remoteoronreserveFirstNationcommunities,wouldreceiveadditionalreliefaswell.
Likeelectricity,housingisessentialforfamilies.Withastrongeconomyandmorejobscreated,
thedemandforhousinginOntario,particularlyintheGreaterTorontoandHamiltonArea(GTHA),
hasincreasedrapidly.WhileastronghousingmarketisasignofOntariosgrowingprosperity,
thisgrowthalsobringschallenges.Peoplearestrugglingtobuyahome,andtheyrefindingit
difficulttoaffordincreasingrents.Tohelpmakehousingmoreaffordableforbuyersandrenters,
thegovernmenthasproposedaFairHousingPlan.Thisplanwouldincludemeasuressuchas
expandingrentcontrol,aproposalforanew15percentNonResidentSpeculationTax(NRST)in
theGreaterGoldenHorseshoe,andencouragingadditionalsupplybygivingmunicipalitiesthe
powertotaxvacantlots.Aswell,theCityofTorontowillnowhavetheabilitytoimplementa
VacantHomesPropertyTaxatahigherratetoencourageownerstosellunoccupiedunitsormake
themavailabletoberented.
Foreword vii
Providing Greater Opportunities and Security
Ontariansbelieveeverychildshouldhavetheopportunitytoreachtheirfullpotential.Thatiswhy
wewillcontinuetoinvestinourworldclasspubliceducationsystem.Familieswillbenefitfrom
newclasssizecapsonfulldaykindergartenclassesandenhancedsupportforstudentswith
specialneeds.
Weknowourschoolsaremuchmorethanplacestolearn.Theyconnectustoothersinour
communityandactasnaturalgatheringplacesforafterschoolactivitiesandevents.So,weare
investingalmost$16billionover10yearstobuildnewschoolsinhighgrowthareasandto
renovateschoolsacrosstheprovincetobettermeetlocalneeds.
WearealsofocusedonhelpingOntariansbecomeequippedwiththeskillsandcompetenciesthey
needtofindmeaningfulwork,adapttochangingtechnologies,createnewbusinessesand
contributetotheircommunities.ThisiswhatourHighlySkilledWorkforceStrategyisallabout.
Itisdesignedtoensureeveryonefindstheirplaceinanevolvingeconomythatisbecomingmore
technologydrivenandknowledgebasedeveryday.
Thiscomingfall,asaresultofourOSAPtransformation,morethan210,000studentswillattend
postsecondarycampusesacrosstheprovincewithoutworryingabouttuitionitwillbefree.
Andtohelpmoreyoungpeoplelandemploymentupongraduation,Ontarioisworkingwitha
rangeofpartnerstolaunchanewCareerKickStartStrategy.Fortythousandmorestudentswill
nowbenefitfromworkrelatedlearningexperiencesduringtheirstudies,betterpreparingthem
toenterthelabourmarketandbuildtheircareers.
Foradultslookingtofindtheirnextlearningopportunity,landabetterjobormoveintotheirnext
career,OntariosLifelongLearningSkillsPlanwillhelpprovidetheliteracy,numeracyanddigital
skillsessentialtobeingabletoadaptandthriveinachangingeconomy.
Andweknowthenatureofworkischangingandmorecanbedonetoprovideworkerswith
greatersecurity.Amoderneconomyrequiresamodernsetoflabourlawsandstandards.
ThroughtheChangingWorkplaceReview,weareidentifyinghowwebalancefosteringa
competitivebusinessclimatewhileensuringworkersaretreatedwithdecencyanddignity
andhavetheprotectionstheydeserve.
WerealsomovingforwardwithourBasicIncomePilottoexplorehowwecanprovidemore
consistentandpredictablesupporttothosewithlowincomes,includingthosewhomaybe
precariouslyemployed.TestinghowaBasicIncomePilotmayimprovehealth,employment
andhousingoutcomesareallapartofoureffortstopromoteagrowingeconomythatbenefits
allOntarians.
viii Foreword
Helping Ontario Businesses Succeed
AnintegralpartofourplanhasbeenhelpingOntariobusinessessucceedandgrow.Throughtheir
hardwork,oureconomyhasexpandedandtheyhavecreatedmorejobs.Movingforward,
ourfocuswillcontinuetobeongivingbusinessesthetoolstheyneedtosucceedbymaintaining
ourcompetitivecorporateincometaxrates,modernizingregulationsandreducingbusinesscosts.
Bystayingattheforefrontofboththeglobalshifttoalowcarboneconomyandtransformative,
potentiallydisruptive,technologies,wearewellpositionedtobenefitfromnewemployment
opportunitiesandeconomicgrowth.Strategicinvestmentsinemergingfields,suchasartificial
intelligence,autonomousvehicles,fifthgeneration(5G)telecommunications,advancedcomputing
andquantumscienceresearcharekeepingOntarioattheleadingedgeofresearchand
development,creatinghighvaluejobs,withsignificantpotentialtoenhanceourqualityoflife.
Helpingpeopleandgoodsmovefastersupportsagrowingeconomyandkeepsourbusinesses
competitive.Ourplantoinvestmorethan$190billioninpublicinfrastructureover13years,
startingin201415,isthegreatestinfrastructureinvestmentinourprovinceshistory.Through
ourongoinginvestments,wearebuildingworldclasspublictransitandtransportationsystems,
aswellasmoreschoolsandnewhospitals.
Conclusion
Abalancedbudgetisaboutmorethanjustthebottomlinenumber.Itsaboutfindingnewwaysto
helpyouandyourfamily.Itsaboutcreatingopportunitiesandprovidingthesupportspeopleneed
tosucceed.ItsareflectionoftheprioritiesthatOntarianssharewithuseveryday,andwhatwe
heardduringthisyearsprebudgetconsultations,whichincludedmorethan80,000people
arecordnumberofparticipants.
Whetherexpandinguniversalhealthcare;helpingpeople,youngorold,developskillsand
knowledge;orworkingwithbusinessestogrowtheeconomyandcreatejobs,wearecarryingout
ourcommitmenttoensurethatallhaveequalopportunitiesforsuccess.
Thisyearmarksourprovinces150thanniversary.Aswelookahead,weareatthestartofan
excitingnewchapterforourprovince.Withabalancedbudgetandcontinuedeconomicgrowth,
wewillbuildonwhatwehaveaccomplishedtogetherastronger,healthierOntario.
Original signed by
TheHonourableCharlesSousa
MinisterofFinance
Foreword ix
x Foreword
Contents
Foreword ..................................................................................................................... v
Contents xi
Lowering Public Transit Costs for Seniors .......................................................................35
Ensuring Sprinklers Are Installed in Licensed Retirement Homes .......................................35
Supporting Seniors Health ............................................................................................ 36
Supporting Ontarians Affected by Dementia ...................................................................36
Community Investments .............................................................................................37
Increasing Investments in Long-Term Care ....................................................................37
Expanding Seniors Access to Affordable Drugs ...............................................................39
Housing Affordability .................................................................................................... 40
Rising Prices and Rents ...............................................................................................40
Actions Underway ......................................................................................................41
Restoring Stability to the Housing Market ......................................................................41
Consumer Protection .................................................................................................... 47
Strengthening Financial Services and Pension Regulation .................................................47
Strengthening Consumer Protection for Owners of Newly Built Homes ...............................48
Regulation of Financial Planning ...................................................................................48
Supporting Financial Literacy .......................................................................................49
Strengthening Investor Protection ................................................................................50
Improving Auto Insurance ...........................................................................................51
xii Contents
Supporting the Sharing Economy ................................................................................. 91
Transitioning to a Low-Carbon Economy ........................................................................ 92
Improving Retirement Security .......................................................................................97
Enhancing the Canada Pension Plan .............................................................................. 97
Implementing Pooled Registered Pension Plans .............................................................. 98
Reviewing the Solvency Funding Framework .................................................................. 99
Introducing a Framework for Target Benefit Pension Plans ............................................. 100
Expanding the Framework for Defined Contribution Pension Plans ................................... 100
Expanding the Powers of the Superintendent ............................................................... 101
Missing Beneficiary Requirements............................................................................... 101
Contents xiii
Providing More Supportive Housing............................................................................. 124
Bringing Together Youth Services in One-Stop Hubs ...................................................... 125
Enhancing Patient Experience ....................................................................................... 125
Supporting Seniors in Their Communities .................................................................... 125
Enhancing Long-Term Care ....................................................................................... 125
Ensuring the Best Quality of Care for Patients .............................................................. 125
Making Northern Health Travel More Affordable ............................................................ 126
Improving Care for Mothers, Babies and Children ......................................................... 126
Integrating Local Health Care Services ........................................................................ 127
Easy Access to Health Services .................................................................................. 128
Protecting Health Care for Tomorrow ............................................................................. 129
Encouraging a Smoke-Free Ontario............................................................................. 129
Health Innovation .................................................................................................... 131
Health System Research Fund.................................................................................... 132
xiv Contents
Section C: Building Transit and Transportation
Introduction ............................................................................................................... 149
Investing in Transit Projects ......................................................................................... 151
GO Transit .............................................................................................................. 151
Rapid Transit Projects ............................................................................................... 153
Municipal Infrastructure Projects ................................................................................ 154
Investing in Highway Infrastructure ............................................................................... 155
Other Investments in Transportation Infrastructure ......................................................... 157
Supporting Ontarios Small and Northern Communities .................................................. 158
High-Speed Rail ....................................................................................................... 159
Moving Ontario Forward with the Trillium Trust ............................................................... 160
Broadening Hydro One Ownership .............................................................................. 160
MergingHydroOneBrampton.....................................................................................................161
RealizingValuefromOntariosRealEstateAssets.......................................................................161
Contents xv
Welcoming New Ontarians ............................................................................................ 173
Ontarios Response to the Global Refugee Crisis ........................................................... 173
Multicultural Community Capacity Grant ...................................................................... 174
Improving the Justice System ....................................................................................... 175
Building Safer Communities ....................................................................................... 175
Ensuring Wage Parity for First Nation Police Officers ...................................................... 177
Expanding Indigenous Supports ................................................................................. 177
Taking Steps to End Human Trafficking ....................................................................... 178
Streamlining and Modernizing the Court System ........................................................... 179
Transforming the Corrections System ......................................................................... 180
Enhancing Mental Health in Corrections ....................................................................... 181
Justice Infrastructure................................................................................................ 181
xvi Contents
Chapter VI: Responsible Fiscal Management
Section A: Transforming Government for Sustainability and Fairness
Introduction ............................................................................................................... 203
Evidence-Based Decision-Making ................................................................................... 204
Improving Programs and Services through Behavioural Science Research ........................ 204
Transformation and Efficiency Initiatives ........................................................................ 205
Government Made Simple ......................................................................................... 206
Ensuring Everyone Pays Their Fair Share ........................................................................ 209
Addressing the Underground Economy ........................................................................ 209
Addressing Unregulated Tobacco ................................................................................ 210
Managing Compensation .............................................................................................. 212
Recent Negotiations and Compensation Outcomes ........................................................ 213
Broader Public-Sector Executive Compensation ............................................................ 213
Going Forward: Leveraging Collective Bargaining to Promote Transformation .................... 214
Government Transparency, Financial Management and Fiscal Accountability ........................ 215
Government Transparency ........................................................................................ 215
Financial Management .............................................................................................. 217
Fiscal Accountability ................................................................................................. 218
Contents xvii
Private-Sector Forecasts .............................................................................................. 254
Comparison to the 2016 Budget .................................................................................... 255
Section A: Taxation
Paralleling Federal Measures ......................................................................................... 279
Clarifying the Treatment of Fertility-Related Expenses
under the Medical Expense Tax Credit ......................................................................... 279
Consolidating Tax Credits for Caregivers...................................................................... 280
Other Measures .......................................................................................................... 281
Lowering Public Transit Costs for Seniors ..................................................................... 281
Granting Municipalities the Authority to Levy a Hotel Tax ............................................... 281
Supporting Renewable Biodiesel in the Coloured Fuel Market .......................................... 282
Strengthening Ontarios Tax System ........................................................................... 283
Income Tax Avoidance .............................................................................................. 283
Employer Health Tax Avoidance ................................................................................. 283
Technical Measures ..................................................................................................... 284
Multijurisdictional Tax Filers ....................................................................................... 284
xviii Contents
Section B: Tobacco
Supporting Smoke-Free Ontario .................................................................................... 285
Contents xix
List of Tables
Chapter I: Restoring Balance Ontarios Economic
and Fiscal Strength
Table 1.1 Strong Sectors in Ontarios Economy ....................................................... 11
xx Contents
Table 6.18 Ontario Economic Outlook ..................................................................... 246
Table 6.19 Outlook for External Factors .................................................................. 250
Table 6.20 The Ontario Economy, 201520 ............................................................. 252
Table 6.21 Impacts of Sustained Changes in Key External Factors
on Ontarios Real GDP Growth ............................................................... 253
Table 6.22 Private-Sector Forecasts for Ontario Real GDP Growth............................... 254
Table 6.23 Changes in Ministry of Finance Key Economic Forecast Assumptions:
2016 Budget Compared with 2017 Budget ............................................... 256
Table 6.24 Borrowing Program and Medium-Term Outlook ........................................ 258
Table 6.25 Consolidated Derivative Portfolio Notional Value ....................................... 271
Table 6.26 Net Debt and Accumulated Deficit .......................................................... 273
Table 6.27 Medium-Term Outlook: Net Debt and Accumulated Deficit ......................... 274
Contents xxi
List of Charts
Chapter I: Restoring Balance Ontarios Economic
and Fiscal Strength
Chart 1.1 Ontarios Return to Balance ..................................................................... 5
Chart 1.2 Net Debt-to-GDP .................................................................................... 7
Chart 1.3 Net Debt Growth after Balance Is Due Only to Investments in
Capital Assets ........................................................................................ 8
Chart 1.4 Ontarios Economic Growth Outpacing G7 .................................................. 9
Chart 1.5 Employment Gains since June 2009 Concentrated in Full-Time and
Private-Sector Positions ........................................................................ 10
Chart 1.6 Ontario Is a Key Export Market for the United States ................................. 12
Chart 1.7 Ontarios Internationally Competitive Corporate Income Tax Rate ............... 14
Chart 1.8 Ontarios Growth To Continue to Outpace Canada ..................................... 15
xxii Contents
Chapter IV: Public Services You Can Count On
Chart 4.1 Hospital Projects Completed and Underway ............................................. 109
Chart 4.2 Examples of Schools To Be Opened or Under Construction in 201718 ........ 142
Chart 4.3 Aboriginal Postsecondary Education and Training Institutes in Ontario ......... 148
Chart 4.4 Investments in Transit and Transportation over the Next 10 Years .............. 150
Chart 4.5 Ontarios Response to the Global Refugee Crisis ....................................... 173
Contents xxiii
xxiv Contents
Chapter I
Inthe2010Budget,thegovernmentcommittedtoeliminatingthedeficitandreturningto
abalancedbudgetby201718,acommitmentthathasbeenreiteratedyearafteryear.
Throughtargeted,measuredandfiscallyresponsibledecisions,Ontariohasrestoreditsfiscaland
economicstrength.Ontariohasnotonlyeliminateditsdeficitofmorethan$19billionatthe
heightoftherecession;ithasdonesowithoutcuttingvitalprogramsandservices.Thebenefitsof
balancedbudgetsandastrengtheningeconomyarealreadyprovidingthegovernmentwiththe
fiscalflexibilitytodomoretohelpOntarians.
Abalancedbudgetmeansthatthegovernmentwillnolongerneedtoborrowtopayforits
ongoingoperatingcosts.Theresult:moremoneytoinvestinhealthcare,educationandother
publicservicesthatmattermosttoOntariofamilies.Astrongeconomy,togetherwithabalanced
budget,ispositioningOntarioforlongtermfiscalsustainability.
A return to balanced budgets and investing to strengthen the economy is important for
Ontarians because:
Balanced budgets increase confidence in Ontario as a destination for investment that will further
create jobs and economic growth.
Enhancements to programs and services that Ontarians depend on, such as health care and
education, are prioritized over paying interest costs on accumulating debt.
The Province is in a stronger position and has greater flexibility to face the potential economic and
demographic challenges that will arise over the next decade.
The Provinces overall debt burden shifts away from borrowing for deficits to focusing solely on funding
Ontarios infrastructure plan. This means the youth of Ontario and future generations will not be
burdened because of borrowing for deficits today.
ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength 3
Ontarios Return to Balance
Theglobalrecessionof200809hitOntariohard.Keysectorslikemanufacturingandforestry
facedsignificantjoblossesanddeclinesineconomicoutput.Followingaperiodofbalanced
budgets,Ontariowasfacingacriticalchallenge.Realgrossdomesticproduct(GDP)inOntario
declinedatafasterpacethanintherestofCanadaortheUnitedStates.Indeed,noother
Canadianjurisdictionexperiencedasharperdeclineincorporatetaxrevenuesduringtherecession
thanOntario.
Inmeetingthechallengeoftherecessionheadon,thegovernmentrefusedtoputvitalpublic
servicesatriskorresorttoarbitrary,acrosstheboardcutstoprograms.Instead,itchosetolessen
theimpactoftherecessiononOntariofamiliesthroughshorttermstimulusinvestmentsthat
preservedandcreatedjobswhilehelpingtorestoreeconomicgrowth.Thegovernmentalsochose
toprotecthealthcare,educationandotherpublicservices.Insodoing,Ontario,likeother
jurisdictionsinCanadaandacrosstheworld,ranadeficit.
SupportingOntariansandOntariobusinesseswastherightthingtodo.Topositiontheprovinceto
emergefromtheglobaleconomicrecessionandreturntosoundfinancialfooting,thegovernment
setoutaplantofosterjobcreationandeconomicgrowth.Acentraltenetofthatplanwasto
balancethebudgetby201718.
Theplantobalancewasrealisticandresponsible.Thegovernmentmanagedgrowthinprogram
spendingandbeganaprocessoftransformationdesignedtoimprovetheefficiencyand
effectivenessofpublicservices,resultinginprogramexpense,relativetoGDP,returningto
prerecessionlevels.Forexample,thegovernmentretrainedthousandsoflaidoffOntarianswho
losttheirjobsasaresultoftherecession,preparingthemfornewcareersinOntariosdiversifying
economy.ThegovernmentalsoencouragedbusinessestostayinOntariobyreducingcorporate
incometaxesandimplementingtheHarmonizedSalesTax(HST),avalueaddedtaxsystemthat
removedbillionsinembeddedcostspaidbybusinesses.
TheplanalsorespondedtoshiftsintheeconomicclimateandtheneedsofOntarians.Beginning
in2012,asexpectationsforglobaleconomicgrowthweakened,thegovernmenttookaction
torenewtheeconomyandhelpOntarioseizenewopportunitiesforgrowthandjobcreation.
Itismakinghistoricinvestmentsininfrastructure,whicharenowprojectedtototalmorethan
$190billionoverthe13yearperiodbeginningin201415.Plannedinvestmentsareexpected
tosupport125,000jobs,onaverage,eachyear.TheProvincealsolauncheda10year,$2.7billion
JobsandProsperityFundtoattractsignificantbusinessinvestments,creatingandretainingmore
than37,600jobssince2013.
4 ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength
CHAPTERI
Ontariosplantogrowtheeconomyandprotectserviceshaspaidoff.Despiteanuncertainglobal
environment,Ontarioseconomycontinuestogrow.Exportsareup,businessesarehiringmore
workersandhouseholdincomesarerising.Infact,OntariosrealGDPisnow19.1percentabove
itsrecessionarylow.Ontariosunemploymentratealsodeclinedto6.5percentin2016,itslowest
annualratesince2007andbelowthenationalaverageforthepasttwoyears.Thestrengthening
oftheeconomyhasalsoresultedinincreasedrevenuefortheProvince,supportingOntarios
returntoabalancedbudget.
Forthe201617fiscalyear,thegovernmentisforecastingadeficitof$1.5billion,theeighthyear
inarowthatitisprojectingtobeatitsdeficittarget.
Fiscal Balance
($ Billions)
Actual Interim Plan Outlook
200910 201011 201112 201213 201314 201415 201516 201617 201718 201819 201920
5.0
0.0 0.0 0.0
0.0 (1.5)
(3.5)
(5.0) (4.3)
(9.2)
(10.5) (10.3)
(10.0) (8.5)
(14.0) (13.0)
(13.3) (12.5)
(15.0)
(19.3) (15.9)
(17.3)
(20.0)
(19.7)
Performance/Outlook1
(25.0)
(24.7) Fiscal Forecast2
1 Represents the 2017 Budget outlook for 201617 to 201920. For 200910 to 201516, actual results are presented. The 201516 actuals have been restated
to reflect recognizing jointly sponsored net pension assets for the Ontario Public Service Employees Union Pension Plan and the Ontario Teachers Pension
Plan on the Provinces financial statements, consistent with the 2016 Budget and as described in the 201617 Third Quarter Finances.
2 Forecast for 200910 is based on the 2009 Ontario Economic Outlook and Fiscal Review, 201011 to 201314 is based on the 2010 Budget;
201415 is based on the 2014 Budget; 201516 is based on the 2015 Budget; 201617 is based on the 2016 Budget.
Source: Ontario Ministry of Finance.
Bycontinuingtooverachieveonitsfiscaltargets,theProvincesaccumulateddeficitis$29.0billion
lowerthanitotherwisewouldhavebeenrelativetothe2010Budgetforecast.Inaddition,interest
ondebtsavingsovertheperiodtobalancenowtotals$24.0billionrelativetothe2010Budget
forecast.
ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength 5
Togetherwithagrowingeconomy,thegovernmentsstrategicapproachtoinvestinginand
transformingpublicserviceshasresultedintheprogramexpensetoGDPratioreturningtoits
prerecessionlevel.Thisachievementstemsfromprudentmanagementofresourcesand
responsiblerestraintofprogramspendinggrowth,whereappropriate,allowingOntariotoremain
theprovincewiththelowestprogramspendingpercapita.Historicallylowinterestrateshavealso
helpedthegovernmentoverachieveonitsfiscaltargetsandsupporteditseffortstobalancethe
budgetwhilecosteffectivelymanagingdebt.
AsoutlinedintherecentlyreleasedOntariosLongTermReportontheEconomy,restoringbalance
addsstabilitytoOntariosfinancesandpositionsthegovernmenttobetterrespondto
demographicchallengesandunexpectedglobaleconomicshocksthattheprovincewillfaceover
thenextdecade.Thegovernmentseffortstogrowtheeconomy,transformpublicservicesand
managespendingresponsiblyoverthepastseveralyearshavealsopositionedtheProvinceto
buildontheinvestmentsithasmadetosupporthealthcare,publiceducation,modern
infrastructureandlowerbusinesscosts.AbalancedbudgetmeansthatOntarianswillcontinue
tobenefitfromexpandedservicesandmoreassistancewitheverydaycosts.Theseinclude
coveringthecostsofpharmacareforchildrenandyouth,providingelectricitycostrelief,and
helping100,000morechildrenaccessaffordable,qualitylicensedchildcare.
6 ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength
CHAPTERI
Declining Net Debt-to-GDP
Likemanyjurisdictionsaroundtheworld,thegovernmentrespondedtotheglobaleconomic
recessionbymakingachoicetoinvestintheeconomytostimulateeconomicgrowth,supporting
jobsforOntariansandenhancingopportunitiesforfamiliesandbusinesses.Theseinvestments
resultedinmoreschools,morehospitalsandmodernizedinfrastructureintheformofimproved
roads,bridgesandtransitnetworkstoincreaseOntarioscompetitivenessandspureconomic
growth.WhilethesestimulusinvestmentshelpedliftOntariooutoftheeconomicrecession,
theyalsoresultedinarisetothenetdebttoGDPratiostartingin200809.
Sincepeakingin201415,thenetdebttoGDPratiohasbeenonadecliningtrackasaresultof
Ontarioseconomicgrowthandthegovernmentsprogresstowardbalance.ThenetdebttoGDP
ratioisprojectedtobe37.8percentin201617andisexpectedtocontinuetodecline.The
governmentissettinganinterimnetdebttoGDPratiotargetof35percentby202324and
continuestomaintainatargetofreducingthenetdebttoGDPratiotoitsprerecessionlevelof
27percent,withcurrentprojectionsshowingthatthiswillbeachievedby202930.
Per Cent
45 Net Debt-to-GDP
25
21.1
20 Onset of
Interim
17.1 Projection
Economic
15 13.4 Recession
10
Notes: Net Debt was restated to include Broader Public Sector Net Debt starting in 200506.
The 201516 actuals have been restated to reflect recognizing jointly sponsored net pension assets for the Ontario Public Service
Employees Union and the Ontario Teachers Pension Plan on the provinces financial statements, consistent with the 2016 Budget and
as described in the 201617 Third Quarter Finances.
Source: Ontario Ministry of Finance.
ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength 7
About61percentoftheincreaseinnetdebtfrom200809to201617isduetothedeficit.
Theremainingnetdebtincreaseisaresultofinvestmentsincapitalassets.Balancedbudgets
from201718onwardswillensurethatincreasesinnetdebtwillbelimitedtonetinvestmentsin
capitalassets.SuchinvestmentswillworktoincreaseeconomicgrowthandresultinGDP
growingmorequicklythandebt,therebyhelpingtolowerthenetdebttoGDPratiotoits
prerecessionlevel.
CHART 1.3
Net Debt Growth after Balance Is Due Only
to Investments in Capital Assets
100
90 20.6
80 45.2
52.8
70 58.8
65.1 65.7 62.9 62.6
75.7
60
50 100.0 100.0 100.0
40 79.4
30 54.8
47.2
20 41.2
34.9 34.3 37.1 37.4
24.3
10
0
200809 200910 201011 201112 201213 201314 201415 201516 201617 201718 201819 201920
Notes: The 201516 actuals have been restated to reflect recognizing jointly sponsored net pension assets for the Ontario Public Service
Employees Union and the Ontario Teachers Pension Plan on the Provinces financial statements, consistent with the 2016 Budget and
as described in the 201617 Third Quarter Finances.
Source: Ontario Financing Authority.
AdecliningnetdebttoGDPratiotogetherwithlowerinterestondebtcosts,asapercentageof
revenues,willallowforagreaterpercentageofgovernmentspendingtobeinvestedinprograms
andservices.
8 ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength
CHAPTERI
Ontarios Economic Performance
Ontarioseconomyisperformingwell,withoutputandjobsrising.
Theprovincewashithardbytheglobalrecession,causingrealGDPtodeclineby4.7percent
andresultinginmorethan270,000lostjobs.
Sincetherecession,Ontarioseconomyhasrecovered,withrealGDPrisingby19.1percent
andnearly700,000jobsbeingcreated.
1.0
1.0 0.8
0.6
0.5
0.0
Italy Japan France Canada Germany U.S. U.K. Ontario
Sources: Organisation for Economic Co-operation and Development, Statistics Canada and Ontario Ministry of Finance.
ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength 9
Ontario: Creating High-Quality Jobs
Themajorityofthejobscreatedsincetherecessionwereinindustriesthatpayaboveaverage
wages,intheprivatesectorandinfulltimepositions.Theprovincesunemploymentratedeclined
from9.6percentduringtheglobalrecessionto6.4percentinMarch2017,belowthenational
averageforthe24thconsecutivemonth.
7,000
6,900 +691,000
jobs
6,800 October 2008
created
Pre-Recession Peak since
6,700 recessionary
low
-272,500
6,600
jobs
lost
6,500
6,300
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Above-Average
Full-Time Private-Sector
Wage
98% 73%
78%
Below-
Average
Wage
Public-Sector 22%
14%
Part-Time Self-Employed
2% 13%
Note: Above-average wage industries are defined as those with earnings above the average hourly earnings of all industries in 2016.
Sources: Statistics Canada and Ontario Ministry of Finance.
10 ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength
CHAPTERI
Ontarios Diverse Economy
ThediversityofsectorsisoneofOntarioseconomicstrengthsandprovidestheprovincewith
asolidfootingforongoingbroadbasedgrowth.Manykeysectorshavegrownintoleadersin
CanadaandNorthAmerica.
TABLE1.1 StrongSectorsinOntariosEconomy
sector in Canada over 12,000 workers and contributes about 0.3 per cent of
provincial GDP
One of North Americas largest The agri-food sector, including primary agriculture, food and
Agri-Food
and most significant food and beverage processing and services, supports over 800,000 workers
beverage processing sectors and contributes over 6 per cent of GDP
The top North American Auto assembly and parts manufacturing employs almost 107,000
Auto
Ontario has Canadas largest Chemicals manufacturing, including the production of basic organic
Chemicals
chemicals manufacturing and inorganic chemicals, synthetic resins and fertilizers, as well as
cluster an emerging biochemicals cluster, employs almost 45,000 workers
and generates over 1 per cent of GDP
Toronto is second largest by Ontarios financial services sector employs over 400,000 workers
Financial
Services
2016 forest products exports Primary forestry and wood products and paper manufacturing
Products
Forest
were almost $5.2 billion employs over 38,000 workers and generates about 0.7 per cent
of GDP
Second in information and ICT manufacturing and diverse industries, such as software
communications technology publishing, telecommunications and computer systems design,
ICT
(ICT) establishments in employs almost 231,000 workers and generates over 5 per cent
North America of GDP
Largest life sciences sector Life sciences, which includes pharmaceutical and medical devices
Sciences
Top-10 world producer of nickel Ontarios mining industry, the nations largest producer of minerals,
Mining
and platinum group metals employs about 25,000 workers and generates about 1 per cent
of GDP
Largest creative cluster in The creative cluster, which includes diverse industries such as
Creative
Canada and one of the largest publishing, film and music production, as well as amusement and
Cluster
in North America recreation industries, employs over 320,000 workers and generates
over 2 per cent of GDP
Sources: Statistics Canada and Ontario Ministry of Finance.
ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength 11
Ontarios Strong Trade Connections with the United States
TradewiththeUnitedStatesisvitalfortheOntarioeconomy,withinternationalexportsofgoods
andservicesaccountingfor36percentofOntariosGDP.AlthoughdestinationsforOntarios
exportshavegrownmorediversifiedoverthelastdecade,theUnitedStatesremainsthe
provincesprimarydestinationforinternationalmerchandiseexports,accountingfor81percent
ofthetotalin2016.
HealthyOntarioU.S.tradeisbeneficialtobotheconomies.In2016,Ontariowasthetopexport
destinationfor20statesandthesecondlargestexportdestinationforeightothers.Itisimportant
toprotectthebenefitsofthisintegratedpartnership.
CHART 1.6 Ontario Is a Key Export Market for the United States
ONTARIO
ND
MN
SD WI NY
MI
RI
IA PA
NV IL IN OH NJ
CO WV VA MD
KS MO
KY #1 #2
NC
OK TN
AR In 2016, Ontario was
MS AL GA the #1 export market
for 20 U.S. states and
the #2 export market
for 8 U.S. states
Notes: Based on merchandise exports.
Markets include all countries (excluding Canada) and Canadian provinces/territories.
Sources: United States Census Bureau, Statistics Canada and Ontario Ministry of Finance.
Goodsandservicesexportsareincreasinglyintegratedintothemakingofproducts,andOntariois
animportantcontributortotheseglobalvaluechains.
$5.8 trillion (US) economic output: if the Great LakesSt. Lawrence region was a country, it would rank as
the third-largest economy in the world.
12 ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength
CHAPTERI
TheProvincewillcontinuetostrengthenpartnershipswiththenewadministrationintheUnited
States,withpartnersintheGreatLakesregionandwithotherstates,recognizingthattrade
betweenOntarioandtheUnitedStatesandfairtaxpolicycreatebenefitsforworkersand
businessesonbothsidesoftheborder.
OntariohasintroducedanumberofreformsthathavesignificantlyenhancedOntariostax
competitivenessandbusinessinvestmentclimate,savingbusinessesmorethan$10billionper
year.ThesesavingsareoftenreinvestedintoOntariobusinesses,helpingtospurfurthergrowth
andcreatemorejobsforOntarians.Thesereformsinclude:
ImplementingtheHarmonizedSalesTax(HST);
MaintaininglowCorporateIncomeTax(CIT)rates;
EliminatingtheCapitalTax;and
CuttingBusinessEducationTax(BET)rates.
OntariosgeneralCorporateIncomeTax(CIT)ratewasreducedinstagesfrom14.0percent
in2009tothecurrent11.5percent,andfrom12percentto10percentforresources,
manufacturersandprocessors.
TheProvincescombinedfederalOntariogeneralCITrateof26.5percentiscompetitivewithin
Canadaandinternationally.Ontarioscombinedrateislowerthanthecomparablerateinanyof
theU.S.statesandislowerthantheaverageofCanadianprovincesandtheaverageofG7
membercountries(seeChart1.7).
1
Ontario,LegislativeAssembly,OfficialReportofDebates(Hansard),41stParliament,2ndSession,
(January18,2017)at1340.
ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength 13
CHART 1.7 Ontarios Internationally Competitive
Corporate Income Tax Rate
Per Cent
45
40 38.9
35
30.8
30 26.5 27.0
24.6
25
20
15
10
5
0
Combined U.S. G7 Combined Federal OECD
FederalOntario Average Average Provincial Average* Average
Itisalsoimportanttoconsiderotherelementsofthetaxsystemwhenassessingtheimpactof
businesstaxesoncapitalinvestment.
Themarginaleffectivetaxrate(METR)providesacomprehensivemeasureofthetaxburdenon
newbusinessinvestmentbytakingintoaccountfederalandprovincial/stateCIT,capitaltaxesand
salestaxes.
WiththedecreaseinthegeneralCITrateandothertaxreductions,OntariosMETRonnew
businessinvestmenthasbeencutsignificantlyoverthepastsevenyears.
OntariosMETRfellfrom33.0percentin2009to16.9percentin2016andwilldropfurtheras
inputtaxcreditrestrictionsassociatedwiththeHSTarephasedout.Itisnowlowerthanthe
averageU.S.METRof34.0percentandisoneofthelowestintheG7.
ThissignificantimprovementinOntariostaxcompetitivenessfornewbusinessinvestment
encouragesbusinessestolocateorexpandoperationsinOntario,leadingtomoreemployment
opportunitiesandgreatereconomicgrowth.
14 ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength
CHAPTERI
Healthy Outlook for Ontarios Economy
DuringtheperiodofhighcommoditypricesandanelevatedCanadiandollarfrom2003to2013,
Ontarioseconomygrewataslowerratethanthenationalaverage.However,forthelastthree
years,itsgrowthhasoutpacedtheCanadianaverage.AgrowingeconomyintheUnitedStates,
lowoilpricesandacompetitiveCanadiandollarprovideasolidfoundationforthefuturegrowth
andcontinuedstrongperformanceofOntarioseconomy.Ontarioisexpectedtoremainoneof
thefastestgrowingprovincialeconomiesoverthenexttwoyears.
Real GDP
Per Cent Change
3.0
Ontario Canada
2.6
2.5
2.1
2.0 1.9 1.9
1.6
1.5 1.3
1.0
0.5
0.0
200313 201416 201720p
p = Private sector average.
Sources: Statistics Canada, Ontario Ministry of Finance and Ontario Ministry of Finance Survey of Forecasters.
Ontarioalsofacesadramaticallychangingglobaleconomicandpoliticalenvironment.The
heightenedlevelofuncertainty,especiallyrelatingtointernationaltrade,hasbeenintensifiedby
recentdevelopmentsintheUnitedStatesandtheUnitedKingdom.Theseoutcomesamplifyrisks
thatmountingprotectionismwillincreasetradebarriersthatcoulddisrupteconomicgrowth.
TheProvincewillcontinuetoadvocateforfreetradeandopenandcompetitiveaccessto
governmentcontractsandwillconsiderallreasonableoptionstoprotectOntariojobsintheface
ofBuyAmericanpoliciesorlegislation.
Inaddition,economicchangesoverthepastfewdecadeshavebeendrivenbynumerousfactors,
includingtechnologicaladvancesandglobalization.Whilethesedevelopmentshavegenerated
significanteconomicbenefits,theyhavealsodisruptedthelivesofsomeOntarians.Forafull
discussionoftheeconomicoutlook,seeChapterVI,SectionB:DetailsonOntariosFinancesand
EconomicOutlook.
ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength 15
The Path Forward for All
Ontarioisdeliveringonitscommitmenttobalancethebudgetin201718inafairand
responsibleway.
NotallOntariansarebenefitingequallyfromtheprovincesreturntoeconomicstrength.While
Ontariosunemploymentratein2016wasatanineyearlow,anditseconomyisamongthe
strongestinthecountry,toomanyOntariansarestilloutofworkorstrugglingtomakeendsmeet.
Eventhosewithsteadyincomesareconcernedabouteverydaycosts.HardworkingOntarians
acrosstheprovincedeservetobeincludedinthebenefitsofgrowth.
Toensureeveryonesharesinthisprosperity,thegovernmentwillcontinuetoworkwithpartners
inallregionsandsectorstocreatejobsandstrengthencommunities.Astrongeconomy,together
withabalancedbudget,iscreatingmoreopportunitiesforindividualsandbusinessesinOntarioto
getaheadandstayahead.Abalancedbudgetmeansthatpeoplewillcontinuetobenefitfrom
expandedhealthcareandeducation,andreceivemoreassistancewitheverydaycosts.
Ensuringthatlegitimatebusinesseshaveanequalopportunitytosucceedisalsopartofthe
governmentsplantomaintainbalance.Thegovernmentistakingactiontocombatthe
undergroundeconomy,strengthentheintegrityofthetaxsystemandensureeveryonepaystheir
fairshareoftaxes.Additionalwaystoaddresstaxloopholesandsophisticatedtaxplanning
schemeswillbedeveloped.
Whenbusinessesfailtoreportincomefortaxpurposesoravoidsalestaxes,thereislessmoney
availabletofundpublicservices.Goingforward,thegovernmentwillcontinuetointroduce
measurestobettercoordinateandstrengthencomplianceinhighrisksectorstoensureafairand
equitablebusinessenvironment.
Finally,thegovernmentwillcontinuetoreviewitsprogramstodeliverthebestpossibleresultsat
thelowestcost.Evidencebaseddecisionmakingsupportstheuseoflimitedpublicresourcesto
improveoutcomesandensurethelongtermsustainabilityofprovincialprogramsandservices
thatwillmeettheneedsofOntariansinthedigitalera.
16 ChapterI:RestoringBalanceOntariosEconomicandFiscalStrength
Chapter II
CHAPTERII
attheforefrontofglobalinnovation.
Theyareworkinghardtogetaheadandstayahead,butoftenfacechallengesincludingrisingcosts
oflivingcoststhatcanstretchmonthlybudgetstothelimit.
Withagrowingeconomyandabalancedbudget,theOntariogovernmentismakinginvestments
inkeyserviceslikehealthcareandeducationthatmattermosttopeople,whileatthesametime
loweringcostsfornecessitieslikeelectricityandchildcare.Thisincludes:
Loweringhouseholdelectricitybillsonaverageby25percent,beginningthissummer;
StartinginJanuary1,2018,OntariowilllaunchOHIP+:ChildrenandYouthPharmacare
providinguniversaldrugcoveragetoallchildrenacrosstheprovinceaged24yearsand
under,regardlessoffamilyincome;
Helping100,000morechildrenaccessaffordable,qualitylicensedchildcare;
TransformingtheOntarioStudentAssistanceProgram(OSAP)tomakeaveragetuitionfree
formorethan210,000Ontariostudentsandreducethecostformanymore;
Providingbettersupportsforfamiliesandcaregivers;and
IntroducingaFairHousingPlantoincreaseaffordabilityforbothbuyersandrentersandto
supportstabilityinthehousingmarket.
Thegovernmentisalsofocusedonstrengtheningconsumerprotectioninanumberofareas,
includingfinancialservicesandpensionregulation,andautoinsurance.
ChapterII:HelpingYouandYourFamily 19
Helping with Everyday Costs
Delivering the Largest Single Reduction to Electricity Rates
in Ontarios History
Electricityisanessentialpartofpeoplesdailylives.Fordecades,Ontarioenjoyedoneofthe
largest,mostimpressiveanduptodateelectricitysystemsinNorthAmerica.However,
yearsofunderinvestmentbysuccessivegovernmentsledtoasystemthatwasoutdatedand
unreliableresultingininstancesofblackoutsandbrownouts.
Thesystemwasdueformajorupgrades,andsince2003,morethan$50billionhasbeeninvested
inelectricitygenerationandgridinfrastructureacrosstheprovince,toensureOntariansbenefit
fromacleaner,moremodernandmorereliablesystem.Inaddition,$12.8billionisbeinginvested
torefurbishtheDarlingtonNuclearGeneratingStation,tosecureaffordable,reliable,
emissionsfreepower.OntarioalsobecamethefirstjurisdictioninNorthAmericatoendtheuse
ofcoalfiredelectricitygeneration,choosinginsteadtoproducemorecleanpower.
Themuchneededrebuildingofanagingandunreliableelectricitysystemthatdependedon
expensiveelectricityimportsanddirtycoalresultedinrapidlyrisingratesformanypeopleacross
Ontario.Thegovernmentrecognizesthatratesrosetoomuchandtooquickly,andthatpeople
wantsubstantialrelieffromhighelectricitybillsthatwilllast.
Thatiswhy,startingthissummer,OntariosproposedFairHydroPlanwouldreduceelectricitybills
by25percentonaverageforeligiblehouseholds.Approximately500,000smallbusinessesand
farmswouldalsobenefit.LowincomeOntariansandthoselivingineligiblerural,remoteor
onreserveFirstNationcommunitieswouldreceiveevengreaterreductionstotheir
electricitybills.
Aspartofthisplan,rateincreasesoverthenextfouryearswouldbeheldtotherateofinflation
forresidentialcustomersandeligiblefarmandsmallbusinessconsumers.Thesemeasuresalso
includeaneightpercentrebateonelectricitybillsequaltotheprovincialportionofthe
HarmonizedSalesTax,effectiveJanuary1,2017.
Takentogether,thesechangeswoulddeliverthelargestreductiontoelectricityrates
inOntarioshistory.
20 ChapterII:HelpingYouandYourFamily
Reducing Electricity Rates by 25 Per Cent
Throughthefollowingmeasures,Ontarios
proposedFairHydroPlanwouldreduce
electricitybillsby25percentonaveragefor
CHAPTERII
eligiblehouseholds.Approximately500,000
smallbusinessesandfarmswouldalsobenefit.
Recognizingthatexistingelectricity
infrastructureisexpectedtolastfor
decadestocome,theProvincewould
refinancethecostofthosecapital
investmentstoensurethatsystem Ontarioisreducingelectricitybillsby25per cent on
costsaremoreequitablydistributed averagetomakeeverydaylifemoreaffordable.
overtime.
AnumberofimportantelectricitysupportprogramswouldnowbefundedbytheProvince
ratherthanbyratepayers,whichwouldreduceelectricitycostsforallconsumers.
Thesenewmeasureswouldcostupto$2.5billionoverthenextthreeyears.
Thesechangeswouldallocatecostsmorefairlyandensuretheyarenotdisproportionatelyplaced
ontheshouldersoftodayselectricityratepayers.
ChapterII:HelpingYouandYourFamily 21
Providing Targeted and Expanded Relief for Rural, Remote, Low-Income and
First Nation Customers
Providing Further Support for Rural and Remote Communities
TheRuralorRemoteElectricityRateProtection(RRRP)programcurrentlyprovidesaratesubsidy
toeligibleruralandremoteresidentialcustomerswhofacehigherdistributioncostscomparedto
thoseinurbanareas.
TheProvinceintendstoexpandtheRRRPtoprovidedistributiondeliverychargerelieftoatotal
ofabout800,000customersservedbylocaldistributioncompanies(LDCs)withthehighestrates,
includingHydroOneR2andR1rateclasses(residentiallowandmediumdensityareas,
respectively),NorthernOntarioWiresInc.,LakelandPowerDistributionLtd.(ParrySoundservice
territory),ChapleauPublicUtilitiesCorporation,SiouxLookoutHydroInc.,InnPowerCorporation,
AtikokanHydroInc.andAlgomaPowerInc.
TohelpOESPeligibleOntariansreceivetheircredits,thegovernmentispursuingautomatic
qualificationsforcustomerswhoareenrolledinotherprovincialsocialassistanceprograms.
TheProvinceiscommittedtosupportingelectricityconservationthroughexistingprogramssuch
astheSaveonEnergyHomeAssistanceProgram,Heating&CoolingIncentiveprogram,and
CouponEvent.Localnaturalgasdistributioncompaniesalsoofferconservationprogramssuchas
theHomeWeatherizationProgram,HomeWinterproofingProgramandtheOntarioHomeEnergy
ConservationIncentiveProgram.
22 ChapterII:HelpingYouandYourFamily
Providing a First Nations On-Reserve Delivery Credit
TheProvinceisplanningtointroducelegislationthat,ifpassed,wouldenableaFirstNations
OnReserveDeliveryCreditthatwouldeliminatedeliverychargesforeligiblehouseholds,
savingthemanaverageofabout$1,020peryear.
CHAPTERII
Support for the Fair Hydro Plan
The elimination of the delivery charge will assist our citizens by reducing energy poverty in our
communities. It also represents recognition for the use of the land in the development and expansion of
the provincial energy grid... Todays commitment by the Ontario government is commendable and allows
a path forward for greater quality of life for First Nations in Ontario.
ChapterII:HelpingYouandYourFamily 23
Moredetailsontheseandothermeasurestodrivecostsoutofthesystem,encourage
conservationtohelpmeetOntariosclimatechangegoals,andreducethesupplycostofelectricity
willbeincludedintheProvincesupcomingLongTermEnergyPlan(LTEP),whichisexpectedtobe
releasedinspring2017.
Naturalgasisconsistentlylessexpensivethanmanyothersourcesofenergy.Byprovidingaccess
tonaturalgastomorecommunities,Ontariowillattractnewindustry,increaseaffordabilityof
agriculture,provideacleanersourceofenergy,andreducecosts.
24 ChapterII:HelpingYouandYourFamily
Helping Parents
OHIP+: Children and Youth Pharmacare
Ontarioshealthcaresystemhasprovided
CHAPTERII
criticalsupportandcaretofamiliesfor
generations.Itispartofthesocialfabricof
Ontariothatgiveseveryoneaccesstoahigh
qualityoflifeandthechancetosucceed.
Thegovernmentiscommittedtoensuringall
Ontarianshaveequitableaccesstothecare
theyneedtobehealthyandtothrive.
Appropriatelyusedprescriptiondrugsarean
essentialandintegralpartofamodernhealth OHIP+:ChildrenandYouthPharmacaremeansfree
caresystem. prescriptiondrugsforfourmillionOntarians.
Overthepastseveralyears,Ontariohasbeenadvocatingforanationalpharmacareprogramso
thatnofamilyhastoworryabouttheaffordabilityoflifesavingdrugs,shouldtheyeverneed
them.Comprehensivepublicpharmacarewouldexpandaccesstoprescriptiondrugsforall
Ontarianswhoneedthemandeliminatethefinancialbarriersthatcurrentlyexistforthe
estimatedonein10Ontarianswhocantaffordprescriptiondrugs.
Accesstoprescriptiondrugsisessentialforatrulyresponsiveandsustainablehealthcaresystem.
Pharmacarewillhelpensureaccesstoprescribedmedications,particularlyforthosewhoaremost
inneedandleastabletopay.ItisthenaturalnextstepintheevolutionofCanadasmostrevered
socialprogramuniversalpublichealthcare.
Todayover3.9millionpeopleinOntariobenefitfromprescriptiondrugcoverageunderthe
OntarioDrugBenefit(ODB)Program,includingover2.3millionseniorsandover900,000people
onsocialassistance.
StartinginJanuary1,2018,OntariowilllaunchOHIP+:ChildrenandYouthPharmacare
providinguniversaldrugcoveragetoallchildrenandyouthacrosstheprovince.
OHIP+:ChildrenandYouthPharmacarewillbeavailabletoallchildrenandyouthaged24and
under,regardlessoffamilyincome.Itwillcompletelycoverthecostofallmedicinesfunded
throughtheODBProgram.Therewillbenodeductibleandnocopayment.OHIP+:Childrenand
YouthPharmacareisthefirstprogramofitskindinCanada.
ChapterII:HelpingYouandYourFamily 25
Helping Families Access and Afford Child Care
Findingqualityandaffordablechildcare
canbeachallengeforfamiliesinsome
communitiesduetolongwaitlistsfor
subsidiesandspaces.Thegovernmentis
helping100,000morechildrenaccess
affordable,qualitylicensedchildcaretogive
themthebeststartinlifeandsupport
familiesacrossOntario.Asafirststep,the
Provinceinvestedanadditional$65.5million
tohelpcreate3,400licensedchildcare
Ontariohas removed childcarewaitlistfeestohelp
spacesinfall2016.
familieswithyoungchildren.
Inadditiontocreatingnewlicensedspaces,therenewedinvestmentinchildcarewillalso:
Helptoprovideasubsidytoapproximately60percentofnewspacestoaddress
affordabilityandreducefeesubsidywaitlists;and
Providegreaterresponsivenesstoparentsneedsandeasethetransitionforchildrenwith
specialneeds.
By201718,thisnewinvestmentwillsupportaccesstolicensedchildcarefor24,000more
childrenuptofouryearsoldthroughnewfeesubsidyspacesandsupportfornewlicensedchild
carespacesinschools.Thesenewsupportswillreducewaitlists,betterensuringthatparentswith
lowandmiddleincomescanbenefitinavarietyofways.
Thisnewcommitmentbuildsuponthe56,000licensedchild
carespacesthegovernmenthashelpedcreateoverthepast The government will double
the current capacity for child
threeyears.Ontariohasalsoinvestedanadditional care in Ontario for children up
$63.5millioneachyearsince2010tohelpfillthegapleftwhen to age four to help meet the
thefederalgovernmentsteppedawayfromitschildcare demands of a growing and
responsibility.TheProvincewelcomesthefederalgovernment changing province.
supportingOntariosinvestmentaspartoftheinfrastructure
announcementoutlinedinthe2017federalbudget.
Movingforward,governmentwillcontinuetoworkwithschoolsandmunicipalitiestoprovide
fundingthroughamixedapproachofschool,communityandhomebasedexpansiontoprovide
carethatisconvenient,flexibleandinlinewithparentsneeds.
26 ChapterII:HelpingYouandYourFamily
Thegovernmentwillalsoexpandfiveexistingchildandfamilyprogramsonreserveinthe
followingcommunities:
MChigeengFirstNation;
NibinamikFirstNation;
CHAPTERII
SixNationsoftheGrandRiver;
WalpoleIslandFirstNation;and
WikwemikongUncededIndianReserve.
OntariowillcontinuetoworkwithIndigenouspartnerstohelpincreasethenumberofquality,
affordablelicensedchildcarespaces.
SeealsoChapterV:WorkingwithOurPartnersformoreinformationonOntariosCommitmentto
ReconciliationwithIndigenousPeoples.
Full-Day Kindergarten
With the province-wide implementation of full-day kindergarten (FDK), Ontario became a leader in early
learning, and the first jurisdiction in North America to implement this program. With more than
$1.5 billion in funding annually, FDK is one of the most significant education investments Ontario has
made in a generation.
About 260,000 four- and five-year-olds are benefiting from FDK annually in approximately
3,600 schools across the province.
Families are saving up to $6,500 per child per year in child care costs.
Comparisons of children with two years of FDK instruction and children with no FDK instruction
1
showed that FDK:
Reduced risks in social competence development from 10.5 per cent to 5.8 per cent.
Reduced risks in language and cognitive development from 15.8 per cent to 4.3 per cent.
Reduced risks in communication skills and general knowledge development from 10.5 per cent
to 5.8 per cent.
1
TheSocialProgramEvaluationGroupQueensUniversity,FinalReport:EvaluationoftheImplementationof
theOntarioFullDayEarlyLearningKindergartenProgram(Fall2012)andtheOffordCentreforChildStudies
McMasterUniversity,TheFullDayKindergartenEarlyLearningProgramFinalReport(October2012).
ChapterII:HelpingYouandYourFamily 27
Supporting Community Hubs
Communityhubsarevibrantcentresofcommunitylifethatgenerateeconomicandsocialbenefits
whileimprovingtheefficiencyoflocalservices.TheProvinceistakingmeasurestocoordinate
health,socialandeducationservicestobetterservepeopleandtheircommunitiesbycreating
spacesforcommunityuseinschools,andexpandingchildcareandfamilyservices.Asanexample,
intheeducationsector,Ontarioistakingspecificactionstoencouragecommunityhubsin
schools,including:
Creatingspacefornewchildcareand
childfamilysupportprogramsthrough
OntarioEarlyYearsChildandFamily
Centresinschools;
Retrofittingexistingchildcarespace
withinschoolstoopenupmorespaces
forchildrenunderfouryearsold;and
Renovatingsurplusschoolspaceto
makeitavailableforusebycommunity Communityhubsofferacentralpointofaccessfor
partnersandthepublic. arangeofvitalserviceslikehealthandeducation.
Toenabledevelopmentofmorecommunityhubs,thegovernmentwillbetakinginto
considerationbroadereconomicandcommunitybenefitswhenmakingdecisionsonthe
dispositionofsurplusProvincialproperties.
TheProvinceiscommittedtomakingiteasier
tocreatecommunityhubsandensuringthe
Francophone Community Arts Centre
bestpossibleuseofpublicproperties, Place des Arts Project
includingschools,hospitalsandProvincial Ontario is contributing $3.25 million to support the
propertiesthatarenolongerneededfor construction of the Place des Arts, a state-of-the-art
theiroriginalpurpose. shared artistic facility that will contribute to the
revitalization of downtown Sudbury. In addition to
attracting tourism and creating jobs, the new cultural
InlinewithCommunityHubsinOntario: centre will create an artistic space for the areas
AStrategicFrameworkandActionPlan, francophones, as well as the wider community.
thegovernmentistransformingthewayin Place des Arts is led by Regroupement des organismes
whichpublicpropertiesaredivestedto culturels de Sudbury (ROCS), an informal coalition
ensureameaningfulassessmentof of seven artistic and cultural organizations within
opportunitiestoretainthemwithinthe Greater Sudbury. These organizations have worked
collaboratively since 2010 and collectively
publicsphere. represent three generations of Franco-Ontarian
cultural institutions.
28 ChapterII:HelpingYouandYourFamily
ThegovernmentisreviewingrelevantProvincialpoliciestoensurealignmentwithcommunity
focusedobjectives.Itwillalsopromotecoordinatedplanningwithlocalpartnersandacross
government,encourageintegratedservicedelivery,andincorporatemultiusedesignaspartofits
longterminfrastructureplanning.Aswell,theProvinceishostingtheCommunityHubsSummitin
May2017tobringtogetherthosewhoareworkingin,orplanningfor,acommunityhubin
CHAPTERII
Ontario.Thesummitwilllaunchanewresourcenetwork,encourageknowledgesharing,and
provideanengagementopportunityfortheongoingimplementationofthecommunityhub
recommendations.
ChapterII:HelpingYouandYourFamily 29
Helping Students
Making Postsecondary Education More Affordable
Accesstoapostsecondaryeducationshouldnotbebasedonabilitytopayitshouldbebased
ondesiretolearn.ThegovernmentisfundamentallytransformingtheOntarioStudentAssistance
Program(OSAP)tomakepostsecondaryeducationmoreaccessibleandaffordableforOntario
studentsandtheirfamilies,includingmaturestudents.Enhancingopportunitiesforpostsecondary
educationwillhelpstudentsimprovetheiremploymentprospectsbygainingtheknowledgeand
skillstheyneedtocompeteintheglobaleconomy.
TransformingOSAPtohelpmorestudentspursuepostsecondaryeducation,regardlessoffamilyincome.
Startingthisfall,OntarioisrollingoutthenewOSAPtoprovidemoretransparent,timelyand
targetedfinancialassistancetostudentswiththegreatestfinancialneed.Thesechangeswillmake
averagetuitionfreeformorethan210,000Ontariostudentsandreducethecostformanymore.
MostOntariostudentswillreceivemoreaidthantheyhavebeeneligibleforunderthe
currentframework.
30 ChapterII:HelpingYouandYourFamily
Starting this fall, the government will:
Introduce the new OSAP that will replace many existing Provincial grants with a single upfront grant,
helping students cover educational expenses as they become due.
Increase weekly aid limits for all students while continuing to index aid to inflation on a yearly basis.
CHAPTERII
Starting in 2018, Ontario will:
Reduce what parents and spouses are expected to contribute to a students educational costs under
OSAP, further increasing support for students from middle- to upper-income families.
In addition to changes announced in the 2016 Budget, OSAP enhancements will:
Better assist families that have saved for their childrens postsecondary education by ensuring savings
from Registered Education Savings Plans (RESPs) will not reduce the amount of financial assistance
provided to students through OSAP.
Help remove financial barriers to postsecondary education for Indigenous students. The government is
working with Indigenous partners to identify additional targeted OSAP supports that will address
economic barriers and improve access to postsecondary education for Indigenous students.
Help make the transition into the workforce easier, increasing the minimum salary an individual needs
to earn from $25,000 to $35,000 before they start repaying the Provincial portion of OSAP loans.
Try the online OSAP calculator.2 See Chapter II: Helping You and Your Family for more details on OSAP.
ThesechangestoOSAPwillalsohelpensurestudentshaveanaccurateunderstandingof
postsecondaryeducationcostswellbeforetheystarttheirschoolyear.Thesimpler,integrated,
upfrontgrantandnettuitionwillmakeiteasierforOntariofamiliestoplanandbudgetfor
educationcosts.
Eligiblestudents,includingmaturestudentsandadultlearnerswithannualfamilyincomes
of$50,000orless,willreceiveenoughinOSAPgrantstocoveraveragetuitioncosts;
80percentofstudentswithannualfamilyincomesbelow$90,000willreceivegrantsthat
equalorexceedtheaveragecostoftuitionandwillnotneedtoberepaid;
About230,000studentswillhavelessdebtthantheywouldhavehadunderpreviousOSAP
rules;and
NoOntariostudentwillreceivelessthantheyarecurrentlyeligibleforthroughthe30%Off
OntarioTuitionGrant.
2
https://osap.gov.on.ca/AidEstimatorWeb/enterapp/enter.xhtml
ChapterII:HelpingYouandYourFamily 31
CHART 2.1
Making Tuition More Affordable
Jacqueline in College Living at Home
Jacqueline is anticipated to pay regular college tuition of $2,768 in 201516 and $3,026 in 201819. She is from a family of four.
* Total student costs of $8,914 are covered by student contribution of $3,000 and OSAP aid of $5,914.
** Total student costs of $9,539 are covered by student contribution of $3,000 and OSAP aid of $6,539.
CHART 2.2
Making Tuition More Affordable
Jerome in University Living away from Home
Jerome (Family Income: $80,000/year) Illustrative University Arts and Science Student
Jerome is anticipated to pay average arts and science tuition of $6,160 in 201516 and $6,712 in 201819. He is from a family of four.
* Total student costs of $18,000 are covered by OSAP aid of $11,744, student contribution of $3,000, parental contribution of $2,256,
and scholarship of $1,000.
** Total student costs of $19,236 are covered by OSAP aid of $15,236, student contribution of $3,000, and scholarship of $1,000.
32 ChapterII:HelpingYouandYourFamily
Helping Seniors
Theprovincesmorethantwomillionseniorsareanimportantandgrowingsegmentofthe
Ontariopopulation.Asof2015,moreOntariansturn65eachyearthanturn15,andthenumber
ofseniorsintheprovinceisprojectedtoalmostdoubleto4.5millionby2040,makingupover
CHAPTERII
25percentoftheprovincespopulation.
Seniorshavecontributedtothecommunityandtheeconomythroughouttheirlives.Inturn,
thegovernmentneedstoberesponsivetotheirmultifacetedneedsascitizensandcommunity
members,especiallytheneedsofthosewhoarevulnerableoronfixedincomes.
Thegovernmentisproviding$8millionover
thenextthreeyears,allowingforan
additional40newEPCsby201819tomeet
thegrowingneedsofseniorsandhelp
supportsomeofOntariosmostvulnerable
populations.ExpandingtheEPCnetworkwill
alsocontributetodevelopmentof
communityhubswhencolocatingwith
communityhealthcentres.
RichmondHillsMcConaghyCentreprovides
recreationalandsupportprogramsforseniors.
ChapterII:HelpingYouandYourFamily 33
Ontario Seniors are Already Benefiting from the EPC Program
The Thunder Bay 55 Plus Centres programs include fitness, visual arts workshops, general interest
classes, as well as sessions to learn about technology and computers.
The Beachcombers Senior Citizens Association (Ridgeway) organizes classes in computers,
upholstery, dancing, quilting and more.
South Riverdale Community Health Centre and Harmony Hall (Toronto), also known as Call-A-Service
Inc., empowers and connects seniors 55 and older by delivering transportation, recreational and
support services in Bengali, Chinese, English and Tamil.
Rendez-vous des ans francophones dOttawa (RAFO) is a francophone EPC with over 750 members
and 230 volunteers. RAFO purchased a former elementary school to deliver its own programming,
including a meal service and seasonal garden, while also renting out space to help support a wider
range of programs and services.
Thegovernmentwillextendfundingforthe
programandprovideanadditional OntariosSeniorsCommunityGranthelpsolder
$11millionoverthreeyearstosupport adultsstayinvolved,activeandengagedintheir
facilitiestohelpseniorsengagesocially, communities.
volunteerandcontinuetheirlifelonglearning.
34 ChapterII:HelpingYouandYourFamily
Seniors Community Grants
Seniors Community Grants funded a wide range of activities, such as:
Senior volunteers led education sessions for groups of seniors on elder abuse prevention in Dutton
(Elgin County).
CHAPTERII
Henvey Inlet First Nation supported a personal development and well-being elders circle geared
towards physical, emotional, mental and spiritual health.
Giuseppe Garibaldi Seniors Club hosted multicultural music and dance events in collaboration
with the Thornhill Senior Citizens Club, Filipino Seniors Club and First Chinese Senior Association
of Vaughan.
The Heritage Green Family Council (Stoney Creek) purchased digital tablets for seniors to use as
communication and educational tools in the nursing home.
The Kitchener-Waterloo Multicultural Centre held a workshop series for settlement workers to support
immigrant seniors.
ThegovernmentisproposinganewOntarioSeniorsPublicTransitTaxCreditforallOntarians
aged65orolder,coveringeligiblepublictransitcostsasofJuly1,2017.
Itwouldprovidearefundablebenefitof15percentofeligiblepublictransitcosts,providing
anaverageannualbenefitof$130.
DetailsabouteligibilityforthecreditwouldbeannouncedintimefortheJuly1implementation
date.
ChapterII:HelpingYouandYourFamily 35
Supporting Seniors Health
AspartofOntariosinvestmentsinhealthcarethisyear,theProvincewillsupportseniorsthrough
newinnovativemodelstoensurepatientsarereceivingcareinthemostappropriatesetting
possible,withintheircommunity.Investmentswillsupportlocalsolutionsfornewmodelsofcare
thatavoidunnecessaryhospitalstaysbyleveragingotherserviceproviders,suchasretirement
homesandsupportivehousingproviders.FormoreinformationontheProvincesactionstohelp
ensureindividualsareinappropriatecaresettings,pleaserefertoChapterIV,SectionA:
StrengtheningHealthCare.
Vouchers
A hospital stay after an acute episode, such as a fall or a bout of pneumonia, can take a toll on a senior
who was previously living well in their community. Too often, a senior and their family must discuss
whether to move into long-term care, since a return to independent living may seem unsafe during that
difficult time.
In many jurisdictions, voucher programs are used to support delaying entry into long-term care. As a first
step, the Province will explore a demonstration project through the Ministry of Health and Long-Term Care
to offer seniors a new choice, such as accommodation vouchers for seniors who may no longer require
hospital care after an acute episode. This accommodates those who wish to try a period of recovery and
restoration in a more suitable environment.
Theresponsibilityofcaringforsomeonelivingwithdementiacantakeanenormousphysical,
emotionalandfinancialtolloncarepartnersfamilymembers,friendsandneighbours.
NearlyhalfofpeoplelivingwithAlzheimersorotherdementiashavecaregiverswhoare
distressed.Caregiversmayalsohaveadditionalresponsibilities,suchasajoborayoungfamily,
furtheraddingtothephysical,emotionalandfinancialdistresstheyexperience.
3
OntarioMinistriesofHealthandLongTermCareandEducation,DevelopingOntariosDementiaStrategy:
ADiscussionPaper(September2016).https://www.ontario.ca/page/developingontariosdementiastrategy
discussionpaper#section9
4
MinistryofHealthandLongTermCare,DementiaCapacityPlanningProject,2017.
36 ChapterII:HelpingYouandYourFamily
OntariosnewDementiaStrategywillprovidemorethan$100millionoverthreeyearstosupport
peoplewithdementiaandthosewhocareforthemthroughbettercoordinatedandenhanced
services.Thiswillincludefundingtoexpandprovincewideaccesstocommunityprogramsand
otherinvestmentstoenhanceaccesstocare,informationandsupportfromasearlyaspossible
onceadiagnosisismade.Thestrategywillhelppatientsandtheircaregiversfindandaccessthe
CHAPTERII
mostappropriatecareandsupportsandimprovetrainingandeducationindementiacarefor
personalsupportworkers,physicians,nursesandotherfrontlineworkers.
TheProvincewillinvestanadditional$20millionin2017forrespitecare.Thisbuildsonthe2016
investmenttoofferrespitetotheunpaidcaregivers(familyandfriends)ofseniors,peopleliving
withdementiaandotherhomecarepatients.Thisfundingisusedforpersonalsupportservicesor
nursingsupportathome,allowingcaregiverstoschedulebreaksfromthecrucialworkofcaring
foralovedone.Withthesenewinvestmentsinrespitecare,theProvincesthreeyearinvestment
forrespitecarewilltotal$120million.
Community Investments
Since2013,thegovernmenthasincreaseditsinvestmentinhomeandcommunitycarebyabout
$250millionayeartofulfillthecommitmentoutlinedinPatientsFirst:ARoadmaptoStrengthen
HomeandCommunityCare.Continuingthisinvestmentin201718willsupportmorehoursof
careforcomplexpatients,muchneededrespiteforcaregivers,andthedeliveryofkey
improvementsinmentalhealthandaddictionservices,healthcareforIndigenouspopulations,
andimplementationofadementiastrategyinOntario,amongotherpriorities.
Fundingwillalsobeprovidedtoexpandtheexemplaryworkalreadyunderwayinthelongterm
caresectortoimproveaccesstotrainingandsupportsforqualitypalliativeandendoflifecarein
longtermcarehomes.Thisinvestmentwillsupportthecarethatlovedonesdeserve,andprovide
comfortanddignitytowardstheendoflife.
ChapterII:HelpingYouandYourFamily 37
Thegovernmentwillincreasethefoodallowancebyoversixpercentthisyear,or$15million,
toensurethatLTChomescanprovidenutritiousmenusthatareresponsivetomedicaland
ethnoculturalneeds.
TheProvinceisencouragingoperatorstoacceleratetheredevelopmentofmorethan30,000LTC
bedsby2025.GrowthinthedemandforLTCbedscontinuestooutpaceexistingsupply.The
Provincewillundertakeplanningandmodernizeitsapproachtoprovidebetterservicestoseniors
whorequirelongtermcare.
Inthepastyear,theProvinceannouncedplanstofundtheredevelopmentof963LTCbedsinthe
communitieslistedbelow:
100inAylmer;
120inBrampton;
95inCambridge;
69inIroquoisFalls;
72inMattawa;
96inMountForest;
160inNiagaraontheLake;
59inQuinteWest;
32inStouffville;and
160inWhitby.
ThegovernmentiscommittedtoensuringthatallLTChomeoperatorsprovidesafe,qualitycare
forresidentsandtheirfamilies.WhilethevastmajorityofLTChomesareconsistentlyin
compliance,Ontarioisstrengtheningitsqualityandsafetyinspectionprogram.InJanuary2017,
thegovernmentannouncednewenforcementtoolstoincludefeesandpenaltiesforoperators
withrepeatednoncomplianceissues.Theseenforcementchangeswillrequirelegislativeand
regulatoryamendments.
38 ChapterII:HelpingYouandYourFamily
Expanding Seniors Access to Affordable Drugs
Everyyear,anadditional30,000seniorswillbecomeeligibleforloweroutofpocketdrugcosts.
Asannouncedinthe2016Budget,thegovernmentexpandedaccesstotheSeniorsCoPayment
Programbyraisingtheincomethresholdleveltoallowmoreseniorstoqualify.
CHAPTERII
Ontario is the first jurisdiction in Canada to provide the shingles vaccine free of charge to seniors 65 to
70 years of age, saving approximately 850,000 eligible seniors about $170 each. Helping seniors stay
healthy also reduces emergency room visits and hospital stays.
ChapterII:HelpingYouandYourFamily 39
Housing Affordability
HousingisessentialforfamiliesacrossOntario.Yettoday,toomanypeoplearefeelingmounting
pressurewhentryingtobuyahomeoraffordtheirrent.
Inparticular,theGreaterTorontoandHamiltonArea(GTHA)hasexperienceddramaticprice
increasesinrecentmonths.ThisphenomenonhasspreadtoseveralregionsinsouthernOntario
overthelastseveralmonths.Whilerisingpricesreflecttheeconomicstrengthoftheregionand
havebenefitedmanycurrenthomeowners,thecostofbuyingorrentingiscreatingchallenges.
Peopleworkhardtoprovidefortheirfamilies.Theyshouldbeabletorentorentertherealestate
marketwithoutmakingunduesacrificesortakingonahugeamountofrisk.
CHART 2.3 Greater Toronto Area Price Increases Outstrip Other Cities
Average Resale House Price1 ($) Average Home Resale Price ($)
(Unadjusted)
1,000,000
Greater Toronto Area Thunder Bay +1.0% 2016
900,000 ($916,567)
Windsor-Essex +12.6% 2015
800,000 Greater Sudbury +4.2%
700,000 London-St.Thomas +5.4%
Ontario
600,000 ($634,341) St. Catharines
2 +16.4%
Sources: Canadian Real Estate Association and Toronto Real Estate Board.
40 ChapterII:HelpingYouandYourFamily
Housingpricesareaffectedbymanyfactors,includingpopulationgrowth,interestratesandjob
creation.Itisimportantthatpolicysolutionsareguidedbyanapproachthatminimizestherisk
ofunintendedconsequencesthatcouldworsentheproblemorjeopardizetheimportant
investmentsOntariohomeownershavemade.Thatiswhy,asannouncedinthe2016Ontario
EconomicOutlookandFiscalReview,theProvinceiscollectingmoreprecisedataonthereal
CHAPTERII
estatemarket.Thegovernmenthasalsoconsultedwidelywithrenters,homeowners,
municipalities,academia,otherjurisdictionsandprivatesectoreconomiststodeterminewhatcan
bedonetoaddresshousingaffordability.
Actions Underway
Helping Ontarios First-Time Homebuyers
Ontariohastakenstepstoaddress
affordabilityforfirsttimehomebuyersby
modernizingtheLandTransferTax(LTT)to
reflectthecurrentrealestatemarket,as
announcedinthe2016OntarioEconomic
OutlookandFiscalReview.
TohelpOntariansbuytheirfirsthome,the
Provincehasdoubledthemaximumrefundto
$4,000forqualifyingfirsttimehomebuyers.
TherefundisrestrictedtoCanadiancitizens
Ontarioismakingitmoreaffordableforfamilies
andpermanentresidents.Purchaserswho
andindividualstobuytheirfirsthome.
arenotCanadiancitizensorpermanent
residentswhenatransactioncloseshave18monthstobecomeeligibleandcanapplyforthe
refundwithinthe18monthperiod.
Thisincreasedrefundisalreadyreducingclosingcostsforfirsttimepurchasers,freeingupfunds
forfurnitureorappliancesforthehome.
Asaresultoftheincreasedmaximum,noLTTispayableonthefirst$368,000ofthecostofafirst
homeforqualifyingpurchasers.
Goingforward,theProvince,workingwithfederalandmunicipallevelsofgovernment,willclosely
monitorthehousingmarketandtheeffectofthesemeasurestoensuretheyareachievingthe
desiredoutcomes.
ChapterII:HelpingYouandYourFamily 41
Non-Resident Speculation Tax
Ontarioseconomybenefitsgreatlyfromnewcomerswhodecidetomaketheprovincehome.
Thegovernmentisconcernedthatnonresidentinvestorswhoarenotplanningonlivinginthe
provincehavebeenpurchasingOntariohomesprimarilyforspeculationpurposes.OnApril20,
2017,theProvinceproposedanew15percenttaxonthepriceofhomesintheGreaterGolden
Horseshoe(GGH)purchasedbyindividualswhoarenotcitizensorpermanentresidentsofCanada
orbyforeigncorporations.
TheproposedNonResidentSpeculationTax(NRST)wouldapplytotransfersoflandthatcontains
atleastoneandnotmorethansixsinglefamilyresidences.TheNRSTwouldnotapplyto
purchasesofothertypesofproperties,includingmultiresidentialrentalapartmentbuildings,
agriculturallandorcommercialland.
Ifpassed,theproposedNRSTwouldbeeffectiveasofApril21,2017.Legislationtoimplementthe
taxwouldallowforexpansiontootherregionsoftheprovince,ifwarrantedbymarketconditions.
BindingagreementsofpurchaseandsalesignedonorbeforeApril20,2017wouldnotbesubject
totheNRST.
RefugeesandnomineesundertheOntarioImmigrantNomineeProgramwouldnotbesubject
totheNRST.Subjecttoeligibilityrequirements,arebatewouldbeavailableforthosewho
subsequentlyattaincitizenshiporpermanentresidentstatusaswellasforeignnationalsworking
inOntarioandinternationalstudents.FurtherdetailsontheNRSTareavailableinthebulletin
postedontheMinistryofFinancewebsite.5
Tobetterunderstandtheextentoftheproblem,thegovernmentwillrequireinformationabout
assignmentsofagreementsandsimilararrangementsthroughtheLandTransferTax(LTT)system.
AtthetimethetransferisregisteredandLTTispayable,purchaserswouldberequiredtodeclare
whethertheyenteredtheagreementbywayofassignmentoranothersimilararrangement.
InformationgatheredthroughthisdeclarationwouldassisttheMinistryofFinanceinensuringthat
thecorrectamountoftaxispaid.Forexample,anyconsiderationforanassignmentshouldbe
includedaspartofthevalueoftheconsiderationusedtocalculatetheLTTamount.
Additionaldetailsaboutthechangeswillbemadeavailableinthecomingmonths.
5
http://www.fin.gov.on.ca/en/bulletins/nrst/nrst.html
42 ChapterII:HelpingYouandYourFamily
Ontarioalsointendstoworkwiththefederalgovernmenttoexploremorecomprehensive
reportingrequirementsrelatedtopaperflipping.ThiswouldbetterenabletheMinistryofFinance
andtheCanadaRevenueAgencytoensurethatthecorrectfederalandprovincialtaxes,including
incomeandsalestaxes,arepaidonpurchasesandsalesofrealestateinOntario.
CHAPTERII
Increasing Housing Affordability in the Rental Market
ThegovernmentproposestoimproverentcontrolinOntariotohelpstrengthenprotectionsfor
tenantsandkeepcostsaffordable.TheProvinceisproposingtoexpandrentcontroltoallprivate
rentalunits,includingthoseoccupiedonorafterNovember1,1991.
TheProvincealsoproposesto:
Createastandardleasetohelpbothtenantsandlandlordsknowtheirrightsand
responsibilities,whilereducingthenumberofdisputes;
Protecttenantsfromevictionresultingfromabuseofthelandlordsownuseprovision;
Preventlandlordsfrompursuingformertenantsforunauthorizedcharges;
Delayaboveguidelinerentincreasesuntilelevatormaintenanceordersareaddressed;and
Removeaboveguidelinerentincreasesforutilitiestoprotecttenantsfromthecostof
carbonpricingandencouragelandlordstomaketheirbuildingsmoreenergyefficient.
Expandingrentcontrolandstrengtheningprotectionsfortenantsisonepartofthegovernments
plantoaddressrisinghousingcostsandensurethatallOntarianshaveasafe,suitableand
affordableplacetocallhome.
Developmentchargesareupfrontfeesthatrepresentasignificantportionofconstructioncosts,
andsomedevelopershavesuggestedthattheycanbeabarriertothedevelopmentofnew
purposebuiltrentalhousing.Therebateprogramwillbescopedtotargetprojectsthatwould
nothaveproceededintheabsenceofthisincentive.
Municipalitieswhoopttoparticipatecouldhelptailorthedesignoftheprogramtomeetthe
needsoftheircommunities.Forexample,eligibleprojectscouldincludethosethatmeetkey
criteriasuchasaffordabilityandprovidinganappropriatemixofunittypes.Workingwith
municipalities,theProvincewillalsotargetprojectsinthosecommunitiesthataremostinneed
ofnewpurposebuiltrentalhousing.
ChapterII:HelpingYouandYourFamily 43
Improving the Fairness of the Property Taxation of Apartment Buildings
Thegovernmenthasheardconcernsaboutthesignificantlyhigherpropertytaxburdenfor
multiresidentialapartmentbuildingsanditseffectonhousingaffordability.
Thepropertytaxleviedonownersofmultiresidentialapartmentbuildingsisgenerallyreflected
inrentspaidbytenants.Thishasimplicationsforrentalaffordability,astheaveragemunicipal
propertytaxburdenonapartmentbuildingsismorethandoublethatofotherresidential
properties,suchascondominiums.Thishighertaxburdenisparticularlyconcerninggiventhe
loweraverageincomesoftenantsinapartmentbuildings.
Asafirststepinaddressingtheseconcerns,thegovernmenthasfrozenthemunicipalpropertytax
burdenformultiresidentialpropertiesincommunitieswherethesetaxesarehigh.Areviewofthe
potentialimplicationsofmultiresidentialpropertytaxationonrentaffordabilityisalsounderway.
Aspartofthisreview,thegovernmentisconsultingwithaffectedstakeholders,including
municipalities,tenantsandapartmentbuildingowners.
Basedonearlyfeedbackreceivedduringthisreview,thegovernmentwillensurethatnew
multiresidentialapartmentdevelopmentswillbetaxedinawaythatparallelsthetaxationof
otherresidentialpropertiestosupportandencouragethedevelopmentofnewpurposebuilt
rentalunits.
TheProvincealreadyprovidesmunicipalitieswiththeoptiontotaxnewmultiresidential
apartmentsataratesimilartootherresidentialproperties.Manymunicipalitieshaveadoptedthis
option,andinordertoensureaconsistentapproachacrossOntario,theProvincewillmakethis
lowertaxlevelmandatory.Thismeasurewillfurthersupportandencouragedevelopmentofnew
multiresidentialapartmentunits.
Thischangewillnotresultinanylossofexistingmunicipaltaxrevenues,asitwillapplyonly
tonewlyconstructedapartments.Moreover,municipalitieswilllevypropertytaxeson
thesepropertiesusingthesametaxratethatwouldhaveappliediftheyhadbeendeveloped
ascondominiums.
44 ChapterII:HelpingYouandYourFamily
Vacant Homes Property Tax
Thegovernmentunderstandstheconcernsthathavebeenraisedaboutresidentialunits
potentiallybeingleftvacantbyspeculatorswhilemanypeoplearelookingforhousingthey
canafford.TheCityofTorontohasidentifiedataxonvacanthomesasatoolthatshouldbe
CHAPTERII
considered.Avacanthometaxcouldhelpencouragepropertyownerstosellunoccupiedunits
ormakethemavailabletoberented.Thiscould,inturn,increasehousingsupplyandhelp
promoteaffordability.
Forthisreason,thegovernmentisproposingamendmentstolegislationthatwouldgrantToronto
broadauthoritytolevyanadditionalpropertytaxonvacanthomes.Underthisapproach,theCity
wouldberesponsibleforthedetaileddesign,implementationandadministrationofthetax.
Thegovernmentwillalsoworkwithotherinterestedmunicipalitiesthatareexperiencingissues
withhomesbeingleftvacantasaresultofspeculation.
ThisinitiativewouldcomplementadditionalProvincialeffortstostreamlinethedevelopment
approvalsprocessandhelpbringnewhousingtomarketmorerapidly.
TheGrowthPlanfortheGreaterGoldenHorseshoe,togetherwiththeGreenbeltPlan,isdesigned
tohelpmanagethesignificantgrowthcomingtothisregion.Italreadyplansforenoughlandanda
rangeofhousingtypestoaccommodategrowth,anddirectsittoexistingbuiltupareasandto
wheretransitcanbestserveallresidentsandbusinesses.Tobetterreflecttheneedsofagrowing
region,newprovisionswillrequiremunicipalitiestoconsidertheappropriaterangeof,andunit
sizesin,apartments,condominiumsandtownhousestoaccommodateadiverserangeof
householdsizesandincomes.Thiswilldirectlysupportbuildingmoreoftheaffordablemissing
middlehousingforwhichpeoplearelooking.Ontariocontinuestoworkwithmunicipalitieson
theirHousingandHomelessnessPlanstoensureacompleterangeofhousingoptionsareprovided
incommunities.
ChapterII:HelpingYouandYourFamily 45
Streamlining Approvals
Tohelpunlockdevelopmentopportunitieswheretheregulatoryapprovalsprocessorother
barriersareslowinghousingdevelopmentfromcomingtomarket,thegovernmentiscreatinga
specialResidentialLandDevelopmentFacilitationTeamtohelpallpartiescometothetableand
findsolutionstobuildhousinginplaceswhereitisapprovedandmakesthemostsense.Aspartof
thiseffort,overthecomingmonthsProvincialofficialswillfasttrackeffortswithdevelopersand
municipalitiestoreviewthedevelopmentapprovalsprocessandrecommendwaysthat
stakeholderscanworktogethertoresponsiblystreamlineit.
46 ChapterII:HelpingYouandYourFamily
Consumer Protection
Consumerprotectionisincreasinglyimportantasindividualsassumegrowingresponsibilityfor
theirownfinancialsecurity.Ontariansrelyingonthefinancialservicesindustrydeserveastrong
regulatoryframeworktoprotecttheirinterests.
CHAPTERII
Strengthening Financial Services and Pension Regulation
Thegovernmentiscommittedtoestablishinganew,flexibleandinnovativefinancialservicesand
pensionregulatorthatwillstrengthenconsumer,investorandpensionplanbeneficiaryprotection,
andistakingkeystepstobeginthetransitiontoanewregulatoryauthority.
InDecember2016,theFinancialServicesRegulatoryAuthorityofOntarioAct,2016(FSRAAct)was
passed,establishingtheinitialparametersofthenewregulator.Thegovernmentsnextstepwill
beappointingaboardofdirectorstooverseethemanagementofFSRAsaffairsasitbuildsits
regulatorycapacity.Thegovernmentexpectstoappointaboardinspring2017.
Thegovernmentwillalsocontinuetoconsultwithstakeholdersandreviewrecommendations
fromtheexpertadvisorypanelthatrecommendedthecreationofFSRA.Thisworkwillinform
thedevelopmentofFSRAsmandateandgovernancestructure,aswellasthestructureand
powersoftheFinancialServicesTribunal(FST).Legislativeamendmentsregardingthesepriorities
areexpectedtobeintroducedbytheendof2017.Intheinterim,thegovernmentisintroducing
legislativeamendmentsthatwouldenabletheFSTtomanageitscaseloadmoreefficiently.
Thegovernmentalsointendstotransferresponsibilityfortheincorporationofcooperative
corporationsfromtheFinancialServicesCommissionofOntario(FSCO)totheMinistryof
GovernmentandConsumerServices(MGCS).Thischangeisintendedtoconsolidatethe
incorporationprocessforcooperativeswiththosecurrentlyinplaceforothertypesofOntario
businesses.ItisexpectedthatMGCSwouldbeginincorporatingcooperativecorporationsin2018.
Inaddition,thegovernmentplanstotransferregulatoryoversightofsyndicatedmortgage
investmentsfromFSCOtothesecuritiesregulator.Thisisconsistentwithboththeexpertadvisory
panelsreportandthemannerinwhichtheseproductsareregulatedinotherprovinces.
Goingforward,thegovernmentwillworkwithregulatorstoplananorderlytransferofthe
oversightoftheseproducts.
Inadvanceofthetransfer,thegovernmentistakingactiontostrengthenprotectionsforinvestors
insyndicatedmortgages.Newregulationswouldestablishinvestmentlimitsontheseproducts
andrequiremortgagebrokeragestodocumenttheirassessmentsofthesuitabilityofsuch
productsfortheirclients.FSCOwouldalsoexpandrequirementsrelatingtoinformationprovided
bymortgagebrokeragestoensurethatinvestorsareawareofthepotentialrisksassociatedwith
thesetypesofinvestments.
ChapterII:HelpingYouandYourFamily 47
Strengthening Consumer Protection for Owners of Newly Built Homes
OntariohasreleasedthefinalreportfromtheHonourableJ.DouglasCunningham,QConthe
OntarioNewHomesWarrantiesPlanActandtheTarionWarrantyCorporation,andwillmove
forwardtofurtherprotectownersofnewlybuilthomesacrosstheprovince.
Toimproveconsumerprotection,accountability,transparencyandboardgovernance,
Ontarioproposesto:
Makethedisputeresolutionprocesseasierforhomeownersiftheydiscoveraproblemin
theconstructionoftheirnewhome;
Separatetheproviderofthenewhomewarrantyprogramfromthenewhomebuilders
regulatortoincreaseconsumerconfidence;and
Givethegovernmentresponsibilityinmakingrules,settingstandardsandintroducing
modernoversightmeasurestoimproveaccountabilityandtransparency.
ThegovernmenthasaskedTariontointroducenewdepositprotectionmeasurestobetterreflect
todayshomepricesanddepositrequirements.
InMarch2017,thegovernmentreleasedtheexpertcommitteesfinalreport.Its
recommendationsrepresentanopportunitytostrengthenconsumerprotectionandthequalityof
informationavailabletoindividualsastheymakedecisionsessentialtotheirlongtermfinancial
wellbeing.
Thegovernmentisconsideringthereportsrecommendationsinthecontextoftheongoing
transformationofOntariosfinancialservicesregulatorysystem.Elementsofthistransformation
includeeffortstoincreaseharmonizationacrossthecountrythroughtheCooperativeCapital
MarketsRegulatorySystem(CCMR)andplanstoimproveconsumer,investorandpensionplan
beneficiaryprotectionthroughanewregulatoryauthority.
48 ChapterII:HelpingYouandYourFamily
Overthecomingyear,thegovernmentintendstoworkwithitsregulatorypartnerstoclosethe
gapthatcurrentlyallowsfinancialplannerstoperformtheirvaluableworkwithoutregulatory
oversightorspecifiedproficiencyrequirements.Inaddition,thegovernmentwilltakestepsto
curbconsumerconfusionbyworkingwithregulatorstorestricttheuseoftitlesrelatedtofinancial
planning.Thegovernmentwillrespondtothereportsrecommendationtodevelopacentral
CHAPTERII
registryofpersonsprovidingfinancialplanningandadvisoryservices,andwillworkwithregulators
toconsiderthereportsrecommendationrelatedtoreferralarrangements.Thegovernmentalso
fullysupportsthereportsrecommendationtoactivelyencouragefinancialliteracyinOntario.
Thegovernmentsactionsineachoftheseareaswillbeinformedbyinputfromrelevant
stakeholdersandOntariosfinancialservicesregulators.
Thegovernmentwelcomesthereportssupportforauniversalstatutorybestinterestduty.
Thereportaddstoagrowingnumberofvoices,inOntarioandacrossCanada,whoarguethatan
elevatedstandardcouldimproveconsumerprotection.Informedbyconsultationsledbythe
OntarioSecuritiesCommission(OSC)andincloseconjunctionwithitsregulatorypartners,
thegovernmentintendstoexaminethefeasibilityofauniversalstatutorybestinterestduty
inOntario.
TheOSC,throughitsInvestorOffice,
helpsindividualsmakeinformedfinancialand
investmentchoices.InvestorOfficeFactCards
wererecentlyintroducedtoshare
informationaboutinvesting.Thesedigital
indexcardsexplainawiderangeoftopics,
Ontarioistakingstepstobetterprotectconsumers
suchasunderstandingmutualfunds,learning andinformthemabouttheirrights.
aboutdifferenttypesofinvestmentrisks,and
recognizingtheredflagsofinvestmentfraud.TheInvestorOfficealsooperates
GetSmarterAboutMoney.ca,whichprovidesinformationandfinancialtoolstohelpinvestorsmake
betterdecisionsabouttheirmoney.
ChapterII:HelpingYouandYourFamily 49
TheFinancialServicesCommissionofOntarioalsoundertakesanumberofactivitiestopromote
financialliteracy.InNovember2016,FSCOsFinancialLiteracyMonthcampaignincludedafocus
onincreasingknowledgeaboutmortgagesamongfirsttimehomebuyersaged25to34.Aspartof
thiscampaign,FSCOconductedasurveythatshowedthisdemographichaslimitedknowledgeof
therisksassociatedwithmortgages.FSCOalsooperatesanUnderstandingMortgageswebsite6
thatprovidesusefultipstoconsumersonshoppingandapplyingforamortgage.
Ontarioispartneringwitheducatorsonpilotprojectsacrosstheprovincetorevisethecurrent
careerstudiescourseandhelpstudentsdeveloptheskillstheyneedtocompete,includingthose
relatingtofinancialliteracy.Formoreinformation,pleaserefertoChapterIV,SectionB:Investing
inEducation.
6
www.fsco.gov.on.ca/en/understandingmortgages
50 ChapterII:HelpingYouandYourFamily
Improving Auto Insurance
Thegovernmentcontinuestomakeauto
insurancemoreaffordableforOntarios
almost10milliondrivers,whileprotecting
CHAPTERII
consumersandensuringthatpeoplehurtin
autoaccidentsgetthemedicaltreatmentthey
need.Currently,Ontariansareprotectedby
themostgenerousaccidentbenefitcoverage
ofanycomparablejurisdictioninCanada.
Reformsimplementedsince2013andother
costreductionstrategieshaveresultedin
Driverswithwintertirescanhavetheirauto
significantlylowerautoinsurancerates insuranceratescutbytwotofivepercent.
andareexpectedtodeliverfurtherrate
reductionsasinsurancepoliciescontinuetoberenewedthrough2017.
Creating a new dispute resolution system to help Ontario claimants get faster access to the benefits
they need.
Prohibiting premium increases for minor at-fault accidents.
Whilerateshavedecreased,theProvincerecognizesthatmorecanbedonetomakethesystem
moreefficientandaffordable.Thisyear,driverswillbenefitfromtheoptionofusingelectronic
proofofinsurance.Thiswillallowdriverstoconfirmtheirproofofinsurancethroughtheirmobile
device,insteadofthecurrentpaperpinkslipsissuedbyinsurancecompanies.Whenusingthis
option,driverswillnolongerneedtoreplaceapapercopyoftheirproofofinsuranceeachtime
theyrenewtheirautoinsurancepolicies.
Distributingdocumentselectronically,includingproofofinsuranceandotherdocumentssuch
aspolicyrenewals,willenhanceconsumerconvenienceandresultinsavingsforinsurance
companies.Toensurethatthesesavingsarepassedalongtotheconsumer,thegovernment
willrequirethatinsurersofferadiscounttopolicyholderswhochoosetoreceive
documentselectronically.
ChapterII:HelpingYouandYourFamily 51
Long-Term Changes to the System
Overthelongterm,thegovernmentremainscommittedtofindingwaystocontinuetolowerauto
insuranceratesandimprovehealthoutcomesforvictimsofautoaccidentswithoutreducing
benefits.WhiletheProvincehasmadesignificantreformstoautoinsurance,thereisaconcern
thatthecurrentstructuremayallowindividualplayerstoprofitunfairlyorforfraudtooccur.
Recognizingthis,theMinisterofFinancetaskedDavidMarshall,formerpresidentandchief
executiveofficeroftheWorkplaceSafetyandInsuranceBoard,andnowadvisortothe
governmentonautoinsuranceandpensions,withexaminingtheautoinsurancesystemand
providingrecommendationstoimprovehealthoutcomesforaccidentvictimsandmakeauto
insurancemoreaffordableforallOntariodrivers.
ThereportwaspostedonApril11,2017.7
Theserecommendationsproposeawidescaletransformationofthecurrentsystemtodeliver
betteroutcomesforaccidentvictimswhilecreatingamoreefficientandcosteffectivesystem.
Therecommendationsaimto:
Ensurethatpeoplehurtinautoaccidentsreceivethecaretheyneedtorecoverinatimely
mannerthroughnewevidencebasedmandatoryprogramsofcaredesignedtotreat
allinjuries;
Establishindependentmedicalevaluationcentrestominimizethelikelihoodthataccident
victimsaredrawnintothedisputeprocess;and
Allowmorecompetitionandinnovationinautoinsurancethatismoreresponsivetothe
needsofconsumersandchangingmarketconditions,whileensuringstrongoversightby
theregulator.
Thegovernmentisreviewingtherecommendationsandwillbehostingconsultationsinthe
comingmonths.
7
http://www.fin.gov.on.ca/en/autoinsurance/fairbenefits.html
52 ChapterII:HelpingYouandYourFamily
Protecting Ride-Sharing Consumers and Drivers
ThegovernmentismodernizingautoinsuranceinOntariotobemoreresponsivetochanges
inconsumerpreferencesandprovidegreaterchoiceandprotectionfordriversandconsumers
participatinginridesharing.
CHAPTERII
Ridesharingenablesprivatelyownedvehiclestobeusedforotherpurposes.Thismeansthat
theautoinsurancesystemneedstobemoreflexibleinaccommodatingthisinnovationtofurther
promotecompetitionandconsumerchoiceinthemarket.
RecognizingthatOntarianswerenotadequatelyprotected,thegovernmenttookimmediatesteps
lastyeartoenableautoinsurancecoverageforridesharingparticipants,includingdriversand
passengersofridesharingcompaniesincludingUber,RideCoandTuro.
Thegovernmentisnowseekingadvicefromaworkinggroupthatincludesrepresentativesfrom
FSCOandtheinsuranceindustry.Thisworkinggroupisexamininganumberofissuesrelatingto
ridesharingandassociatedservices,includingtheinteractionofmultiplepolicies.Thegovernment
looksforwardtoreceivingtheworkinggroupsadvice.
ChapterII:HelpingYouandYourFamily 53
54 ChapterII:HelpingYouandYourFamily
Chapter III
Introduction
Overthepastthreeyears,OntariohasbeenaleaderineconomicgrowthinCanadaandtheG7
countries.WhileprivatesectoreconomistsexpectOntariotoremainoneofthefastestgrowing
provincesoverthenexttwoyears,therearechallenges,andopportunities,facingtheeconomy.
ThepopulationofOntario,likemanypartsoftheworld,isaging,anditisgrowingataslowerpace
thanithasinthepast.Theimpactthiswillhaveontheworkingagepopulationplacesincreasing
importanceonenhancingtheskillsandproductivityofworkersintheprovince.Businessesalso
facechallengesfromglobalcompetitionandtechnologicaladvancement;however,thesechanges
willopenthedoorsfornewmarketsandjobs.Thegovernmentispreparingfortomorrowthrough
theinvestmentsitismakingtoday.
CHAPTERIII
TheProvinceiscreatingopportunitiesforpeopletofindjobsandforbusinesstogrowandprosper
intheneweconomybydevelopingahighlyskilledworkforce,investingininfrastructure,
supportingbusinessinnovationandgrowth,andexpandingexports.Thegovernmentwillensure
theseopportunitiesareavailableinallregionsoftheprovince,fosteringanenvironmentof
inclusivegrowthwhereeveryonewillbenefitfrom,andcontributeto,Ontariosprosperity.
Ontariospeoplehavealwaysbeenitsstrength,andbuildingtheirtalentandskillsisattheheart
ofOntarioseconomicplan.TheProvinceismakingsignificantinvestmentsineducation,from
fulldaykindergartentopostsecondaryeducation,adulteducationandskillstraining.These
investmentswillhelppeopleprosperandhelpOntariomaintainthecompetitiveadvantageofa
highlyskilledworkforce.In2016,68percentofadultsinOntariohadapostsecondarycredential,
upfrom56percentin2002higherthanratesforanycountryintheOrganisationforEconomic
CooperationandDevelopment.
Byfurtherstrengtheningeducationandtraining,thegovernmentisensuringallOntariansare
equippedwiththeskillsandcompetenciestheyneedtofindmeaningfulwork,adapttochanging
technologies,buildskillstogrowintheircareersandcontributetotheircommunities.
ChapterIII:CreatingOpportunitiesandSecurity 57
58 ChapterIII:CreatingOpportunitiesandSecurity
Under Age 6
Renewed framework for early years
and child care
Creation of Ontario Early Years Child
and Family Centres
Age 6 to 13 Helping 100,000 more children access
affordable, quality licensed child care
Elementary Education
Continued implementation of full-day
Expanded before- and after-school programs
kindergarten (FDK)
CHAPTERIII
for 6- to 12-year-olds
Class size caps of 30 students for FDK
Moving to class size averages of fewer
in 201718 and 29 students in 201819
than 25 students in Grades 4 to 8 for
all school boards
Development of a shared vision for Age 13 to 18
a Well-Being Strategy for Education Secondary Education
60 minutes per day focusing on effective Improving math skills development
instruction in math and financial literacy
Built or renovated 35 elementary schools Focused learning on a specific
since 2013 economic sector with the Specialist
High Skills Major program
Transition supports to postsecondary
education with dual credit programs
Built or renovated 275 high schools
Above Age 18 since 2013
Sources: Ministry of Advanced Education and Skills Development and Ministry of Education.
ChapterIII:CreatingOpportunitiesandSecurity 59
Investing in Peoples Talents and Skills
Globalizationandnewtechnologyarechangingthenature
ofworkinOntario.Changesincludeincreaseddemandfor The Standing Committee on Finance
highlyskilledworkers;decliningsharesofmiddleskilland and Economic Affairs (SCFEA)
1
middlepayingjobs;growthinalternativeformsof recommended that the Minister of
employment,suchascontractandparttimework;anda Finance commit to:
theskillstheyneed,targetingsupportforthoseentering
thelabourmarketandthosewhofacebarrierstosuccess
orneedsupportinmeetingthedemandsofachangingeconomy.
ThroughOntariosHighlySkilledWorkforce(HSW)Strategy,peopleofallabilitiesandbackgrounds
candeveloptheirtalents,knowledgeandskillstobenefitfrom,andcontributeto,anevolving
economy.Thestrategywillprovidepeoplewithopportunitiesacrossthecontinuumoflearning
fromGradesK12,toapprenticeshipandpostsecondaryeducationaswellasskills
developmentandlifelonglearningforbothunemployedworkersandthoseactiveinthelabour
market,butlookingtoacquirenewskills.Highqualityeducationandtrainingdirectlycontributeto
abetterqualityoflifeforOntarians.
Toguidetheimplementationofthisstrategy,includingadviceonhowtosupportthoseimpacted
bynewtechnologyintheworkplace,thegovernmentwillbebringingtogetheremployers,
educators,labourandotherstakeholdersaspartofaPlanningandPartnershipTable.
TheProvincewillalsobeinvestinginprovidinglabourmarketinformationthroughanewwebsite
tohelpindividualsandemployersmakedecisions,suchaschoosingacareer,developing
educationalandtrainingprograms,orundertakingworkforceplanning.
The government will be partnering with labour unions and employers to support sectoral training.
For example, the government will work with SEIU Healthcare to explore options around the creation
of a training program and facility for the ongoing skills development of Personal Support Workers (PSW),
who are critical in the delivery of home care services across the province.
1
http://www.ontla.on.ca/committeeproceedings/committeereports/files_html/
prebudget%20consultation%202017%20report%20english%20%20final.htm
60 ChapterIII:CreatingOpportunitiesandSecurity
CHAPTERIII
business teams, working on
withemployersorresearchers,orparticipationin Shopifys projects and taking
entrepreneurshipprograms. courses at Carleton.
A year-long research project in
Practicalexperienceisusefulforguidingdecisionmaking which co-op students from the
andhelpsclosethejobexperiencegapthatmanystudents University of Waterloo are
andrecentgraduatesface.Theyareoftenconfrontedwith working with IBM to improve
thechallengeofneedingworkexperiencetogetajob. cybersecurity in a meaningful,
practice-based learning
Evidenceshowsthatstudentswhohaveonthejob
opportunity.
experienceorhandsonlearningopportunitiesduring
George Brown College students
theirstudiescanhaveimprovedprospectsfor
taking part in practical training
employment,reducedunemploymentaftergraduation and learning opportunities by
andincreasedearnings.2Inasurveysponsoredbythe working on research projects in
Business/HigherEducationRoundtablein2016,students the Food Innovation and Research
andrecentgraduatesshowedsignificantsupportfor Studio (FIRSt), which specializes
workintegratedlearning: in getting new food products to
market and onto store shelves.
89percentsupportedmoreworkrelated
experienceintheirprograms;and
88percentthoughtthatstudentswhograduatewithdegreesthatofferworkrelated
experiencehaveanadvantagewhenitcomestofindingajob.
I believe we need to start with an audacious, national goal to ensure 100% of Canadian undergrad
students are exposed to some form of meaningful experiential learning before graduation.
David McKay, President and Chief Executive Officer, Royal Bank of Canada
2
JuliePeters,PeggySattlerandJennaKelland,WorkIntegratedLearninginOntariosPostsecondarySector:
ThePathwaysofRecentCollegeandUniversityGraduates,HigherEducationQualityCouncilofOntario(2014).
ChapterIII:CreatingOpportunitiesandSecurity 61
Practicalexperienceandonthejob
opportunitiesnotonlybenefitstudents
byhelpingthementertheworkforce,
theybenefitemployersbyaddressingtheir
needfortalentandexperience.
Recognizingthedemandofbothstudentsand
employerstoclosetheexperiencegap,
OntarioislaunchingitsnewCareerKickStart
Strategy.Aspartofthisinitiative,Ontariois
investingnearly$190millionoverthreeyears Handsonlearninggivesstudentsthechanceto
ininitiativesaimingtocreate40,000new exploredifferentcareeroptionsandbuildtheir
opportunitiesforK12andpostsecondary skills.
students,aswellasrecentgraduates.Theseinvestmentswillhelpfillthatgapformanyof
Ontariosyoungpeople,openingdoorstorealworldexperiencesatcriticalpointsontheirjourney
fromeducationintotheworkingworld,whilegivingemployerstheopportunitytohelptrainand
equipanemergingworkforce.
Expanding the successful Specialist High Skills Major (SHSM) program for Grade 11 and 12 students.
The program gives students the opportunity to explore, identify and refine career goals and make
informed decisions related to postsecondary education or training and next steps towards the world of
work. Several Ontario postsecondary education institutions and sector councils are recognizing SHSM
students by providing bursaries or awards and are actively seeking SHSM graduates.
Investing $15 million over three years for over 3,000 new internships and fellowships through
the highly successful Mitacs Accelerate program, leveraging a new federal investment.
Enhancing supports to help all postsecondary students access high-quality, in-demand,
skills-focused online content through initiatives like providing full access to LinkedIn Lynda.com
courses free of charge through the eCampusOntario website. LinkedIn Lynda.com offers over
5,000 courses in business, technology and creative skills, developed and taught by industry experts
and educators.
Renewing support for the TalentEdge program delivered by Ontario Centres of Excellence to support
56 additional fellowships and 84 additional internships per year for college students, undergraduates,
graduate students, recent Masters and PhD graduates, and postdoctoral fellows.
Establishing a new $68-million Career Ready Fund to help postsecondary institutions and employers
create more opportunities for students and recent graduates. This will include launching a new
program to help employers offer more workplace learning opportunities for postsecondary students
and creating new digital tools to help match students with employers.
Increasing the size of the governments Ontario Internship Program for new graduates by creating
100 new placements per year.
62 ChapterIII:CreatingOpportunitiesandSecurity
TheProvincewillcontinuetoofferExperienceOntario,atwoyearcareerexplorationpilot
programtosupportrecenthighschoolgraduatesindeterminingtheirpostsecondarypathway
withgreatercertaintyandconfidence,andtofacilitatebetteroutcomesforthem.
CareerKickStartalsobuildsuponsomeofOntarioscontinuedinvestmentsinhandson,
workintegratedopportunitieswithintheapprenticeshipsystem,suchastheOntarioYouth
ApprenticeshipProgram(OYAP)andPreApprenticeshipPrograms,whichsupportyouthinhigh
schoolandthosewhoareoutofworkandnotinschool.Apprenticeshipsareanimportant
pathwayforyouthtoaccessgoodjobsandcareers,andakeyelementinbuildingahighly
skilledworkforce.
Thegovernmentwillbeworkingwithkeypartnerstoidentifyopportunitiestomodernizethe
CHAPTERIII
apprenticeshipsystem,focusingonsimplifyingtheexperienceforapprentices,enhancingaccess
andawarenessofapprenticeshipasacareerpathway,andincreasingcompletions.
ThegovernmentisintroducingtheOntarioLifelongLearningandSkillsPlan,whichisabout
openingdoorsandcreatingopportunitiesforadultlearnersandworkers.
Thecriticalbuildingblockstoeconomicsuccessareliteracy,numeracyandaptitudewithdigital
toolslikecomputers,theInternetandnewworkplacetechnologies.Morethan15percentof
workingageOntarianshavelowlevelsofliteracyandnumeracyskills,meaningdaytoday
activities,suchasreadinginstructionmanualsorsendingemails,canbedifficultorimpossible.
Manypeoplewithlowliteracyandnumeracyskillsareemployed,buttheseskillgapscanclose
doorstootheropportunities.
WhetheracquiredthroughatrainingprogramorbysecuringanOntarioSecondarySchool
Diploma,theseessentialbuildingblocksopendoorstoadvancementintheworkplace,
newopportunities,orenrolmentinanapprenticeship,collegeoruniversityprogramthatwill
helpindividualslaunchintotheirnextcareer.
TheOntarioLifelongLearningandSkillsPlanincludesthreeelements:
Investmentandenhancementstotheadulteducationandessentialskillssystem;
ThenewOSAPsupportformaturestudentstoaccesspostsecondaryeducation;and
TheupdatingofkeyEmploymentOntarioprogramsthatsupportunemployed,
displacedandincumbentworkerswhorequireretrainingandskillsbuilding.
ChapterIII:CreatingOpportunitiesandSecurity 63
Ontariowillenhanceitsadulteducationsystem,makingitmorelearnercentredbyimproving
pathwaysandexpandingservicesandprogramsthatwillprovidearound90,000moreadultswith
easieraccesstoskillstrainingandupgrading.Thiswillhelpadultlearnersmeettheiremployment
andeducationgoalsasquicklyaspossible.Theplanwillincludeanexpansionandimprovementof
theLiteracyandBasicSkillsprogram,enhancedualcreditopportunitiesforadults,fundtechnical
andworkplacebasedskillstrainingpilots,andsupportOntarioBridgeTrainingforinternationally
trainedimmigrants.
A core element of the plan is the new OSAP, which will make average tuition free for low-income and most
middle-income students, including mature students and adult learners. Students with children may be
eligible to receive OSAP funding for child care costs, making it easier for people with children to go back
to school. Starting in 201718, mature students will be able to access the same full suite of OSAP
support as younger students. Try the online OSAP calculator.3 See Chapter II: Helping You and Your Family
for more details on OSAP.
Whiletheemploymentandtrainingsystemcontinuestosupportunemployedworkers,itmust
alsorespondtotheneedsofthechangingeconomyandoffersupporttoothergroups,including
employedworkerswhoneedtobuildtheirskillstoadaptorfindtheirnextjob.
SecondCareerwasestablishedinresponsetotheglobalrecessionof200809.Whileitwas
successfulinhelpingretrainworkerswhowerelaidofffollowingtherecession,theglobal
economiclandscapecontinuestochange.TheemergingneedsofOntariansrequirethatprograms,
suchasSecondCareer,designedforthechallengesofyesterday,berecalibratedtoaddressthe
challengesoftodayandtomorrow.
3
https://osap.gov.on.ca/AidEstimatorWeb/enterapp/enter.xhtml
64 ChapterIII:CreatingOpportunitiesandSecurity
Overthenextyear,theProvincewillbeworkingwithitsEmploymentOntarioservicedelivery
partners,educationandtraininginstitutions,employers,workersandjobseekerstomodernize
keyemploymentandtrainingprograms,suchasSecondCareerandtheCanadaOntarioJob
Grant,whichsupportunemployedoremployedworkerswhowanttobuildontheirskills,aswell
asemployerswithtrainingneeds.Thisplanwillensurethateveryadultlearner,regardlessoftheir
background,skillsandexperience,willbesupportedtoaccessthebestservicestomeettheir
learninggoals.
CHAPTERIII
continuetofacemultiplebarrierstoemployment.Ontarioiscommittedtosupportingpeople
withdisabilitiesingainingmeaningfulworkopportunitiesandcontributingtheirtalentsandskills
toOntarioseconomy.
Inthe2016Budget,Ontarioannounceditscommitmenttodevelopaprovincialemployment
strategytohelpmorepeoplewithdisabilitiesconnecttojobopportunitiesandmorebusinesses
toconnecttoatalentedandunderutilizedlabourpool.Thegoalofthestrategyistoincrease
employmentamongOntarianswithdisabilitiesby:
Supportingtheemployment
aspirationsofyouthandstudentswith
disabilitiesbypromotingearlywork
experienceandskillsdevelopment;
Shiftingtoapersoncentred
employmentandtrainingsystem
guidedbytheindividualjobseekers
interests,skillsandstrengths,while
acknowledgingtheneedforashiftin
broadersocietalattitudestowards
peoplewithdisabilities;
Establishingthegovernmentasa Ontarioisconnectingmorepeoplewith
leadingemployerandchangeagent; disabilitiestothelabourmarket.
and
Engagingemployersaschampionsandpartners.
ChapterIII:CreatingOpportunitiesandSecurity 65
Thestrategywillalsohelpcollegesanduniversitiesincreasecapacitytosupportstudentswith
disabilities.AnearlyfocusonstudentswithAutismSpectrumDisorderswillsupportstudentsas
theytransitionintopostsecondaryeducation,completetheirstudiesandentertheworkforce.
TwodemonstrationprojectsledbyAlgonquinCollegeandYorkUniversity,inpartnershipwith
districtschoolboards,havedevelopedandimplementedanewprocesstohelpthesestudents
transitionintopostsecondaryeducation,andsupportthemduringtheirstudiesthereafter.Inthe
firstthreeyears,over87percentofthestudentsinvolvedcompletedtheirfirstyearofstudy.
Todevelopitsnewstrategy,theProvincehasconsultedwithindividualswithdisabilitiesandother
keygroups,includingdisabilityorganizations,serviceproviders,educators,businessleadersand
notforprofitorganizations.OntarioalsotooktheadviceofthePartnershipCouncilon
EmploymentOpportunitiesforPeoplewithDisabilitiesandthePremiersHighlySkilledWorkforce
ExpertPanel.
The Ontario government was a sponsor of the 2016 DMD. There were 134 mentees, and in just one day
of mentorship, DMD resulted in 18 offers of full-time employment. An additional two people who were not
mentees were hired by mentor employers working with DMD community partners.
DMD has had success in other provinces in Canada, in the United States and in China. Employers who
participate in DMD have not only offered full-time employment to their mentees, but also hired additional
people with disabilities from various service providers after attending the mentoring day.
66 ChapterIII:CreatingOpportunitiesandSecurity
CHAPTERIII
Bridgetrainingprogramshelpinternationally
Ontariocontinuestosupportvarious trainedindividualsfindmeaningfuljobs.
settlementandintegrationprograms,
includingOntarioBridgeTrainingprograms
thatserveskillednewcomersseekinglicensingorcertificationandconnectthemtothelabour
market.Ontarioisinvesting$21millionoverthreeyearstosupporttheOntarioBridgeTraining
program.Eachyear,over6,000highlyskilledimmigrantsaccessOntarioBridgeTrainingprojects
inupto100occupationsacrossawidevarietyofsectors,includingpharmacy,engineering,
nursing,physiotherapy,financialservices,informationandcommunicationstechnology,andthe
skilledtrades.
SeeChapterIV,SectionD:BuildingInclusiveCommunitiesandImprovingtheJusticeSystemfor
detailsonrefugeeresettlementinitiativesinOntario.
ChapterIII:CreatingOpportunitiesandSecurity 67
Championing Womens Empowerment
Ontarioisproudtoleadinthepursuitofgenderequality.Ontariohastakenagovernmentwide
approachtosupportingwomen,includingthecreationofastandaloneMinistryoftheStatusof
Womendedicatedtothesecurity,equalityandempowermentofwomenandgirls.
TheProvinceunderstandsthevalueofwomenintheworkforce,andwhattheircontribution
meansforeconomicprosperityinOntario,andindeedthecountry.Thatswhythegovernment
hasplayedaleadershiproleinwomenseconomicempowermentandcorporateleadership
throughtheactionplantoclosethegenderwagegapandaninitiativetosupportwomenin
corporateleadership.
Ontarioisalsocommittedtostrengthening
theuseofgenderbasedanalysiswithin
governmenttomakesureconsiderationsof
genderareanessentialcomponentofthe
policydevelopmentprocess.
InJune2016,informedbyaCatalystCanada
reportcommissionedbytheProvince,
Ontarioannouncedgenderdiversitytargets
forbothgovernmentappointeesandprivate
sectorboardsofdirectors.Thegovernment Ontariosgenderdiversitytargetsaredesigned
alsoconvenedasteeringcommitteeof tohelpmorewomenreachleadershippositions.
corporategovernanceleaderstoprovide
strategicinsightsfordevelopingaplantoaccelerategreaterrepresentationofwomenonboards
ofdirectors.Theplanwillbereleasedinthecomingmonths.
Thisplanwillbepartofanewwomenseconomicempowermentstrategy.Thissummer,
theProvincewillbeengagingwithkeystakeholdergroupstohelpshapethisstrategy,sothat
morewomenareabletoreachtheirfulleconomicpotential.
Thegovernmenthaslongrecognizedthatempowermenthastostartwithsecurity.Ontariois
leadingheretoobytakingastandonsexual,domesticandgenderbasedviolence.The
governmentsgloballyrecognized#WhoWillYouHelpand#ItsNeverOkaybilingualcampaigns,
SexualViolenceandHarassmentActionPlan,andDomesticViolenceActionPlancontinuetoraise
awarenessandprovidesupportforsurvivorsofgenderbasedviolence.TheProvincewillcontinue
itswork,includingthroughanupdateddomesticviolenceactionplan,toensurewomenhave
securityandsafetyinallpartsoftheirlives.
68 ChapterIII:CreatingOpportunitiesandSecurity
TheLabourRelationsActandEmploymentStandardsActarebeingreviewedinordertoaddress
thechangingnatureofworkandthechallengesthatcomewithit.Businessesneedtostay
competitiveinafastpacedglobaleconomy,andjustasimportantly,workersneedanddeserve
protectionsthattakeintoaccountthechangingworkplace.
TheChangingWorkplacesReviewwasdesignedtoconsiderthebroaderissuesaffecting
workplaces,andassesshowthelabourandemploymentlawframeworkshouldaddressthese
CHAPTERIII
trendsandissues.Thisreviewisaboutdevelopingreformsthatreflecttherealitiesofthismodern
economy,andthegovernmentwillbecarefullyconsideringtherecommendationsmadebythe
SpecialAdvisors.
Theserecommendationswilladdressfundamentalissuesincluding:
Whethermoreemployeesshouldbecoveredbylabourrelationsprotectionsand
minimumstandards;
Howemployeeandemployeraredefinedunderemploymentandlabourlaws;
Howtodealwiththedifferentialtreatmentofparttimeandfulltimeemployees;
Whatminimumstandardsshouldbeinplaceforpersonalemergencyleave;and
Whetherchangesneedtobemadetobettercalibratetheprotectionsforbargainingrights
enshrinedintheLabourRelationsAct.
TheSpecialAdvisorswillalsobemakingrecommendationswithrespecttotheenforcementofthe
Provinceslabourlaws.AstheyidentifiedintheirInterimReportontheChangingWorkplaces
Review,enforcementandtheneedforwidespreadcompliancearecriticalrequirementsofa
systemofemploymentstandards.Strong,effectiveenforcementisessentialtoensurethat
employerswhodonotrespectprotectionsforworkersareheldaccountable.
Bycreatingaframeworkoffairnessandrespect,thegovernmentisbuildinganeconomic
environmentthatwillcontinuetoattracttheverybestworkerstoOntario.Afinalreport
oftheChangingWorkplacesReviewisexpectedinspring2017.
ChapterIII:CreatingOpportunitiesandSecurity 69
Investing in Jobs for Today and Tomorrow
Whilehelpingpeopleprepareforthejobsoftomorrow,thegovernmentisalsospurringbusiness
growthandjobcreation.TheProvincehasloweredthecostofdoingbusinessthroughits
competitivecorporateincometaxratesanditsfocusonmodernizingregulations.Ithasmade
criticalinvestmentsininfrastructuretofacilitateeconomicactivity,resultinginmorejobsfor
Ontarians.Strategicpartnershipsbetweengovernment,theprivatesectorandcommunitiesare
creatingopportunitiesforpeopleandcompaniesacrosstheprovince.
Remainingattheforefrontofthegloballycompetitiveworldoftransformativetechnologies,
Ontariopositionsitselftoanticipateandrespondtotheimpactsofnewemploymentopportunities
andeconomicgrowth.Thegovernmentcontinuestomakesignificantinvestmentstosupport
Ontariostransitiontoaninnovationbased,lowcarboneconomy.
Duetotheseefforts,Ontariocontinuestoattractinternationalbusinessinvestment.Ontariois
recognizedasaneconomicleaderinCanada,withongoingemploymentgrowthinhighquality
jobs.WithprivatesectorforecasterssignallingOntariowillremainamongCanadasgrowthleaders
overthenexttwoyears,thegovernmentisfocusedonensuringthebenefitsaremoreevenly
sharedacrosstheprovince.
70 ChapterIII:CreatingOpportunitiesandSecurity
CHAPTERIII
approach to supporting employers needs through
Local Employment Planning Councils
Helping Ontario businesses, including small and
medium-sized enterprises (SMEs), expand and hire
by supporting the adoption of innovation,
increasing access to capital, and helping firms
grow their exports
The unemployment rate declined from 9.6 per cent
during the global recession to 6.4 per cent in
March 2017, below the national average
for the 24th consecutive month
ChapterIII:CreatingOpportunitiesandSecurity 71
Long-Term Infrastructure Plan
Investmentinpublicinfrastructureisessentialtoprovidingservices,growingtheeconomyand
ensuringprosperityandahighqualityoflifeforOntarians,whethertheyliveinlarge,small,urban,
northernorruralcommunities.TheProvinceisinvestingmorethan$190billioninpublic
infrastructureover13yearsstartingin201415,forpriorityprojectssuchasroads,bridges,public
transit,hospitalsandschools.Theincreaseof$30billionfromthe12yearplanannouncedinthe
2016Budgetistheresultofinvestments,suchasnewhospitalprojects,schoolrenewalinitiatives
andchildcareexpansion.
Intheshortterm,theseinvestments
willsupportjobsinbusinessesthat
build,maintainandserviceassetsand
providerelatedservices.
Inthemediumterm,theeconomywill
benefitfromnewschoolsandhospitals
aswellasimprovedroadsandpublic
transit,movinggoodstomarketfaster,
andreducingcommutetimessothat
peoplecangethomesoonerandspend
Every$1spentonpublicinfrastructurecan
moretimewiththeirfamilies. increaseGDPbyupto$6inthelongterm.
Inthelongterm,theseinvestments
willsupportamoreproductiveeconomy,stimulatingcompetitivenessandattractingthe
businessinvestmentandtalentneededforeconomicprosperity.
Beyondboostingcompetiveness,theseinvestmentswillalsoenhanceOntariansquality
oflifebyprovidingaccessiblespaces,betterplacestolearn,andmorecomfortable
experiencesforthosereceivinghealthandcommunityservices.
72 ChapterIII:CreatingOpportunitiesandSecurity
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The Provinces updated commitment to make significant infrastructure investments
of about $156 billion over the next 10 years includes:
$56 billion in public transit;
$26 billion in highways;
More than $20 billion in capital grants to hospitals; and
Almost $16 billion in capital grants to school boards.
At the Standing Committee on Finance and Economic Affairs (SCFEA) meeting in Toronto, Craig Wright,
Chief Economist at Royal Bank of Canada, noted that the one thing economists agree on is that
infrastructure is probably the best bang for the governments buck.
January 18, 2017
TohelpensurethatpublicinfrastructureisalignedwiththeneedsofOntarians,thegovernmentis
creatingaLongTermInfrastructurePlanthatdescribestheProvincesexistinginfrastructure
portfolio,outlinesanticipatedneedsoftheportfolioandproposesstrategiestomeettheseneeds.
TheProvinceplanstoreleasetheLongTermInfrastructurePlanbytheendof2017.
ChapterIII:CreatingOpportunitiesandSecurity 73
Economic Benefits of Public Infrastructure Spending in Ontario
The government has commissioned a study by the Centre for Spatial Economics (C4SE) to assess the
broader economic impacts of Ontarios infrastructure plan. The study finds that, over the long term,
real GDP in Ontario rises up to $6 on average per dollar of public infrastructure spending.
900
800
Every dollar invested in
700 infrastructure raises
Ontario real GDP by up to
600 $6 over the long term.
500
400
300
$155 Billion
200
100
0
Infrastructure Investments* Economic Returns*
Notes: Infrastructure Investments and Economic Returns are discounted net present values to ensure comparability across time. Infrastructure
Investments incorporate both Ontarios Infrastructure Plan from 201617 to 202526, as well as ongoing post-plan spending over the 202526 to
204950 period to maintain service levels of assets built during the 10-year plan. Economic Returns are defined as discounted net present value
estimates of additional real GDP stemming over the entire 2016 to 2050 period. Given the uncertainty of potential business cost savings and
productivity growth resulting from the plan, the study assesses alternative scenarios of the potential cost savings.
Sources: Centre for Spatial Economics and Ontario Ministry of Finance.
InfrastructureinvestmentsnotonlyspurtheeconomybutcreatejobsforOntarians.Forexample,
inDecember2016,Ontariofinalizedalandmarkagreementwithgovernmentagencies,business,
labourandthelocalcommunitytohelppeoplefromdisadvantagedcommunitiesalongthe
EglintonCrosstownLightRailTransit(LRT)corridorgetconstructionjobsononeofthelargest
transitprojectsinCanada.TheEglintonCrosstownLRTisthefirstofseveralmajortransitprojects
thatwillincludeanagreementprovidingarangeofsocialandeconomicbenefitsforcommunities.
Inthecomingmonths,OntariowillconsultonthecreationofaCommunityBenefitsframework,
guidedbytheprinciplethatpublicprocurementcancreatecommunitybenefitsthatgobeyond
simplybuildinginfrastructure.
74 ChapterIII:CreatingOpportunitiesandSecurity
4
The Standing Committee on Finance and Economic Affairs (SCFEA) recommended that the Minister of
CHAPTERIII
Finance commit to:
Continue launching the ScaleUP Ventures program to help growth-oriented firms with the highest
potential to scale into large employers by providing them with the tools necessary to get their products
to the global marketplace by the end of 2017.
Seize on the tremendous potential of northern industries.
Create regional economic development strategies that foster inclusive growth.
4
http://www.ontla.on.ca/committeeproceedings/committeereports/files_html/
prebudget%20consultation%202017%20report%20english%20%20final.htm
ChapterIII:CreatingOpportunitiesandSecurity 75
Sincethe2016Budgetannouncement,thegovernmenthasstartedtoimplementanumberofkey
commitmentstodeliverontheBGI.
TABLE3.1 ProgressUpdateontheBusinessGrowthInitiative
Commitment Update
Cleantech Equity Fund A new $55-million fund to make equity investments in cleantech firms, supporting Ontario
SMEs. In January 2017, an Expression of Interest was issued for a fund manager.
Perimeter Institute Investing $50 million at the Perimeter Institute, a world-class research centre for theoretical
physics, to provide funding through 202122. This investment will support research that
helps foster the next generation of technological advancements in areas such as quantum
computing.
Scale-Up Voucher Investing $32.4 million over four years to provide high-impact firms with vouchers to access
Program business development tools and services. This will help firms in Ontario with high growth
potential reach the next stage in their development. The program will be launched in
spring 2017.
Small Business A $28.8-million pilot to help Ontario SMEs demonstrate innovative technological solutions to
Innovation Challenge problems identified by the government. The program was officially launched in March 2017.
ScaleUP Ventures Fund Ontario committed $25 million to a new venture capital fund targeting a final size of over
$75 million. The fund will also provide mentorship to entrepreneurs. To date, the fund has
invested in seven companies.
College Applied A three-year, $20-million fund to support industry-academic collaboration between Ontario
Research and businesses and colleges. The fund was launched in January 2017.
Development Fund
Automotive Supplier Investing $5 million over two years to establish an Automotive Supplier Competitiveness
Competitiveness Improvement Program (ASCIP). Targeted to small and medium-sized automotive suppliers,
Improvement Program ASCIP launched in October 2016 to support the automotive parts sector in adopting industry-
(ASCIP) leading software and hardware and to provide related training to increase the
competitiveness of the industry in Ontario. Up to March 31, 2017, ASCIP has provided
funding to 22 industry projects.
Ontario Investment The recently established Ontario Investment Office will provide a one-window concierge
Office service for businesses looking to invest and expand in the province. In March 2017, the first
Chief Investment Officer was named.
Thegovernmentwillcontinuesupportingthe
transitiontotheneweconomybyexpandingthe Tomorrows farmers will use AI and 5G
BGItomorethan$650millionoverfiveyears. technologies to monitor their crops in minute
detail, using sensors to spot early signs of
TheseinvestmentswillensureOntarioisatthe disease and to deliver precision herbicides.
leadingedgeofresearchanddevelopment(R&D) They will be able to use sophisticated datasets
oftransformativetechnologiesthatwillcreatethe to make better judgments about weather,
jobsoftomorrow. planting schedules and patterns, and
crop yields.
76 ChapterIII:CreatingOpportunitiesandSecurity
TABLE3.2 NewInvestmentsthroughtheBusinessGrowthInitiative
Artificial Artificial intelligence (AI) allows computers to improve productivity in companies by performing complex
Intelligence physical and intellectual tasks. The potential application of AI, with a specific focus on deep learning and
machine learning more broadly, will affect all sectors of the economy. Examples of applications include
improved medical diagnostic imaging and self-driving cars.
The government is investing $50 million to establish the Vector Institute for artificial intelligence.
The institute will also be supported by the federal government, other institutions, and more than
30 private-sector companies that have committed to invest over $80 million. The institute will work
to produce, attract and retain top talent in the field, support AI technology startups, and generate
investment from companies looking to hire experts and expand their AI divisions.
CHAPTERIII
for technologies such as autonomous vehicles.
The Province will invest $130 million over five years in two projects $67 million in ENCQOR (Evolution
of Networked Services through a Corridor in Qubec and Ontario for Research and Innovation) and
$63 million in CENGN (Centre of Excellence in Next Generation Networks). These industry-led
consortiums will advance the development and commercialization of 5G and next-generation
technologies and networks across Ontario. Northern and rural Ontario will be connected to the testing
facilities through the Ontario Research and Innovation Optical Network.
Quantum Quantum science seeks to understand and apply the behaviour of matter and energy at the atomic level.
Technologies The application of quantum science could help improve the efficiency of computers, as well as
communications and sensor technologies.
To help facilitate application-based research and commercialization, the Province will partner with
Waterloos Quantum Valley to create the Quantum Valley Ideas Lab. A Provincial investment of
$20 million over five years will help develop the cutting-edge research, train highly qualified personnel,
and support academics in the field of quantum science.
Advanced Ontarios researchers and businesses need access to state-of-the-art computers and the capability to
Computing process large amounts of information in areas such as genomics and neuroscience.
The Province will invest $75 million over the next five years in an Advanced Research Computing and
Big Data Strategy. This investment will support operating costs for advanced computing across the
province, new hardware investments at the University of Toronto and the University of Waterloo,
new research projects, and improved coordination.
Autonomous The Province is investing $80 million over five years to create the Autonomous Vehicle (AV) Innovation
Vehicles Network, in partnership with Ontario Centres of Excellence. The network will capitalize on the economic
potential of AVs (vehicles capable of sensing and communicating with their environment and navigating
without human input) and help the provinces transportation systems and infrastructure adapt to
AV technology. Ontarios investment will support industry-led AV R&D projects; create sites across
the province to develop, test and validate new technology, including a Demonstration Zone in Stratford;
and attract and grow talent in the AV sector.
ChapterIII:CreatingOpportunitiesandSecurity 77
Embracing the FinTech Sector
Ontariohasastronginnovationdriventechsectorwithleadingedgetechcompaniesanda
competitiveR&Decosystem.Embracingopportunitiespresentedbytheprovincesgrowingtech
sectorandadvancesinFinTech,Ontariosfinancialservicesindustryhasbecomeincreasingly
competitive.Nevertheless,thegovernmentrecognizesthatcontinuingeffortswillbenecessary
tomaintainaleadershippositioninthisevolvingsector.Whiletheseeffortswillundoubtedly
continuetotakeplacewithinthefinancialsectoritself,thegovernmentrecognizestheimportance
ofprovidingsupportwhereitcaneffectivelydoso.
OntariosFinTechstrategyhasthree
primarygoals:
EnhanceOntariospositionasaglobal
leaderforfinancialservices,recognizing
theincreasingimportancethatFinTech
willcontinuetoplayinthesector;
Maintainconsistencywiththe
governmentsotherongoingeffortsin
thetechnologyspherebypromoting
growthinFinTechinawaythat
producesjobsandinvestment;and Ontariohasthesecondhighestnumberof
informationandcommunicationstechnology
Ensurethat,asFinTechdevelops, companiesinNorthAmericaafterCalifornia.
Ontarianscontinuetoenjoythehigh
levelsofconsumerandprivacy
protectionthatarealreadykeystrengthsofOntariosfinancialsector.
Insupportofthestrategy,thegovernmentwillsoonannouncedetailsaboutitscollaborationwith
thefinancialservicesandFinTechsectors.
Enhancing Cybersecurity
Maintainingstrongcybersecurityintheprovincesprivatefinancialinstitutionsiscrucialto
ensuringconsumerandbusinessinformationremainssafeandprotected.
Forthisreason,thegovernmentisannouncinga$4millionpilotthatwillhelpreduce
cybersecurityrisks.Aspartofthepilot,theprovincesfinancialinstitutionswillbelinkedwith
OntarioSMEstodevelopandfacilitatetheadoptionoftechnologicalsolutions.Theprojectwill
buildonOntariosinternationallyrecognizedstrengthintheemergingcybersecuritysector,
strengthentheprovincesprivatefinancialinstitutions,andcreatehightechjobs.OntarioCentres
ofExcellencewilladministerthepilotprogram.
78 ChapterIII:CreatingOpportunitiesandSecurity
CHAPTERIII
Axonify,aWaterloobasedcompanyprovidingasoftwareasaservice(SaaS)platformfor
employeelearning,hasraised$27millionUSingrowthfunding;
CrowdCare,aRichmondHillbasedproviderofartificialintelligencesolutionsforcustomer
serviceuses,hasalsorecentlyreceivedaninvestmentledbytheScaleUPVenturesFund;
TemporalPower,aMississaugabaseddeveloperofhighperformanceenergystorage
flywheeltechnology,wasrecentlyawardedacontractfora5MWflywheelenergystorage
systemontheislandofAruba;
gShift,aBarriebaseddeveloperofwebpresenceanalyticssoftware,wasnamedasoneof
Canadasfastestgrowingcompaniesin2016;and
NVTPhybridge,anOakvillebasedproviderofinternetprotocol(IP)enablingnetworking
hardware,wasrecognizedasoneofthemostpromisingUnifiedCommunicationsSolutions
Providersin2016.
ChapterIII:CreatingOpportunitiesandSecurity 79
CHART 3.4 Ontario among the Leaders in Venture
Capital Investment
1.5
1.0
0.5
0.0
Ontario Texas Florida Washington Illinois Quebec British Rest of
Columbia Canada
Sources: Thomson Reuters and Ontario Ministry of Finance.
Ontarioseffortstoimproveaccesstocapitalareachievinggreatsuccess.In2016,venturecapital
investmentsof$1.8billionweremadeinOntariobasedcompaniesa48percentincreaseover
thepreviousyear,andthemostsince2001.OntariorankedfourthamongallAmericanstatesand
CanadianprovincesintheamountofVCinvestmentsupfrom14thplacein2009.Theprovince
received50percentofallVCinvestmentinCanadain2016.
80 ChapterIII:CreatingOpportunitiesandSecurity
Modernizing Regulations
Ontariocontinuestodeliveronitscommitmenttobuildaneffectiveandefficientregulatory
environmentforbusinessesbyeliminatingduplicationandreducingunnecessaryredtape.
LegislativeamendmentsunderthegovernmentsBurdenReductionAct,2017,willhelpbusinesses
avoidcostsofupto$200million.
CHART 3.5 Reducing Red Tape for Ontario Businesses Is a Key Element
of the Governments Plan to Create Jobs and Grow the Economy
CHAPTERIII
and help them avoid costs of up to $200 million.
3
Years
The Canadian Federation of Independent Business (CFIB) has
nominated Ontario for the Golden Scissors Award three years in a
row, recognizing the efforts taken to make the province an easier
place to do business.
ChapterIII:CreatingOpportunitiesandSecurity 81
Promoting and Diversifying Trade
Promotinginternationaltradeisanimportantpartofthegovernmentsplantocreate
opportunitiesforOntariobusinessestoexpandabroadandgrowtheprovinceseconomyathome.
Tradeacceleratesinnovation,increasesforeigninvestmentsandcreatesjobs.In2016,thevalueof
OntariosinternationalexportswasmorethanonethirdoftheprovincialGDP.Accordingtothe
ConferenceBoardofCanada,every$100millionincreaseinexportscreatesapproximately
1,000newjobs.
12 90
2006 2016
10 9.7
86.5
8 85
6.2
6
80.9
4 80
2 1.4 1.7
0.9 1.1
0.5 0.6 0.7
0.3
0 75
Hong Kong Japan China Mexico European United States
Source: Statistics Canada.
Union
Toaidtheseactivities,thegovernmentisinvestingalmost$50millionoverthreeyearstoexpand
Ontariosfootprintinkeyinternationalmarketsandgrowtheprovincescapacitytohelp
businessesexpandglobally.WithmoreOntariorepresentationinstrategiclocationsacrossthe
world,Ontariocompaniescanbetteraccessjustintimemarketintelligenceandfullyleverage
existingpartnerships.Newinvestmentswillalsoexpandthecontinuumofprogramsofferedto
SMEshereathometohelpmorecompaniesbecomeexportersandassistexistingonestoreach
newglobalmarketsanddiversifytheirrevenuesource.
82 ChapterIII:CreatingOpportunitiesandSecurity
OnOctober30,2016,theCanadaEuropeanUnion(EU)ComprehensiveEconomicandTrade
Agreement(CETA)wasformallysigned.Thereductionandeliminationoftradebarrierswillmake
OntariosgoodsmorecompetitiveintheEuropeanUnion,thelargestsinglemarketintheworld.
Thetradeagreementisexpectedtocreate30,000newOntariojobsandboosttheprovincesGDP
by$4.5billion.
TheProvinceisalsoworkingwiththefederalgovernmenttodiversifyinternationaltradethrough
thenegotiationoffreetradeagreements,includingseekingopportunitieswithothertrading
partnersinAsia.
CHAPTERIII
Ontariohasbeenworkingwiththefederal,provincialandterritorialgovernmentstorenewand
modernizethe20yearoldAgreementonInternalTrade(AIT).ThenewCanadianFreeTrade
AgreementthatwasannouncedinApril2017replacestheAITandwillimprovetheflowofgoods
andservicesandreducethecostofdoingbusinessacrossprovinces.
U.S. Engagement
Ontarioiscontinuingtosupportworkersandbusinessesbyadvocatingforcontinuedfreetrade
withtheUnitedStates.NowhereelseisopentrademoreimportantthaninOntariosstrong
businessrelationshipswiththeUnitedStates.In2016,Ontarioexported$166billionworthof
goodstotheUnitedStates,whichisequivalenttoonefifthoftheprovincesGDP.Ontarioistaking
anumberofproactivestepstosupportbusinessessotheycancontinuetostrengthenthis
longstandingandmutuallybeneficialeconomictiewiththeUnitedStates.Forexample:
EstablishingaPremiersCommitteeonOntarioU.S.EconomicandTradeRelations.
ThiscommitteeprovidesaforumtodiscussprogressandprovideadviceonOntarios
U.S.engagementstrategy,includingthepromotionofOntariosinterestsinthecontext
ofanydiscussionsontheNorthAmericanFreeTradeAgreement.
ThePremierhastravelledtoneighbouringU.S.statestohighlighttheroletwowaytrade
playsinsupportingjobsandeconomicgrowth.InJuly2017,thePremierwilltraveltothe
NationalGovernorsAssociationmeetinginRhodeIslandtofostercloserconnectionswith
statelevelpartners.
Inthefall,PremierWynneandGovernorSnyderofMichiganwillcohosttheConference
ofGreatLakesandSt.LawrenceGovernorsandPremiersLeadershipSummit,bringing
togetherGreatLakesSt.LawrencegovernorsandthepremiersofOntarioandQuebec.
TheSummitattendeeswilldiscusshowtoadvancesustainabledevelopmentintheGreat
Lakesregion,andthiseventwillreaffirmtheimportanceofhealthyGreatLakestoOntarios
environment,economyandsociety.
ChapterIII:CreatingOpportunitiesandSecurity 83
Roundtablesarebeingheldwiththeprovincesbusinesscommunitytohearitsviews
onissuesandopportunitiespresentedthroughU.S.trade.
Ontarioisactivelysupportingthefederalgovernmentseffortstocreateapositivedialogue
withpartnersintheUnitedStates.
TheProvincehashiredaninternationaltradeexperttoactasaProvincialtradeadvisor,
andOntariosrepresentativeinWashingtonisactivelyadvocatingforOntariosinterests
andprioritieswithkeyU.S.stakeholdersandinfluencers.
ThegovernmentisinvestingnewresourcestoensureOntariosinterestsarewellrepresented
throughouttheUnitedStates.Ontariorecentlydemonstratedsuccessbyworkingcloselywith
partnersinthefederalandQuebecgovernmentstoengageNewYorkStateslegislatorsand
advocateforfreetradeandopen,fairandcompetitiveaccesstogovernmentcontracts.
TheProvincewillcontinueitseffortstoenhancetraderelationshipswithpartnersinthe
UnitedStatesandaroundtheworld,andwillconsiderallreasonableoptionstoprotectOntario
jobsinthefaceofBuyAmericanpoliciesorlegislation.
Strategic Partnerships
Supporting Businesses through the Jobs and Prosperity Fund
TheJobsandProsperityFundisa10year,$2.7billionfundthathelpsthegovernmentpartner
withbusinessestoenhanceproductivity,innovationandexports.Projectcommitmentstodate
willsupportthecreationandretentionofmorethan37,600jobs,leveragingbusinessinvestments
ofmorethan$7.4billion.
TABLE3.3 RecentStrategicInvestmentsthroughtheJobsandProsperityFund
Company Description
Stereo D An investment of up to $4.5 million to help the company expand its digital media
operations in Toronto. Stereo D plans to invest about $143 million in Ontario over
(December 2016) the life of the project. The project will create and retain 358 jobs.
An investment of $1.7 million to support the expansion of Ippolitos fresh produce
Ippolito Fruit & Produce Limited operations in Burlington. The company is Canadas largest fresh spinach packer,
(December 2016) and the investment will help the company grow its business and expand its
processing facilities. The project will create and retain 332 jobs.
An investment of $4 million to support the expansion of a sawmill in Eganville.
Lavern Heideman & Sons Limited The project will allow the fast-growing mill to continue to grow its business and
(November 2016) increase efficiency by modernizing its facilities and purchasing new equipment.
The project will create and retain 108 jobs in the community.
84 ChapterIII:CreatingOpportunitiesandSecurity
CHAPTERIII
topreserve500jobs.TheinvestmentalsoestablishesaglobalConnectivityInnovation
Centrewithalmost300newengineeringpositionsinOttawa,WaterlooandOakville,
alongwithsignificantadditionalR&Dexpenditures.
TheProvincehastakensignificantmeasurestohelpsupportthegrowthofthemanufacturing
sector.Ontarioscompetitivebusinesstaxeshavehelpedmaintaintheprovincespositionasan
attractivejurisdictionformanufacturinginvestment.Additionally,significantinvestmentsthrough
theJobsandProsperityFundhavehelpedtosecureanchorinvestmentsacrossavarietyofkey
manufacturingsectors,includingauto,aerospace,chemicalsandfoodprocessing.
Ontarioistakingactiontohelpmanufacturersmanageelectricitycosts.OnJanuary1,2017,
theIndustrialConservationInitiative,whichhelpslargeelectricityusersreducetheirbillsby
providinganincentivetoshiftelectricityconsumptiontooffpeakhours,wasexpandedtoinclude
morethan1,000newlyeligiblecustomersbyreducingthethresholdforeligibilityandopeningthe
programtoallsectors.TheNorthernIndustrialElectricityRateProgramallowsqualifyinglarge
northernindustrialenergyconsumersreduceelectricitycoststohelpmaintaincompetitiveness.
TheCorporateIncomeTax(CIT)rateonincomefromresources,manufacturingandprocessing
(M&P)wasreducedfrom12percentto10percentin2010.Ontariomanufacturersand
processorsalsobenefitfromanaccelerateddepreciationrateformanufacturingandprocessing
machineryandequipmentfrom2016totheendof2025.
ChapterIII:CreatingOpportunitiesandSecurity 85
Supporting Growth in Ontarios Agricultural Sector
Ontariosagrifoodsectorincludingprimaryagriculture,foodandbeverageprocessingand
servicesisacornerstoneoftheeconomyandhelpsunderpingrowthinruralOntario.Thesector
contributesover$36billiontoGDPandsupportsover800,000jobsacrosstheprovince.
Sincetheannouncementin2013ofthePremiersAgriFoodChallengeforthesectortodouble
itsgrowthrateandcreate120,000jobsby2020,theagrifoodsectorhascreatedover
40,000netnewjobs.
Thegovernmentrecognizestheimportanceofriskmanagementforfarmersacrosstheprovince
andcontinuestosupportfarmersthroughfarmincomestabilizationandbusinessrisk
managementprograms.
Thegovernmentwillalsocontinuetopartnerwithotherprovinces,territoriesandthefederal
governmenttocreateCanadasnextagrifoodpolicyframework.
InMarch2017,thegovernmentannounced$19millionfortheGreenhouseCompetitivenessand
InnovationInitiativetohelpthegreenhousefarmingsectorinvestininnovativetechnologies,
reduceproductioncostsandincreaseproductivity.Theinitiativewillalsohelpgreenhouses
expandtheirbusinesses,attractnewinvestmentandcreategoodjobs.In2016,Ontarios
greenhousesectorandrelatedvaluechainsupportedover81,000jobsand$3.2billiontowards
OntariosGDP.Thegovernmentwillcontinuetoprovidethegreenhousesectorwithsupportsto
fosterjobsandeconomicprosperityintheprovince.
The idea will receive a one-time investment of $600,000 in 201718, and progress updates
will be provided throughout the year at Ontario.ca/budgettalks.
86 ChapterIII:CreatingOpportunitiesandSecurity
CHAPTERIII
Guelph (4.8 per cent) and Peterborough (5.1 per cent) had the second- and third-lowest
unemployment rates among all Canadian major metropolitan areas.
DespitethestronggrowthOntarioisexperiencing,thereisstillworktobedonetocreate
opportunitiesforfurthereconomicgrowthacrosstheprovince.Thegovernmentiscommittedto
developingregionaleconomicdevelopmentplansthatwillincludestrategiestobuildonthe
uniquestrengthsofeachregionandaimtobolstertheireconomicgrowth.Ontariowillcontinue
consultationsthissummerandworkinpartnershipwithkeystakeholders,includingcommunities,
business,labourpartners,andcollegesanduniversitiestodeveloptheseplans.
ChapterIII:CreatingOpportunitiesandSecurity 87
Investing in Regional and Community Partnerships
InvestinginregionaldevelopmentisavitalpartofthegovernmentsplantostrengthenOntarios
economyandcreateadynamicenvironmentwherebusinessesthrive.
TABLE3.4 RecentRegionalDevelopmentInvestments
88 ChapterIII:CreatingOpportunitiesandSecurity
In2016,theProvincecommittedtoinvesting$70millionoverthenextsevenyearstoextendthe
fund,originallylaunchedin2014,foratotalcombinedinvestmentof$95millionover10years.
Todate,Ontariohasfunded57projectswithIndigenouspartnersthroughtheAEDF.
CHAPTERIII
KenorabasedRaysolarInc.,arenewable
energysolutionscompany,sellsandinstalls
solarsystems,includingpanels.Withan
investmentfromtheAEDF,thecompany
builtawarehouseinKenoraandsupported
fivejobs.
DynamosIndustriesInc.buildsplaystructures
inOntario.WithsupportfromtheAEDF,
thecompanycreated10newfulltimepositions
inPlantagenet.
From2003to2016,Ontariohasprovidedmorethan$38millionincapitalgrantstoIndigenous
communitiesthroughtheACCGP.Ontariowillinvest$3millionthroughtheACCGPin201718.
ChapterIII:CreatingOpportunitiesandSecurity 89
Helping Businesses Find Skilled Newcomers
OntarioiscontinuingtohelpbusinessesbyacceptingmoreskillednewcomersthroughtheOntario
ImmigrantNomineeProgram(OINP).ThroughtheOINP,Ontarionominatespeopleforpermanent
residentstatus,includingskilledworkers,internationalstudents,temporaryworkersand
experiencedentrepreneurswithestablishedforeigncompanieswhoarelookingtoexpandtheir
businessoperationsinOntario.RecognizingthesuccessoftheOINPanditsimportanceto
Ontarioseconomy,thefederalgovernmenthasincreasedtheprovinces2017allocationby
500nomineestoatotalof6,000.TheOINPisalsomodernizingitsapplicationprocessthisyear
withanew,paperlessonlinesystemthatwillspeeduptheapplicationprocess,improvecustomer
service,andhelpemployersfindtheskilledworkerstheyneedmorequickly.
Social Enterprises
Ontariosgrowinganddiversesocialenterprisesector
currentlysupportsapproximately10,000enterprises. What is a Social Enterprise?
Thesesocialenterprisescontributetojobcreation Social enterprises are organizations that use
whilealsocreatingpositivesocialoutcomes, business strategies to achieve positive social
or environmental impacts.
includingprovidingemploymentopportunitiesand
trainingtopersonsfacingbarriers.Tofurther
acceleratethegrowthofthesocialenterprisesector,theProvincelaunchedOntariosSocial
EnterpriseStrategy20162021insummer2016.
Sincethelaunchofthestrategy,theProvincehaspartneredwiththeOntarioNetworkof
Entrepreneurs(ONE)tobuildcapacityandprovidespecializedsupportstosocialentrepreneurs.
TheProvincealsolaunchedthesecondroundoftheSocialEnterpriseDemonstrationFundand
openedapplicationsfor200vouchersthroughtheOntarioSocialImpactVoucherProgram.
TheseprogramssupportOntariossocialenterprisesbyprovidingaccesstocapitaland
valueaddedsupportsandservices.
90 ChapterIII:CreatingOpportunitiesandSecurity
Recent data from Statistics Canada showed seven per cent of adults over the age of 18 used ride- or
home-sharing services in 201516, spending $241 million in ride services and over $1 billion in
home-sharing services, with $367 million of that spent in Canada. Ontarians were the highest users
CHAPTERIII
of ride-sharing services (11 per cent of the population), and the third highest users of home-sharing
services (4.3 per cent of the population) behind British Columbia and Alberta.
Sincethe2016Budget,theProvincehascontinuedtouseawholeofgovernmentapproachto
supportthegrowthofthesharingeconomywhilealsoprotectingworkers,consumersand
communities.Thisincludesclosingthegapinautoinsurancecoverageforprivatevehiclesforhire,
andundertakingaChangingWorkplacesReviewthattakesintoconsiderationnewemployment
structures.
ThestrategywillbuildonOntarioscommitmenttorespectexistingbusinessinterestsby
modernizingregulationsandreducingredtape.
ChapterIII:CreatingOpportunitiesandSecurity 91
TheProvinceisalsopartneringwithRyersonUniversitytocohostthreepolicyresearchand
designevents.Participantswillexplorehowsocialenterpriseinitiativescaninnovateand
collaboratewithgovernmentandcommunitiestogrowthesharingeconomywhilecreating
positivesocialandenvironmentalimpact.
Ontarioiswellpositionedtoleadthewayasitpreparesahighlyskilledworkforcetoplayakey
roleingrowinganinnovationdriven,knowledgebaseddigitalsharingeconomy.Thiseconomywill
createjobs,supportbusinesses,satisfyconsumersdemandforchoice,andoperateinafairand
competitivemarketplacewithminimalgovernmentintervention.
Forests,wildlife,agricultureandtourismarefacingnewchallengesinachangingclimate.Inthe
FarNorth,risingtemperaturesinrecentyearshaveshortenedthedurationofwinterroads,
whichareanimportanteconomiclifelinetoremotecommunities.Theseimpactsandthe
associatedcostswillonlyworseniftimelyactionisnottaken.Toavoidthepotentiallydevastating
impactsofclimatechangeinthefuture,reducinggreenhousegas(GHG)emissionstodayiscrucial.
Actingnowalsopositionstheeconomytotakeadvantageoftheacceleratingglobaltransition
towardstheproductionanduseoflowcarbongoodsandservices.
ThatiswhyOntariohascommittedtoaplanthatwillresultineconomicgrowthandjobcreation
byprotectingtheenvironmentagainstfurtherclimatechange.Throughstepsbeingtakentoday,
Ontarioistacklingclimatechangeinawaythatproducesacleanerenvironment,buildsa
lowcarboneconomyandcreates jobs.Overthepastyear,thereleaseoftheClimateChange
ActionPlanandtherecentimplementationofaprogramtocapemissionshavealreadybegunto
deliverresultsthroughkeyinvestmentsthatwillimprovetheeverydaylivesofOntarianswhile
helpingtoreduceGHGemissions.
5
http://www.ontla.on.ca/committeeproceedings/committeereports/files_html/
prebudget%20consultation%202017%20report%20english%20%20final.htm
6
http://www.simcoemuskokahealth.org/docs/defaultsource/jfy
communities/pdf_jfy_municipality_enewsletter_feb2010_cma_icap_sum_e
92 ChapterIII:CreatingOpportunitiesandSecurity
Capping Emissions
Lastspring,OntariopassedtheClimateChangeMitigationandLowcarbonEconomyAct,2016,
whichestablishedtheProvincestargetsforreducingGHGemissions.Amarketbasedcarbon
pricingprogramachievesthemostcosteffectiveemissionsreductions(seeTable3.5).Ontarios
programcameintoeffectonJuly1,2016.ThefirstcomplianceperiodbeganonJanuary1,2017,
andprogramparticipantstookpartinthefirstauctionofemissionsallowancesinMarch2017.
Theauctiongenerated$472million,whichbylawwillbeinvestedinprogramsthatwillreduce
GHGpollutionandhelpfamiliesandbusinessesreducetheirownemissionsthroughtheClimate
ChangeActionPlan.InOctober2016,thefederalgovernmentproposedapanCanadian
benchmarkforcarbonpricing,whichwouldrequireallprovincesandterritoriestohavecarbon
pricingby2018.
CHAPTERIII
Thegovernmentisdevelopingcarbonoffsets
asanadditionalwaytoenablemarket What is a Carbon Offset?
participantstoreduceemissions.Itisalso A carbon offset represents a reduction, avoidance,
destruction or sequestration of GHG emissions
workingonaseparatesystemofOntariobased
from a source not covered by the emissions
voluntarycarbonoffsetstosupportthe capping program, such as agriculture and forestry.
governmentscarbonneutralcommitment.
Establishing clear rules for creating eligible and
Ontariowillcontinueitscollaborativeapproach reliable offset credits is important for maintaining
andworkwithIndigenousorganizations, the credibility of the carbon market.
stakeholdersandotherpartnersinshapingthe
designofcarbonoffsets.
TABLE3.5 CarbonPricingScenariosImpactsby2020
Ontarios Approach Carbon Tax
Carbon Price
(2016 dollars)
$18 $72
Note: The report Overview of Macroeconomic and Household Impacts of Ontarios Cap and Trade Program by EnviroEconomics, Navius Research,
and Dillon Consulting found that Ontarios approach to emissions capping is the most cost-effective method of reducing emissions
ChapterIII:CreatingOpportunitiesandSecurity 93
CHART 3.7 Planned Use of Carbon Allowance Proceeds
AUCTION
Enhancing Research and Development: ~$20M Preserving Agriculture, Lands and Forests: ~$5M
Supporting innovation in low-carbon clean technology. Ensuring the natural environment is used in an efficient
Examples include: and sustainable way. Examples include:
Cleantech development and deployment Increased tree planting
Climate change building research Improving agricultural soil health
94 ChapterIII:CreatingOpportunitiesandSecurity
CHAPTERIII
Ontarioisproviding$200millioninfundingin201718forschoolstoimproveenergy
efficiencyandinstallrenewableenergytechnologies.SeeChapterIV,SectionB:Investingin
Educationformoreinformation.
BuildingsinOntarioareresponsiblefornearly20percentoftheprovincesGHGemissions.7
Ontarioisinvesting$85millionin201718tosupportadditionalretrofitactivitiesinsocial
housingapartmentbuildingsacrosstheprovince.TheseretrofitswillreduceGHGemissions
andimprovelivingconditionsforlowincomeandvulnerabletenants,includingthosein
small,rural,northernandIndigenouscommunities.
TheProvinceisinvesting$50millionin201718incommutercyclinginfrastructuretogive
Ontariansasafeandlowcostcommutingalternativebetweenresidentialcommunities,
workplaces,majortransitstationsandotherdestinations.Itwillimplementcyclingfacilities
andrelatedinfrastructure,suchascyclinglanesseparatedbyacurbandcyclingsignals,
andwillremovebarrierstolocalcyclingnetworks.Thiswillenablepeopletotakebikes
andtransitfortheirdailycommuteinsteadofpersonalvehicles,effectivelyreducing
GHGemissions.
TheProvincewillinvestmorethan$22millionin201718inelectricvehicle(EV)charging
infrastructureacrosstheprovince,includingatgovernmentfacilities,makingelectric
vehiclesaviableoptionformorepeople.
7
NationalInventoryReport19902014:GreenhouseGasSourcesandSinksinCanada,EnvironmentandClimate
ChangeCanada(2016).
ChapterIII:CreatingOpportunitiesandSecurity 95
TheseprogramsareinadditiontotheinitiativessupportedbytheGreenInvestmentFund(GIF)
whicharealreadyunderwayandkickstartingclimatechangeactionsby:
Helpinghomeownersuselessenergyandreduceenergybillsthroughhomeretrofits;
SupportingmoreelectricvehiclechargingstationsacrossOntario;
Retrofittingsocialhousingdevelopmentstoboostenergyefficiency;
Helpingbusinessesreduceemissions;
Fundinglocalenvironmentalorganizationsdoingimportantconservationwork;and
ProvidingIndigenouscommunitieswithtraining,toolsandinfrastructuretoaddress
climatechange.
AspertheClimateChangeMitigationandLowcarbonEconomyAct,2016,allproceedsfrom
carbonallowancesmustbeusedforinitiativesthatarereasonablylikelytoreduceorsupport
thereductionofGHGemissions,asoutlinedinChart3.7.
96 ChapterIII:CreatingOpportunitiesandSecurity
TherecentlyachievednationalagreementtoenhancetheCanadaPensionPlan(CPP)isan
essentialpartoftheProvincesstrategytoimproveretirementsecurity.Voluntarysavingsvehicles,
suchaspooledregisteredpensionplans(PRPPs),alsoplayanimportantroleinOntarios
CHAPTERIII
retirementincomestrategy.
Atthesametime,workplacepensionplansremainintegraltoretirementincomesecurity,
helpingprovidemanyOntarioworkerswiththeresourcestheyneedforahealthyandmeaningful
retirement.Thegovernmentisengagedinmanyinitiativestostrengthenandmodernizethese
planstobuildonthestrongfoundationprovidedbytheCPPsothatOntarianscanreachtheir
retirementsavingsgoals.
TheOntariogovernmentsleadershipanddedicationtostrengtheningretirementsecuritywere
fundamentaltoachievingtheCPPenhancement.Inlate2013,whenfacedwithanimpasseatthe
nationallevel,OntarioturneditseffortstothedevelopmentoftheOntarioRetirementPension
Plan(ORPP).TheProvincesadvocacyforimprovingretirementsaving,combinedwithitsplansfor
introducingtheORPP,playedakeyroleinensuringthatretirementsecurityremainedonthe
nationalagenda.Ontariosworkwasalsoessentialindrivingthenegotiationsamongthefederal
government,provincesandterritoriesthatresultedintheagreementtoenhancetheCPP.
ChapterIII:CreatingOpportunitiesandSecurity 97
TheCPPenhancementwillsignificantlyimprovetheretirementsecurityandfuturequalityoflife
ofmanyoftodaysworkers,particularlythosewithoutworkplacepensionplans,byproviding
themwithameaningful,lifelongincreaseintheirretirementincomes(seeChart3.8).
$1 CPP
Enhancement
$3,222
CPP
Enhancement
Current CPP
$9,671
Note: Assumes that the worker will pay at least 40 years of contributions on steady career earnings of $40,000 annually
(before tax) and begin collecting benefits at age 65. All figures are rounded and expressed in 2017 dollars.
Toallowbusinessestimetoadapt,increasestoCPPcontributionswillbephasedingraduallyover
sevenyears,startingJanuary1,2019.Lowincomeworkerswillalsobeprotectedfromthecostof
increasedCPPcontributionsthroughanenhancementtothefederalWorkingIncomeTaxBenefit.
TheagreementtookeffectinOntarioonMarch31,2017,makingitnowpossibleforthisnewlow
cost,professionallymanaged,voluntarytaxassistedsavingsvehicletobeavailableinOntario.
98 ChapterIII:CreatingOpportunitiesandSecurity
Ontarioscurrentdefinedbenefitfundingframework,includingsolvencyfundingrequirements,
wasintroducednearly30yearsago.Whilesomereformshavebeenmadesincethen,achanging
economiclandscape,volatilityininvestmentreturnsandlowinterestrateshavecreatedfunding
challengesfordefinedbenefitpensionplansponsors.Temporarysolvencyreliefwasprovidedin
2009and2012toassistplansponsorsinmanagingthesechallenges.The2015OntarioEconomic
CHAPTERIII
OutlookandFiscalReviewannouncedareviewofthecurrentsolvencyfundingframework,along
withanotherroundoftemporarysolvencyreliefthatwasenactedinJuly2016.
Thereviewhasinvolvedextensivestakeholderengagement,includinginpersonconsultations
facilitatedthroughaStakeholderReferenceGroup;roundtablediscussionswithrepresentatives
fromlabour,employers,retireesandplanadministrators,includingthoseofjointlysponsored
pensionplansinthebroaderpublicsector;andindividualstakeholdermeetings.Thegovernment
alsoreviewedmorethan90submissionsthatwerereceivedinresponsetoitsconsultationpaper
releasedinJuly2016.
Thegovernmentintendstoannouncetheguidingprinciplesofthenewframeworklaterthis
spring,withdraftregulationsreleasedforpublicconsultationinfall2017.Measurestosupport
transitiontothenewframeworkwillalsobeimplementedthisspring.
ThegovernmentiscontinuingtoworkwithotherCanadianjurisdictionstomodernizethe
agreementthatgovernsmultijurisdictionaldefinedbenefitpensionplans,withthegoal
ofmaintainingprotectionsforOntarioplanbeneficiarieswhilefacilitatingtheoperationof
multijurisdictionalplans.
ChapterIII:CreatingOpportunitiesandSecurity 99
Introducing a Framework for Target Benefit Pension Plans
Thegovernmentremainscommittedtodevelopinganewregulatoryframeworkfortargetbenefit
multiemployerpensionplans(MEPPs).Thisframeworkwouldreplacethetimelimitedfunding
regulationsinplaceforcertainMEPPs,knownasspecifiedOntariomultiemployerpensionplans
(SOMEPPs),whosemembersareunionized.
Indevelopingtheframework,thegovernmentistakingintoconsiderationfeedbackreceivedfrom
stakeholdersinresponsetotheconsultationpaperreleasedinsummer2015.Thegovernment
intendstoannounceitsproposedtargetbenefitMEPPframeworklaterthisspringandrelease
draftregulationsforpublicconsultationinfall2017.Thenewframeworkwillprovideatransition
periodforplanstomakenecessaryadjustments.
ThegovernmentwillalsocontinuetoexploreoptionsforatargetbenefitMEPPframeworkfor
plansthatdonotcurrentlymeettheSOMEPPcriteria.
Asafirststep,thegovernmentisintroducingamendmentstofacilitatetheimplementationof
variablebenefits,andintendstodevelopregulationslaterthisspring.Enablingthepayment
ofvariablebenefitssothatpaymentscanbemadedirectlyfromDCplanswouldallowretirees
withvariablebenefitaccountstotakeadvantageofinvestmentexpertiseandcostefficiencies
oftheplan.
Effectivedisclosuretopensionplanmembers,investorsandconsumersisoneofOntarios
prioritiesinallareasofpensionandfinancialservicesregulation.ItiscriticalthatDCplanmembers
begiventheinformationnecessarytomakeinformeddecisionsaroundtheirretirementplanning.
Forexample,membersannualstatementscouldprovidemoreguidancewithrespecttothe
retirementincomethanaDCplanmaybeabletogenerate.ThegovernmentwillengageDCplan
sponsors,thefinancialservicesindustryandpensionexpertsonpotentialchangestotheannual
statementsthatcouldhelpDCplanmemberspreparemoreeffectivelyforretirement.The
governmentwillalsoexploreotheroptionstoenhancetransparencythatwouldmodernize
membercommunicationsandcreateregulatoryefficiencies.
Morebroadly,Ontariowillexaminenewapproachestomanagingthepayoutphaseinretirement,
oftenreferredtoasthedecumulationphase,whenretireesaredrawingdowntheirsavingsin
ordertoproduceretirementincome.
100 ChapterIII:CreatingOpportunitiesandSecurity
AsmoreworkerswithDCplansandothercapitalaccumulationplans,suchasPRPPs,retire,
ensuringthattheseindividualshaveenoughfundstomaintaintheirstandardoflivingthroughout
theirretirementyearswillbecomeincreasinglyimportant.TheProvincewillengagethefederal
government,thefinancialservicesindustryandpensionexpertstoexplorenewavenuesfor
Ontarianstomanageinvestmentandlongevityrisk.ThesewouldincludenewtoolsforOntarians
todrawdowntheirsavingsinanefficientandcosteffectivemannerduringthedecumulation
phaseoftheirretirement.
ThegovernmentwillalsoexploreotheroptionstostrengthenDCparticipationandperformance.
CHAPTERIII
strengthentheregulatoryoversightofworkplacepensionplans.Inthefallof2016,amendments
tothePensionBenefitsAct(PBA)wereenactedtoprovidetheSuperintendentofFinancialServices
(Superintendent)withtheauthoritytoimposeadministrativemonetarypenalties(AMPs)inthe
pensionssector.RegulationsrequiredtoimplementAMPswillbepostedthisspringforpublic
consultation.
Additionalamendmentsarebeingintroducedtofurtherenhancethepowersofthe
Superintendent.TheseamendmentswouldgivetheSuperintendentnewpowers,includingthe
authoritytodirectaplanadministratortoprovideplanbeneficiarieswithinformationspecifiedby
theSuperintendent,andtoholdameetingtodiscussmattersspecifiedbytheSuperintendent.
Thegovernmentwillcontinuetodevelopotheramendmentstobetterprotectpensionplan
beneficiariesandensuremoreeffectiveandefficientregulationofthesector,takingintoaccount
theexperienceofotherjurisdictions.
ChapterIII:CreatingOpportunitiesandSecurity 101
Toaddressthissituationandmodernizethecurrentframework,thegovernmentwillinstructthe
Superintendenttodevelopapolicytoprovidedirectiontoadministratorsonstepstheyshould
taketolocatebeneficiaries.Assomeindividualsmaybedifficulttolocate,whichcanmeanboth
increasedcostandtheriskofprivacyviolations,thegovernmentwillalsointroducean
amendmenttothePBAprovidingauthoritytotheSuperintendenttowaivetherequirementof
providingperiodicpensionstatementsinsituationswhereaplanadministratorcandemonstrate
thatthebeneficiaryshouldbeconsideredmissing.
Thegovernmentwillconsiderfurtherchangestoassistemployersindealingwithmissing
beneficiariesandhelpindividualsinlocatingpensionbenefits.Thesechangesmayinclude,
forexample,aregistrywhereemployersoradministratorscouldpostinformationregarding
missingbeneficiariesandindividualscouldsearchformissingbenefits.Thegovernmentwillalso
exploreoptionstoallowthewindupofpensionplansincaseswheremissingbeneficiariesremain,
whilecontinuingtoprotectthebenefitsofthosewhoaremissing.
102 ChapterIII:CreatingOpportunitiesandSecurity
Chapter IV
Section A: StrengtheningHealthCare
Introduction
Alongwithworldclasspubliceducation,universalaccesstopublichealthcareispartofthesocial
fabricofOntariothatgiveseveryoneachancetosucceed.Ontariansrelyonhighquality,publicly
fundedhealthcaretobetherewhenandwheretheyneedit,nowandinthefuture.
TodayinOntario,94percentofOntarianshaveaccesstoafamilydoctorornursepractitioner.
AccordingtotheCanadianInstituteforHealthInformation,Ontarioisleadingthewayamongall
provincesandterritoriesinthecountryonwaittimesforhipandkneesurgeries,andfor
computerizedtomography(CT)andmagneticresonanceimaging(MRI)procedures.Ontarios
cancercaresystemisamongthebestintheworld.
Thegovernmentisinvestinganadditional$7billioninhealthcareoverthenextthreeyears,
comparedtothe2016BudgetPlan,toreducewaittimes,improveaccesstocareandenhancethe
patientexperience.Withthesenewinvestments,growthinhealthcarespendingwillnowaverage
3.3percentoverthemediumterm.
CHAPTERIV
Ontariowilllaunchanewdrugbenefitprogram,OHIP+:ChildrenandYouthPharmacare,in2018
toexpandaccesstoprescriptionmedicinesforallchildrenandyouth,regardlessoffamilyincome.
Ontarioschildrenandyouthneedmedicationstotreatmostacuteconditions,commonchronic
conditions,childhoodcancersandotherdiseases.SeeChapterII:HelpingYouandYourFamilyfor
moredetails.
SectionA:StrengtheningHealthCare 105
Summary of New Investments
Increasing Access
BuildingNewHospitalsanadditional$9billionover10yearstosupporttheconstruction
ofnewmajorhospitalprojectsacrosstheprovince.Thesetransformationalinvestments
willprovideOntarianswithfasteraccesstocareandsupportthedeliveryofhighquality
services.
IncreasingOperatingFundingforAllPublicHospitalsaninvestmentof$518millionwill
provideathreepercentincreasetothehospitalsector.Thisinvestmentwillsupportvital
hospitalservices,keepwaittimeslow,andmaintainaccesstoelectivesurgeries.
EnhancingInterprofessionalPrimaryCareTeams$15millioninvestmenttoenhance
OntariansaccesstoprimarycareandasuiteofOHIPfundednonphysicianspecialized
healthservices.
ModernizingandEnhancingCancerScreeningenablingearlyidentificationand
treatmentbasedonthelatestevidence.
FasterAccesstoMentalHealthServicesthroughanadditionalinvestmentof$74million
overthreeyearstoprovidefasteraccesstomentalhealthservices,includingnew
supportivehousingunitsandstructuredpsychotherapy.
106 ChapterIV:PublicServicesYouCanCountOn
CHAPTERIV
Adding almost 1,700 additional doctors and over
8,400 more nurses to provide Ontario families with
quality care
Improving access to home and community care and
increasing wages for personal support workers
Enabling more seniors to qualify for lower out-of-
pocket drug costs and offering free shingles vaccines
to those aged 6570
Providing approximately $4 billion in capital grants to
SectionA:StrengtheningHealthCare 107
Increasing Access
Building More Health Infrastructure
Investmentsinhealthinfrastructuresupportthecreationofasustainable,highqualityhealthcare
systemthatwillmeettheneedsoffuturegenerations.Overthenext10years,theProvinceplans
toprovidemorethan$20billionincapitalgrantstohospitals.Thisincludesanewcommitmentof
approximately$9billiontosupporttheconstructionofnewmajorhospitalprojectsacrossthe
province.Thesetransformationalinvestmentswillsupporttimelyaccesstotherightcare,inthe
rightplace,attherighttime.
TheProvinceiscommittingtoseveralnewprioritymajorhospitalprojectsthatwilladdress
growingdemandforhealthcareservicesandfacilityconditiondeficiencies,andsupportnewand
innovativemodelsofcare.Continuedinvestmentinhealthinfrastructurewillensurethatthe
healthsystemremainssustainableintothefuture.
TABLE4.1 NewlyApprovedMajorHospitalProjects
Southwest Niagara Health System The project will include construction of a new hospital in
New South Niagara Hospital Capital Project support of service transformation in the Niagara Region.
Windsor Regional Health Centre The project will include construction of a new hospital in
New Greenfield Hospital Project support of service transformation in the Windsor Region.
Central Hamilton Health Sciences The project will address Hamilton Health Sciences
Hamilton Redevelopment Project high-growth needs and update aging infrastructure
to meet current hospital standards.
North Weeneebayko Area Health Authority Ontario is committing to the provincial share of the project
Replacement Hospital Project costs for a new hospital to serve the health care needs of
the population along the James Bay coast. Ontario will
work with the federal government to advance planning for
this project.
TheProvincehasdemonstrateditscommitmenttosecuringthefutureofOntarioshealthcare
systembyprovidingseveralhospitalswithplanninggrantssince2013.Throughdetailedupfront
planningwork,theProvinceistakingaresponsibleapproachtoaddressingtheemergingneedsof
thehealthcaresystem.Planninggrantsensurethatproposalsmeettheneedsoflocal
communitiesacrossOntario.
108 ChapterIV:PublicServicesYouCanCountOn
CHAPTERIV
SectionA:StrengtheningHealthCare 109
MackenzieVaughanHospitalwillbeVaughansfirsthospital,servingmorethan500,000people.
ProvidenceCareHospitalsnewstateoftheart St.JosephsHealthCaresLondonandSt.Thomas
facilityinKingston. facilitieswerecompletedin2014.
AtikokanGeneralHospitalsrenovatedspacewill ArenderingofCAMHsfutureComplexCareand
provideintegratedacuteandlongtermcareforthe RecoveryBuilding(partofPhase1C).
community.
110 ChapterIV:PublicServicesYouCanCountOn
Ontarioisalsocommittingtoanew$2.5millionplanninggrantfortheCentreforAddictionand
MentalHealth(CAMH),Canadaslargestmentalhealthandaddictionteachinghospital.Thegrant
willhelpthehospitalmoveforwardwiththePhase1Dredevelopmentprojectfocusedoncomplex
mentalillnessforensicservices,thefinalprojectinCAMHsredevelopment.
TheProvincehasexpandedeligibilityandstreamlinedtheapprovalprocessforcommunity
infrastructurefundingtoshiftcarefromhospitaltocommunitysettings.Ontarioisproviding
fundingtorenewandexpandthefacilitiesoforganizationssuchasCommunityHealthCentres,
PublicHealthUnitsandFamilyHealthTeams.Investmentsincommunityhealthcareinfrastructure
supportthecolocationandintegrationofmultiplehealthandsocialservicesunderoneroof.
SeeChapterII:HelpingYouandYourFamilyformoredetailsoncommunityhubs.
Expandingeligibilityforcommunityinfrastructurefundingwillalsoallowforneededinvestments
toincreasethenumberofhospicebedsacrosstheprovince.Fundingwillsupportfacilitiesto
deliverontheProvincesPalliativeandEndofLifeCareStrategyandensureOntarianshaveaccess
tohighqualityhealthservicesattheendoflifesjourney.
CHAPTERIV
leadershipintheireffortstohelp
transformtheprovinceshealthsystem.
Inresponsetothegrowingdemandforhighly
specializedandcomplexservicesandthe
needtoexpandaccessingrowing
communitiesacrosstheprovince,in201718
theProvincewillprovideanadditional
$518million,athreepercentincreasetothe
sector.Thisinvestmentwillensureall
hospitalsreceive,atminimum,atwoper Ontariohasreducedhospitalwaittimestosomeof
centincreaseforvitalhospitalservices,to theshortestinthecountry.
expandaccesstocomplexclinicalservices,
keepwaittimeslow,maintainaccesstoelective
surgeryandensurethatimportanthealthserviceprogramsaremaintained.
SectionA:StrengtheningHealthCare 111
Investing in Primary Care
Primaryhealthcareistheentrypointto
thehealthcaresystemformostOntarians.
Primarycareisgenerallyunderstoodasthe
firstlevelofcareOntariansturnto,including
theservicesoffamilyphysicians,nurse
practitioners,nurses,pharmacistsandothers.
Thesecareprovidersplayanimportantrolein
improvingthehealthandwellbeingof
Ontariansandhelpingthemaccessother
healthandsocialservices,suchasspecialized
careandbroadercommunitysupports.The Improvingaccesstoprimarycarebyrecruitingnurse
practitioners,socialworkersandregistered
experiencethatOntarianshaveinthehealth dietitians.
caresystemislargelyinfluencedbythetype
ofaccess,careandcoordinationtheyreceive
throughtheirprimarycareproviderorteam.
Ontariohasmadeconsiderableimprovementsinprimarycare.Currently,94percentofOntarians
reporthavingaccesstoaregularprimarycareprovider1.7millionmorepeoplethanin2003.
Newmodelsofprimarycarehavebeenintroducedorexpanded,includingAboriginalHealth
AccessCentres,CommunityHealthCentres,FamilyHealthTeamsandNursePractitionerLed
Clinics.Advanceshavealsobeenmadeinqualityimprovement,programstohelppeoplestay
healthy,andcarecoordinationforcomplexpatients.
Accesstohighqualityprimarycare,includingpreventionandearlymanagementofhealth
problems,afocusonthepatientasawholeperson,andensuringappropriateuseofspecialized
care,canbeexpectedtoleadtoimprovedpopulationhealth,healthequityandlowercosts
ofcare.
* Physician data current to 2015 calendar year. Nurse and midwife statistics current to 2016.
112 ChapterIV:PublicServicesYouCanCountOn
Theseinterprofessionalprimarycareorganizationsdelivercomprehensiveprimarycareservices
andprogramsthroughateamofhealthcareprofessionals,includingphysicians,nurse
practitioners,registerednurses,physicianassistants,dietitians,pharmacists,mentalhealth
workers,socialworkers,psychologists,physiotherapists,chiropractorsandotherprofessionals.
Programsaredesignedanddeliveredaroundtheholisticneedsofpatients,rangingfromprograms
tohelppeoplemanagetheirchronicdiseases,toservicesthathelpwithlifechallengesthat
negativelyimpacthealth.
Collectively,these294primarycareorganizationsaredeliveringteambased,OHIPfunded
comprehensivecaretomorethan4millionOntarians.
TheProvincesinvestmentsinthesemodelsofteambasedcarehavehelpedtoimproveaccessto
primarycareforcommunitiesthatneeditmost,resultinginhealthcareimprovement
incommunitiesacrosstheprovince.In2017,Ontariowillinvestanadditional$15millionin
CHAPTERIV
teambasedprimarycaretocreateneworexpandexistinginterprofessionalcareteamssothat
all76subregionsacrosstheprovincehaveateam.
Tofurthersupportandimprovetheseimportantservices,thegovernmentiscontinuingits
commitmentbyinvestinganadditional$145millionoverthenextthreeyearstoeffectivelyrecruit
andretainnurses,nursepractitioners,dietitians,socialworkers,pharmacists,receptionstaffand
othercareproviderswhoprovidevaluableservicesalongsidefamilydoctorsontheseteams.This
isinadditiontothe$85millionininvestmentsininterprofessionalteamsannouncedinthe2016
Budget.
SectionA:StrengtheningHealthCare 113
Increasing Equitable Access to Health Care through Ontarios
First Nations Health Action Plan
Investinginthehealthandwellnessof
Indigenouscommunitiesisoneofmany
stepsonOntariosjourneyofhealingand
reconciliationwithIndigenouspeoples.
SeealsoChapterV:WorkingwithOur
Partnersformoreinformationon
OntariosCommitmenttoReconciliation
withIndigenousPeoples.
AshighlightedinOntariosFirstNations
HealthActionPlan(OFNHAP),Ontariois
TheFirst NationsHealthActionPlanfocuseson
investingnearly$222millionoverthree primaryandhospitalcare,publichealthandcrisis
years,followedbysustainedfundingof support.
$104.5millionannually,toaddresshealth
inequitiesandimproveaccesstoculturallyappropriatehealthservicesoverthelongterm.While
focusedonnorthernFirstNations,wheretherearesignificantgapsinhealthservices,theOFNHAP
alsoincludesinvestmentsinIndigenoushealthcareacrossOntarioinhomeandcommunitycare,
primarycare,anddiabetespreventionandmanagement,bothonandoffreserve.
10 Aboriginal Health Access Centres and five Indigenous-governed Family Health Teams across the
province, which provide traditional healing; culturally sensitive primary and chronic care; and mental
health, addictions and social support services.
Investing up to $30 million for the development and operation of up to 10 expanded culturally
appropriate interprofessional primary care teams.
Physician services for 30,000 people in 28 First Nation communities in the Sioux Lookout region.
Air and land ambulance services and first response teams for First Nation communities.
114 ChapterIV:PublicServicesYouCanCountOn
Lastyear,Ontarioannouncedinvestmentsof$130millionoverthreeyearsforcancercare
services.Overthepastyear,theProvincehasalsoannouncedinvestmentsininfrastructureto
improveaccesstohighlyspecializedstemcelltransplantprogramsatUniversityHealthNetwork,
HamiltonHealthSciencesCentre,TheOttawaHospitalandSunnybrookHealthSciencesCentre.
In2017,thegovernmentwillfocusoncontinuingtobuildcapacitytoprovidestemcelltransplant
treatmentforcomplexbloodcancerswithintheprovincebyinvestinganadditional$32million.
Thismeansthatupto150moreOntarianswillreceivelifesavingstemcelltransplants.
Asadditionalcapacityisdeveloped,fewerpatientswillrequiretransplantsintheUnitedStates.
CHAPTERIV
theProvincewillmodernizetwoprimarycancerscreeningtestsanddevelopanewscreening
programforthoseathighriskofdevelopinglungcancer.Thesetests,basedonthelatest
technology,includemodernizingcolorectalcancerscreeningfromtheexistingfecaloccultblood
test(FOBT)tothefecalimmunochemicaltest(FIT),andtheprimaryscreeningtestforcervical
cancerfromtheexistingPapanicolaou(Pap)testtothehumanpapillomavirus(HPV)testfor
womenaged30to69.Inaddition,theProvincewilllaunchalungcancerscreeningprojectfor
peopleathighriskatthreepilotsites:TheOttawaHospital,HealthSciencesNorthand
LakeridgeHealth.
SectionA:StrengtheningHealthCare 115
Improving Pain Management
OneinfiveCanadiansexperienceschronicpain.Withnewinvestments,Ontarianswillhavebetter
accesstosupportandguidanceinmanagingchronicpainthroughinterprofessionalChronicPain
ManagementClinicsandotherservices.Additionally,healthprofessionalswillhavebetteraccess
totoolsandresourcesthatwillimprovethetreatmentofchronicpain.
In2017,thegovernmentcommitted$17millionunderthisstrategy,includingfundingforfive
pediatrichospitals,11academichospitalsandonehospitalaffiliatedcommunityclinictoenhance
ordevelopchronicpainprograms.In2018,anadditionalprogramisplannedforHealthSciences
North,toserveSudburyandthesurroundingarea.Theprogramsfocusonprescribingprinciples
andtreatmentsthatprioritizepatientsafety,decreaserelianceonopioidsinpainmanagement,
andincreasepatientsabilitytomanagepainandimprovetheirqualityoflife.
On June 6, 2016, naloxone kits were made available free of charge, over-the-counter, and without
prescription at pharmacies through the Ontario Naloxone Program for Pharmacies (ONPP). Ontario is
expanding access to naloxone by providing it in over 200 cities across the province. As of March 31,
2017, over 28,000 naloxone kits have been distributed by over 1,000 participating pharmacies, and at
40 public health units and community-based organizations that provide needle exchange and hepatitis C
programs. In addition, new easier-to-use nasal spray kits are available through participating public health
units and are being rolled out for at-risk inmates when they are released from provincial correctional
facilities. The government is exploring other opportunities to make the nasal spray available for
Ontarians, which may include access through pharmacies.
Toensurethatpatientswithopioidaddictionarereceivingcarethatallowsthemtobalance
addictiontreatmentandrecoverywiththerestoftheirlives,since2016,Ontarianshavehad
greateraccesstobuprenorphine/naloxone(brandnameSuboxone)asafirstlinetreatmentfor
opioidsubstitutiontherapy.
Supervisedinjectionservices(SIS)areonepartofthebroaderstrategythatrespondstogrowing
publichealthconcernsrelatedtoinjectiondruguse.Communitysupportedandcommunityrun
SISpermitpeopletoinjecttheirownpersonallyacquireddrugsincontrolledhealthcaresettings.
Aspartofalargerstrategyforcomprehensiveharmreduction,withsupportsforpeoplestruggling
withaddiction,SISwillsavelives.
116 ChapterIV:PublicServicesYouCanCountOn
ThegovernmentplanstofundthreelocationsforSISinTorontoandoneinOttawa,pendingtheir
requiredexemptionfromfederallegislation,andwillsetupaprovincialreviewpaneltoconsider
futureapplicationsforSISonacasebycasebasis.
CHAPTERIV
Theseinitiativeswillhelpreducetheprevalenceofthedisorder,increasecoordinationofservices,
improvethequalityoflifeforthosewithFASD,andenhancesupportforfamiliesandcaregivers.
SectionA:StrengtheningHealthCare 117
Reducing Wait Times
AccordingtotheCanadianInstituteforHealthInformation,Ontarioisleadingthewayamongall
provincesandterritoriesinthecountryonwaittimesforhipandkneesurgeries,aswellasMRI
andCTscans.1
Overthenextthreeyears,theProvincewillinvest$1.3billioninadditionalfundingtoreduce
waittimes,including$890millionforkeysurgicalandotherpriorityprocedures;$245millionto
improvespecialistaccess,includingnewdigitalsolutionstostreamlineconsultsandeReferrals;
$85millioninnewhomeandcommunitycareservices;and$74milliontoprovidemoretimely
mentalhealthservices.
QBPs promote efficient, consistent, high-quality patient care and improve patient outcomes. Providers are
compensated based on an established price.
In 2017, Ontario will increase targeted QBP funding by over two per cent to address growing patient
demand and reduce wait times for about 4,000 more patients. Increased funding for QBPs is projected to
treat over 330 more patients with stroke, 2,800 with incremental hip or knee replacements (up
eight per cent over the previous year), about 2,100 more with cataracts and over 500 more with
congestive heart failure this year.
Inthecomingyear,tohelpmorepatientsaccessthecaretheyneedwithintargettimes,
theProvinceisfocusinginvestmentsonhighpriorityprocedureswhereaccessischallengingor
demandisincreasing.Thesewillincludemorethan28,000additionalMRIs,about2,100more
cataractsurgeries,aswellasover2,800morehiporkneereplacementsurgeries.
1
CanadianInstituteforHealthInformation,WaitTimesforPriorityProceduresinCanada(2017).
https://www.cihi.ca/sites/default/files/document/waittimesreport2017_en.pdf
118 ChapterIV:PublicServicesYouCanCountOn
Thisyear,aspartofincreasedfundingforhospitals,Ontariowillprovide$114milliontoincrease
thenumberofcriticalservicesavailableinhospitalsandhelpconstrainwaittimesfortreatment,
includingnewcardiovascularprocedures,expandedcareforpeoplewithrarediseases,and
organtransplants.
In 2017, $24 million in funding will be invested in new innovative models to ensure patients are receiving
care in the most appropriate care settings possible at home or in the community. These new care
models will offer patients and care providers more choices and put patients first.
CHAPTERIV
Thegovernmentwillcontinuetoreducewaittimesforhealthservicessothatpatientscanaccess
specializedcareassoonaspossible.Ontarioismakingadditionalinvestmentstohelpimprove
accesstospecializedcareproviders,including$20milliontoimprovetimely,appropriate
andtransparentreferralpathwaystocare,withimprovedelectronictoolslinkingprimaryand
specializedcareprovidersandinterprofessionalteamservices.Inaddition,thegovernmentis
investing$15milliontoincreasetheavailabilityofinsuredoptometryservices.
SectionA:StrengtheningHealthCare 119
OntariowillexpandprogramslikeInterprofessionalSpineAssessmentandEducationClinics
(ISAECs).ISAECsassesspatientsneedfortreatmentandworkwithprimaryandspecializedcare
providerslikechiropractors,physiotherapistsandsurgeons.Theyleveragetheexpertiseandfull
scopeofpracticeofhealthprofessionals,givingpatientsfasteraccesstothecaretheyneedand
reducingtheirrisks,suchasopioidaddictionthroughpainmanagementwhileawaitingtreatment.
In2017,$10millioninnewfundingwillgotowardsthisexpansion.
eConsult
Many Ontarians already enjoy the benefits of eConsult, a web-based service in which patients have
access to advice from specialists. On average, patients receive a response within three business days,
and 40 per cent of eConsult cases remove the need for patients to be referred to a specialist for an in-
person appointment.
Building on the successful Champlain LHIN BASE eConsult Service, the ministry plans to expand the
eConsult service province-wide in 201718.
eReferral
Working with the eHealth Centre of Excellence, physicians in Waterloo-Wellington can now use an online
eReferral system to connect their patients to specialists and other health care services in their
community.
In 201718, the ministry will explore ways to help make this innovative eReferral system available to
patients across the province, starting with its expansion to at least five more LHIN areas.
120 ChapterIV:PublicServicesYouCanCountOn
CHAPTERIV
Acontinuedinvestmentof$250millionin201718forcommunityandpersonalsupportservices
willhelpmeetincreaseddemandandsupportfasterandmoreequitableaccesstoservicesacross
theprovince.Thefundingwillcontinuetosupportmorehoursofcareforcomplexpatients,
muchneededrespiteforcaregivers,andthedeliveryofkeyimprovementsinmentalhealthand
addictionservices.ItwillalsohelpprovidehealthcareforIndigenouspeoples,andsupport
implementationofastrategytohelpthoseaffectedbydementia,includingtheircaregivers.
SeeChapterII:HelpingYouandYourFamilyforfurtherdetails.
Startinginthefallof2017,Ontariowillalsosupportmoreeducationandtrainingprogramsto
supportcaregivers.TheProvinceiscommittedtothedevelopmentofacaregivertoolkit,which
willbeavailableonlineandinpaperformatasaresourceforthesevaluablecarepartners.
2
HealthQualityOntariowebsite,http://www.hqontario.ca/SystemPerformance/HomeCarePerformance
SectionA:StrengtheningHealthCare 121
Bettersystemintegration,assistancewithnavigationofservices,increasedcaregiverrespite
andmorecaregivereducationandtrainingprogramswereallkeyrecommendationsofthe
BringingCareHomereport.Thegovernmentisrespondingtotheserecommendationsandthe
needsofcaregiversbycreatinganorganizationfocusedoncoordinatingsupportsand
informationresources.
122 ChapterIV:PublicServicesYouCanCountOn
CHAPTERIV
and they benefit from better outcomes.
Phase1ofOpenMinds,HealthyMinds:OntariosComprehensiveMentalHealthandAddictions
Strategy(from2011to2014)focusedonservicesandsupportsforchildrenandyouth.Buildingon
those,Phase2oftheStrategyalsoincludesadults,youthintransitionandpeoplewithaddictions,
andismeanttoensurethateverypersoninOntariocanaccessconsistent,appropriateservices,
nomatterwheretheylive,sothatOntarianslivingwithmentalillnessoraddictioncanrecoverand
participatemorefullyincommunitylife.
Ontarioalreadyprovidesmorethan$3.7billioninongoingfundingformentalhealthand
addictionsservices,includingthoseforchildrenandyouth.InFebruary2017,theProvince
announcedanadditionalinvestmentof$140millionoverthreeyearstoadvancetheexpansion
ofimportantevidencebasedmentalhealthandaddictionsinitiatives.
SectionA:StrengtheningHealthCare 123
AsoutlinedinOpenMinds,HealthyMinds,theProvincewillcreatementalhealthandaddictions
servicesbasedonrecommendationsfromOntariosMentalHealthandAddictionsLeadership
AdvisoryCouncil.TheCouncilconsistsofrepresentativesfromdiversesectors,includingexperts
andpeoplewithlivedexperienceofmentalillnessandaddictions.
Additionally,inrecognitionoftheneedtoaddressmentalhealthandaddictionsacrosssectors,
thegovernmentisestablishingaspecialcommitteeofcabinettodrivesystemchange.
Expandingeffectivementalhealthandaddictionsserviceswillenablepeoplelivingwithmental
illnessoraddictiontohaveearlieraccesstoservicesintheircommunity.Thiswillhelpimprove
accesstoearlyidentificationbeforecrisesarise.Investingmoreincommunityservicesisexpected
toreducethefrequencyandlengthofpatientsstaysinpsychiatricfacilitiesorhospitals,andto
supportpeopleinthecommunity.
Ontarioisalsoexploringopportunitiestobetterintegratepatientcareformajordepression
disorder,byimprovingreferralstothemostappropriatehealthcareprovidersandexpandingtools
linkingprimarycareproviderstopsychiatrists.Thiswillallowmorepatientstobenefitfromwell
coordinated,teambasedcare.
124 ChapterIV:PublicServicesYouCanCountOn
ThegovernmentislaunchinganewDementiaStrategythatwillprovidemorethan$100million
overthreeyearstoexpandaccesstothemostappropriatecareandsupportsprovincewidefor
patientsandtheircaregivers.
CHAPTERIV
TheProvinceisalsoproviding$8millionoverthenextthreeyearstosupport40newcommunity
centres.Thesecentres263inallprovidetransportationservices,socialandrecreational
programs,andothersupportstohelpseniorsstayactiveandindependentintheircommunities.
Everyyear,HealthQualityOntariopublishesMeasuringUpacomprehensivereportoutlining
detailsonthehealthexperienceofpatientsinOntariosotheycanbetterunderstandhowthe
systemisperforming.
SectionA:StrengtheningHealthCare 125
ThroughitsOntarioHealthTechnologyAdvisoryCommittee(OHTAC),HQOalsomakes
recommendationstogovernmentregardingfundingbasedonthebestavailableevidencefor
healthcareservicesandmedicaldevices.Thisadviceguidesimportantdecisionsonwhatnew,
innovativeservicesandtechnologiesshouldbeinvestedin.Forexample,HQOadvicehas
supportedinvestmentsin201718ininnovativetechnologiesforcardiovascularcare,suchas
StrokeEndovascularTreatment(EVT).Since2011,OHTAChasprovidedthegovernmentwithover
70recommendations.
TheNorthernHealthTravelGrantProgramhelpscovermedicallyrelatedtravelcoststhat
residentsofnorthernOntarioincurinordertoaccessOHIPinsuredhealthcareservicesthrough
amedicalspecialistordesignatedhealthcarefacility,unavailablelocallywithinaradiusof
100kilometres.
Overthelastthreeyears,theprogramhashelpedover600,000northernOntariansaccess
specializedmedicalservicesorhealthfacilitybasedprocedures.
Theinvestmentof$10millionwillprovideadditionalfundingfornorthernOntariansthroughan
enhancedaccommodationallowance.Itwillcovermorethanonenightsaccommodationfor
peoplewhoarerequiredtostayawayfromhomeformorethanonenightwhentravellingfrom
thenorthforanOHIPinsuredservice.Thisinvestmentwillensurethatthecostoftravellingfor
northernOntarianstoreceivethecaretheyneeddoesntimpedetheirabilitytoaccessneeded
healthcareservicesnotavailableclosetotheirhome.
Anewintegratedhealthnetworkforchildren,theKidsHealthAllianceatSickKidsHospitalwillbe
introducedinOntarioandwillimprovethecarechildrenreceiveinemergencydepartmentsin
hospitalsacrosstheprovince.Thisnetworkwillalsoachieveamorecoordinated,consistentand
highqualitysystemofhealthcareforchildrenandtheirfamilies.
126 ChapterIV:PublicServicesYouCanCountOn
Additionally,improvedsupportsforprematurebabiesandtheirfamiliesarebeingmadethrough
investmentinOntariosHumanDonorMilkBank,aswellasanewprogramtoimproveaccessto
breastpumpsformothersofprematurebabies.
TheProvincecontinuestoinvestinandsupportfamilieswhohaveexperiencedpregnancyor
infantlossbyexpandingsupportservicesandimprovingthecollectionofdatatosupportthe
commitmentsunderthePregnancyandInfantLossAwareness,ResearchandCareAct,2015.
Midwiferyservicesprovidelowriskbirthingoptionstoimprovethequalityofcareandvaluefor
Ontarians.In2017,thegovernmentwillcontinuetosupportmorechoiceandhighqualitycare
forexpectantfamiliesbycontinuingtogrowOntariosmidwiferysectorbyupto90newmidwives.
Thiscontinuedgrowthwillincreaseaccesstosafeandfamilycentredpregnancyandnewborn
careforOntariosfamiliesacrosstheprovince.
About250newmidwivesareexpectedtoentertheprofessionoverthenextthreeyears.Families
withlowriskbirthswillhaveincreasedchoicesforqualitycare,reducingtheneedformorecostly
hospitalorspecializedcare.
AspartofOntariosenhancedmidwiferyservicesprogram,twonewIndigenousmidwiveswillbe
hiredattheDilicoFamilyHealthTeamClinicinFortWilliamFirstNation.Thesemidwiveswill
CHAPTERIV
provideculturallyappropriatechildandmaternitycareforupto30Indigenouswomenandtheir
childrenintheRobinsonSuperiorTreatyarea(thedistrictsofThunderBayandAlgoma)overthe
nextthreeyears.
ThegovernmentisinvestingtoestablishafurtherfiveIndigenousmidwiferyprogramsacrossthe
province:KTigaaningMidwives,Powassan;Kenhte:keMidwives,TyendinagaMohawkTerritory;
Onkwehon:weMidwives,Akwesasne;ShkagamikKweHealthCentre,Sudbury;andSouthwest
OntarioAboriginalHealthAccessCentre,London.Ontarioisalsoofferingdevelopmentgrantsto
Indigenousorganizationsacrosstheprovincetoexplorehowmidwiferyservicescouldbe
establishedintheircommunities.
In2017,Ontariowilltakethenextstepstoenhancethemodelbyexpandingtheauthorityof
LHINstoassumeresponsibilityfortheplanningofprimarycareandthedeliveryofhomeand
communitycare.
SectionA:StrengtheningHealthCare 127
Beginningin2017,LHINswillalsostartworkingthroughsmallersubregionstoensurethat
individualcommunitieshealthneedsarebetteridentifiedandaddressed.Thesesubregions
ensureabetter,morelocallensforplanningandperformanceimprovementinOntarios
diversecommunities.
InalignmentwiththePatientsFirstAct,2016,Ontarioissupportingpatientengagement.
TheMinisterofHealthandLongTermCarewillestablishaprovincialPatientandFamilyAdvisory
Counciltoadviseonstrengtheningpatientengagementandkeyhealthpolicyprioritiesthatimpact
patientcareandexperience,toensuretheneedsandconcernsofpatientsandcaregiversare
heardandunderstood.EachofOntarios14LHINswillalsoestablisharegionalPatientandFamily
AdvisoryCommitteetoimprovecommunicationbetweenpatients,familiesandtheLHINs,support
improvedpatientcareexperiences,andfosterpatientinvolvementincaredelivery.
In2017,Ontariowillreleasea10pointactionplanforDigitalHealthinOntario,investing
$15millionfocusedonopeningupnewwaysforpatientsandfamiliestoaccesshealthinformation
andservicesdigitally.Theseactionswillstrengthenthequality,effectivenessandaccountability
ofthecaredelivered,andstimulateinnovationandgrowthfortheeconomythroughinvestments
indigitalhealththatwillreducewaittimes,improveaccesstocare,andimprovethepatient
experience.
128 ChapterIV:PublicServicesYouCanCountOn
Thegovernmentwillcontinuetosupportits
strongcommitmenttocreateasmokefree HelpingmoresmokersquitispartoftheSmokeFree
Ontario.Byprovidingfreenicotine OntarioStrategy.
CHAPTERIV
replacementproductsandbyinvestinginnew
smokingcessationsprogramsacrosstheprovince,
Ontarianswillhavethesupporttheyneedtoquitsmokingandstayhealthy.
Thegovernmentwillalsocontinuetobuildonthestrategysprogressbyincreasingtobaccotax
ratesby$10percartonofcigarettesoverthenextthreeyears,beginningwithanimmediate
$2percartonincrease,effective12:01a.m.,Friday,April28,2017.Tobaccotaxesareaproven
methodofsupportingsmokingcessationandpreventionefforts,andtheseincreaseswillhelp
driveOntariotowardsthelowestsmokingratesinCanada.
SectionA:StrengtheningHealthCare 129
Helping Ontarians Make Healthy Choices So They Stay Healthy Longer
To give people the information they need to make healthier food choices, as of 2017, the Healthy
Menu Choices Act requires food outlets with 20 or more Ontario locations to post calorie information.
Ontario provides screening of about 140,000 newborn babies for 29 diseases that are all treatable,
including metabolic, endocrine and sickle cell diseases, and cystic fibrosis. In 2003, newborns were
screened for only two diseases.
To protect Ontarians against preventable and sometimes serious diseases, like measles, mumps,
tetanus, whooping cough and chicken pox, 23 routine vaccinations are now offered free of charge for
babies, children and adults. In 2003, just 15 such vaccines were publicly funded.
Ontarios Healthy Kids Strategy encourages kids, families and communities to support healthy
behaviours and healthy weights before birth and in the early years.
The Provinces Healthy Kids Community Challenge, offered in 45 communities across Ontario,
including six Indigenous communities, enhances the well-being of Ontarios children by promoting
nutritious eating, physical activity and healthy behaviours.
The Province will be providing $5 million over five years to the Canadian Mens Health Foundation to
lead initiatives that will promote and improve mens health across the province, using an outcome-
based strategy to achieve patient-centric behavioural change.
TheHealthyKidsCommunityChallengehelpscreatecommunitieswhereitseasy forchildrentolead
healthierlives.
130 ChapterIV:PublicServicesYouCanCountOn
Health Innovation
WiththecreationoftheOfficeoftheChiefHealthInnovationStrategist,thegovernmentisdriving
theadoptionanddiffusionofnewhealthtechnologiesandprocessestoimprovepatient
outcomes,addvaluetoOntarioshealthcaresystemandcreatejobs.Thisispartofthe
governmentseffortstogrowsmallandmediumsizedenterprisesinOntariowhiletransforming
thehealthcaresystem.
Throughthe$20millionHealthTechnologiesFund,Ontarioisimprovingpatientcarewithcutting
edgehealthtechnologybyprovidinggrantsfor15newprojectsthatwillimprovepeoplescareat
homeandintheircommunities.TheOntariogovernmentwillbeprovidinggrantstoadditional
projectsinthecomingyear.ThefundsupportsthedevelopmentofOntariobasedhealth
technologiesthatimprovecareforpeople,bringvaluetothehealthcaresystem,andcreatejobs.
Through this initiative, the Province will develop a proof-of-concept digital registration and
public authentication service that will allow parents and/or guardians to securely and easily
CHAPTERIV
access their childs Yellow Card immunization records electronically, using their banking
credentials. This digital process may be expanded to test a Patients First Access Channel
where patients can find their health data (e.g., lab records, current medications, hospital
visits), regardless of where the digital record actually resides.
The idea will receive a one-time investment of $1 million in 201718, and progress updates
will be provided throughout the year at Ontario.ca/budgettalks.
SectionA:StrengtheningHealthCare 131
Health System Research Fund
Theneedforscientificevidencetosolvecomplexhealthsectorchallengesisgreaternowthanever
before.OntariowillcontinuetoinvestintheHealthSystemResearchFund(HSRF)includingtwo
newawardsin2017:theProgramAwardsandtheTargetedCallforNursingResearch.Byfostering
collaborationbetweentheresearchersandknowledgeusers,thisFundiscontributingtostrategic
healthsystemprioritiesanddeliveringonthePatientsFirstActionPlan.
132 ChapterIV:PublicServicesYouCanCountOn
Section B: InvestinginEducation
Introduction
Ontarioshighlyeducatedworkforceisoneofitsgreateststrengths.Morestudents
85.5percentaregraduatingfromhighschoolthaneverbefore.Andin2016,theprovince
achieveda68percentpostsecondaryattainmentrate,higherthanratesforanycountryinthe
OrganisationforEconomicCooperationandDevelopment.
Ontariosworldclasseducationsystemprovideslearners,youngandold,withopportunitiesto
accesshighqualityeducationandtrainingprograms,givingthemtheknowledgeandskillsthey
needforsuccessinthemoderneconomy.
TheProvinceiscommittedtohelpingallchildrenandstudentsreachtheirfullpotentialby
preparingthemforpostsecondaryeducationandtraining.Allchildrenbenefitfromastronger
startinschoolandinlife,beginningwithafulldaykindergarten(FDK)program.Morethan
onemillionchildrenhavebeenenrolledintheFDKprogram,preparingthemforgreatersuccess
inschoolandincreasingoverallGrade1reading,writingandmathscores.
CHAPTERIV
Throughinnovativeprogramsandanenhancedfocusonhandsonlearning,Ontarioisensuring
thathighschoolstudentsarepreparedforfurthereducationandtheworldofwork.Bymaking
postsecondaryeducationmoreaccessibleandaffordable,thegovernmentishelpingpeople
pursueorretrainfortheircareerofchoice.
Acrosstheprovince,thegovernmenthasinvestedinnewandrenovatedclassroomsandschool
facilities.Since2013,146newschoolsand183majoradditionsandrenovationshavebeen
completedtobettersupportstudentachievementandwellbeing.
SectionB:InvestinginEducation 133
134 ChapterIV:PublicServicesYouCanCountOn
Achieving Excellence
Reducing Class Sizes
ReducingclasssizesispartofOntarioscommitmenttoimprovingeducationandisproviding
teacherstheopportunitytospendmoreoneononetimewithstudents.Since200304,the
ProvincehasreducedtheaverageclasssizeinGrades4to8tofewerthan25students.However,
certainschoolboardsstillhaveclasssizesabovetheprovincialaverage.ThatiswhytheProvince
ismakingadditionalinvestmentstohelpensurethatallschoolboardsmovetoanaverageclass
sizeinGrades4to8offewerthan25students.
Currently,FDKclassesareregulatedataboardwide
FDK classrooms include both a teacher
averageof26students.However,certainFDKclasses
and an early childhood educator. Having
mayexceedthisaverage.Tomeetthischallenge, two qualified professionals in the
theProvinceismovingforwardwithintroducingclass classroom for the full school day allows
sizecapsof30studentsforFDKclassesin201718, more time for individual attention and
small-group instruction.
and29studentsin201819.
CHAPTERIV
Smallclasssizesmeanstudentsgetmoretimeand
attentionfromteachersandtendtodobetter
inschool.
SectionB:InvestinginEducation 135
Improving Math Knowledge and Skills
Mathknowledgeandskillsarecriticalcomponentsof
success.Ontariosmathcurriculumhasbeendesignedto Homework Help provides students
helpstudentsbuildasolidconceptualfoundationinmath with free, real-time, one-on-one math
sotheycandevelopskillssuchasproblemsolving, tutoring by certified Ontario teachers.
Thegovernmenthastakenanumberofstepstostrengthenstudentsmathematicalunderstanding
andproblemsolvingskills,including:
ImplementinganimprovedmathstrategythatensuresteachersinGrades1to8nowspend
60minutesperdayfocusingoneffectiveinstructioninmath;
IntroducingTVOmPowerinclassrooms,whichprovidesstudentswithacreative,
gamebasedmathresourcedesignedtofosterpositiveattitudestowardsmathanddevelop
foundationalnumeracyandmathskills;and
Supportedleadmathteachers,coachesandprofessionallearningcoursesinallschoolsto
supporteffectivemathteachingandlearning.
Withanenhancedfocusonmathskills
bothinsideandoutsidetheclassroom,more
studentsimprovetheirmathskillsandlearn
problemsolvingtheycanapplyin
theirdailylives,whichwilleventuallygive
themacompetitiveadvantageinahighly
skilledworkplace.
Moreresourcestohelpstudentsimprovetheirmath
skillswillbetterpreparethemforfuturejobs.
136 ChapterIV:PublicServicesYouCanCountOn
Supporting Education for the Changing Economy
Ontarioispartneringwitheducatorson29pilotprojectsacrosstheprovincetorevisethecurrent
highschoolcareerstudiescourseandhelpstudentsdeveloptheskillstheyneedtocompeteinthe
rapidlychangingandhighlycompetitiveglobaleconomy.
Thecareerstudiespilotprojectswillincludethedevelopmentofinnovativelearningopportunities
relatedtofinancialliteracy,entrepreneurshipskills,digitalliteracyandcareer/lifeplanning.
Teacherswillexaminewaysto:
Equipstudentswiththeskillsandknowledgetheywillneedinthenewglobaleconomy;
Helpstudentsexploreallcareerpathsandopportunities;and
Supporttheteachingandlearningofthecoursethroughavarietyofnewmethods.
Teachersfeedbackfromthesepilotswillbeinstrumental
inhelpingtodeterminewhatthecareerstudiescourse TVOs TeachOntario features
innovative ways for teachers to
mightbecome.
engage students in mathematics
with coding and programming.
OntariohasalsointroducedaFinancialLiteracyStrategyinto
Grade4to12classrooms.Thisstrategyfocuseslearningon
CHAPTERIV
integratingfourkeycomponentsoffinancialliteracyintothecurriculum:personalfinance,
economicunderstanding,consumerawarenessandcitizenship.
SectionB:InvestinginEducation 137
Implementing Ontarios Indigenous Education Strategy
ThroughmeaningfulengagementwithIndigenouspartners,improvingIndigenouseducationin
Ontarioisanimportantpartofthegovernmentsplantocreatejobs,growtheeconomyandhelp
peopleintheireverydaylives.
TheProvinceprovidessupporttoallschoolboardsacrossOntariotohireadedicatedIndigenous
EducationLeadtocollaboratewithFirstNation,MtisandInuitcommunities,organizations,
studentsandfamiliestosupporttheimplementationofOntariosIndigenousEducationStrategy.
Thestrategyfocusesonachievingtwoprimaryobjectives:
Improvingachievementandwellbeing
amongFirstNation,MtisandInuit
students;and
Closingtheachievementgapbetween
Indigenousstudentsandallother
students.
InvestinginIndigenouseducation,wellbeing
andachievementisoneofmanystepson
Ontariosjourneyofreconciliationwith
TeachingeverychildinOntariothetruthaboutour
Indigenouspeoplesandpartofthebroader
pastandwhatitmeanstoday.
goalsofensuringOntarioseducationsystem
promotesthesuccessofallstudents.
TheagreementwillsupportongoingcollaborationonstrategiestopromoteAnishinabekstudent
successandwellbeing,supporttransitionsbetweenFirstNationschoolsandOntarioschools,
andassisttheAnishinabekEducationSystembyprovidinghighquality,Anishinabekeducational
programsandservicesinFirstNationschools.
138 ChapterIV:PublicServicesYouCanCountOn
Ensuring Equity
Strengthening Supports for Students with Special Needs
Ontarioiscommittedtoensuringallchildrenandstudentswillbeinspiredtoreachtheirfull
potential,withaccesstorobustservicesandeffectiveprogramsintheirhomecommunities.
EquityandinclusioninOntarioseducationsystemhelpallstudentsachieveexcellence,regardless
oftheirbackgroundorpersonalcircumstances.
TheProvinceisstrengtheningsupportsforstudentswithspecialneedsthroughanumberof
investments,including:
Keepingallprovincialanddemonstrationschoolsopentosupportstudentswhoaredeafor
hardofhearing;blindorhavelowvision;deafblind;orwhohaveseverelearningdisabilities;
Pilotingintensivereadinginterventionprojectsinschoolboardstoincreasetheavailability
andresponsivenessoflocalcommunitysupportsforstudentswithseverelearning
disabilities;
Establishingareferencegrouptoprovideguidanceandinputonstrengtheningsupports
forstudentswhoaredeaforhardofhearing;and
CHAPTERIV
PursuinglegislativechangestotransferthegovernancestructureofCentreJulesLgerto
the12FrenchlanguageschoolboardstobettersupportFrenchlanguagecommunities.
SeeChapterIV,SectionD:BuildingInclusiveCommunitiesandImprovingtheJusticeSystem
foradditionaldetails.
SectionB:InvestinginEducation 139
Promoting Student Well-Being
Ontarioknowstheimportanceofwellbeingtotheoverallgrowthanddevelopmentofchildren
andstudents.For70percentofadultswhoarelivingwithmentalhealthchallenges,their
symptomsdevelopedduringchildhoodoradolescence.Necessarytreatmentisoftennotgiven
earlyenough,withmanyfamiliesstrugglingtonavigateservicesandgettherightsupportfortheir
childrenandyouth.
Childrenwhohaveapositivesenseofselfarebetterpositionedtoreachtheirfullpotential.Thatis
whythegovernmentisinvestinganadditional$49millionoverthenextthreeyearsindeveloping
andstrengtheningprogramstoimprovestudentscognitive,emotional,socialandphysical
developmentthroughEquityandInclusiveEducation,SafeandAcceptingSchools,HealthySchools
andPositiveMentalHealth.
TheProvinceislookingtodevelopasharedvisionofhowthegovernmentcanbestsupportthe
wellbeingofallstudentsandstaffincollaborationwithcommunitymembers.Tosupportthis
sharedvision,Ontarioisseekinginputtodevelopanunderstandingofthechallenges,
opportunitiesandmeaningfulindicatorsofwellbeingfromkindergartentoGrade12,suchas
physicalactivity,bullyingandmentalhealth.ThegovernmenthasalsoestablishedSchoolMental
HealthASSIST,whichhelpsschoolboardsbuildcapacitytosupportstudentmentalhealthand
wellbeing.
Arevisedhealthandphysicaleducationcurriculumisalsohelpingstudentsdeveloptheskillsand
knowledgethatwillenablethemtoenjoybeingactiveandhealthythroughouttheirlives,through
opportunitiestoparticipateregularlyandsafelyinphysicalactivityandtolearnhowtodevelop
andimprovetheirownpersonalfitness.
TheProvincehasselectedtheHamiltonWentworthDistrictSchoolBoard,inpartnershipwith
theOffordCentreforChildStudiesatMcMasterUniversity,toleadaprovincewideknowledge
networkthatwillconnectfrontlineeducatorstothemostuptodateresearchonstudent
wellbeing.Thegoalistopromoteevidencebasedpractices,suchashighqualityprofessional
learning,localleadershipandtheimplementationofsocialandemotionallearning.
Youth-in-care, such as those in foster homes, face unique challenges to their education. When young
people move homes, they often have to relocate to another school, even if they stay within the same
general area. The government is investing $21 million over the next three years in services for youth-in-
care, including transportation services so that they can stay at the same school, even if their housing
situation changes locally. This will help ensure that these students can build connections with their
school and teachers, providing significant stability for their education.
140 ChapterIV:PublicServicesYouCanCountOn
Building New and Improved Schools
TheProvinceisprovidingalmost$16billionincapitalgrantsover10yearstohelpbuildnew
schoolsinhighgrowthareas,improvetheconditionofexistingschoolsandinvestinprojectsto
reducesurplusspace.
Aspartofthisinvestment,Ontarioiscontinuingtofundschoolrenewalacrosstheprovince.
Buildingonthe2016commitmenttoincreaserenewalfundingforschools,theProvincewill
extendthecommitmentwithanadditional$1.2billioninfundingforrepairsandrenewaloverthe
nexttwoschoolyears.Thisfundingwillcontinuetoenableschoolboardstorepairroofs,update
HVACunitsandmodernizeelectricalandplumbingsystems.Thisinvestmentwillalsoimprove
visibleelementsofschoolsthatimpactstudentslearningandwellbeing,includingflooring,walls,
ceilingsandplayingfields.
TheProvincewillalsomakeinvestmentsinschoolrenewalaspartofOntariosClimateChange
ActionPlan.Ontariowillprovidefundingforexistingschoolstoimproveenergyefficiencyand
installrenewableenergytechnologies.Technologiescouldincludebuildingautomationsystems,
energyefficientwindows,solarenergyandgeothermalsystems.Theseimprovementswillhelp
reducegreenhousegaspollution,improvefinancialsustainability,promoteenvironmental
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stewardshipandsupportstudentachievement.
Acrosstheprovince,Ontarioisinvestinginnewandimprovedschools,whichwillhelpdeliver
highqualityprogramstoallstudentsandwillincreasestudentachievementandwellbeing.
Currently,theProvinceisbuilding95newschoolsandexpandingandrenovating54existingones.
SectionB:InvestinginEducation 141
CHART 4.2 Examples of Schools To Be Opened or Under Construction in 201718
North
Additions/Renovations
An addition to Kingsway Park Public School in Thunder Bay will
include the addition of three full-day kindergarten rooms, two
classrooms and three child care rooms, as well as an expanded
gymnasium.
Eastern
New Schools
A new elementary school in the Findlay
Creek area of Ottawa will serve 674
elementary students from junior
kindergarten to Grade 8.
Additions/Renovations
An addition to cole lmentaire
catholique Horizon-Jeunesse in Ottawa,
operated by the Conseil des coles
catholiques du Centre-Est, will create
space for an additional 390 students, and
is expected to open in September 2018.
Central
New Schools
Southwest The new cole secondaire Gatan-Gervais
will provide French-language education for
New Schools 392 students from Grades 7 to 12 in a modern
Groh Public School in Waterloo region will and accessible school in Oakville.
accommodate 600 students from junior
kindergarten to Grade 8. The school will offer The new George Webster Elementary School,
students, staff and families a state-of-the-art near St. Clair Avenue East and Victoria Park
building with new art, science and Avenue in Toronto, will accommodate 848
music classrooms. students and will also include child care space.
The new school is expected to open in
Additions/Renovations September 2018.
St. Clair Secondary School in Sarnia will
undergo a major renovation, creating space Additions/Renovations
for an additional 528 students. The school St. Jean de Brebeuf Catholic Secondary School in
is expected to open in September 2018. Hamilton will undergo an addition and renovation,
adding space for 105 new students, to address
growing enrolment in the area. The renovations
will also update the schools mechanical systems.
142 ChapterIV:PublicServicesYouCanCountOn
RenderingofthenewSiouxLookouthighschool,replacingQueenElizabethDistrictHighSchool,andslated
tobecompletedbySeptember2018.
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WestGatePublicSchoolinWindsoropenedin OrilliaSecondarySchoolopenedinMarch2016.
September2014.
MichalleJeanPublicSchoolinAjaxopenedin St.BenedictCatholicElementarySchoolin
September2015. NepeanopenedinSeptember2016.
SectionB:InvestinginEducation 143
Negotiating Central Agreements for Teachers and
Education Workers
Thegovernmentrecentlyreachedtentativeagreementswithteachersfederationsandeducation
workersunionstoextendthecurrentcontractsfortwoyears.Theseagreementsincludemodest
wageincreasesandadditionalsupportforteachersandclassrooms.Thetentativeagreements
reachedallowteacherstostayfocusedonstudentssuccessandreducetheriskofdisruptions
duringtheschoolyear.
InMarch2017,amendmentstotheSchoolBoardsCollectiveBargainingAct,2014werepassed,
allowingtheProvincetoimplementtherecentlynegotiatedagreementsandenhanceanalready
successfulmodelforcollectivebargaininginOntarioseducationsectorwithincreasedflexibility,
transparencyandconsistency.
144 ChapterIV:PublicServicesYouCanCountOn
Ensuring a High-Quality, Accessible Postsecondary
Education System
Ontariosuniversitiesandcollegesareamongthebestintheworld.Theyplayasignificantrole
inensuringstudentsreceivetheknowledgeandskillstheyneedtosucceedinthemodern,
knowledgebasedeconomy.Manystudentsnowfacearapidlychanginganduncertainworldafter
graduation.Thegovernmentistransformingthepostsecondaryeducationsystemtoensurethatit
remainshighlycompetitiveandequipsstudentsforthechallengesandopportunitiesofachanging
globaleconomy.
Itstartswithaccess.Beginningthisfall,OntarioisrollingouttheredesignedOntarioStudent
AssistanceProgram(OSAP)toprovidemoretransparent,timelyandtargetedfinancialassistance
tostudentswiththegreatestfinancialneed.Thesechangeswillmakeaveragetuitionfreefor
morethan210,000Ontariostudentsandreducethecostformanymore,ensuringthatmore
Ontariansareabletopursueapostsecondaryeducation.SeeChapterII:HelpingYouandYour
Familyforadditionaldetails.
Itsalsoaboutopportunity.Ontarioisincreasingitsfocusongivingstudentstheskillsand
experiencerequiredfortheeconomyoftomorrow.Thisincludespromotinginnovativeteaching,
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helpingwithcareerreadinessandcreatinganoutcomeorientedpostsecondaryeducationsystem.
Throughpartnershipswithuniversities,collegesandemployers,OntariowilllaunchitsnewCareer
KickStartStrategy.Formoreinformation,seeChapterIII:CreatingOpportunitiesandSecurity.
Inordertoprovidepeoplewiththebesteducationandopportunities,thesystemneedstobe
adaptive,supportiveandsustainable.Overthelasttwoyears,theProvincehasbeenworkingwith
universitiesandcollegestoreformtheirfundingformulas,effective201718.Thenewfunding
modelwillsupportarenewedfocusonprovidinghighqualityoutcomesforstudentsbytyinga
portionofcollegeanduniversityfundingtoperformanceoutcomesandareasofinstitutional
strength.Usingbothinstitutionalandsystemlevelmetrics,thegovernmentwillworkwith
collegesanduniversitiestosetclearperformancetargetsthroughstrategicmandateagreements.
SectionB:InvestinginEducation 145
Investing in Postsecondary Education Infrastructure
TheProvincealsocollaboratedwiththefederalgovernment,colleges,universitiesandAboriginal
InstitutestoimplementthePostSecondaryInstitutionsStrategicInvestmentFundinOntario.
Sharedinvestmentsofmorethan$1.9billionfrom201617to201819willenhanceand
modernizeresearchfacilitiesoncampusesandimprovetheenvironmentalsustainabilityof
thesefacilities.
TABLE4.2 ExamplesofProjectsBenefitingfromSharedInvestmentsunderthe
PostSecondaryInstitutionsStrategicInvestmentFundinOntario
Durham College Building a new Centre for Collaborative Education that will
include a Global Class initiative that connects students with subject-matter experts
around the world, and an Entrepreneurship Centre that connects students with local
business leaders, providing access to the resources and expertise needed to
launch new companies and startup ideas.
146 ChapterIV:PublicServicesYouCanCountOn
Advancing Education and Career Opportunities for Indigenous Learners
Thegovernmentiscommittedtostrengtheningthepathwaystopostsecondaryeducationand
trainingforIndigenouslearners,whilerecognizingandbuildingthecapacityofthenine
IndigenousownedandoperatedAboriginalInstitutesinOntario.
ThatiswhytheProvinceisinvestingabout$200millionoverthreeyearstosupportkey
initiativesthatwillhelpmoreFirstNation,MtisandInuitlearnersaccesshighquality
postsecondaryeducationandtrainingopportunities.Thisincludesaninvestmentof$56million
overthreeyearstoenhancethecapacityandsustainabilityofninepubliclyfundedAboriginal
InstitutesinOntario.
ThishistoricinvestmentinthesustainabilityofAboriginalInstitutessupportsthesharedgoalof
increasingeducationalaccessandopportunitywhileprovidingcertaintyforIndigenouslearners
inOntario.
TheinstitutesprovideapathwayforIndigenous
Aboriginal Institutes in Ontario deliver a wide
learnerstosuccessfullyadvancetheireducational
range of accredited postsecondary programs
andcareergoalsinculturallyappropriateandsafe in partnership with colleges and universities.
learningenvironmentsthatareclosetohomeand These institutions also develop curricula to
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arerunandgovernedbyIndigenouscommunities. address the current and future human
resource needs of local communities.
Theyofferpostsecondaryeducationandtraining
programs,indirectresponsetolocallabourmarket Examples include:
needs,toover1,000studentsannually.Onaverage, The First Nations Technical Institute
about300learnersgraduatefromAboriginal operates a flight program, in partnership
Instituteseveryyear. with North Bays Canadore College, which
is the only Indigenous postsecondary
Theinvestmentalsoreflectsbroadergovernment aviation program in Canada.
SectionB:InvestinginEducation 147
CHART 4.3 Aboriginal Postsecondary Education and
Training Institutes in Ontario
The Province is investing to improve digital services in 45 provincially funded First Nation
Public Libraries as well as 165 rural and 82 remote public libraries to better connect people
to web-based information and opportunities.
Depending on local needs, investments could provide Wi-Fi hotspot lending programs,
hardware and software resources, and technology-focused training opportunities.
The idea will receive a one-time investment of $1 million in 201718 and progress updates
will be provided throughout the year at Ontario.ca/budgettalks.
148 ChapterIV:PublicServicesYouCanCountOn
Section C: BuildingTransitandTransportation
Introduction
ToensureOntarioremainsacompetitiveandattractiveplacetolive,workandinvest,theProvince
willcontinuetobuildthenextgenerationoftransportationinfrastructure.Ontarioplanstoinvest
about$84billionover10yearsinthetransportationsector,including$56billionforpublictransit
and$26billionforhighways,supporting50,000jobsonaverage,eachyear.Throughthese
investments,thegovernmentisworkingtowardsitsgoalofprovidingaworldclasstransitand
transportationsystemthatmovespeopleandgoodssafelyandefficientlytosupportaglobally
competitiveeconomyandahighqualityoflife.
CHAPTERIV
What Weve Been Doing since 2013
Constructing rapid transit projects like the Eglinton
Crosstown Light Rail Transit and completing the Union
Pearson Express airport rail link
Increasing the number of weekly trips and two-way service
Investing in across the GO rail network to provide more options to
Transit and commuters and travellers
Building or repairing 435 bridges and more than
Transportation 2,800 kilometres of highways, including four-laning major
highway corridors in northern Ontario, to keep people and
goods moving
Supporting municipal transit by providing over $1.3 billion
in gas tax funding
SectionC:BuildingTransitandTransportation 149
CHART 4.4 Investments in Transit and Transportation
over the Next 10 Years
TheProvinceisleadingtherenewalandexpansionoftransportationandothercritical
infrastructureforOntarians.AsignaturecomponentistheMovingOntarioForwardplan,which
includesinvestmentsforpublictransit,transportationandotherpriorityinfrastructureprojects
throughouttheprovince.
InJanuary2017,theProvincereleaseditsBuildON2017InfrastructureUpdateandaninteractive
website1thatfeaturesasampleofmorethan2,500keyprojectscurrentlyunderwayorcompleted
acrossdifferentsectors.Visitthiswebsite forfurtherinformationaboutongoingtransportation
projectsincommunitiesacrosstheprovince.
1
https://www.ontario.ca/page/buildingontario
150 ChapterIV:PublicServicesYouCanCountOn
Investing in Transit Projects
TheProvinceismanagingcongestion,connectingcommunitiesandprovidingpeoplewithmore
traveloptionsbyinvestinginpublictransit.
PRESTO
Over 2.5 million cards have been activated across the PRESTO network in the Greater Toronto and Hamilton
Area (GTHA) and Ottawa. As of December 2016, PRESTO was available across the Toronto Transit
Commission (TTC) network, including on all streetcars, buses, Wheel-Trans vehicles and accessible taxis,
and in at least one entrance to all subway stations. Additional PRESTO functionality will be added as the
TTC rollout continues throughout 2017 and into early 2018.
GO Transit
Regional Express Rail
GORegionalExpressRail(RER)isaplantoprovidefasterandmorefrequentserviceontheGOrail
network,withelectrifiedserviceoncoresegments,includingtheUnionPearsonExpress.Itisone
ofthelargesttransitinfrastructureinvestmentsinNorthAmerica.
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[Regional Express Rail] focuses on transforming the current regional GO Transit system into one that can
address the growing transportation demand of the [Greater Toronto and Hamilton Area] more efficiently.
Since its inception in 1967, GO Transits rail network has grown from a single rail line into one that
connects into 17 transit systems across many communities in the region.
The Canadian Centre for Economic Analysis (CANCEA), Regional Express Rails
Impact on Housing Affordability in the Greater Golden Horseshoe, 2016.
Thenumberofscheduledtripsacrosstheentire
GOrailnetworkisexpectedtogrowfrom
approximately1,500perweektonearly6,000
oncetheGORERisdeliveredby202425.
TheProvinceisadvancinginfrastructureworks
onanumberofprojectsontheBarrie,
Stouffville,LakeshoreEast,LakeshoreWestand
Kitchenerrailcorridors,includingstation
upgrades,gradeseparationsandtrackwork,and
layingthegroundworkforfutureelectrification. Reducingtraveltimesforcommutersbyexpanding
GOTransitrailservices.
SectionC:BuildingTransitandTransportation 151
GO Rail Extensions and Expansion
Workingwithfreightrailpartners,OntarioisalsomovingforwardwithextendingGOrailserviceto
BowmanvilleandNiagara,andexpandingservicetoKitchener.
The20kilometreextensionoftheLakeshoreEast
GOcorridorfromOshawatoBowmanvilleis GO by the Numbers
expectedtobeinserviceby202324.ThisGOrail Since 2013, Metrolinx has built three
extensionwillserveDurhamresidentswithfour new stations, completed major
proposednewstationsatThorntonRoadand expansions or renovations at
10 stations, added a total of more
RitsonRoadinOshawa,CourticeRoadinCourtice than 8,000 parking spots and
andMartinRoadinBowmanville. purchased 220 new buses,
124 new train coaches and 10 new
WeekdayGOrailservicebetweenthefuture train locomotives.
ConfederationGOStationinHamiltonandthe
NiagaraRegionisexpectedtobeginin2021,with
servicetoNiagaraFallsby2023.InadditiontothisstationinHamilton,threenewor
upgradedtrainstationsareproposedalongthecorridorinGrimsby,St.Catharinesand
NiagaraFalls.
Planningandtechnicalanalysesareunderwaytoenabletwoway,alldayGOrailservice
alongtheKitchenercorridor.
SmartTrack
The Province and the City of Toronto have agreed to an integrated GO RER/SmartTrack service concept,
which includes six new stations along the Kitchener and Stouffville/Lakeshore East GO rail corridors
within the City of Toronto, and a western extension of the Eglinton Crosstown LRT to Pearson International
Airport. The Province and the City have reached an agreement on the sharing of capital and ongoing
operating and maintenance costs.
Ontariowelcomesthefederalgovernmentscommitmenttoinvestabout$1.9billioninportions
oftheGORERproject,andwillcontinuetoseekpartnershipwiththefederalgovernmentto
advancetransitandtransportationprojectsacrosstheprovince.
152 ChapterIV:PublicServicesYouCanCountOn
Rapid Transit Projects
SeveralmajorprovincialtransitprojectsareplannedorunderwayacrosstheGreaterToronto
andHamiltonArea(GTHA).
HamiltonRapidTransitTheProvinceisproceedingwiththeconstructionofadedicated
lightrailtransit(LRT)linebetweenMcMasterUniversityandtheQueenstontrafficcircle.
Thisprojectwillsupportrapid,reliableandconvenienttransitforcommutersinthe
Hamiltonarea.Arequestforproposalsisexpectedtobereleasedlaterin2017.Inaddition
totheLRT,Ontarioisalsomovingforwardwiththeplanningforaproposed16kilometre
busrapidtransit(BRT)linethatwouldconnecttheHamiltonwaterfronttoHamilton
InternationalAirport.
HurontarioLRTTheProvinceisproceedingwithprocurementforapproximately
20kilometresofmodern,reliable,rapidtransittoMississaugaandsouthBramptonalong
theHurontariocorridorfromPortCreditGOStationtoSteelesAvenue.Arequestfor
proposalsisexpectedtobereleasedlaterin2017.
EglintonCrosstownLRT
Constructioniswellunderwayforthe
EglintonCrosstownLRTinToronto,
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whichwillrunacrossEglintonAvenue
betweenMountDennis(WestonRoad)
andKennedyStation.The19kilometre
corridorwillincludea10kilometre
undergroundportionbetweenKeele
StreetandLairdDrive.Tunnellingwork
ontheundergroundsectionoftheLRT
isnowcomplete,andprogress ThetunnelboringmachineattheEglintonCrosstown
continueswithearlyworksatall LRTconstructionsite.
undergroundstations.
FinchWestLRTThisprojectwillbring11kilometresofdedicatedrapidtransitto
TorontobetweenHumberCollegeandKeeleStreet.Theprocurementprocessforthe
projectisongoing.
MississaugaTransitwayThe18kilometretransitwaywillhave12stationsfromWinston
ChurchillBoulevardinthewesttoRenforthDriveintheeast.ConstructionofWinston
Churchillstationiscompleteandtheentireprojectisexpectedtobeinservicethisyear.
YorkVIVANextBRTThisprojectisbeingimplementedinseveralsegments,withthe
Markham,RichmondHillandNewmarketsegmentsalreadyopened.TheHighway7
VaughanMetropolitanCentresegmenteastofJaneStreetisscheduledtobeoperational
inspring2017,andtheremainingsegments,alongYongeStreet,inRichmondHilland
Newmarket,andalongHighway7inVaughan,willbeinservicebyDecember2019.
SectionC:BuildingTransitandTransportation 153
Municipal Infrastructure Projects
TheProvinceissupportingkeymunicipaltransitprojects,including:
WaterlooIONRapidTransitStage1includes17kilometresofadaptedBRTfromFairview
ParkMallinKitchenertoCambridgesAinslieStreetterminal,aswellas19kilometresofLRT
fromConestogaMallinWaterlootoFairviewParkMallinKitchener.TheadaptedBRT
openedforserviceinSeptember2015.
TheLRTportionis90percent
complete,andisexpectedtoopenin
2018.TheProvinceisinvestingupto
$300milliontowardsthisproject.
OttawaLRTStage1isontrackto
launchin2018;all13stationsare
underconstruction.Followingits
launch,constructionforStage2
extensionsisscheduledtobegin,with
projectedcompletionin2023.The TheConfederationLinesRideauStationunder
Provinceisinvestingabout$1.6billion construction,partofOttawasLRTproject.
towardsStages1and2ofthisproject.
Ontariowillincreasetheshareofrevenuemunicipalitiesreceivefromtheprovincialgastaxfrom
$334millionin201617toanestimated$642millionby202122,fromtheexistingprovincialgas
tax.Thiswillbeachievedbydoublingthemunicipalshareofthegastaxfromtwocentsto
fourcentsperlitreby202122.
Theenhancementtotheprovincialgastaxprogramwillprovideastablesourceoffundingfor
municipalitiestoimproveandexpandtheirlocaltransitsystemsandoffermoretraveloptionsfor
commutersandfamilies.
154 ChapterIV:PublicServicesYouCanCountOn
Increasing Funding for Local Transit
Municipalities can use gas tax funds toward local transit priorities, such as making infrastructure
upgrades, buying transit vehicles, adding more routes, extending hours of service, implementing fare
strategies and improving accessibility.
Gas tax allocations are calculated through a formula based 70 per cent on ridership and 30 per cent on
population. Through the gas tax program, Ontario helped 99 cities and towns improve their transit
systems in 201617, including:
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SectionC:BuildingTransitandTransportation 155
Additionally,theProvincecontinuestomoveforwardwithhighwayexpansionandrenewal
projectstosupporteconomicgrowthandimprovemobility.
TABLE4.3 HighlightsofHighwayProjects
Region Description
Central Highway 427 Extending the highway by 6.6 kilometres from Highway 7 to Major Mackenzie Drive,
and adding lanes from Finch Avenue to Highway 7. It will also include High-Occupancy Toll (HOT) lanes
anticipated to open in 2021.
Highway 404 Widening the existing highway from six to eight lanes to add High-Occupancy Vehicle
(HOV) lanes between Highway 407 ETR and Stouffville Road, starting in 2018, in collaboration with the
federal government.
Highway 410 Continuing with the construction work by widening and rehabilitating structures between
Eglinton Avenue on Highway 403 and Queen Street on Highway 410.
Highway 407E The new Highway 407E project includes three highways: Highways 407, 412 and 418,
which will help relieve congestion and support the efficient movement of people and goods through the
eastern GTHA and beyond. Phase 1 of the project is open to traffic, and construction on Phase 2 will
continue until 2020.
Southwest Highway 401 in Cambridge Expanding a stretch of highway between Hespeler Road and Townline
Road, starting in 2018, in collaboration with the federal government. The project includes HOV lanes and
the replacement of two bridges.
Highway 7 in Kitchener Expanding Shirley Avenue in Kitchener from two to four lanes to facilitate
future construction of Highway 7 between Kitchener and Guelph, reconstructing a section on Wellington
Street North, building sidewalks and bike lanes, and making other improvements.
East Highway 417 Expanding the Ottawa Queensway from six to eight lanes between Maitland Avenue and
Island Park Drive to improve safety and traffic flow, starting in summer 2017. This project also includes
rehabilitating the Merivale Road bridge.
Highway 401 in Kingston Replacing the Cataraqui River bridge starting in spring 2017 and widening
the highway from four to six lanes between Highway 15 and Montreal Street.
North Northern Highways Program Investing $648 million in highway infrastructure across the region.
Work continues on:
Highway 11/17 Continuing with four-laning between Thunder Bay and Nipigon, from
5.0 kilometres west of Highway 587 easterly, and from Stillwater Creek to Red Rock Road No. 9.
Highway 69 Continuing with four-laning, from 1.0 kilometre north of Highway 522.
Highway 11 Resurfacing 5.0 kilometres of the northbound lanes south of Highway 534,
including bridge and culvert rehabilitation.
Highways 6 and 17 Resurfacing Highway 17 from west of Highway 6 easterly for
22.0 kilometres, along with bridge rehabilitations on both highways.
156 ChapterIV:PublicServicesYouCanCountOn
CHAPTERIV
Investinginhighwayexpansionandrenewalprojects helpsimprovetrafficforresidentsandbusinesses.
$3.0milliontotheTownofRenfrew,forthereconstructionofRaglanStreetfromHall
AvenuetotheBonnechereRiverValleyBridge;
$2.9milliontotheTownshipofChamplainforthereconstructionofHighStreetfromthe
intersectionofHighway34andMainStreetinVankleekHill,tothesouthernlimitsof
theTownship;
$2.7milliontotheTownofHearstfortherehabilitationofFrontStreet;
$2.4milliontotheCityofStratfordfortheresurfacingofErieStreet;and
$2.3milliontotheCityofSaultSte.MariefortheresurfacingoftwosectionsofSecondLine.
FundingfortheConnectingLinksprogramwillincreaseto$30millionperyearby201819.
SectionC:BuildingTransitandTransportation 157
Cycling Infrastructure
Ontario is investing in cycling projects by
adding more bike lanes and improving cycling
infrastructure, making it easier to get around
using pedal power. For example, the Province
has worked with the City of Toronto to double
the size of the existing Bike Share Toronto
network, with 1,000 new bikes and 120 new
stations added at major transit connections
with GO Transit, the TTC and the Union
Pearson Express.
158 ChapterIV:PublicServicesYouCanCountOn
Moving Forward on Transportation Plans and Projects
Developing the Northern Ontario Multimodal Transportation Strategy This is the first pan-northern,
integrated multimodal strategy that encompasses road, rail, air and marine transportation systems. It will
set long-term directions and considerations for the movement of people and goods in the north.
Investing in Planning and Design Work for Priority Transit Projects in the GTHA The Province continues
to support ongoing transit planning for the Toronto Relief Line, Yonge North Subway Extension and rapid
transit projects in the GTHA.
London Rapid Transit Project The Province continues to engage with the City of London on its proposed
project to connect neighbourhoods, businesses, and key hubs and economic activities across the city.
High-Speed Rail
In2015,thegovernmentappointedtheHonourableDavidCollenetteasaSpecialAdvisortoassist
inbringinghighspeedrailtotheToronto,KitchenerWaterloo,LondonandWindsorcorridor.
TheProvincewillnowadvancethecomprehensiveenvironmentalassessmentandsupport
additionaldesignandplanningworkforthecorridor.Ontarioisalsoconsideringthedevelopment
ofagoverningbodythatwouldprovideoversightfortheambitiousworkrequiredtodesignand
CHAPTERIV
implementhighspeedrail.
HighspeedrailcouldcuttraveltimesbetweenTorontoandWindsorfromfourhourstojust
overtwo,andwouldmakeOntariothefirstprovincetotransformitsrailnetworkthrough
highspeedrail.
SectionC:BuildingTransitandTransportation 159
Moving Ontario Forward with the Trillium Trust
ThroughtheMovingOntarioForwardplan,thegovernmentissupportingpublictransit,
transportationandotherpriorityinfrastructureinordertodevelopanintegratedtransportation
networkthathelpsmanagecongestion,connectpeople,andimprovetheeconomyandqualityof
life.Theplanissupportedbyamultiyearassetoptimizationstrategy,whichincludesbroadening
theownershipofHydroOne,thesaleofGeneralMotors(GM)sharescompletedin2015,
andunlockingthevalueofdesignatedProvincialrealestateassets.
InMarch2017,thegovernmentcreditedthe
TrilliumTrustwithanadditional$538million
innetrevenuegainsfromthesaleofHydro
Onesharesin2016.
Thegovernmentpreviouslycreditedthe
TrilliumTrustwithnetrevenuegainsfrom
thesaleoftheProvincessharesinGM,the
initialsaleofHydroOnesharesin2015and
thesaleoftheLiquorControlBoardof
Ontario(LCBO)headofficelands,bringingthe Ontarioissupportingthelargestinvestmentinpublic
totalamountcreditedtotheTrilliumTrustto infrastructureintheprovinceshistory.
$5.3billion.Thegovernmentremainson
tracktomeetitstargettodedicate$5.7billiontotheTrilliumTrust.
Asstatedinthe2016Budgetand2016OntarioEconomicOutlookandFiscalReview,the
governmenthasbegundrawingdownfundsfromtheTrilliumTrustin201617.Basedonplanned
expenditures,theTrilliumTrustisprojectedtobedrawndownbyabout$250millionin201617
andabout$400millionin201718tohelpsupportinitiatives,suchasGORER,theHurontarioLRT
andtheOCIF.
InJuly2016,theProvinceandFirstNationsinOntario,asrepresentedbytheChiefsinAssembly,
announcedanagreementinprinciplefortheProvincetoselltoFirstNations,fortheircollective
benefit,upto2.5percentoftotalcurrentoutstandingHydroOneshares,atapriceof$18per
share.TheagreementremainssubjecttoratificationbytheFirstNations.
160 ChapterIV:PublicServicesYouCanCountOn
ThroughthebroadeningofHydroOneownership,theProvinceremainsontracktogenerate
$4billioninnetrevenuegainsthat,throughtheTrilliumTrust,willbereinvestedininfrastructure
underMovingOntarioForward,and$5billiontoreducedebt.
TheProvinceisalsomovingforwardwithitsplanstounlockvaluefromotherrealestateassets,
includingtheSeatonandLakeviewlands.
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SectionC:BuildingTransitandTransportation 161
162 ChapterIV:PublicServicesYouCanCountOn
Section D: BuildingInclusiveCommunitiesand
ImprovingtheJusticeSystem
Introduction
AllOntariansshouldhavetheopportunitytorealizetheirpotentialandparticipatefullyinan
inclusivesociety.Ontariossocialserviceswillbestrengthenedtohelpensurethatpeoplehave
morestableandsecureincomes,moreaffordableandadequatehousing,andmoresupportfor
adultswithdevelopmentaldisabilities.Thiswillalsohelpensuremoreinvestmentinchildren
andyouth,andaccesstoanarrayofsocialservicesfornewOntarianssotheyfeelwelcomein
thisprovince.
ThegovernmentisalsotransformingOntariosjusticesystemtoprotecttheinterestsofall
peoplevictims,thepublicandtheaccusedwhileincreasingcommunitysafety.Ontarioalso
continuestoimprovethejusticesystemtomakeitfaster,fairerandmoreaccessiblethrough
courtprocessimprovementsandonlineserviceoptions.
CHAPTERIV
What Weve Been Doing since 2013
Improving social assistance by increasing rates,
providing extra support for people in remote and
northern communities, introducing an earnings
exemption and ending child support deductions
Exploring new ways of providing more consistent
and predictable support to lower-income Ontarians
including developing a Basic Income Pilot
Increasing and indexing the Ontario Child Benefit to
enhance the incomes of more than half a million
Building families
Communities Welcoming more than 17,000 Syrian refugees since
September 2015 and helping to support their
transition to a new life in Ontario
Doubling the number of people who have access to
legal aid services
Reducing time-to-trial and speeding up the
resolution of cases by appointing more judges and
delivering more courtroom resources
SectionD:BuildingInclusiveCommunitiesandImprovingtheJusticeSystem 163
More Stable and Secure Incomes
Globalization,newtechnologies,automationandotherfactorshaveledtostructuralchangesin
thelabourmarket.Thisincludesanincreaseinnonstandardemployment,suchastemporaryand
parttimework.Whilenonstandardemploymentcanprovideworkerswithgreaterflexibility,
itcansometimesbeprecariousandreduceanindividualsabilitytoearnastableandsecure
income.Inthiscontext,andtoprepareforthefuture,boldstepsareneededtostrengthen
Ontariosincomesecuritysystem.
Ontarioisrespondingtothesechangeswithamultifacetedapproachthatincludesmodernizing
theProvincesemploymentandlabourlawsaspartoftheChangingWorkplacesReview,
andequippingworkerswiththeskillsneededtosucceedthroughtheHighlySkilledWorkforce
Strategy.SeeChapterIII:CreatingOpportunitiesandSecurityformoredetails.Aspartofthis
approach,theProvinceisalsoexaminingnewwaystoimprovetheincomesecuritysystemandis
enhancingexistingsupportsforOntarianswhoneedthemmost.
TheHonourableHughSegal,alongtimeadvocateandtheProvincesSpecialAdvisorforthe
designandimplementationofOntariosBasicIncomePilot,deliveredadiscussionpaperinfall
2016.Guidedinpartbythispaper,thegovernmentpreparedaconsultationdocumentthat
focusedonkeyquestions,suchaseligibilityforthepilot,wherethepilotshouldtakeplace,what
thebasicincomelevelshouldbe,andhowbesttoevaluateit.Publicconsultationstookplacefrom
November2016toJanuary2017,withmorethan35,000peopleandanumberoforganizations
participating.
InMarch2017,thegovernmentreleasedtheBasicIncomeConsultations:WhatWeHeardreport
summarizingthefeedbackfromtheconsultations.Manyparticipantsvoicedsupportforabasic
incomepilotthatincludesarepresentativesampleofOntarians,liftspeopleoutofpoverty,
reflectstheprovincesdiversity,runsefficientlyandmeasuresspecificoutcomes.Inaddition,
throughaseparatebutparallelprocess,abasicincomepilotforFirstNationsisbeingcocreated
anddesigned.
164 ChapterIV:PublicServicesYouCanCountOn
ThreecommunitiesacrosstheprovinceHamilton,ThunderBay,andLindsaywillbeeligible
forparticipantsaged18to64.Throughthispilot,peopleearningbelowaspecifiedamountwill
receiveregularpaymentsthatwillhelpthembetteraffordbasicneedslikehousingorfood,and
participateinthecommunity.Enrollmentwillbevoluntaryandbasedoninformedconsent.Work
willcontinuewithexpertsandcommunitiestoensuredeliveryofaBasicIncomePilotthatisfair,
effective,andbasedonarepresentativesample.
CHAPTERIV
governmentestablishedtheIncomeSecurityReformWorkingGroup,andseparateworkinggroups
withFirstNationsandurbanIndigenouspartners.ThesegroupswillhelpguidetheProvinces
effortstoreducepoverty,supportpeopleintheireffortstoparticipateintheeconomyandtheir
communities,andprovideservicesinawaythatmakessensetothepeoplewhoneedthem.
Workisunderwayonthedevelopmentofamultiyearroadmapforanincomesecuritysystem
thatisbasedonequity,adequacy,sustainabilityandsimplicity.Areportwithrecommendationsis
anticipatedbeforetheendof2017.
TohelpimproveOntarioWorksandtheOntarioDisabilitySupportProgram(ODSP),the
governmentisinvestingmorethan$480millionoverfouryearstoraiseassetlimits,increase
incomeexemptionsforcashgifts,andprovidearateincreasethatwillbenefitmorethan900,000
peopleacrossOntario.
SectionD:BuildingInclusiveCommunitiesandImprovingtheJusticeSystem 165
Raising Social Assistance Asset Limits and Gift Exemptions
Peoplewhoareabletobuildsavingsaremoreresilientandbetterabletomanagetemporary
financialsetbacks.Thisiswhythegovernmentisprovidingmoreopportunitiesforpeople
receivingsocialassistancetosaveandavoidtheneedtodepletetheirassetsbeforegettinghelp.
Thegovernmentisincreasinglimitsoncashandotherliquidassets.Theselimitswillbeincreased
forsingleindividualsreceivingOntarioWorksfrom$2,500to$10,000,andfrom$5,000to$15,000
forcouples.ForODSPrecipients,thecashandotherliquidassetlimitswillbeincreasedfrom
$5,000to$40,000forsingleindividuals,andfrom$7,500to$50,000forcouples.Increasesto
assetlimitswilltakeeffectbyJanuary2018.
Recognizingthatpeoplereceivingsocialassistancemayalsorelyonthesupportoffamilyor
friends,theincomeexemptionforcashgiftswillbeincreasedfrom$6,000upto$10,000peryear
inbothODSPandOntarioWorks.Inaddition,giftsinanyamountwillnotreducetheamountof
socialassistancepeoplereceiveifthefundsareusedtopayforfirstandlastmonthsrent,
purchaseaprincipalresidence,orbuyavehiclethattheymayneed.Thesechangeswilltakeeffect
inSeptember2017.
Inaddition,theComfortAllowanceprovidedbytheMinistryofHealthandLongTermCareto
lowincomeresidentsoflongtermcarehomeswillberaisedbytwopercent.
Tohelpaddresstheuniquechallengesinnorthernandremotecommunities,includingthehigher
costoffoodandtransportation,theProvincewillalsoincreasetheRemoteCommunities
Allowancebyprovidinganadditional$50permonthforthefirstpersonand$25foreach
additionalfamilymember.
166 ChapterIV:PublicServicesYouCanCountOn
Increasing Access to Affordable and Adequate Housing
for All Ontarians
Implementing the Updated Long-Term Affordable Housing Strategy
Toincreaseaccesstoaffordablehousingandacceleratethegoaltoendchronichomelessness,
thegovernmenthascommittedtoinitiativesthatmakehousingprogramsmorecoordinatedand
responsivetotheneedsofindividualsandfamilies.Thegovernmentwillcontinuetosupportthe
implementationoftheupdatedLongTermAffordableHousingStrategy(LTAHS)tohelpthe
peopleofOntarioobtainaccesstoaffordableandadequatehousingandtohelpthemsecure
employment,raisefamiliesandbuildstrongcommunities,including:
TransformingOntariossupportivehousingsystem,targetinghomelesspriority
populationssuchaschronicandyouthhomelessaswellashomelessnessamong
Indigenouspeoplesandfollowingtransitionsfromprovinciallyfundedinstitutionsand
servicesystems,by:
DevelopingaSupportiveHousing
PolicyFrameworktoimprove
clientoutcomes;
CHAPTERIV
Providingapproximately
$200millioninfundingoverthe
nextthreeyearstoimproveaccess
forupto6,000familiesand
individualstohousingassistance
andservicessuchascounselling,
assistancewithmedication,andlife Creatingaffordablehousingoptions,includingthese
skillstraining;and newhomesinKingston.
Supportingtheconstructionofupto1,500newsupportivehousingunitsoverthe
longterm.
Investing$30millionoverthenextthreeyearsintheSurvivorsofDomesticViolence
PortableHousingBenefitPilottoeventuallysupportupto3,000survivorsofdomestic
violenceandprovidethemwiththeflexibilitytochoosewheretheywanttolive;and
Providing$90milliontotheCommunityHomelessnessPreventionInitiatives(CHPI)overthe
nextthreeyearstohelpfamiliesandindividualsstayintheirhomesorgetthehousingthey
need,throughawiderrangeofservicesandhomelessnesspreventionprogramsthatmeet
localneeds.
SectionD:BuildingInclusiveCommunitiesandImprovingtheJusticeSystem 167
Leveraging Provincial Land Assets to Build Affordable Housing
Theaffordablehousingsectorfacesanumberofchallenges,includingahighlevelofdemandfor
newunits,anoveralllackofsupply,andlimitedcapacityforconstructioninthenotforprofit
housingsector.
Toaddressthischallenge,theOntariogovernment,throughitsagencyInfrastructureOntario,will
establishanewprogramthatwouldstrategicallyleverageProvinciallandassetsasawaytobuild
moreaffordablehousingunitsacrosstheprovince.Theprogramwouldinvolvedisposingof
appropriateProvincialsurpluslandforbelowmarketvalueasamechanismtoleveragelongterm
affordablehousingsupplyaspartofthedevelopment.
ThisprogramwouldcomplementtheworkbeingdonetoestablishCommunityHubs,whichwill
alsouselandassetstoadvancecommunityuseofpublicproperties,whenaclearprovincial
interestisidentifiedandaviablebusinesscasecanbedemonstrated.Akeyelementofthe
initiativessuccesswillbeensuringthatthenewunitshaveaccesstoefficientandwellaligned
supportservicesthatmeetthecommunityneeds.Thenewunitswillalsosupportthe
governmentsenvironmentalandclimatechangegoals.
TheProvincewillpilottheprogramatmultiplesitesintheGreaterTorontoandHamiltonArea
(GTHA).Undertheprogram,theProvincewillcommit$70100millioninlandtodevelopupto
2,000newhousingunits,includingamixofmarketandaffordablehousing.Beginninginspring
2017,theProvincewillworkwithmunicipalities,thefederalgovernment,thehousingsectorand
otherinterestedstakeholderstoconfirmthepilotsitesandfinalprogramdesign.
168 ChapterIV:PublicServicesYouCanCountOn
Helping Vulnerable People
Supporting Adults with Developmental Disabilities
ThegovernmentremainscommittedtotransformingOntariosdevelopmentalservicessystem
withthegoalofsupportingpeopletoliveasindependentlyaspossibleininclusivecommunities
acrossOntario.
Thegovernmentwilltakeimmediateactionandinvest$677millionoverfouryearstohelpkeep
peopleoutofcrisesandgivemorepeoplethesupportsthatarerightforthem.Inparticular,
in201718,thegovernmentwill:
Provideover375additionalresidentialdevelopmentalservicesplacementsforindividuals
withurgentneedsandyouthtransitioningfromthechildwelfaresystem;
Support1,000additionaladultswithdevelopmentaldisabilitiestoparticipateintheir
communitiesthroughthePassportprogram;
Establishaspecializedresidentialsupporthomeforindividualswithcomplexneedswhoare
movingfromjusticefacilities;
Expandspecializedclinicalresponsesforindividualswithcomplexspecialneeds;and
CHAPTERIV
Improveaccesstolocalcommunityservicesbymakingthesystemeasiertonavigate.
Overthenexttwoyears,thegovernmentwillworkwithfamiliesandcommunitypartners
totransitionover400youngadultscurrentlyinthechildrenssystemintoadult
developmentalservices.
Thisinvestmentwillsupportthegovernmentsresponsetotherecommendationsofthe
OmbudsmanofOntariotoaddresssituationsofcrisisinvolvingpeoplewithurgentandcomplex
careneeds.TheProvinceiscommittedtocontinuingtoworkwithindividuals,familiesand
championstobuildonthefoundationsettodate.Thegovernmentsgoalistoprovidegreater
flexibility,choiceandinclusioninthedevelopmentalservicesthatareoffered.
SectionD:BuildingInclusiveCommunitiesandImprovingtheJusticeSystem 169
Supporting Children and Youth
Child Welfare Reform
Thegovernmentiscommittinganadditional$134millionoverfouryearstosupport
newinitiativesintheChildWelfaresector.Inaddition,onDecember8,2016,Ontariotookkey
stepstosupportfuturesystemtransformationbyintroducinglegislationtostrengthenand
modernizechildandyouthservices.TheChild,YouthandFamilyServicesAct,ifpassed,wouldput
childrenatthecentreofdecisionmaking;supportmoreaccountable,responsiveandaccessible
childandyouthservices;andstrengthenoversightforchildrensaidsocieties(CASs)andlicensed
residentialservicesby:
Raisingtheageofprotectionfrom16to18toincreaseprotectionservicesformore
vulnerableyouthinunsafelivingconditions.Theseserviceswouldsupporttheireducational
achievementandreducetheirriskforhomelessnessandhumantrafficking.
Improvingoversightofserviceproviders,includingCASs,sothatchildrenandyouthreceive
consistent,highqualityservicesacrosstheprovince.
IncorporatingnewinitiativesfromtheProvincethatwillalsosupportbetterserviceplanning
anddelivery,suchasthecreationoftheSupportingFamiliesFund,aswellasthe
implementationoftheOneVisionOneVoiceplaninCASs.
170 ChapterIV:PublicServicesYouCanCountOn
Addressing Racism
Aspartofthe2016Budget,thegovernmentcommittedtoaddressingracisminallforms
includingindividual,systemicandculturalracismandtoadvanceequalityforallOntarians
regardlessofrace,ethnicity,creedorculturalbackground.Thisincludedthecreationofthenew
AntiRacismDirectorate.
Anti-Racism Strategy
Followingprovincewideconsultations,thegovernmentreleasedABetterWayForward:Ontarios
3YearAntiRacismStrategicPlaninMarch2017.Thestrategyincludes:
Developingaframeworkforthecollectionofracebaseddatainvariousinstitutions,
includingthechildwelfaresystemandthejustice,educationandhealthsectors;
AnewOntarioBlackYouthActionPlantargetedatincreasingaccesstosupportsand
opportunitiesforBlackchildren,youthandtheirfamilies,toaddressoutcomedisparities;
Implementinganantiracismimpactassessmentframeworktohelpanticipateandremove
unconsciousbiasinproposedpolicies,programsanddecisions;
Newlegislationthatwould,ifpassed,ensurethesustainabilityandaccountabilityofthe
CHAPTERIV
Provincesantiracismworkbyprovidingaframeworkforgovernmentandorganizations
toidentifyandcombatsystemicracism;and
Publiceducationandawarenessinitiativestargetingracism,includingIslamophobia
andantiSemitism.
Aspartofthestrategy,thegovernmentwillcontinuetodeepenitsunderstandingofsystemic
racismwithracebaseddataandstrongercommunitycollaboration,andwilldeveloptoolsand
methodstointervenebeforeunconsciousbiasesinfluencegovernmentdecisionmaking
andimpactthepeopleofOntario.
SectionD:BuildingInclusiveCommunitiesandImprovingtheJusticeSystem 171
Indigenous-Focused Anti-Racism Strategy
AspartofOntariosActionPlanforReconciliation,andasakeycomponentofOntariosbroader
AntiRacismStrategy,thegovernmentisproviding$4millionovertwoyearstosupport
developmentoftwoIndigenousdesignedanddeliveredantiracismprograms.Thisincludes
ayouthleadingyouthprogramtotrainIndigenousyouthtoleadinteractiveworkshopsin
elementaryschools,highschools,postsecondaryschoolsandothercommunitysettings,
andtodiscusstheircommunitysexperienceswithracismandbiasesandtheirimpact.
Thesecondprogramisanantiracismtrainingtoolkitforuseinpostsecondaryinstitutionsand
professionalorganizationstohelpbuildselfreflectionandtheabilitytorecognizebiasesthatcan
impacttheprovisionofservicestoIndigenouspeoples.
AsannouncedonMarch7,2017,aninvestmentof$47millionoverfouryearswillincreaseaccess
tosupportsfor10,800Blackchildrenandyouthby201920.TheActionPlanwill:
Investinculturallyfocusedparenting
initiativesandmentoringprograms;
EncourageBlackchildrentostayin
schoolbyinvestinginearly
interventionprogramming;
HelpBlackstudentsaccesshigher
educationthroughculturallyfocused
outreach;
Ensureprogramsandpoliciesmeetthe
specificneedsofatriskyouththrough Ontarioisbuildingpartnershipsinthecommunityto
providemoretargetedsupportforBlackyouths.
Ontariobasedresearch;
HelpBlackyouthfindtheircareerpathbyinvestingintargetedskillsdevelopment
programs;and
Investincommunityoutreachandpromoteantiviolence.
TheActionPlanoutcomesarefocusedonendingdisparitiesrelatedtograduationrates,
admissiontopostsecondaryeducation,andyouthunemploymentrates.
172 ChapterIV:PublicServicesYouCanCountOn
Welcoming New Ontarians
Ontarios Response to the Global Refugee Crisis
Ontarioshumanitariancommitmenttoassistrefugeesfocusesonsavinglivesandoffering
protectiontothedisplacedandpersecuted.In2016,Ontariocommunitieswelcomedrefugees
atanunprecedentedlevel,asapproximately20,000refugeesfromallareasoftheworldresettled
inOntario.
ThegovernmentprovidesassistancetoenablerefugeestosettleintocommunitiesinOntarioand
enterthelabourmarketbyfundingsettlementservices,languagetrainingandbridgetraining
programs.Theseinvestmentsofferservicesinrefugeesfirstlanguageandspecialprogramming
forrefugeewomen,childrenandyouth,andenablecommunitypartnerstoaddressrefugeeneeds
inareassuchasadultlanguagetrainingandemploymentassistance,andmentalhealth.
CHAPTERIV
September 2015
Ontario launches the Refugee
Resettlement Plan to welcome
Spring 2017
10,000 refugees by the end Investment of more than
of 2016. Ontario announces $14 million over two years to
funding of $8.5 million over refugee resettlement agencies
November 2015 to December 2016 to meet the needs of the high
2.5 years to enhance
settlement services, and Ontario welcomes an estimated 17,000 Syrian refugees and level of refugee arrivals. The
$2 million to support an additional 3,000 refugees from other points of origin. Provinces efforts will be led by
international humanitarian the transformed Refugee
efforts. Resettlement Secretariat.
SectionD:BuildingInclusiveCommunitiesandImprovingtheJusticeSystem 173
Ontarioexpectstoreceivehighlevelsof
refugeesandnewcomersinthecomingyears.
Refugeeswillalsocontinuetoarrivein
Ontariothroughsecondarymigrationand
relocationfromotherprovincesasthey
searchforworkopportunities.TheProvinces
ongoinginvestmentswillhelpnewcomers
andrefugeesbuildnewlivesinOntario.
Multicultural Community
Capacity Grant Helpingrefugeesstartnewlivesbysupporting
settlementagenciesandlocalpartners.
Ontarioreceivesanaverageof100,000
immigrantsperyearandhasthemostethnicallydiversepopulationinCanada.Ontariowill
provide$3millioneachyearforthenexttwoyearstoestablishtheMulticulturalCommunity
CapacityGranttohelpimmigrants,refugeesandethnoculturalcommunitiesnavigatebarriersand
advancetowardfullintegrationandparticipationinOntariosociety.Fundingwouldtarget
activitiesthatfacilitatecommunityengagement,socialintegration,educationandempowerment
topromoteinterculturalunderstandingandbreakdownbarrierstoparticipation
incommunitylifeandcivicdecisionmakingprocesses.
174 ChapterIV:PublicServicesYouCanCountOn
Improving the Justice System
Thejusticesectorcontinuestoundergolongtermtransformationtocreateajusticesystem
thatismodern,focusedonprevention,communitybasedandpeoplecentred.Toachievethis,
thegovernmentisfocusingoninitiativesthatwillincreasecommunitysafetyandwellbeing,
enhancesystemeffectivenessandefficiency,improveoutcomesforthoseincontactwiththe
justicesystem,andstrengthenrelationshipswithIndigenouscommunities.
TheProvincesStrategyforaSaferOntarioisaboutproactiveandcollaborativeapproachesto
buildevensafercommunities.Thegovernmentsgoalistobuildaproactive,sustainableand
effectivemodelofpolicing,focusedoncommunitysafetyandwellbeing.
CHAPTERIV
TheStrategywillincludeanew:
Collaborative,riskbasedapproachtocommunitysafetyandwellbeingwithimproved
interactionsbetweenpoliceandvulnerableOntarians;
Communitysafetyservicesstructurethatclarifiescorepoliceresponsibilities,provides
flexibilityfortheuseofarangeofcommunitysafetypersonnel,andmodernizesentry
andtrainingrequirementsforpoliceofficers;
Suiteofmeasurestoenhanceciviliangovernanceandoversightforpoliceservicesthat
strengthensaccountabilitytothepublic;and
LegislativeframeworkthatensuresthesustainabilityofFirstNationspolicing.
ThegovernmentwillbeintroducinglegislationtomodernizethePoliceServicesActandimplement
theStrategy.
SectionD:BuildingInclusiveCommunitiesandImprovingtheJusticeSystem 175
Thismodernapproachwillalsohelpensure
policecanfocusoncoreservicesthatreduce
victimizationandharm,whichwillbe
reflectedinanupdatedPoliceServicesAct.
TheActhasbeenlargelyunchangedsince
itsdraftingin1990.ModernizingtheAct
willhelpcommunitiesbetterrespondto
21stcenturyissuesandprovidetheblueprint
thatbringspoliceandsocialservice
providerstogether.
KeypillarsoftheStrategyforaSafer
Ontarioinclude:
Modernizingcorepolice
responsibilitiestoensuretheright
personnelprovidetherightresponse
attherighttime;and
Improvinginteractionsbetweenpolice
andvulnerableOntariansbyenhancing
thefrontlineresponsetopersonsin
crisisandaddressingtheincreasing
numberofmentalhealthrelatedcalls
thatcouldbemoreappropriately Ontarioismodernizingpoliceservicestoimprove
handledbyothercommunity publicsafetyincommunitiesacrosstheprovince.
serviceproviders.
InApril2016,theMinistryoftheAttorneyGeneralappointedJusticeMichaelTullochtoconducta
reviewofOntariosindependentpolicecivilianoversightbodies:theSpecialInvestigations
Unit,theOfficeoftheIndependentPoliceReviewDirector,andtheOntarioCivilianPolice
Commission.
JusticeTullochsreviewwillhelpinformthegovernmentsStrategyforaSaferOntarioinanumber
ofareas,includingasitrelatestooversightforswornofficers,communitysafetypersonnel,
boardmembersandothermembersofthepolicingcommunity.
176 ChapterIV:PublicServicesYouCanCountOn
Ensuring Wage Parity for First Nation Police Officers
TheOntarioandfederalgovernmentsarepartnersinsupportingFirstNationpoliceservices,under
theFirstNationsPolicingProgram(FNPP),funded52percentbyCanadaand48percentby
Ontario.Historically,underthispartnership,salariesforofficersemployedbyFirstNationpolice
serviceswerelowerthanthoseforOPPofficers.
Earlierin2017,theOntariogovernmentprovided100percentofthenecessaryfundingtoensure
thatallFirstNationpoliceofficersincommunitiesacrosstheprovinceareremuneratedatthe
samerateasthoseemployedbytheOPP.TheProvincewillcontinuetoworkwithFirstNation
partnersandthefederalgovernmenttostrengthenpolicingandcommunitysafetyinOntarios
FirstNations,includingasCanadaengagesinareviewoftheFNPP.
CHAPTERIV
ProvidingIndigenousspecificservicesforvictimstohelpaddressuniqueneeds;
Offeringdisputeresolutionprocessesthatdivertaccusedpersonsfromthejusticesystem
andfocusonrestoringrelationshipsbasedonIndigenousprinciples;and
Enhancinghealingservicesandculturalsupportsforinmatesincustodyandoffenders
undersupervision.
SeealsoChapterV:WorkingwithOurPartnersformoreinformationonOntariosCommitment
toReconciliationwithIndigenousPeoples.
SectionD:BuildingInclusiveCommunitiesandImprovingtheJusticeSystem 177
Taking Steps to End Human Trafficking
Thoughhumantraffickingisalargelyhiddenproblem,itseffectonsurvivorsandtheirfamiliesis
acuteandpervasive.InJune2016,thegovernmentannounceditsantihumantraffickingstrategy,
togetherwithaninvestmentofupto$72million.Thisinvestmentwillimprovesurvivorsaccess
toservices,increaseawarenessandcoordination,andestablishtwoseparatefundsfor
communitybasedsupportsandforIndigenousledinitiatives.
Thestrategyisalsoenhancingjusticesectorinitiativesby:
Increasingfundingby$6.7millionoverfouryearstoVictimCrisisAssistanceOntario,
underwhich47communitybasedservicepartnersdeliverprogramstoprovidebetter
supportsforsurvivors;
ExpandingtheVictim/WitnessAssistanceProgramtohirespecializedhumantrafficking
survivorservicesworkersinNewmarket,BramptonandToronto;
ExpandingtheVictimQuickResponseProgramby$1.9millionoverfouryearstoallow
victimsofhumantraffickingtoaccessnewbenefits,suchastattooremoval,replacement
ofgovernmentdocumentsandrecoveryinatraumainformedfacility;and
RecruitingaProvincialCrownCoordinatorwhowillcreateaProvincialHumanTrafficking
ProsecutionTeamthatwillensuretheprovincewidecoordinationofanenhanced
prosecutorialmodelandworkcollaborativelywithpoliceandsurvivorassistanceprograms
toimproveandenhanceinvestigationsandprosecutions.
Ontariowillalsocontinuetolookforwaystopartnerwithgovernmentsacrossthecountryon
issuessuchasanationalhotlinetosupportsurvivorsofhumantrafficking.
178 ChapterIV:PublicServicesYouCanCountOn
Streamlining and Modernizing the Court System
Thegovernment,incollaborationwiththejudiciaryandotherjusticeparticipants,isundertaking
severalcourtmodernizationinitiatives,including:
Standardizingpretrialpracticestoreducethenumberofcourtappearancesinacase.
Supportingearlyresolutionofcaseswhereappropriate.
Exploringalternativestocostlyincourtappearancestobetterusepolice,courtand
correctionsresources.Theseincludetheincreaseduseofvideotechnologyfordefence
counselconsultationswithincustodyaccused,aswellasforbailhearingsandremand
courtappearances.
Throughitsplantoreducetimetotrialandimprovethebailsystem,thegovernmentisdelivering
newcourtroomresources,includingmoreCrownAttorneys,dutycounselandcourtstaff,andwill
allowafocusonearlycaseresolutionandincreasecapacityinthesystem.Theplanalsoincludes:
ProvincewideexpansionandenhancementoftheBailVerificationandSupervisionProgram
tohelpfacilitatethesuccessfulreleaseonbailoflowriskaccusedpendingtrial,bymaking
theprogramavailableatanumberofweekendcourtlocationsandextendingeligibilityto
allowmorevulnerablepeopletobeservedacrosstheprovince;
CHAPTERIV
Launchinganinnovativenewbailbedsprogramtoprovidesafe,supervisedhousingfor
lowriskindividualsinfiveOntariocommunities;
Makingdutycounselavailableatsixcorrectionalfacilitiesacrosstheprovincetoallowfor
moreeffectivebailhearings;and
Developinganew,culturallyresponsiveprogramtoprovidesupportstoIndigenouspeople
undergoingthebailandremandprocess.
Thegovernmentisalsoappointing13morejudgestosupportmoreeffectiveandtimelycase
progression,bringingOntarioscomplementoffulltimejudgesto299.
SectionD:BuildingInclusiveCommunitiesandImprovingtheJusticeSystem 179
Transforming the Corrections System
ThegovernmentisalsoundertakingbroadreformofOntarioscorrectionssystem,basedona
progressiveandcollaborativeapproachtoindividualrehabilitationandreintegration.The
initiativeswillseektoreducethroughpreventionanddiversionthenumberofindividualsin
custody,ensurethoseincustodyreceiveservicesandprogramsthatareresponsivetoindividual
needs,andbettersupportstaffincorrections.
Toreducethenumberofpeopleheldandtimespentinsegregation,andtoimprovethe
conditionsunderwhichindividualsareheld,theProvinceis:
Hiringanadditional239stafftoincreasehealthandsocialsupportsforinmates,particularly
thosewithsignificantchallengesrelatedtolongtermsegregation;
Enhancingservicesforinmatesonremandandthoseservingcustodialsentencestoensure
theyhaveaccesstoastandardizedsetofcoreservices,spiritualservicesandprogramming
withafocusonenhancedmentalhealthandwellbeingofinmates;
Implementingdedicatedmanagersatinstitutionswithhighersegregationratestohelp
reducetheuseofsegregation,andsupportinmatesastheytransitionbacktothegeneral
population;and
Retrofitting,repairingandrepurposingexistingspaces,includingcommonroomsandyards,
by,forexample,changing/upgradingdoors,andrepaintingandcreatingnewdayareas.
Thegovernmentiscommittedtoprovidinghumaneandcompassionatecaretoindividualsin
custodyandensuringtheirlegalandhumanrightsarerespected.Thegovernmentappointed
independentadvisorHowardSaperstoreviewtheuseofallformsofsegregationincorrections
facilitiesandtoidentifyopportunitiesforlongertermtransformationofthecorrectionssystem
inOntario.
Mr.Sapershasbeenaskedtoprovideadviceonbuildingasystemwhereappropriatealternatives
tosegregationaremoreavailableforvulnerablepopulationsparticularlypeoplewithacute
mentalhealthissues.Hehasalsobeenaskedforadviceondeliveringenhancedoversightof
inmatesandcorrectionalinstitutions,andimprovingthelivingconditionsforinmatepopulations.
WorkisongoingtodevelopabetterapproachtosegregationaspartofOntariosbroader
correctionstransformationinitiative.Thegovernmentisalsoexploringoptionsforcorrectional
facilitiesthatwillimprovethehealthandsafetyofbothinmatesandstaff,addresscapacityissues,
andbetteraccommodatethedeliveryofprogramming.
180 ChapterIV:PublicServicesYouCanCountOn
Enhancing Mental Health in Corrections
Aspartoftransformingtheprovincialcorrectionalsystem,thegovernmentisincreasingaccessto
healthcareservices,includingmentalhealthandaddictionsservices,forpersonswithmental
illnesswhoareinvolvedinthejusticesystem.TheProvinceisinvesting$51millionoverthree
yearstoimproveservicesforpeoplewithmentalhealthandaddictionsissues,fromtheirfirst
pointofcontactwiththesystem,untilreintegrationintothecommunityafterrelease.This
investmentwillhelpprovidemoreeffectiveserviceswhereappropriateandreducepressureon
thecriminaljusticesystem.Itwillexpandtheavailabilityofsafebeds,providingtimelimited
emergencyhousingwheresuitableasanalternativetohospitalorjail.Itwillalsoincreaseaccess
tosupportsthatwillhelpfacilitatethereintegrationofpeoplewithmentalillnessbackintothe
community,helpingreducethelikelihoodofreoffending.
ForfurtherinformationontheProvincesmentalhealthinvestmentsandOntariosOpioid
Strategy,whichincludesincreasingaccesstonaloxone,anantioverdosemedication,see
ChapterIV,SectionA:StrengtheningHealthCare.
Justice Infrastructure
TheProvinceiscontinuingtomakeinvestmentsinjusticefacilitiesthatsupportthelongterm
CHAPTERIV
transformationofthejusticesystem.Theseinvestmentshelpstrengthencommunitysafetywhile
providingtimelyaccesstojusticeandassistingvulnerablepopulations.
SectionD:BuildingInclusiveCommunitiesandImprovingtheJusticeSystem 181
182 ChapterIV:PublicServicesYouCanCountOn
Chapter V
Theneedforcollaborationwithinthefederationhasneverbeengreater.
OntariobelievesthatthebestresultsforCanadianscomefromworkingtogetherwithalllevelsof
governmentdrivenbysharedvaluesandasharedsenseofresponsibilitytoaddresstheneeds
ofallCanadiansequally.Alongwithitspartners,theProvinceismakingtheinvestmentsnecessary
tohelpOntariansadaptandexcelinthechangingglobaleconomy.
TheProvinceiscommittedtocontinuebuildingconstructivepartnershipswiththefederal
government,otherprovincesandterritories,municipalitiesandIndigenouscommunities
toachievemeaningfulimprovementsinthelivesofpeopleinOntario.
CHAPTERV
ChapterV:WorkingwithOurPartners 185
Ontario150
As Ontarians and Canadians proudly celebrate the 150-year anniversary of Confederation and recognize
the history and experiences of Indigenous peoples in these lands, the government is investing in projects
across Ontario. The Ontario150 Community Capital Program is a $25-million investment to mark the
150th anniversary of the Confederation of Canada in 2017, and the creation of the Province of Ontario.
With grants ranging from $5,000 to $500,000, community facilities and spaces across the province are
being repaired, renovated or retrofitted. Projects include:
$500,000 to make needed renovations to the Ray Twinney Recreation Complex in Newmarket,
helping promote physical activity for 86,000 people.
$400,000 to renovate Variety Village in Scarborough, helping 6,000 people to foster more active
lifestyles through family-friendly fitness and sports.
$249,800 to make accessibility and interior upgrades to the Maryborough Community Centre in
the Township of Mapleton, providing appropriate spaces for arts, culture and heritage activities
for 10,400 people.
$150,000 to repair the parking area of the Rendez-vous des ans francophones dOttawa
community centre, improving access for 2,000 francophone seniors.
$147,800 to upgrade mechanical equipment and replace the windows at the St. Catharines Walker
Family YMCA, promoting physical activity for 8,500 people.
$145,300 to install a new geothermal HVAC unit and upgrade the phone system at the Ojibwe
Cultural Foundation on Manitoulin Island, providing appropriate spaces for arts, culture and heritage
activities for 15,000 people.
$141,500 to renovate the Rgie Locale des Services Publics de Jogues, a centre for athletic, social
and cultural activities in Jogues, promoting active lifestyles for 350 people.
$77,000 for the Fort Frances Museum to replace the roof, install a ramp and make accessibility
upgrades, providing appropriate spaces for arts, culture and heritage activities for 12,000 people.
$39,600 to renovate the Centre Charles-mile-Claude in Cornwall and make it accessible, helping
diverse groups work together to improve community life for
10,950 people.
$30,000 to make safety and accessibility upgrades to
the Blake Community Hall and its outdoor rink in the
Municipality of Neebing, helping 10,000 people build
connections in their community.
186 ChapterV:WorkingwithOurPartners
Working in Partnership with Municipalities
Everyonebenefitswhengovernmentsworktogether,andtheProvincehasaverystrongrecordof
supportingandworkinginpartnershipwithmunicipalities.
TheProvincecollaboratesandconsultswithmunicipalitiesonpolicyissuesofmutualinterest,
includingonthepotentialimpactofchangestoprovinciallegislationandregulations.Two
importantmechanismsforthiscollaborationaretheMemorandumofUnderstandingwiththe
AssociationofMunicipalitiesofOntario(AMOMOU)andtheTorontoOntarioCooperationand
ConsultationAgreement(TOCCA).
Ontariocontinuestoincreasesupportformunicipalities,fosteringamatureandsustainable
provincialmunicipalfinancialrelationship.In2017alone,theProvinceisprovidingmunicipalities
withongoingsupportofmorethan$4billion.Thisfundingwillgrowtoapproximately$4.2billion
by2018anincreaseof$3.1billionabovethe2003level.
$ Billions
4.5
Actuals $4.2
4.0 Projected
3.5
3.0
CHAPTERV
2.5
2.0
1.5
$1.1
1.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: Provincial-Municipal Fiscal and Service Delivery Review Facing the Future Together (October 2008); adjusted to reflect
updated projections and funding announcements (e.g., Ontario Community Infrastructure Fund).
ChapterV:WorkingwithOurPartners 187
Thissupportincludes:
Provincialuploadsofsocialassistancebenefitcosts,aswellascourtsecurityandprisoner
transportationcosts(upto$125millionannuallyby2018).Ontarioisfulfillingits
commitmenttomunicipalitiestofullyimplementtheseuploadsby2018.Thisrepresents
asignificantmilestoneintheprovincialmunicipalrelationship,andhashelpedput
municipalitiesonafinanciallysustainablefooting.
MaintainingunconditionalfundingundertheOntarioMunicipalPartnershipFund(OMPF)
at$505million,whichwillprovidesupportto388municipalitiesacrosstheprovince.
TheProvinceisworkingwithmunicipalitiestoensurethisfundingistargetedtonorthern
andruralmunicipalitieswiththemostchallengingfiscalcircumstances.
Fundingtosupportcostsharingoflandambulancecostsandanincreasedprovincialshare
ofpublichealthcarecosts.
Steadysupporttosmall,ruralandnortherncommunitiesthroughtheOntario
CommunityInfrastructureFund(OCIF),includingtriplingfundingto$300millionperyearby
201819tosupportrenewalofcriticalroad,bridge,waterandwastewaterinfrastructure.
TheProvincehasalsotakenstepstoincreasefairnessinfundingsupportandpropertytax
flexibilityformunicipalities.Forexample,ithasincreasedmunicipalflexibilitytomanagebusiness
propertytaxes,includingtheBusinessPropertyTaxCappingProgramandBusinessVacantUnit
RebateandVacant/ExcessLandSubclasses.
Goingforward,theProvincewillfocusoninvestingintheinfrastructurethatisvitaltothehealth,
prosperityandqualityoflifeofOntarians.
Asannouncedearlierthisyear,Ontariowillincreasegastaxfundingstartingin2019,doublingthe
municipalsharefromtwotofourcentsperlitreby2021withanestimatedfundingof$642million
in202122,withnoaddedtaxatthegaspump.Thisprogramprovideseligiblemunicipalitieswith
aguaranteedsourceoffundingtoaddresspriorities,suchasbuildingcapacity,andimprovingand
expandingtransitservices.
Ontarios decision to provide more funding for transit through the gas tax program is a welcome one for
Sault Ste. Marie. We know the importance of transit to our residents. This funding will help us reach our
transit goals and assist in our efforts to build a more convenient system.
188 ChapterV:WorkingwithOurPartners
Inpartnershipwiththefederalgovernmentandlocalcommunities,theProvinceismaking
strategicinvestmentstorevitalizemunicipalinfrastructure.Infall2016,theProvinceannounced
abilateralagreementwiththefederalgovernmentthatwillmakeavailablemorethan$1.1billion
undertheCleanWaterandWastewaterFund(CWWF).Undertheagreementwiththefederal
government,theProvincehassubmittedover1,300projectsforfederalapproval.Fortyoneinitial
projectswereapprovedundertheCWWFforfederalandprovincialfunding,including:
$3.2millionforupgradingofthewatermainlineunderSpruceStreetintheCityof
GreaterSudbury;
$3.0millionforupgradingtheHespelerWastewaterTreatmentPlantintheRegional
MunicipalityofWaterloo;and
$1.4millionforsupportingtheCityofBarriesWater,WastewaterandStormwaterMaster
PlansandNeedsStudies.
CHAPTERV
ChapterV:WorkingwithOurPartners 189
Partnerships with Indigenous Communities
OntarioremainscommittedtotransformingrelationshipswithIndigenouspeoplestomove
forwardonthejourneyofreconciliation.TheProvinceisworkingwithFirstNations,Mtis,Inuit
andurbanIndigenouspartnerstoclosegapsandremovebarriers,throughthecreationof
culturallyrelevantandresponsivesupports.Thisincludescontinuingtocollaboratetoimplement
initiativesoutlinedinTheJourneyTogether:OntariosCommitmenttoReconciliationwith
IndigenousPeoples,WalkingTogether:OntariosLongtermStrategytoEndViolenceAgainst
IndigenousWomenandtheFirstNationsHealthActionPlan.SeeChapterIV,SectionA:
StrengtheningHealthCareformoredetails.
190 ChapterV:WorkingwithOurPartners
TheProvinceiscommittedtoactingontherecommendationsprovidedbytheTRCandtakesa
wholeofgovernmentapproachwhendesigningpolicyordeliveringprograms,andismoving
forwardwithfundingin201718and201819,including:
StrengtheninghealthcarethroughdedicatedfundingtosupportaFirstNationsHealth
ActionPlan,providingculturallyappropriatehealthservices(seeChapterIV,SectionA:
StrengtheningHealthCare);
SupportinguptosixneworexpandedIndigenousMentalHealthandAddictionsHealing
andTreatmentCentres;
ExpandingchildcareandearlyyearsprogrammingprovidedbyIndigenouscommunities
andorganizations(seeChapterII:HelpingYouandYourFamily);
Improvingaccesstofinancing,skillstrainingandcommunityeconomicplanningsupportsby
enhancingtheAboriginalEconomicDevelopmentFund(seeChapterIII:Creating
OpportunitiesandSecurity);
EnhancingthecapacityandsustainabilityofninepublicallyfundedAboriginalinstitutesin
Ontario(seeChapterIV,SectionB:InvestinginEducation);
Supportingthedevelopmentofaprovincewideantiracismstrategy,includingayouth
leadingyouthprogram(seeChapterIV,SectionD:BuildingInclusiveCommunitiesand
ImprovingtheJusticeSystem);
Expandingorestablishingprogramsthatsupportaculturallyrelevantandresponsivejustice
system(seeChapterIV,SectionD:BuildingInclusiveCommunitiesandImprovingtheJustice
System);
Honouringresidentialschoolsurvivorsandvictimsthroughcommemorationefforts;and
Takingactivestepstoapplyamodelofreconciliationinitsdailybusiness,including
CHAPTERV
acknowledgingtreatieswithinMinistersstatements,thePublicServiceOathofOfficeand
governmentissueddocuments.
ChapterV:WorkingwithOurPartners 191
Walking Together: Ontarios Long-Term Strategy to End Violence
against Indigenous Women
InMarch2017,theProvincereleasedanupdateonitsworkwithIndigenouspartnersto
implementWalkingTogether:OntariosLongTermStrategytoEndViolenceAgainstIndigenous
Women.TheProvincialstrategy,releasedlastyear,focusesonraisingawarenessofand
preventingviolenceagainstIndigenouswomen,providingmoreeffectivecommunityservices,
improvingsocioeconomicconditionsthatsupporthealing,andkeepingcommunitiessafe.
Today,moreIndigenouswomen,children,youthandfamiliesaregettingthesupporttheyneed
intheircommunities.Somekeyaccomplishmentsinclude:
Providingmorethan200communitieswithsupportsandservicesthroughtheFamily
WellBeingprogram,whichincludeshiringandtrainingmorefrontlineserviceworkers,
developingcommunitybasedprogramsandcreatingsafespaces;
ExpandingtheKizhaayAnishinaabeNiin:IAmaKindManprogramfromfiveto26
friendshipcentresacrossOntario,tosupportIndigenousmenandboysthroughhealingand
violencepreventionprograms;
LaunchingtheIndigenousAntiHumanTraffickingLiaisonsprogramwithpartnerstosupport
thedevelopmentofculturallyrelevantservicesforsurvivorsinIndigenouscommunities
throughouttheprovince;and
HostingthefifthNationalIndigenousWomensSummitinMarch2017,withover
250participantsfromacrossCanada,includingrepresentativesfromthefivenational
Indigenousorganizations.
AsannouncedinSeptember2016,OntarioisalsosupportingtheNationalInquiryintoMissing
andMurderedIndigenousWomenandGirls.OntariohaspassedanOrderinCounciltoensurethe
inquirycaninvestigateareasofprovincialjurisdiction,suchaspolicingandsocialservices.
SupportisalsobeingprovidedtofamiliesofmurderedandmissingIndigenouswomenandgirls.
192 ChapterV:WorkingwithOurPartners
Workingtogethertowardscommunitybasedregulationofgasolineandtobaccoprovidesabasis
formutuallybeneficialoutcomesfortheProvinceandFirstNationcommunities.Thiscooperation
buildsrelationshipsandtrust,supportseconomicdevelopmentanddiversificationofFirstNation
communities,andimprovesbusinesscertaintyforonreservesales.Italsodemonstratesthe
commitmentsetoutinthePoliticalAccordtocollaborateonsharedprioritiesinaspiritof
respectfulcoexistence.
AspartofthisdialoguewithFirstNationcommunitiesacrossOntario,thegovernmentisdiscussing
sharingaportionofprovincialtobaccotaxrevenueswithcommunitiesthatagreetoregulate
tobaccosalesonreserve.
ThegovernmentispreparedtocollaboratewithFirstNationsonamendmentstotheTobaccoTax
Actandotherpiecesoflegislationtosupporteffectivecoordinationandintegrationofprovincial
legislationwithFirstNationtobaccolawsinthefuture.
CHAPTERV
information,theProvinceisproposinglegislativeamendmentstotheFreedomofInformationand
ProtectionofPrivacyActandtheMunicipalFreedomofInformationandProtectionofPrivacyAct.
AmendmentstotheseActswouldenableProvincialandmunicipalinstitutionstoprotectfrom
disclosureinformationreceivedinconfidencefromIndigenouscommunities,orinformation
reasonablyexpectedtoprejudicetheconductofrelationsbetweeninstitutionsandIndigenous
communities.Thesechangesareanimportantsteptowardfacilitatingopendiscussionsthatwill
strengthenrelationshipswhileenhancingProvincialandmunicipaleffortstoengagewith
Indigenouscommunitiesasfullpartners.
ChapterV:WorkingwithOurPartners 193
Achieving FederalProvincial Fiscal Sustainability
in the Federation
Ontarioandthefederalgovernmentshareacommitmenttoanongoingandconstructive
partnership.ThiscollaborationisvitaltoensuringthatOntarianscontinuetoreceivethehigh
qualityservicesexpectedoftheirgovernment,andadynamiceconomyinwhichtheycanthrive.
Together,Ontarioandthefederalgovernmentneedtodevelopthesolutionstoaddress
demographicandeconomicrisks.
Thestrengthandsustainabilityofthefederalsystemfacerisingchallenges,includinganaging
populationandlongtermeconomicuncertainty.Theseissueswilllikelyimposesignificantfiscal
pressureontheprovincesandterritories,astheyarepredominantlyresponsibleforprograms
andservicessensitivetodemographicchanges.
TheProvinceisalreadyrespondingtothesedemographicandeconomicshiftsbytransformingthe
deliveryofpublicservicessuchashealthcareandsocialservices.SeeChapterVI,SectionA:
TransformingGovernmentforSustainabilityandFairnessformoredetails.
However,anumberofstudies1haveshownthattheprovincesandterritoriesasawholearein
afiscallyunsustainablepositionoverthelongterm.Atthesametime,thefederalgovernment,
thoughitiscurrentlyinadeficitposition,hasagreaterabilitytoraiserevenuerelativetothe
servicesitdelivers,andisprojectedtobefiscallysustainable.Infact,therecentDepartmentof
FinanceCanadareport,UpdateofLongTermEconomicandFiscalProjections,projectedthat
federalnetdebttoGDPwilldeclineovertime.
Owingtotheinterconnectednessoffederal,provincialandterritorialgovernmentsinCanada,
strongsocialprogramsandrobustactiontosupporteconomicgrowthdependontheabilityof
governmentstotacklekeychallengestogethertomeettheneedsofOntariansandCanadians.
Thispartnershipshouldbebasedonsharedprinciples:ensuringagreementsareadequate,
sustainableandflexibleenoughtorespondtouniquelocalpriorities,whilerespectingthe
experienceandexpertiseofprovincesandterritories.
Sustainabilityofthefederationdependsonbothordersofgovernmentsharingequallyin
theopportunitiesandrisksfacingthecountry.
1
OfficeoftheParliamentaryBudgetOfficer,FiscalSustainabilityReport2016,(2016),http://www.pbo
dpb.gc.ca/web/default/files/Documents/Reports/2016/FSR_2016/FSR_2016_EN.pdf;ConferenceBoardof
Canada,ADifficultRoadAhead:CanadasEconomicandFiscalProspects(2014),
http://www.canadaspremiers.ca/phocadownload/publications/conf_bd_difficultroadahead_aug_2014.pdf
194 ChapterV:WorkingwithOurPartners
Ontarios Growing Contribution to the Federation
Inanenvironmentoffederalprovincialfiscalimbalance,Ontariocontinuestobeasignificantnet
financialcontributortotheCanadianfederationandthiscontributionisexpectedtogrowas
theOntarioeconomystrengthens.
AsresearchbytheMowatCentreandothershasshown,thepeopleofOntariohaveconsistently
contributedmoretothefederalgovernmentintotaltaxrevenuethanthefederalgovernmenthas
investedbackinOntario.TheMowatCentrehasrecentlyestimatedthatthisshortfallwas
$7.7billion,orequalto1.1percentofprovincialGDPin201415.Thisgaphasbeenincreasing
sinceitwasmeasuredbytheMowatCentrein200910.2
WhenlookingatthecompositionofOntariossignificantnetcontribution,theEqualization
programisamajorfactor.Forexample,in201718,Ontariansareestimatedtocontributeabout
$7.1billiontohelpfundtheEqualizationprogram,buttheProvincewillreceiveabout$1.4billion
inEqualizationpayments(Chart5.2).
CHAPTERV
2
MowatCentre,MindtheGap(2017),https://mowatcentre.ca/wp
content/uploads/publications/142_mind_the_gap.pdf.FindingsfromMowatCentres2013FillingtheGap
studyrevealedan$11.1billionimbalancebetweenwhattheProvincecontributestothefederalgovernmentin
totaltaxrevenuecomparedtowhatitgetsbackinfederalspending.InJanuary2017,followingStatistics
CanadasconversiontoGovernmentFinanceStatistics,theMowatCentrefoundthat,in201415,Ontarians
madeanetcontributionof$7.7billiontothefederation,equivalentto1.1percentofprovincialGDP.When
extendingStatisticsCanadasnewdatamethodologytopastyearstoensurecomparability,thecurrently
estimatedgapfor201415isgreaterthanin200910.Inotherwords,Ontariosnetcontributiontothe
federationisincreasing.
ChapterV:WorkingwithOurPartners 195
CHART 5.2 Net Contribution to the Equalization Program, 201718
$ Billions
6 5.7
Other Provinces
4 3.1
2.3
2 0.6 0.3
0
(0.3)
(2) (1.3) (1.4) (1.5)
(4) Of those provinces that receive Equalization,
Ontario is the only one that is a net contributor to
the program.
(6)
Ontarios net contribution in 201718 is $5.7 billion
(8) (7.6)
(10) Net
Beneficiary
ON AB BC SK NL PE MB NS NB QC
Sources: Ontario Ministry of Finance calculations using data from Statistics Canadas Provincial Economic Accounts
(CANSIM 384-0047) and Finance Canada.
196 ChapterV:WorkingwithOurPartners
Ontarioseconomycontinuestoperformwell.AfterbeingbelowthenationalaverageinGDPper
capitafollowingtheglobalrecession,theprovinceseconomyisprojectedtoexceedtheaveragein
thenearterm(Chart5.3).Asitseconomicgrowthstrengthensrelativetothenationalaverage,
Ontarioscontributiontothefederationwillcontinuetogrow.
90
2012 2013 2014 2015 2016
Notes: Nominal GDP of Ontario from 2012 to 2016 is based on the 2017 Budget.
Sources: Statistics Canada (CANSIM Table 051-0001 and 384-0038), Conference Board of Canada and Ontario Ministry of Finance.
Ontario Ministry of Finance calculation.
OntariorecognizesitslongstandingroleasanetcontributortotheCanadianfederation.However,
CHAPTERV
thereisaneedforcriticalassessmentofcurrentfederalprovincialfiscalarrangementstoensure
theyarerespondingefficientlyandeffectivelytothechangingneedsinthefederation,andtoalign
resourcesandjurisdictionalresponsibilitiesinamoreequitablemanner.
ChapterV:WorkingwithOurPartners 197
FederalProvincial Collaboration: Effective, Efficient and
Equitable Intergovernmental Relations in Canada
Ontariofirmlybelievesthatbuildingstrongpartnershipsallowsthefederationtoshareriskswhile
providinganopportunitytofocusonwhatbringsCanadianstogether.TheProvincesvisionforan
effective,efficientandequitablesystemoffiscalfederalisminCanadaemphasizesstrong
partnershipsinkeyareas.
Provincesandterritoriesareonthefrontlinesprovidinghealthservicesinaneraofrisingcosts
andtightfiscalconstraints.Ontariohasinvestedinstrengtheningthehealthsystemtobetter
servethepatientsoftodayandtomorrow(SeeChapterIV,SectionA:StrengtheningHealthCare
formoredetail).EnsuringthatOntarianshaveaccesstothecaretheyneed,whenandwherethey
needit,isakeycomponentofthegovernmentsplantoputpatientsfirst.Insupportofthisgoal,
theProvincehasincreasedfundingforhomeandcommunitycare,andmentalhealthand
addictionservicestonearly$9billionannually.
InMarch,thefederalgovernmentandtheProvinceagreedtonewfederalfundingof$4.2billion
over10yearsinsupportofhomecareandmentalhealthinitiativesinOntario.Thisfundingbuilds
oninvestmentstheProvinceisalreadymakinginthesehealthpriorities(seeChapterIV,SectionA:
StrengtheningHealthCareformoredetail).
ThisnewagreementwiththefederalgovernmentmeansthattheProvincecanmoveforwardon
itsworktotransformthehealthcaresystem.
Atthesametime,thisagreementalsomeansthatthefederalgovernmentsshareofhealthcare
fundingislikelytodecrease,particularlyatatimewhenthecostpressuresanddemandforhealth
careservicesaresettoincrease.
Asprovincesandterritoriescontinuetoinvestinadaptingtoagrowingandagingpopulationand
implementingnewproceduresandtechnologies,itiscriticalthatthefederalgovernmentprovide
aconsistentandadequatelevelofsupportoverthelongterm.
Acollaborativeandnationalapproachforlongtermsustainablefundingandafairandequal
federalpartneratthetableisthebestwaytoprotectCanadasuniversal,publiclyfundedsystem
andensurethatallCanadiansreceivethesupporttheyneed.
198 ChapterV:WorkingwithOurPartners
Taking a Balanced Approach to the Next Phase of the Federal
Infrastructure Investment
Overthepastyear,anumberofbilateralinfrastructureagreementshavebeenreachedbetween
theProvinceandthefederalgovernment,includingtheSocialInfrastructureFund,CleanWater
andWastewaterFund,andPublicTransitInfrastructureFund,toconnectpeopleandenhancethe
livesofOntarians.ThisreflectsthefactthatinfrastructureisatoppriorityforbothOntarioand
thefederalgovernment.
FederalfundingisanimportantcomponentofOntarioslongterminfrastructureplan,which
includesinvestmentsofmorethan$190billionover13years,startingin201415.
However,tomaximizethebenefitsoffederalinvestments,supportsoundinfrastructureplanning
andbuildonOntariosplanaswellastoensurethattheProvincecanmakeinvestmentsina
timelymanneritisessentialthatthefederalgovernmentadoptaflexibleapproachtofunding
asitrollsoutthenextphaseofitsinfrastructureinvestmentplan.Agreementsshouldallow
provincesandterritoriestodirectfederalfundingtowardsexistingprioritiesandprogramswithout
additionalunexpectedfiscalcoststotheProvinceandmunicipalities.
Amoreflexibleoverallapproachisnecessaryforafairerandmoreappropriaterecognitionofthe
manyyearsofcriticalcapitalplanningandprioritizationworkalreadyundertakenbyOntario
andmunicipalities.
Further,thisfundingmustbeallocatedinanequitablemannerandwithrespecttoprovincialand
municipalrelationships.
Altogether,thisapproachwillallowOntariotobuildmoreinfrastructure.Forexample,with
therecentlyannounced$1.9billioninfederalfundinginsupportofOntarios$13.5billion
CHAPTERV
GORegionalExpressRailproject,theProvincenowhastheabilitytoinvestevenmoreinother
priorityprojects.
OntariolooksforwardtopartneringwiththefederalgovernmentasitdevelopstheCanada
InfrastructureBank(CIB)inawaythatbuildsonbestpracticesandensuresaffordablefinancing
tosupportpublicinfrastructureinCanada.ItisimportantthattheCIBallowsprovincesand
territoriestosettheirowninfrastructurepriorities,ensurealignmentwithexistingplans
andmaximizepositiveimpactsontheeconomy.
ChapterV:WorkingwithOurPartners 199
Renewing Labour Market Transfers to Meet Modern Labour
Market Demands
Ontariohasalreadyembarkedonmultifaceted,longtermtransformationofemploymentand
trainingprogramsandservicesthataimtosupportahighlyskilledandinclusiveworkforceinthe
province(SeeChapterIII:CreatingOpportunitiesandSecurityandChapterIV,SectionB:Investing
inEducationformoredetail).Thefederalgovernmenthascommittedtosignificantlyreform
labourmarkettransferagreementsincollaborationwithprovincesandterritories.Thispresents
anopportunitytoalignfederalsupportwiththeneedsofOntarioslabourmarket.
Formanyyears,theprimarychallengeforOntariohasbeentherequirement,inexistingfederal
fundingarrangements,todirectabout70percentoffundingfortrainingtocurrentorrecent
EmploymentInsurance(EI)recipients.Asonly28percentofunemployedOntariansreceivedEI
regularbenefitsin2016,themajorityofOntariosunemployedworkerswerenoteligible
forfederallyfundedtraining.
Ontariowelcomesthefederalgovernmentsannouncementstoimproveandstrengthenlabour
marketfunding,includingtheproposednewWorkforceDevelopmentAgreements,aswellas
proposedamendmentstotheEmploymentInsuranceActtobroadenworkereligibilityfor
programsandservicesundertheLabourMarketDevelopmentAgreements.
Ontariowillcontinuetoworkcloselywiththefederalgovernmentandotherpartnerstoensure
labourmarketagreementsmeettheneedsofOntarianstodayandinthefuture.Aspartoflabour
markettransfersreform,therenewedagreementsshould:
MaximizeflexibilityinlabourmarkettransferstogivetheProvincefreedomtodesign
anddeliverinclusivelabourmarketprogramstohelpallOntarians;
Increaseoverallfederalinvestmentinnationallabourmarkettransfers,fullydelivering
onfederalplatformcommitments;and
AllocateaproportionalandfairshareofnewfederalinvestmentstoOntario.
200 ChapterV:WorkingwithOurPartners
Chapter VI
Introduction
AcrossOntario,peopleaccessgovernmentinformationandserviceseveryday.Lastyear,for
example,thereweremorethan14millionviewsofOntarioStudentAssistanceProgram(OSAP)
informationonmobiledevices,andthegovernmentprocessed185millionOHIPmedicalclaims
andover200,000onlinedriverslicencerenewals.
ThroughProgramReview,RenewalandTransformation(PRRT),thegovernmentissupporting
evidencebaseddecisionmaking,andidentifyingmajorshortandlongtermtransformational
initiativesfocusedonmodernizingservices,findingsavingsandimprovingoutcomesforOntarians.
Tosupportthesustainablefundingofthesepublicservices,afairandbalancedtaxsystemwhere
everyonepaystheirshareisessential.Whenbusinessesintentionallyavoidmeetingtheirtax
obligations,theintegrityofthetaxsystemiscompromised.Thisresultsinanunevenplayingfield
forpeopleandbusinesses,andinturnjeopardizesthegovernmentsabilitytodeliverhighquality
servicesthatpeopledeserve.
Transforminggovernmentdeliverytakestime,butrecentinitiativesarehelpingtoaccelerate
thatchange:
TheBehaviouralInsightsUnitsupportstransformationbypilottestingnew,humancentric
approachestoimproveoutcomesandlowercostsandusingevidencetoinformwhat
doesanddoesntworkbeforescalingup,whichincludesredesigningcommunications
andaccesspointstomakeprogramsandserviceseasiertouse.
ThegovernmentismodernizingprogramdeliverybyredesigningprogramssothatOntarians
canmoreeasilyaccessservicessuchasincomebasedbenefitsandthenewOSAP.
TheGovernmenthasappointeditsfirstMinisterResponsibleforDigitalGovernmentaswell
asitsfirstChiefDigitalOfficertotransformgovernmentservicesandimprovetheonline
experienceforcitizens.OntariosDigitalGovernmentActionPlanwillhelpdrivethedelivery CHAPTERVI
ofservices,whicharesimpler,fasterandbetterforOntarians.
Movingforward,thegovernmentwillcontinuetoplaceanemphasisoncollective
bargainingoutcomesthatmaintainanaffordable,stableandhighperformingpublic
sectorworkforce.
TheProvincecontinuestosupporttransparencyandeffectivedecisionmakinginits
financialreporting,includingthroughtheconsistentapplicationofaccountingpolicies,
reportingstructures,andriskmanagementandcontrolactivities.
SectionA:TransformingGovernmentforSustainabilityandFairness 203
Evidence-Based Decision-Making
Improving Programs and Services through Behavioural
Science Research
Programsandservicesworkbestwhentheyaredesignedwiththepeoplewhousetheminmind.
OntariosBehaviouralInsightsUnit(BIU)isamongtheleadersinsupportingthedesignand
redesignofpublicservicesthatbetterreflecthowpeoplerespondto,engagewithanduse
theseservices.
Applyingbehaviouralsciencetopublicpolicyandservicedesignenablesahigherreturnon
investmentthroughlowtonocostsolutionsandevidencegenerationaboutwhatdoes
anddoesntworkbeforescalingup.Thisapproachalsoacceleratespublicsectorinnovation
throughlowriskexperimentationthatencouragesbehaviourchangeratherthanenforcingit,
improvingoutcomesandmakingprogramsmoreclientcentred.
Moving Forward
In2017,theBIUwillcontinuetofocusonsupportinginitiativesthatusebehaviouralscience
insightstoimproveoutcomesandaccelerateinnovativeprogramdelivery.
204 ChapterVI:ResponsibleFiscalManagement
Transformation and Efficiency Initiatives
Transformationandefficiencyinitiativesaredrivingimprovementacrossgovernment.Beingable
todelivereffectivelyandefficientlyonthethingsthatmattermosttoOntariansgoingforward
involvesadoptingatwoprongedapproachtosupporttransformation.
UsingthePRRTlensesofeffectiveness,efficiencyandlongtermsustainability,programswillbe
reviewedandredesignedtoimprovevalueformoney.Acoordinatedandsystematicapproachwill
ensurethatOntarianswillcontinuetogetthesupportstheyneedinthemostcosteffectiveway
possible,andprogramsthatnolongermeetpeoplesneedswillbechangedoreliminated.
CHAPTERVI
SectionA:TransformingGovernmentforSustainabilityandFairness 205
Government Made Simple
EverydayacrossOntario,peopleaccessgovernmentservicesandinformationonline.
Thegovernmentiscommittedtomakingthisprocesseasierwhetheritsorderingavehicle
permit,applyingforOSAPorfindinghealthservicesnearhome.
In2016,OntariobecamethefirstprovinceinCanadatoappointaMinisterResponsibleforDigital
Government,demonstratingitscommitmenttodeliverhighimpactdigitalprojectsandgive
peopleastrongervoiceintheirgovernment.Examplesofprojectsinclude:
Asimpleonlineimmunizationcalendarthathelpsparentsandfamiliesviewandsave
vaccinationschedulesforyoungchildren;
Adigitalconsultationplatformthathasallowedthousandsofpeopletoprovideinputto
governmentontopicsrangingfromfairnessinticketsalestoabasicincomepilot;and
BudgetTalks,aninteractivewebplatformthatempoweredOntarianstoidentifyandvote
oninitiativesthatarefundedinthe2017Budget.
TheCDOwillleadthenewOntarioDigitalService(ODS).TheODSwillleadeffortstoattractand
nurturedigitaltalentintheOntariogovernment,includingnew,paiddigitalinternshipsforrecent
graduates,studentcoopplacementsattheODSoutpostattheCommunitechInnovationHubin
KitchenerWaterloo,andgreateraccesstotrainingandsupportarounddigitalskillsfor
governmentstaff.
AnewDigitalServiceStandardforallpublicfacingtransactionswillalsobeintroducedand
publishedonlinetoensurethatgovernmentservicesmeetpeoplesneeds,areeasytocomplete
andcanbeaccessedanytime,anywhereandonanydevice.
206 ChapterVI:ResponsibleFiscalManagement
Toensureeveryonehastheopportunitytoparticipateintheneweconomy,thegovernments
focusondigitalliteracyandinclusionwill:
Expandaccesstotechnologyinpublicplaces,includinginOntariosschoolsandlibraries;
SupportthelaunchofCodeforCanada,anorganizationthatwilltacklecivictechnologyand
designchallengesinlocalcommunitiesinOntarioandacrossthecountry,withpartnerslike
ShopifyandGoogleCanada;and
Improvethedesignofdigitalgovernmentservicessotheyareinclusiveandaccessible.
OntariohasalsopartneredwiththeCanadaRevenueAgency(CRA)sothatapplicantstoagrowing
numberofprogramscanchoosetohavetheirincomeverifiedautomatically.Theseapplicantswill
nolongerberequiredtobringpaperbasedproofofincome.
Tosupportinvestmentsinpublicdrugfunding,Ontariowillalsocontinuetoensurerigorous
evidencebasedassessmentofpharmaceuticalsandbuildonthesuccessofthepanCanadian
PharmaceuticalAlliance(pCPA).Thiswillalsoincreaseaccesstoclinicallyandcosteffectivedrug
treatmentoptionsandachievebettervaluebydeliveringlowerdrugcostsonbrand,genericand CHAPTERVI
emergingbiosimilarmedicines.AsofDecember31,2016,thesecollaborativeeffortsbetween
provincesandterritorieshaveresultedin122completedjointnegotiationsonbranddrugsand
pricereductionson18genericdrugs.Thishasresultedinover$710millionincombinedsavings
annuallyacrossallparticipatingjurisdictions.
SectionA:TransformingGovernmentforSustainabilityandFairness 207
ThegovernmentisproposingamendmentstotheOntarioDrugBenefitActthat,ifpassed,would
enableittoadjustpharmacypaymentsandwouldsupportitsworkwiththepharmacysectorsince
2015toobtaingreatervalueformoney.Theseactionswouldalignwithpreviousinitiativesthe
governmenthasundertakentoreducedrugcosts,andallowtheProvincetoinvestmoreinnew
drugcoverageforOntarians.
TransformationssuchasthisenablethegovernmenttoinvestinservicesforOntarianslikethe
newOHIP+:ChildrenandYouthPharmacareprogram.Forfurtherinformation,pleasesee
ChapterII:HelpingYouandYourFamily.
1
https://osap.gov.on.ca/AidEstimatorWeb/enterapp/enter.xhtml
208 ChapterVI:ResponsibleFiscalManagement
Ensuring Everyone Pays Their Fair Share
Addressing the Underground Economy
Thegovernmentisdeliveringonitscommitmenttocombattheundergroundeconomyandreduce
thelossoftaxrevenues.Since201314,thisgovernmenthasmovedforwardwithkeyinitiatives
thataimedatlevellingtheplayingfieldforlegitimatebusinesses.Highlightsinclude:
Enhancedcompliancefocusedactivities(e.g.,auditing)thathavegeneratedover
$1.2billiona$350millionincreaseovertheamountreportedinthe2016Budget.
Theseactivities,undertakeninpartnershipwiththeCanadaRevenueAgency(CRA),
helpensureeveryonestaxobligationsaremet.
Focusedpilotinitiativesinresidentialroofingandautobodyrepairthathavepromoted
compliancewithbroaderregulatoryobligations,helpingtoprotectOntariosconsumers
andworkers.
Theintroductionofpenaltiesforthesale,useordistributionofelectronicsale
suppressiondevices.
AmendmentsmadetotheMinistryofRevenueActtoenableinformationsharingandallow
forenhancedtargetingofsectorsinwhichundergroundeconomicactivityismostprevalent.
Movingforward,thegovernmentwillcontinuetosupportrevenueintegrityby:
Usingenhanceddataanalyticstobetteridentifyandaddresshighriskareasfor
undergroundeconomyactivity;
Introducingasalesintegritypilotprojectintheretailandhospitalitysectorstotestand
evaluatesecuritysoftwarethatwillidentifybusinessesusingelectronicsalessuppression
technology;and
Launchingacampaigntoincreasepublicawarenessoftherisksandliabilitiesassociated
withparticipationintheundergroundeconomy.
CHAPTERVI
SectionA:TransformingGovernmentforSustainabilityandFairness 209
Addressing Unregulated Tobacco
Thepresenceoflowcost,unregulatedtobaccounderminestheProvinceshealthobjectivesand
resultsinlessrevenueforimportantpublicservices.Italsocompromisesthepublicsafetyof
communitiesthroughlinkstoorganizedcrimeandillicitactivities.
Since 2008, Provincial inspections and investigations have resulted in assessed penalties of more than
$38 million under the Tobacco Tax Act. In addition, the government has seized more than 260 million
unregulated cigarettes, over 4 million untaxed cigars and more than 186 million grams of other
unregulated tobacco products.
Sincethe2016Budget,theProvincehassuccessfullydeliveredonanumberofkeyinitiativesto
addressunregulatedtobacco,including:
WorkingwiththeOntarioProvincialPolicetocreatetheContrabandTobaccoEnforcement
Team.TheTeamhasanumberofongoingtobaccoinvestigationstargetingorganizedcrime
groupsandhasassistedotherpoliceforceswiththeirmajorinvestigations.
WorkingwiththeMinistryofHealthandLongTermCareandthePublicHealthUnitsof
Toronto,NiagaraRegion,SimcoeMuskokaandThunderBaytopilotcrossdesignationof
tobaccoretailerinspectorsunderboththeTobaccoTaxActandtheSmokeFreeOntarioAct.
EnhancingProvincialoversightofrawleaftobaccobyimplementingmeasurestomore
effectivelymonitoritsmovementthroughthesupplychain,andimpedeitsflowto
unlicensedmanufacturers.Thegovernmentcontinuestoworkwithrawleaftobacco
registrants,providingongoingeducationtodemonstrateaflexibleandbalancedapproach
asthegovernmentimplementstheregulatoryamendments.
210 ChapterVI:ResponsibleFiscalManagement
Buildingonthesemeasures,thegovernmentistakingfurtherstepstoreducetheprevalenceof
unregulatedtobaccobyproposingamendmentstotheTobaccoTaxActinorderto:
Enabletheforfeitureofitemsacquiredfrom,orusedto,engageinoffencesundertheAct;
Restricttheimportationandpossessionofcigarettefiltercomponents,suchasacetatetow,
toregisteredmanufacturers;
FurtherenhanceOntariosoversightofrawleaftobacco,includingwithincreasedpenalties
andfinesfornoncompliance;
Createnewpenaltyandoffenceprovisionsrelatedtothemaintenanceofbooks
andrecords;
RequirethattobaccoretailersinOntariothatcurrentlyholdapermitundertheRetailSales
TaxActtransitiontothetobaccoretaildealerspermit,effectiveJuly1,2018;and
PublishconvictionsundertheAct,andotherActsinthefuture,topromotecompliance.
Ontariowillcontinuetocollaboratewithitsfederalpartnerstoensureaconsistentand
coordinatedapproachtoaddressingtobaccoissues.
TheProvincerecognizesthatabalancedandreciprocalapproachiscriticalinaddressingtobacco
issues.ThisiswhyOntariosapproachtotobaccoincludesbuildingcollaborativerelationshipswith
FirstNationcommunitiestosupportadialogueonwaystoaddressthischallengeaspartners.
ToreadmoreonOntarioscommitmenttopartnershipswithFirstNations,pleaseseeChapterV:
WorkingwithOurPartners.
CHAPTERVI
SectionA:TransformingGovernmentforSustainabilityandFairness 211
Managing Compensation
Overthepastsevenyears,thegovernmenthasbeensuccessfulinmoderatingwagegrowth
acrosstheprovincialpublicsector.Throughadeliberateapproachtomanagingcompensation,
thegovernmentmetitsfiscalcommitmentswithoutcompromisingthequalityofcritical
publicservices.
Wageoutcomesintheprovincialpublicsectorcontinuetotrackbelowthemunicipal,federal
andprivatesectorsinOntario.
Per Cent
Public Sector (Provincial) Public Sector (Municipal)
2.5
Public Sector (Federal) Private Sector
2.0
1.5
1.0
0.5
0.0
April 2010 July 2012 April 2015 March 2017
Notes: Based on agreements with over 150 employees, ratified between April 1, 2010, and March 27, 2017.
April 2010 represents the start of the governments compensation restraint mandate.
Sources: Ontario Treasury Board Secretariat and Ontario Ministry of Labour.
212 ChapterVI:ResponsibleFiscalManagement
Recent Negotiations and Compensation Outcomes
Sincethe2016Budget,thegovernmenthasreachedanumberofoutcomesthatareconsistent
withthefiscalplan:
InMay2016,thegovernmentreceivedaninterestarbitrationawardforcorrectionalstaff
representedbyOntarioPublicServiceEmployeesUnion(OPSEU).Thisawardprovides
modestwageincreasesthatareoffsetthroughafreezeonsalarygridprogression.
Similarly,thegovernmentrecentlyreceivedanarbitrationdecisionfortheOntario
ProvincialPoliceAssociation,whichprovidesoutcomesbelowpolicesectornorms.
ThegovernmentalsoreachedafouryearagreementwiththeProfessionalEngineers,
GovernmentofOntario(PEGO)inwhichwageincreaseswereoffsetthroughchangesto
benefitsandterminationpay.
InFebruary,thegovernmentandtheOntarioMedicalAssociationtookstepstoreinitiate
negotiationsofthePhysicianServicesAgreement,beginningwithnegotiationsofaprocess
forbindinginterestarbitration.Reengagementwillensurethatthegovernmentmaintains
astrongandproductiverelationshipwithphysiciansandwillhelpenhanceaccess,reduce
waittimesandimprovetheoverallpatientexperience.
Thegovernmentsuccessfullynegotiatedtwoyearcontractsintheeducationsector,
whicharesettoexpireinAugust2019,andwillcontinuetohelpachievepositiveresults
forstudentsandthosewhoworkinthesector.Thecontractswillhelpbuilduponthegains
madeinOntariospubliclyfundededucationsystem.Thesegainsincludethehighest
graduationrateintheprovinceshistory,strongliteracyresults,andstudentswho
areequippedwiththeskillsandknowledgetheyneedtodayfortomorrowsrapidly
changingworld.
Designatedemployerswillhavesalaryandperformancerelatedpaymentsforexecutives CHAPTERVI
cappedatnomorethanthe50thpercentileofappropriatecomparators.Inaddition,signing
bonuses,retentionbonuses,cashhousingallowancesandpayinlieuofperquisiteswillnotbe
authorized.Aspartofthesemeasures,designatedemployerswillalsoconsultwiththepublicon
theirprograms.
SectionA:TransformingGovernmentforSustainabilityandFairness 213
Thegovernmentisenhancingitsapproachtoensurethatemployersarenotonlyheldaccountable
tospecificrequirements,butthattheyalsomustbeconsistentwithresponsibleandtransparent
administrationofexecutivecompensation.Thismeansthatgovernmentwilldirectemployersto
revisitanyproposedcompensationprogramthatisnotreasonable.
Thisenhancedapproachwillensurethatbroaderpublicsectororganizationsareaccountable
forcompensationdecisionsandareabletoattractandretainthenecessarytalenttodeliver
highqualitypublicserviceswhilemanagingpublicdollarsresponsibly.
Overtheupcomingyear,negotiationswillbeundertakenwithinkeyareasofthepublicand
broaderpublicservice,includinghealthcare,postsecondaryeducationandsocialservices.
Ontariospublicsectorlabourrelationsframeworkwillfocusonmaintainingandenhancing
thepositiveandproductiveworkingrelationshipswithitspublicsectorpartnersand
bargainingagents.
Goingforward,thegovernmentwillfocusonaddressinglongertermworkforcechallengesthat
affectthesustainabilityofpublicservices.Sectorandservicewidetransformationopportunities
willunderpinthedevelopmentofadynamicandskilledpublicsectorworkforcethatisbest
positionedtomeettheneedsofOntarians,nowandinthefuture.Toachievethisgoal,
thegovernmentiscommittedtodeliveringcollectivebargainingoutcomesacrossallkeyareas
ofthepublicandbroaderpublicservicethatalignwiththecurrentpublicsectorwagetrendand
supporttheProvincestransformationobjectives.
214 ChapterVI:ResponsibleFiscalManagement
Government Transparency, Financial Management
and Fiscal Accountability
Ontariocontinuestofurtherstrengthengovernmenttransparency,financialmanagementand
fiscalaccountabilityinsupportingitsfiscalplanandexercisingeffectivestewardshipof
publicfunds.
Government Transparency
Changes in Provincial Reporting Policies
The201617consolidatedfinancialresultsoftheProvincewillreflectanumberofchanges
consistentwiththerequirementsofPublicSectorAccountingStandards(PSAS)andthe
IntroductiontothePSAHandbook.Specifically,theProvinces201617PublicAccounts
willreflect:
RecognitionofnetpensionassetsfortheOntarioTeachersPensionPlan(OTPP)andthe
OntarioPublicServiceEmployeesUnionPensionPlan(OPSEUPP),theProvincesjointly
sponsoredpensionplans;
AchangeinthebasisofconsolidationofthefinancialresultsforOntarioPowerGeneration
andHydroOneontheProvincesfinancialstatementstoreflectInternationalFinancial
ReportingStandards(IFRS);and
Linebylinepresentationoftheannualoperatingresultsforhospitals,schoolboardsand
collegesontheStatementofOperations.
InlastyearsPublicAccounts,thegovernmentadoptedatimelimitedregulatoryamendmentto
reflecttheAuditorGeneralsinterpretationforthetreatmentofnetpensionassetsfor201516
(thePensionAdjustment),andsubsequentlyestablishedanindependentPensionAssetExpert
AdvisoryPaneltofurtheranalyzeandconfirmtheappropriateaccountingpolicyfortheProvinces CHAPTERVI
jointlysponsoredpensionplans.
2
https://news.ontario.ca/tbs/en/2016/11/pensionassetexpertadvisorypanelmembers.html
SectionA:TransformingGovernmentforSustainabilityandFairness 215
Earlierthisyear,thePanelreleaseditsreport3andrecommendationsrelatedtotheaccountingfor
OTPPandOPSEUPP,whichconcludedthatthenetassetsforthejointlysponsoredplansshouldbe
recognizedontheProvincesfinancialstatements.ThegovernmentacceptedthePanelsadvice,
whichwillbereflectedinthe201617PublicAccounts.
ThePanelsubsequentlyreviewedtheProvincesaccountingforHealthcareofOntarioPensionPlan
(HOOPP)andCollegesofAppliedArtsandTechnologyPensionPlan(CAATPP).ThePanel
concludedthatbasedonthedifferenceinthegovernancestructureoftheseplansascomparedto
OTPPandOPSEUPP,afullvaluationallowanceshouldbeappliedtoanynetpensionassetfor
CAATPPorHOOPPuntilthesurplusesareusedtoreducecontributions.Forbothoftheseplans,
thegovernmentdoesnothavecontrolorjointcontroloverthedecisionsregardingcontribution
levelsorbenefitchanges,asthegovernmentisnotamemberofthecommitteesresponsiblefor
thosedecisions.Todate,nonetpensionassethasbeenreportedundereitherHOOPPorCAATPP;
however,itispossiblethatanetassetmayresultinfutureyearsforoneorbothplans.
3
https://www.ontario.ca/page/pensionassetexpertadvisorypanelreport
4
https://news.ontario.ca/tbs/en/2017/02/pensionassetexpertadvisorypanelsubmitsreport.html
216 ChapterVI:ResponsibleFiscalManagement
Presentation of Hospitals, School Boards and Colleges
Startingwiththe201617PublicAccounts,theProvincesStatementofOperationswillreflectthe
revenuesandexpensesofhospitals,schoolboardsandcollegesonalinebylinebasis.Previously,
theresultsofthesesectorswerepresentedonanetexpensebasis,nettingthirdpartyrevenues
againstthesectorexpenses.ThischangeinpresentationwillnotimpacttheProvincesreported
netannualsurplusordeficit;however,thirdpartyrevenueswillbereportedwithother
governmentrevenuesandwillnolongerbenettedagainstsectorexpenses,includinginterest
expense,whichwillbepresentedonagrossbasis.
Users,includingthelegislatureandthepublic,needaccountabilityingovernmentreportingand
decisionmaking.Asaresult,itisessentialthatpublicsectorfinancialstatementsreflectthe
economicsubstanceofthegovernmentsactivities.
Financial Management
Interim Appropriation Act
TheInterimAppropriationfor20172018Act,2016receivedRoyalAssentinDecember2016and
cameintoforceonApril1,2017,toprovideinterimlegalspendingauthorityforanticipated
201718spending.AllspendingunderthisActmustbechargedtotheproperappropriation
followingthevotingofsupplyforthe201718fiscalyear.Thisisexpectedtoenablethe
governmenttocontinueoperationsuntiltheLegislativeAssemblyhascompleteditsconsideration
ofthe201718ExpenditureEstimatesandarelatedsupplybill.
TheProvincecontinuestoimplemententerpriseriskmanagement(ERM)acrosstheOntarioPublic
Service.ThisimplementationwillsupporttheachievementofProvincialobjectivesthroughthe
enterprisewideintegrationofriskmanagementintodecisionmaking,policydevelopment,
operationsandtransformationactivitiesofministriesandProvincialagencies.
SectionA:TransformingGovernmentforSustainabilityandFairness 217
Fiscal Accountability
Reporting and Designated Purpose Tracking
Withthe2017Budget,thegovernmentisreportingonthefirstinvestmentstobetrackedthrough
aDesignatedPurposeAccount.TheTrilliumTrust,alongwiththeGreenhouseGasReduction
Account,arethefirsttwoexamplesthatusethenewaccountabilityframeworktotrackandreport
ontheprogressofdesignatedpurposespendingcommitmentsbasedonidentified
revenuestreams.
218 ChapterVI:ResponsibleFiscalManagement
Section B: DetailsonOntariosFinancesand
EconomicOutlook
For201617,thegovernmentisprojectingadeficitof$1.5billion,animprovementof$2.8billion
comparedtothe2016Budget.Itisalsoa$2.0billionimprovementcomparedwiththe201516
deficitof$3.5billion.1Inaddition,sincepeakingin201415,OntariosnetdebttoGDPratiohas
declinedto37.8percent,reflectingthegovernmentsfiscalperformanceandthestrengthening
oftheOntarioeconomy.
TABLE6.1 OntariosFiscalPlanandOutlook
($Billions)
Outlook
Actual Interim Plan
201516 201617 201718 201819 201920
Revenue 128.4 133.2 141.7 144.9 149.3
Expense
Programs 120.9 123.5 129.5 132.3 135.8
Interest on Debt 11.0 11.3 11.6 12.0 12.6
Total Expense 131.9 134.8 141.1 144.3 148.4
Surplus/(Deficit) Before Reserve (3.5) (1.5) 0.6 0.6 0.9
Reserve 0.6 0.6 0.9
Surplus/(Deficit) (3.5) (1.5) 0.0 0.0 0.0
Net Debt as a Per Cent of GDP 38.6 37.8 37.5 37.3 37.2
Accumulated Deficit as a Per Cent of GDP 25.2 24.2 23.2 22.3 21.4 CHAPTERVI
Note: Numbers may not add due to rounding.
1
The201516actualshavebeenrestatedtoreflectrecognizingjointlysponsorednetpensionassetsforthe
OntarioPublicServiceEmployeesUnionPensionPlanandtheOntarioTeachersPensionPlanontheProvinces
financialstatements,consistentwiththe2016Budgetandasdescribedinthe201617ThirdQuarterFinances.
SectionB:DetailsonOntariosFinancesandEconomicOutlook 219
201617 Interim Fiscal Performance
Ontariosdeficitfor201617isprojectedtobe$1.5billionanimprovementof$2.8billion
comparedwiththe2016Budgetforecast.
TABLE6.2 201617InYearFiscalPerformance
($Millions)
Totalrevenueisprojectedtobe$2.6billionabovethe2016BudgetPlanlargelyduetohigher
taxationrevenuesandstrongertotalnetincomesfromGovernmentBusinessEnterprises(GBEs),
partiallyoffsetbylowerotherrevenues.
Totalexpensein201617isprojectedtobe$0.9billionhigherthanforecastinthe2016Budget,
asaresultofhigherprogramexpenseandlowerinterestondebt.Thisincludestheimpactof
$0.5billioninlowerinterestondebtexpensefor201617thantheforecastinthe2016Budget,
duetolowerinterestratesandcosteffectivedebtmanagement.
Ontariosprogramexpenseisprojectedtobe$1.4billionhigherthanoutlinedinthe2016Budget.
Thisisprimarilytheresultofinvestmentsinhealthcare,socialservices,theGreenInvestment
FundinitiativesandtheOntarioRebateforElectricityConsumers.
Thefiscalplanoutlinedinthe2016Budgetincludeda$1.0billionreservetoprotectthefiscal
outlookagainstunforeseenadversechangesintheProvincesrevenueandexpenseforecasts
in201617.Withahigherthanexpectedrevenueforecastexceedinghigherprojectedexpense,
itisanticipatedthatthereservewillnotberequiredbyyearendandhasbeendrawndown.
Giventhepreliminarynatureoftheseestimates,theinterimforecastissubjecttochangeasactual
ProvincialrevenueandexpensearefinalizedinthePublicAccountsofOntario20162017.
220 ChapterVI:ResponsibleFiscalManagement
In-Year Revenue Performance
Totalrevenuein201617isestimatedtobe$133.2billion.Thisis$2.6billion,or2.0percent,
abovetheamountprojectedinthe2016Budget.Theincreaseislargelyduetohighertaxation
revenuesandstrongertotalnetincomesfromGBEs,partiallyoffsetbylowerotherrevenues.
TABLE6.3 SummaryofRevenueChangessincethe2016Budget
($Millions)
Interim
201617
Taxation Revenue
Corporations Tax 1,296
Personal Income Tax 717
Sales Tax 714
Land Transfer Tax 637
All Other Taxes (120)
Total Taxation Revenue 3,244
CHAPTERVI
SectionB:DetailsonOntariosFinancesandEconomicOutlook 221
Revenue Changes
Highlightsofkey201617revenuechangesfromthe2016Budgetforecastareasfollows:
CorporationsTax(CT)revenueis$1,296millionhigher,mainlyduetohigherrevenuein
2015andprioryearsfromtaxreturnsprocessedandastrongercorporateprofitsoutlook
relativetothe2016Budget.
PersonalIncomeTax(PIT)revenueis$717millionhigherthanthe2016Budgetforecast,
primarilyduetohigher2015revenuefromtaxreturnsprocessed.
SalesTaxrevenuesareestimatedtobe$714millionhigher,largelyreflectinganincrease
toHarmonizedSalesTax(HST)revenuesduetoahigherOntarioshareoftheoverall
HST/GSTrevenuepoolastheprovincialeconomyhasperformedbetterthantherestof
Canadain2015and2016.
LandTransferTax(LTT)revenuesareestimatedtobe$637millionhigher,duetohigher
Ontariohousingresaleprices.
AllOtherTaxrevenuescombinedareestimatedtobe$120millionlower,mainlydueto
lowerrevenuesfromelectricitypaymentsinlieu(PIL)oftaxesandEmployerHealthTax,
partiallyoffsetbyhigherrevenuesfromEducationPropertyTax,GasolineTax,TobaccoTax
andOntarioHealthPremium.
GovernmentofCanadatransfersareestimatedtobe$249millionlowerthanthe
2016Budgetforecast,largelyreflectinglowertransfersforinfrastructureprojects,mainly
duetorevisedtimelinesfortheBuildingCanadaFundandtheabsenceofanticipated
federalhealthfundingforhomecare.
NetincomefromtheLiquorControlBoardofOntario(LCBO)isprojectedtobe$296million
higherthanprojectedinthe2016Budget,primarilyduetotherecategorizationfromSales
andRentalsoftheimpactofthesaleofitsheadofficelandsaspartoftheProvincesasset
optimizationstrategy.
NetincomefromtheOntarioLotteryandGamingCorporation(OLG)isestimatedtobe
$181millionhigherthanprojectedinthe2016Budget,duetohigherthanprojected
revenuesinOLGslottery,slotsandcasinos,andresortcasinosbusinesslines.
ThecombinednetincomesofOntarioPowerGenerationInc.(OPG),HydroOneLtd.(HOL)
andBramptonDistributionHoldcoInc.areprojectedtobe$207millionbelowthe
2016Budgetforecast.LowerHOLnetincomeshownasconsolidatedbytheProvincemainly
reflectstherecategorizationofimpactsofbroadeningHydroOneownershipthatwere
previouslyreflectedunderSalesandRentals.LowerthanprojectedOPGnetincomeis
mainlyduetoavariancefromgrossmarginsassumedinthe2016Budget.
222 ChapterVI:ResponsibleFiscalManagement
OtherNonTaxRevenueisprojectedtobe$626millionlower,mainlyduetoreprofilingof
carbonallowanceproceedsfrom201617to201718,andlowerrevenueunderSalesand
RentalswhichmainlyreflectstherecategorizationofrevenuesrelatedtotheProvinces
assetoptimizationstrategy.
TABLE6.4 SummaryofExpenseChangessincethe2016Budget
($Millions)
201617
Increase/(Decrease) in Program Expense since the 2016 Budget1
Health Sector 483
Education Sector2 105
Postsecondary and Training Sector (69)
Childrens and Social Services Sector 287
Justice Sector 115
Other Programs 441
Total Increase/(Decrease) in Program Expense since the 2016 Budget 1,362
Interest on Debt (506)
Total Expense Changes since the 2016 Budget 856
1 Expense change by sector, restated for fiscally neutral transfers of programs between sectors.
2 Excludes Teachers Pension Plan. Teachers Pension Plan expense is included in Other Programs.
CHAPTERVI
SectionB:DetailsonOntariosFinancesandEconomicOutlook 223
Expense Changes
Thefollowingexpensechangeshaveoccurredsincethe2016Budget:
Healthsectorexpenseisprojectedtoincreaseby$483million,primarilyduetoadditional
investmentsinhospitalstosupporttheneedsofpatientsandreducewaittimes,and
fundingtosupportadditionalstemcelltransplantsinOntario.
Educationsectorexpenseisprojectedtobe$105millionhigherthanforecast,primarilydue
tohigherthanprojectedenrolment.
Postsecondaryandtrainingsectorisprojectedtobe$69millionlowerthananticipated,
mainlyasresultoflowerthanforecasteddemandinemploymentandtrainingprograms
andstudentfinancialassistanceprograms.
Childrensandsocialservicessectorexpenseisprojectedtoincreaseby$287million,
primarilyduetoadditionalinvestmentstoaddressdemandfortheOntarioDisability
SupportProgramandincreasedfundingforautismservices.
Justicesectorexpenseisexpectedtoincreaseby$115million,primarilyduetosettlements
undertheProceedingsAgainsttheCrownAct,reformstothecorrectionssystemand
ensuringwageparityforFirstNationpoliceofficers.
Otherprogramsexpenseisexpectedtoincreaseby$441million,mainlyduetotheGreen
InvestmentFundinitiatives,theOntarioRebateforElectricityConsumers,investmentsin
socialandaffordablehousing,andtheCleanWaterandWastewaterFund.
Interestondebtexpenseisprojectedtobe$506millionlowerthanforecastinthe2016Budget,
primarilyduetolowerthanforecastinterestrates,thelowerforecasteddeficitandcosteffective
debtmanagement.
224 ChapterVI:ResponsibleFiscalManagement
Medium-Term Fiscal Outlook
Thegovernmentisprojectingabalancedbudgetin201718,consistentwiththeplanfirstlaidout
inthe2010Budget.TheProvinceisalsoprojectingcontinuedbalancein201819and201920.
Overthemediumterm,revenueisforecasttoincreasefrom$133.2billionin201617to
$149.3billionin201920,whiletotalexpenseisprojectedtoincreasefrom$134.8billionto
$148.4billionoverthesameperiod.
Totalexpenseoverthemediumtermisprojectedtobehigherthanforecastatthetimeofthe
2016Budgetasaresultoftheinvestmentsthegovernmentismakinginhealth,education,
electricitycostreliefandotherpublicservicesthatmattertoOntariofamilies,partiallyoffsetby
lowerinterestondebtexpense.Ontariosmediumtermoutlookforinterestondebtexpenseis
currentlybelowthe2016Budgetestimate,primarilyasaresultoflowerthanforecastinterest
rates,alongwitheffectiveandefficientdebtmanagement.
Theprogramexpenseoutlookoverthemediumtermisprojectedtobehigherineachof
201617,201718and201819,comparedwiththemediumtermforecastinthe2016Budget.
Thisincreasereflectstheinvestmentsthegovernmentcancontinuetomakeasaresultof
restoringabalancedbudgetincluding:
Supportinghospitals,childrenandyouthpharmacare,primarycare,homecare,andmental
healthservices;
Supportingenrolmentgrowthinschools,childcareexpansionandtheHighlySkilled
WorkforceStrategy;and
CHAPTERVI
SupportingelectricitycostreliefprogramsundertheFairHydroPlan.
Thereserveincludedinthefiscalplanhasbeensetat$0.6billionin201718and201819,
reflectingcontinuedprudencewhilerecognizingtheconfidencearisingfromastrengthening
OntarioeconomyandarestoringoffiscalbalanceinOntario.
SectionB:DetailsonOntariosFinancesandEconomicOutlook 225
TABLE6.5 ChangeinMediumTermFiscalOutlooksincethe2016Budget
($Billions)
However,thereareimportantqualificationstothisgeneralrelationship.Theimpactofhousing
completionsandresalesonHSTandLTTrevenuesisproportionatelygreaterthantheir
contributiontoGDP.Growthinseveraltaxrevenuesources,suchasvolumebasedgasolineand
fueltaxes,ismorecloselyalignedtorealGDP.Similarly,somerevenues,suchasvehicleanddriver
registrationfees,tendtomorecloselytrackgrowthinthedrivingagepopulation.
Growthinsomerevenuesources,suchastheCorporationsTaxandMiningTax,candiverge
significantlyfromeconomicgrowthinanygivenyearduetotheinherentvolatilityofbusiness
profits,aswellastheuseoftaxprovisions,suchastheoptiontocarrylossesforwardorbackward
acrossdifferenttaxyears.
226 ChapterVI:ResponsibleFiscalManagement
Medium-Term Revenue Outlook
Totalrevenueisprojectedtoincreasefrom$133.2billionto$149.3billionbetween201617and
201920,oratanaverageannualrateof3.9percent.RevenuegrowthlargelyreflectstheMinistry
ofFinancesoutlookforeconomicgrowthoutlinedlaterinthischapter.Themediumtermrevenue
outlookincludesrevisedestimatesrelatedtothecurrentfederalgovernmentscommitmentsfor
additionalhealthfundingforhomecareandmentalhealth.Italsoincludesprojectedcarbon
allowanceproceedsandnetrevenuesfromtheProvincesassetoptimizationstrategy.
TABLE6.6 SummaryofMediumTermRevenueOutlook
($Billions)
Outlook
Interim Plan
201617 201718 201819 201920
Revenue
Personal Income Tax 32.9 35.0 37.3 39.5
Sales Tax 24.7 26.0 27.1 28.0
Corporations Tax 13.3 13.8 14.7 15.5
Ontario Health Premium 3.7 3.8 4.0 4.2
Education Property Tax 5.9 6.0 6.1 6.1
All Other Taxes 14.6 15.4 16.3 17.1
Total Taxation Revenue 95.1 100.1 105.4 110.3
Government of Canada 24.4 25.7 25.4 24.9
Income from Government Business Enterprises 5.3 4.9 5.7 6.0
Other Non-Tax Revenue 8.5 11.0 8.3 8.1
Total Revenue 133.2 141.7 144.9 149.3
Note: Numbers may not add due to rounding.
Buildingonexistinginitiatives,includingactionstoaddresstheundergroundeconomy,
thegovernmentistakingactiontostrengthentheintegrityofthetaxsystemandensurethat
everyonepaystheirfairshare.AreviewofrevenuesgeneratedfromGBEswillalsobeundertaken.
Thisintegratedapproachwillhelppromotegreaterfairnessandefficiency,andensuretheongoing
integrityofthetaxsystem(seeChapterVII:AFairandSustainableTaxSystem).
CHAPTERVI
SectionB:DetailsonOntariosFinancesandEconomicOutlook 227
Themediumtermtaxationrevenuegrowthprofilereflectsgrowthintheeconomy,butmayalso
incorporateprioryearadjustmentsandtheimpactsofpastandproposedtaxmeasures.
Theselatterimpactsmayresultinataxationrevenuegrowthprofileforaspecificrevenuesource
thatappearstobeinconsistentwiththegrowthprofileofthemainrelatedeconomicdriver.
Tohelpexplainthemediumtermgrowthprofileofthemajortaxationrevenues,thefollowing
threetablesadjusttotalprojectedrevenuesforeachofPersonalIncomeTax,SalesTaxand
CorporationsTax,toremoveprioryearadjustmentsandimpactsofmeasurestoarriveat
baserevenue.Thisbaserevenuemeasureisshowntobemorecloselyalignedtothemain
economicdriverforthespecifictaxationrevenuesource.
TABLE6.7 PersonalIncomeTaxRevenueOutlook
($Billions)
Outlook
Interim Plan
Revenue 201617 201718 201819 201920
Total Projected Revenue 32.9 35.0 37.3 39.5
Tax Measures1 (0.0) 0.1 0.3 0.4
Other Adjustments (0.2) 0.0 0.0 0.0
Base Revenue2 33.1 34.9 36.9 39.1
Base Revenue Growth (Per Cent) 5.4 5.7 5.9
Compensation of Employees3
4.1 4.5 4.6
(Per Cent Change)
1 Represents the revenue impact of all tax measures, announced previously or proposed in this Budget.
2 Total Projected Revenue less the impact of tax measures or other one-time factors, such as prior-year adjustments.
Base Revenue reflects the impact of underlying macroeconomic factors.
3 Includes wages, salaries and employers social contributions.
TheprimaryeconomicdriveroftheforecastforPersonalIncomeTax(PIT)revenueistheoutlook
forgrowthinthecompensationofemployees.ThePITrevenueprojectionalsoreflectstheimpact
oftaxmeasures,aswellasprioryearandotheradjustments.Taxmeasuresincludethose
announcedinpastBudgetsandthoseproposedinthisBudget(seeChapterVII:AFairand
SustainableTaxSystem),aswellastheimpactoffederalmeasuresincludingthoseannouncedin
the2017federalbudget.Excludingtheimpactsoftaxmeasuresandotheradjustments,thePIT
revenuebaseisprojectedtogrowatanaverageannualrateof5.7percentovertheforecast
period.Thiscompareswithaverageannualgrowthof4.4percentincompensationofemployees
overthisperiod.PersonalIncomeTaxrevenuetendstogrowatafasterratethanincomesdueto
theprogressivestructureofthePITsystem.
228 ChapterVI:ResponsibleFiscalManagement
TABLE6.8 SalesTaxRevenueOutlook
($Billions)
Outlook
Interim Plan
Revenue 201617 201718 201819 201920
Total Projected Sales Tax Revenue1 24.7 26.0 27.1 28.0
Tax Measures2 0.3 0.2 0.1 0.1
Other Adjustments 0.2 0.0 0.0 0.0
Base Revenue3 24.2 25.8 27.0 27.9
Base Revenue Growth (Per Cent) 6.9 4.5 3.3
Nominal Consumption Growth (Per Cent) 4.3 4.2 4.2
1 Revenues from sales tax include: the provincial portion of the Harmonized Sales Tax (HST), Ontarios Retail Sales Tax (RST) on certain
insurance premiums, and the RST on private transfers of specified vehicles. Sales Tax Revenue is reported net of both the Ontario Sales Tax
Credit and the energy component of the Ontario Energy and Property Tax Credit.
2 Represents the revenue impact of all tax measures, announced previously or proposed in this Budget.
3 Total Projected Revenue less the impact of tax measures or other one-time factors, such as prior-year adjustments.
TheSalesTaxrevenueprojectionisbasedprimarilyongrowthinconsumerspending.TheSales
Taxrevenueprojectionalsoreflectstheimpactoftaxmeasuresandprioryearadjustments.
Taxmeasuresof$0.3billionin201617primarilyreflecttheimpactoftransitionalmeasuressuch
asinputtaxcredits,whicharebeingphasedoutby201819.Otheradjustmentsreflectaonetime
adjustmentof$0.2billionin201617relatedtoavariancefromSalesTaxrevenuereportedinthe
PublicAccountsofOntario20152016.Excludingtheimpactsofmeasuresandotheradjustments,
theSalesTaxrevenuebaseisprojectedtogrowatanaverageannualrateof4.9percent,
reflectingaverageannualgrowthinnominalconsumptionof4.2percentoverthisperiod.
CHAPTERVI
SectionB:DetailsonOntariosFinancesandEconomicOutlook 229
TABLE6.9 CorporationsTaxRevenueOutlook
($Billions)
Outlook
Interim Plan
Revenue 201617 201718 201819 201920
Total Projected Revenue 13.3 13.8 14.7 15.5
Tax Measures1 0.2 0.3 0.4 0.4
Other Adjustments2 0.6 0.0 0.0 0.0
Base Revenue3 12.6 13.5 14.4 15.1
Base Revenue Growth (Per Cent) 7.4 6.5 5.0
Net Operating Surplus Corporations Growth
6.8 7.1 5.4
(Per Cent)
1 Represents the revenue impact of all tax measures announced previously or proposed in this Budget.
2 Other Adjustments include net timing of payment adjustments due to the difference between projected Corporations Tax (CT) revenue
entitlements and projected federal CT remittances.
3 Total Projected Revenue less the impact of tax measures or other one-time factors, such as prior-year adjustments. Base Revenue reflects the
TheforecastforCorporationsTax(CT)revenueisbasedontheannualgrowthinthenetoperating
surplusofcorporations.TheCTrevenueprojectionreflectstheimpactoftaxmeasures,aswellas
prioryearandotheradjustments.Taxmeasuresincludethoseannouncedinpastfederaland
provincialbudgetsandthoseproposedinthisBudget(seeChapterVII:AFairandSustainableTax
System).Afteraccountingfortaxmeasuresandotheradjustments,theCTrevenuebasegrowsat
anaverageannualrateof6.3percentovertheforecastperiod.Thisisinlinewiththe6.5percent
averageannualgrowthinthenetoperatingsurplusofcorporations.
OntarioHealthPremiumrevenueforecastisbasedprimarilyontheprojectedgrowthinthe
compensationofemployees.Asaresult,OntarioHealthPremiumrevenueisprojectedtoincrease
atanaverageannualrateof4.4percentovertheforecastperiod.
EducationPropertyTaxrevenueisprojectedtoincreaseatanaverageannualrateof1.1percent
overtheforecastperiod.Thisislargelyduetogrowthinthepropertyassessmentbaseresulting
fromnewconstructionactivities.
RevenuesfromAllOtherTaxesareprojectedtoincreaseatanaverageannualrateof5.4percent
overtheforecastperiod.ThisincludesrevenuesfromtheLandTransferTax,BeerandWineTax
andvolumebasedtaxessuchastheGasolineTax,FuelTaxandTobaccoTax.Theeffectofthenew
housingaffordabilitypoliciesonthehousingmarket,andthereforeonLTTrevenues,aredifficult
topredict.However,LTTrevenuesareprojectedtoincrease,butataslowerratethanlastyear,
reflectingamoderationinthepaceofhousingmarketactivity.
230 ChapterVI:ResponsibleFiscalManagement
TheforecastforGovernmentofCanadatransfersisbasedonexistingfederalprovincialfunding
arrangements.Revenuesareprojectedtogrowslightlyatanaverageannualrateof0.6percent
overtheforecastperiod,largelyreflectingprojectedincreasesintheCanadaHealthTransferand
CanadaSocialTransfer,partiallyoffsetbylowerprojectionsofEqualizationpayments.Theforecast
alsoincludesrevisedestimatesrelatedtothefederalgovernments2017budgetannouncementof
federalhealthfundingforhomecareandmentalhealth.
TheoutlookforIncomefromGovernmentBusinessEnterprises(GBEs)isbasedonMinistryof
FinanceestimatesofnetincomeforHydroOneandinformationprovidedbyOntarioPower
Generation,LiquorControlBoardofOntario(LCBO)andtheOntarioLotteryandGaming
Corporation(OLG).OverallrevenuefromGBEsisprojectedtoincreaseby$0.7billionbetween
201617and201920,oratanaverageannualrateof4.3percent.
TheforecastforOtherNonTaxrevenueisbasedonprojectionsprovidedbygovernment
ministriesandProvincialagencies.Between201617and201920,OtherNonTaxrevenuesare
projectedtobeslightlylowerby$0.3billion.ThisdecreaselargelyreflectstheremovaloftheDebt
RetirementChargefromcommercial,industrialandallotherelectricityusersin201819andthe
projectednetimpactoftheProvincesplannedassetoptimizationstrategy.Thisdeclineispartially
offsetbyhigherrevenuefromvehicleanddriverregistrationfees.
CHAPTERVI
SectionB:DetailsonOntariosFinancesandEconomicOutlook 231
Key Changes in the Medium-Term Revenue Outlook since
the 2016 Budget
Comparedwiththe2016Budgetforecast,theoutlookforrevenuesarehigheroverthe201617to
201819period.
TABLE6.10 SummaryofMediumTermRevenueChangessincethe
2016Budget
($Billions)
Taxationrevenuesarehigher,largelyduetostrongereconomicgrowthandhigherthanexpected
revenuesfromprocessingpastyearstaxreturns.Strongerestimatesofeconomicgrowthfor
2014to2016haveincreasedOntarios2016nominalGDPby$19.8billionabovethelevel
expectedinthe2016Budget.ThelatesttaxdatafromprocessingofPersonalandCorporate
IncomeTaxreturnsduring2016boostedthe2015baseuponwhichgrowthisapplied,increasing
revenueestimatesovertheforecastperiod.TheHSTbasein2015wasalsohigherasOntarios
relativelystrongereconomicgrowthexceededexpectations,increasingOntariosshareofthe
revenuepool.TaxationrevenuealsobenefitedfromcontinuedstrengthoftheOntariohousing
market.Finally,thehighertaxationrevenueincludesimpactoftaxmeasuresannouncedinthis
Budget(seeChapterVII:AFairandSustainableTaxSystem).TaxmeasuresincludeaTobaccoTax
rateincreaseandparallelingofthe2017federalbudgettaxmeasures.
LowerGovernmentofCanadaTransfersin201617largelyreflectslowerthanprojectedfunding
forinfrastructureprojectsandtheabsenceoffundingforhomecareasanticipatedinthe
2016Budget.Thedeclineintheplanyearandthemediumtermmainlyreflectslowerprojected
Equalizationpayments,partiallyoffsetin201718byhigherfederaltransferforpublic
transitprojects.
232 ChapterVI:ResponsibleFiscalManagement
IncomefromGovernmentBusinessEnterprisesisprojectedtobehigherin201617reflecting
strongeroverallperformancefromOLGandLCBO,includingtherecategorizationfromSalesand
RentalsoftheimpactofthesaleofLCBOsheadofficelandsaspartoftheProvincesasset
optimizationstrategy.Thedecreasein201718ismainlyduetoprojectedlowercombinednet
incomesofHydroOneLtd.andtheOntarioPowerGenerationInc.,includingtheimpactofa
Provincialaccountingconsolidationadjustment,asrequiredinPublicAccountsunderPublicSector
AccountingStandards,asdiscussedinChapterVI,SectionA:TransformingGovernmentfor
SustainabilityandFairness.
Therevenueoutlookalsoincludesprojectedproceedsfromtheauctioningofcarbonallowances
beginningin201617.Lowerproceedsin201617reflectrevenuefromthefirstauctionin
March2017beingcertifiedandsettledinfiscalyear201718.Alowermediumtermoutlookalso
reflectsrevisedprojectionsusingmorecautiousassumptions.
ThedecreaseinOtherNonTaxRevenuein201617islargelyduetolowerSalesandRentals
revenuerecategorizedunderLCBOnetincomeasindicatedabove;partiallyoffsetbyhigher
revenuefrompowersupplycontractrecoveriesthatarefiscallyneutralandothermiscellaneous
revenuesources.Theoverallchangeinthemediumtermlargelyreflectsrevisednetimpactsofthe
Provincesplannedassetoptimizationstrategy,highermiscellaneousrevenues,andfiscallyneutral
lowerpowersupplycontractrecoveries.
Thefollowingsectionhighlightssomeofthekeysensitivitiesandriskstothefiscalplanthatcould
arisefromunexpectedchangesineconomicconditions.Theseestimatesareonlyguidelines;
actualresultswillvarydependingonthecompositionandinteractionofthevariousfactors.
Therisksarethosethatcouldhavethemostmaterialimpactonthelargestrevenuesources.
Abroaderrangeofadditionalrisksarenotincludedbecausetheyareeitherlessmaterialor
difficulttoquantify.Forexample,theoutlookforGovernmentofCanadatransfersissubjectto
changesineconomicvariablesthataffectfederalfunding,aswellaschangesbythefederal
governmenttothefundingarrangementsthemselves. CHAPTERVI
SectionB:DetailsonOntariosFinancesandEconomicOutlook 233
TABLE6.11 SelectedEconomicandRevenueRisksandSensitivities
Economic Factors Revenue Sources 201718 Sensitivities*
Nominal GDP Total Taxation Revenue $690 million revenue change for each
percentage point change in Nominal
GDP Growth
Compensation of Employees Personal Income Tax, Ontario $425 million revenue change for each
Health Premium and Employer percentage point change in growth in
Health Tax Compensation of Employees
Household Consumption Harmonized Sales Tax $190 million for each percentage point
Expenditures change in growth of Household
Consumption Expenditures
Net Corporations Operating Surplus Corporations Tax $145 million revenue change for each
percentage point change in growth of
Net Corporations Operating Surplus
Housing Resales and Resale Prices Land Transfer Tax $26 million for each percentage point
change in growth of either the number
or prices of Housing Resales
* Can vary significantly, depending on composition and source of changes in the underlying economic driver.
234 ChapterVI:ResponsibleFiscalManagement
Medium-Term Expense Outlook
TheProvincesprogramexpenseoutlookisprojectedtogrowatanaverageannualrateof
2.9percentbetween201516and201920.Thisreflectsthegovernmentscommitmenttoinvest
inpriorityareassuchashealthcare,education,childcareexpansionandelectricitycostrelief
programs.
Thegovernmenthasastrongtrackrecordinmeetingitsfiscaltargets,andisbuildingonthe
successofrecentinitiativestosupporttheProvincesfiscalobjectives.Thegovernmentwill
expandthereviewofcurrentprogramstoidentifyopportunitiesformodernizationandtoensure
thatexpensegrowthismanagedwithintheplanlaidoutinthisBudget(seeChapterVI,SectionA:
TransformingGovernmentforSustainabilityandFairness).
TABLE6.12 SummaryofMediumTermExpenseOutlook
($Billions)
Average
Annual Growth
Actual Interim Plan Outlook 201516
201516 201617 201718 201819 201920 to 201920
Programs
Health Sector 51.0 52.2 53.8 56.3 58.1 3.3%
Education Sector1 25.0 25.7 26.5 27.4 28.0 2.8%
Postsecondary and
Training Sector 7.7 7.8 8.4 8.3 8.4 2.5%
Childrens and Social
Services Sector 15.6 16.2 16.9 17.2 17.4 2.7%
Justice Sector 4.5 4.6 4.7 4.7 4.8 1.2%
Other Programs 17.1 17.0 19.2 18.4 19.2 2.9%
Total Programs 120.9 123.5 129.5 132.3 135.8 2.9%
Interest on Debt 11.0 11.3 11.6 12.0 12.6 3.6%
Total Expense 131.9 134.8 141.1 144.3 148.4 3.0%
1 Excludes Teachers Pension Plan. Teachers Pension Plan expense is included in Other Programs.
Note: Numbers may not add due to rounding.
CHAPTERVI
SectionB:DetailsonOntariosFinancesandEconomicOutlook 235
Highlightsoftheprogramexpenseoutlookoverthemediumtermincludethefollowing:
Healthsectorexpenseisprojectedtogrowonaverageby3.3percentperyearbetween
201516and201920asaresultoftargetedfundingforhospitalservices,reducedwait
times,newchildrenandyouthpharmacare,investmentstoincreaseaccesstoprimarycare,
homecareandcommunitycare,andincreasedsupportsforpeoplerequiringmentalhealth
andaddictionsservices.
Educationsectorexpenseisprojectedtogrowonaverageby2.8percentperyearbetween
201516and201920,mainlyduetoincreasedfundingtoschoolboardstosupport
enrolmentgrowthandnewinvestmentsinchildcare.
Postsecondaryandtrainingsectorexpenseisprojectedtogrowonaverageby2.5percent
peryearbetween201516and201920,mainlyduetoinvestmentsintheHighlySkilled
Workforceinitiativesandpostsecondaryinfrastructureinvestments.
Childrensandsocialservicessectorexpenseisprojectedtogrowonaverageby
2.7percentperyearbetween201516and201920,primarilyreflectinginvestmentsin
socialassistanceanddevelopmentalservices,aswellasfundingtosupporttransformation
ofautismandchildwelfareservices.
Justicesectorexpenseisprojectedtogrowonaverageby1.2percentperyearbetween
201516and201920,mainlyduetoreformstothecorrectionssystem,thecontinuing
uploadofcourtsecuritycostsfrommunicipalities,theexpansionofaccesstolegalaidfor
lowincomeOntarians,appointingmorejudges,initiativestosupportmoretimelyresolution
ofcases,andplannedcapitalinvestments.
Otherprogramsexpenseisprojectedtogrowonaverageby2.9percentperyearbetween
201516and201920,mainlyduetoelectricitycostreliefprogramsundertheFairHydro
Plan,initiativesundertheClimateChangeActionPlan,andinvestmentsintransitand
transportation.
Thetotalexpenseoutlookincludesinterestondebtexpense,whichisprojectedtoincrease
onaverageby3.6percentperyearbetween201516and201920.Thisincreaseismainlydue
toborrowingforinvestmentincapitalassets.
236 ChapterVI:ResponsibleFiscalManagement
Risks to the Expense Outlook
Thegovernmenthascontinuedtodemonstratestrongfiscalmanagement,havingheldaverage
annualgrowthinprogramspendingto1.8percentbetween201112and201516.Itwillmanage
risksprudentlytoensureitcancontinuetoinvestintheeconomyandpeople,whilemaintaining
balancedbudgets.
Thefollowingtableprovidesasummaryofkeyexpenserisksandsensitivitiesthatcouldresult
fromunexpectedchangesineconomicconditionsandprogramdemands.Achangeinthese
factorscouldaffecttotalexpense,causingvariancesintheoverallfiscalforecast.
Thesesensitivitiesareillustrativeandcanvary,dependingonthenatureandcomposition
ofpotentialrisks.
TABLE6.13 SelectedExpenseSensitivities
Program/Sector 201718 Assumption 201718 Sensitivity
Health Sector Average annual growth of 3.3 per cent One per cent change in health
spending: $538 million
Hospitals Sector Expense Annual growth of 3.1 per cent One per cent change in hospitals
sector expense: $237 million
Drug Programs Annual growth of 8.4 per cent One per cent change in program
expenditure of drug programs:
$42 million
Long-Term Care Homes 78,229 long-term care home beds. One per cent change in number of
Average Provincial annual operating beds: approximately $41 million
cost per bed in a long-term care home:
$52,861
Home Care Approximately 29 million hours of One per cent change in hours
personal support services of personal support services:
approximately $9.7 million
Approximately 8.7 million nursing One per cent change in all nursing
and therapy visits and 2.1 million and therapy visits: approximately
nursing shifts $8.4 million
Elementary and Secondary Schools Approximately 1,969,000 One per cent enrolment change:
average daily pupil enrolment approximately $165 million
Ontario Works 248,877 average annual caseload One per cent caseload change:
$27 million
CHAPTERVI
Ontario Disability Support Program 358,079 average annual caseload One per cent caseload change:
$51 million
Interest on Debt Average cost of 10-year borrowing in The impact of a 100 basis-point
201718 forecast to be approximately change in borrowing rates is forecast
3.0 per cent to be approximately $300 million
SectionB:DetailsonOntariosFinancesandEconomicOutlook 237
Contingent Liabilities
Inadditiontothekeydemandsensitivitiesandeconomicriskstothefiscalplan,therearerisks
stemmingfromthegovernmentscontingentliabilities.Whetherthesecontingencieswillresultin
actualliabilitiesfortheProvinceisbeyondthedirectcontrolofthegovernment.Lossescould
resultfromlegalsettlements,defaultsonprojects,andloanandfundingguarantees.Provisionsfor
lossesthatarelikelytooccurandcanbereasonablyestimatedareexpensedandreported
asliabilitiesintheProvincesfinancialstatements.Anysignificantcontingentliabilitiesrelatedto
the201617fiscalyearwillbedisclosedaspartofthe20162017AnnualReportand
ConsolidatedFinancialStatements,expectedtobereleasedinthesummer.
Fiscal Prudence
AsrequiredbytheFiscalTransparencyandAccountabilityAct,2004(FTAA),Ontariosfiscalplan
incorporatesprudenceintheformofareservetoprotectthefiscaloutlookagainstunforeseen
adversechangesintheProvincesrevenueandexpense.Thereservehasbeensetat$0.6billion
in201718,$0.6billionin201819,and$0.9billionin201920.
Thefiscalplanalsoincludescontingencyfunds(bothoperatingandcapital)tohelpmitigate
expenserisksparticularlyincaseswherehealthandsafetymaybecompromisedorservices
tothemostvulnerablearejeopardizedthatmayotherwiseadverselyaffectOntariosfiscal
performance.
Inkeepingwithsoundfiscalpractices,theProvincesrevenueoutlookisbasedonprudent
economicassumptions,asdiscussedlaterinthissection.
238 ChapterVI:ResponsibleFiscalManagement
Details of Ontarios Finances
ThefollowingtablesandchartsprovideinformationontheProvinceshistoricalfinancial
performance,keyfiscalindicators,andfiscalplanandoutlook.
TABLE6.14 Revenue
($Millions)
Actual Interim Plan
201415 201516 201617 201718
Taxation Revenue
Personal Income Tax 29,313 31,141 32,884 35,032
Sales Tax1 21,689 23,455 24,690 26,011
Corporations Tax 9,557 11,428 13,346 13,817
Education Property Tax2 5,561 5,839 5,900 6,002
Employer Health Tax 5,415 5,649 5,882 6,117
Ontario Health Premium 3,366 3,453 3,664 3,789
Gasoline Tax 2,447 2,459 2,602 2,663
Land Transfer Tax 1,778 2,118 2,688 3,139
Tobacco Tax 1,163 1,226 1,247 1,291
Fuel Tax 739 751 736 746
Beer and Wine Tax 560 582 594 619
Electricity Payments in Lieu of Taxes 180 3,247 373 405
Other Taxes 507 470 457 466
82,275 91,818 95,063 100,097
Government of Canada
Canada Health Transfer 12,408 13,089 13,910 14,340
Canada Social Transfer 4,847 4,984 5,146 5,307
Equalization 1,988 2,363 2,304 1,424
Infrastructure Programs 137 146 837 2,328
Labour Market Programs 896 927 974 977
Social Housing 465 455 434 412
Other Federal Payments 874 893 790 893
21,615 22,857 24,395 25,681
Government Business Enterprises
Ontario Lottery and Gaming Corporation 1,995 2,234 2,134 2,134
Liquor Control Board of Ontario 1,831 1,956 2,321 2,137
Ontario Power Generation Inc./Hydro One Ltd./
Brampton Distribution Holdco Inc. 1,789 719 842 617
5,615 4,909 5,297 4,888
Other Non-Tax Revenue
Reimbursements 985 991 979 984
Vehicle and Driver Registration Fees 1,433 1,565 1,721 1,934
Electricity Debt Retirement Charge 956 859 625 623
Power Supply Contract Recoveries 950 875 739 292 CHAPTERVI
Sales and Rentals 2,336 2,102 1,980 3,006
Carbon Allowance Proceeds 1,778
Other Fees and Licences 693 964 1,007 984
Net Reduction of Power Purchase Contract Liability 217 172 129 74
Royalties 275 274 278 265
Miscellaneous Other Non-Tax Revenue 1,196 991 1,015 1,044
9,041 8,793 8,473 10,984
Total Revenue 118,546 128,377 133,228 141,650
1 Sales Tax revenue is net of the Ontario Sales Tax Credit and the energy component of the Ontario Energy and Property Tax Credit.
2 Education Property Tax revenue is net of the Ontario Senior Homeowners Property Tax Grant and the property tax component of the Ontario
SectionB:DetailsonOntariosFinancesandEconomicOutlook 239
TABLE6.15 TotalExpense
($Millions)
240 ChapterVI:ResponsibleFiscalManagement
TABLE6.15 TotalExpense(continued)
($Millions)
3 Interest on debt is net of interest capitalized during construction of tangible capital assets of $202 million in 201415, $165 million in 201516,
factors such as program management, and changes in project startups and implementation plans.
Note: Numbers may not add due to rounding.
SectionB:DetailsonOntariosFinancesandEconomicOutlook 241
CHART 6.2 Composition of Revenue, 201718
Corporations Tax
9.8% $13.8B
Personal
Income Tax
Education Property Tax 24.7% $35.0B
4.2% $6.0B
Sales Tax
18.4% $26.0B
Other Programs
13.6% $19.2B
Education Sector1
18.8% $26.5B
Interest on Debt
8.2% $11.6B
Health Sector
38.1% $53.8B
1 Excludes
Teachers Pension Plan. Teachers Pension Plan expense is included in Other Programs.
Note: Numbers may not add due to rounding.
242 ChapterVI:ResponsibleFiscalManagement
TABLE6.16 201718InfrastructureExpenditures
($Millions)
201718 Plan
Total Transfers
Infrastructure Investment and Other Total
Expenditures in Capital Infrastructure Infrastructure
Sector 201617 Interim1 Assets2 Expenditures3 Expenditures4
Transportation
Transit 3,806 5,440 1,736 7,176
Provincial Highways 2,137 2,900 120 3,020
Other Transportation,
Property and Planning 642 172 180 352
Health
Hospitals 2,297 2,588 295 2,883
Other Health 262 81 261 342
Education 2,000 2,636 53 2,689
Postsecondary
Colleges and Other 721 976 13 989
Universities 318 399 399
Social 749 20 454 474
Justice 243 107 227 334
Other Sectors5 1,135 646 973 1,620
Total Infrastructure
Expenditures 14,311 15,566 4,711 20,277
1 Includes provincial investment in capital assets of $8.9 billion.
2 Includes $292 million in interest capitalized during construction.
3 Includes transfers to municipalities, universities and non-consolidated agencies.
4 Includes third-party investments in hospitals, colleges and schools, and federal contributions to provincial infrastructure investments.
CHAPTERVI
SectionB:DetailsonOntariosFinancesandEconomicOutlook 243
TABLE6.17 TenYearReviewofSelectedFinancialandEconomicStatistics1
($Millions)
assets owned by consolidated organizations are being accounted for in a similar manner.
3 Interest on debt is net of interest capitalized during construction of tangible capital assets of $134 million in 201314, $202 million in 201415,
$165 million in 201516, $121 million in 201617, and $292 million in 201718.
4 Starting in 200910, Net Debt includes the net debt of hospitals, school boards and colleges, consistent with Public Sector Accounting Board
standards. For comparative purposes, Net Debt has been restated in 200809 to conform with this revised presentation.
5 The 201516 actuals have been restated to reflect recognizing jointly sponsored net pension assets for the Ontario Public Service Employees
Union Pension Plan and the Ontario Teachers Pension Plan on the Provinces financial statements, consistent with the 2016 Budget and as
described in the 201617 Third Quarter Finances.
Note: Numbers may not add due to rounding.
Sources: Statistics Canada and Ontario Ministry of Finance.
244 ChapterVI:ResponsibleFiscalManagement
CHAPTERVI
SectionB:DetailsonOntariosFinancesandEconomicOutlook 245
Economic Outlook Details
TheMinistryofFinanceisforecasting2.0percentaverageannualgrowthinOntariosrealgross
domesticproduct(GDP)overthe201720period.Forprudentfiscalplanning,theserealGDP
growthprojectionsareslightlybelowtheaverageofprivatesectorforecasts.
TABLE6.18 OntarioEconomicOutlook
(PerCent)
Ontarioseconomycontinuestoperformwell.AbalancedandgrowingeconomyintheUnited
States,lowoilpricesandacompetitiveCanadiandollarprovideasolidfoundationforfuture
economicgrowthinOntario.Risinginterestratesandelevatedhouseholddebtloadspose
downsiderisks.Heightenedglobaluncertaintyandrisingglobalprotectionistsentimentscould
potentiallyweighdownfuturebusiness,consumerandinvestorconfidence.
ExportsandbusinessinvestmentareexpectedtobekeydriversofOntarioseconomicgrowth
overtheforecastperiod.Improvingglobalgrowthprospects,technologicalinnovationanda
competitiveanddynamiceconomicenvironmentwillhelpdrivebusinessinvestment.Inturn,
businessinvestmentwillcontinuetobesupportedbyOntarioscompetitivebusinesstax
environmentandstrategicgovernmentactions,suchas:
InfrastructureinvestmentsunderMovingOntarioForward;and
ThegovernmentsfiveyearBusinessGrowthInitiative.
SeeChapterIII:CreatingOpportunitiesandSecurityforafulldiscussionofgovernmentactions
tosupportbusinessinvestment.
246 ChapterVI:ResponsibleFiscalManagement
CHART 6.4 Ontario Economic Growth Expected to Broaden
2.5 2.3
2.0 2.0 2.0
2.0
1.5 1.3
1.1
1.0
0.5
0.0
Real GDP Household Government Residential Business Exports Imports
Growth Spending Investment Investment
Notes: Government includes investment and consumption expenditure. Business investment includes investment in plant, equipment
and intellectual property products.
Source: Ontario Ministry of Finance.
Ontariosexportsareexpectedtoriseby2.3percentannually,onaverage,overthe
201720period.InternationalexportsareexpectedtocontinuetobenefitfromalowCanadian
dollarandsolidU.S.demand.Followingaperiodofweakness,interprovincialexportsareexpected
topickupovertheforecastperiod,largelyduetoimprovingprospectsinresourcebased
provinces.However,intenseglobalcompetitivechallengesposesomedownsiderisktothe
outlook.ManyothercountrieswhoseexportshavegainedsignificantshareintheU.S.market
havealsorecordeddepreciationintheircurrenciesagainsttheU.S.dollar.Thishassomewhat
offsetthecompetitivegainsOntarioexportershaveexperiencedfromalowCanadiandollar.
Atthesametime,OntariostradewiththeUnitedStatesispartofanintegrated,productive
andmutuallybeneficialglobalsupplychainwhich,comparedtomanyotherjurisdictions,
ismorebalanced.
Businessinvestmentspendingslowedin2016,thoughfirmsareexpectedtoincreaseinvestment
in2017.Businessinvestmentisprojectedtoriseby3.1percentannuallybetween2017and2020. CHAPTERVI
ThisimprovementreflectssolidU.S.demand,astillcompetitiveCanadiandollarandgrowing
domesticopportunities.
SectionB:DetailsonOntariosFinancesandEconomicOutlook 247
Ontariohasexperiencedstrongjobgrowthsincethe200809globalrecession.Employment
isforecasttoincreaseby1.3percent,or94,000netnewjobsin2017,followinggrowthof
1.1percentin2016.Steadyemploymentgainsof1.1percentannually,onaverage,areexpected
overthe201820period.Thiswouldresultin900,000netnewjobscreatedbetween2010and
2020.Also,Ontariosunemploymentrateisprojectedtoimproveto6.4percentin2017and
steadilydeclineto6.2percentby2020.
Employment
(Millions)
7.4 7.3
7.3
7.2
900,000 More Jobs 7.2
7.1
7.0
7.0 6.9
6.9
6.8
6.8 6.7
6.7
6.6 6.5
6.4
6.4
6.2
6.0
2009 2010 2011 2012 2013 2014 2015 2016 2017p 2018p 2019p 2020p
Growthinincomes,buoyedbycontinuedjobgrowth,risingwagesandgovernmentpolicy,
isexpectedtocontinuedrivingconsumerspendinginOntario.Followinggrowthof2.8percent
in2016,annualrealhouseholdconsumptiongainsareforecasttoaverage2.0percentoverthe
201720period.
248 ChapterVI:ResponsibleFiscalManagement
TheOntariohousingmarketadvancedin2016,withbothresaleactivityandhousingstarts
exceedingexpectations.Homepriceappreciationisforecasttomoderateasrisinginterestrates,
historicallyhighvaluationsandmortgagedebttemperhealthydemographicrelateddemand,
aswellasrecentlyintroducedpolicymeasuresbytheOntariogovernment.
(Thousands)
Housing Starts Household Formations
80
75
70
65
60
55
50
45
40
35
30
2012 2013 2014 2015 2016 2017p 2018p 2019p 2020p
p = projection.
Source: Canada Mortgage and Housing Corporation and Ontario Ministry of Finance.
CHAPTERVI
SectionB:DetailsonOntariosFinancesandEconomicOutlook 249
External Economic Environment
TheexternalenvironmentremainssupportiveofOntarioseconomicgrowth,withacompetitive
Canadiandollar,lowoilpricesandstrongerU.S.andCanadiangrowth.Forecastsforkeyexternal
factorsaresummarizedinthetablebelow.TheseareusedasthebasisfortheMinistryof
FinancesforecastforOntarioseconomicgrowth.
TABLE6.19 OutlookforExternalFactors
Sources: IMF World Economic Outlook (October 2016 and January 2017), U.S. Bureau of Economic Analysis, Blue Chip Economic Indicators
(March 2017), Statistics Canada, U.S. Energy Information Administration, Bank of Canada, Ontario Ministry of Finance Survey of Forecasters
(March 2017) and Ontario Ministry of Finance.
GlobalrealGDPisexpectedtostrengthenfrom3.1percentin2016to3.4percentin2017,
3.6percentin2018and3.7percentinboth2019and2020.Emergingmarketeconomiesare
forecasttocontinuetoleadglobalgrowth,whileadvancedeconomiesexperiencemoremodest
improvements.U.S.andCanadianeconomicgrowtharebothprojectedtopickup.U.S.realGDP
isexpectedtoexpandby2.3percentin2017,boostedbyfiscalstimulus.CanadasrealGDPis
forecasttoincreasefrom1.4percentin2016to2.1percentin2017,supportedbyhouseholdand
governmentspendingandfirmingoilprices.Inmanyotheradvancedeconomies,includingJapan
andEuromemberstates,growthprojectionsremainmodestfor2017and2018.
250 ChapterVI:ResponsibleFiscalManagement
Oilprices,interestratesandtheCanadiandollarareprojectedtorisemoderatelyovertheforecast
period.Oilpricesroseinlate2016andearly2017followingtheagreementbytheOrganizationof
thePetroleumExportingCountries(OPEC),aswellassomenonOPECcountriestoloweroil
production.Althoughrecentlysoftened,oilpricesareexpectedtoriseovertheforecastperiod,
supportingagradualappreciationoftheCanadiandollar.However,thedifferingpathofU.S.
andCanadianmonetarypolicywilllimitneartermgainsoftheCanadiandollar.TheU.S.Federal
ReserveraisedinterestratesinMarch2017forthethirdtimesincetheglobalfinancialcrisis,
whiletheBankofCanadahasleftitsinterestratesunchanged.Theyieldonathreemonth
Canadiantreasurybillisexpectedtobe0.5percentin2017,unchangedfrom2015and2016.
However,Canadianlongterminterestratesroseinlate2016followingU.S.Treasuryyieldsthat
reflectananticipatedfiscalpolicyboostandadditionalFederalReserveratehikes.
Tocontinuedeliveringhighqualitydataandinformation,Ontarioismodernizingitsstatistics
services.Currently,OntarioistheonlyprovinceinCanadawithoutanofficialstatisticsentity.
TheProvinceistakingstepstodevelopbusinessmodeloptionsfortransformingdataintouseful
informationforOntarians,enablinggovernmenttodraftandimplementpoliciesthatwillgrowthe
economyandcreatejobs.
CHAPTERVI
SectionB:DetailsonOntariosFinancesandEconomicOutlook 251
TABLE6.20 TheOntarioEconomy,201520
(PerCentChange)
Actual Projection
2015 2016 2017 2018 2019 2020
Real Gross Domestic Product 2.5 2.7 2.3 2.1 2.0 1.7
Household Consumption 2.7 2.8 2.2 2.1 1.9 1.9
Residential Construction 7.2 7.9 0.2 1.6 1.2 1.4
Non-Residential Construction 9.7 -4.0 0.0 3.5 5.3 1.0
Machinery and Equipment 6.8 -4.0 0.0 3.8 6.0 3.9
Exports 2.8 3.0 2.0 2.5 2.4 2.2
Imports 3.7 1.4 1.6 2.3 2.1 2.0
Nominal Gross Domestic Product 4.9 4.6 4.3 4.1 4.2 3.9
Primary Household Income 4.4 4.1 3.9 4.0 4.1 3.9
Compensation of Employees 4.2 4.4 4.1 4.5 4.6 4.2
Net Operating Surplus Corporations 9.1 9.2 6.8 7.1 5.4 4.0
Other Economic Indicators
Retail Sales 4.2 4.7 3.9 3.7 3.8 3.3
Housing Starts (000s) 70.2 75.0 72.0 68.5 71.0 72.0
Home Resales 9.5 9.7 4.3 2.8 3.2 3.4
Home Resale Prices 7.8 15.3 7.4 5.4 5.2 5.0
Consumer Price Index 1.2 1.8 2.0 2.0 2.0 2.0
Employment 0.7 1.1 1.3 1.2 1.1 0.9
Job Creation (000s) 45 76 94 89 82 66
Unemployment Rate (Per Cent) 6.8 6.5 6.4 6.3 6.2 6.2
Key External Variables
U.S. Real Gross Domestic Product 2.6 1.6 2.3 2.4 2.1 2.0
WTI Crude Oil ($ US/bbl.) 49 43 54 59 62 64
Canadian Dollar (Cents US) 78.2 75.4 74.5 75.5 78.5 80.0
Three-Month Treasury Bill Rate1 0.5 0.5 0.5 0.8 1.5 1.9
10-Year Government Bond Rate1 1.5 1.3 1.9 2.4 3.0 3.2
1 Government of Canada interest rates (per cent).
Sources: Statistics Canada, Canada Mortgage and Housing Corporation, Canadian Real Estate Association, Bank of Canada, U.S. Bureau of
Economic Analysis, Blue Chip Economic Indicators (March 2017), U.S. Energy Information Administration and Ontario Ministry of Finance.
252 ChapterVI:ResponsibleFiscalManagement
Uncertain Global Environment
Althoughglobaleconomicgrowthisprojectedtoimproveoverthe201720period,therearerisks
aroundtheoutlook.UncertaintyaboutU.S.economicpolicy,aswellaspotentialrestrictionson
globaltradeandmigration,coulddiminishproductivityanddampenbusinesssentiment.
TheexpectationforfiscalstimulusandrisinginflationintheUnitedStateshaspushedlongterm
interestrateshighersincelate2016.Mortgagerateshavealsoincreased,butremainathistorically
lowlevels.Risinginterestratesareexpectedtocontributetoastabilizationinhousingmarket
activityinOntario.However,householddebtloadsareelevatedasresalehomepriceappreciation
hasoutpacedincomegainsinrecentyears,fuellingmortgagedebtaccumulation.
Despitehistoricallylowmortgagerates,mortgagecarryingcostsonrecentlysoldhomesinOntario
areabovetheirlongtermaverage.Asof2016,thisdeteriorationinaffordabilityhasbeenmost
acuteintheGreaterTorontoArea.Highlevelsofdebtcombinedwithelevatedresalepricesleave
Ontariohouseholdspotentiallyvulnerableintheeventofanadverseeconomicshock.
Table6.21providescurrentestimatesoftheimpactofsustainedchangesinkeyexternalfactors
onthegrowthofOntariosrealGDP,assumingotherexternalfactorsareunchanged.Therelatively
widerangefortheimpactsreflectsuncertaintyregardinghowtheeconomywouldbeexpectedto
respondtothesechangesinexternalconditions.
TABLE6.21 ImpactsofSustainedChangesinKeyExternalFactors
onOntariosRealGDPGrowth
(PercentagePointChange)
SectionB:DetailsonOntariosFinancesandEconomicOutlook 253
Private-Sector Forecasts
TheMinistryofFinanceconsultswithprivatesectoreconomistsandtrackstheirforecaststo
informthegovernmentsplanningassumptions.Intheprocessofpreparingthe2017Budget,
theMinisterofFinancemetwithprivatesectoreconomiststodiscusstheirviewsontheeconomy.
Aswell,threeeconomicexpertsreviewedtheMinistryofFinanceseconomicassumptionsand
foundthemtobereasonable.2
PrivatesectoreconomistsareprojectingcontinuedgrowthforOntarioovertheforecasthorizon.
Onaverage,privatesectoreconomistsarecallingforrealGDPgrowthof2.4percentin2017,
2.2percentin2018,2.1percentin2019and1.8percentin2020.Forprudentfiscalplanning,
theMinistryofFinancesrealGDPgrowthprojectionsareslightlybelowtheaverage
privatesectorforecast.
TABLE6.22 PrivateSectorForecastsforOntarioRealGDPGrowth
(PerCent)
2
ThethreeexpertsarefromthePolicyandEconomicAnalysisProgramattheRotmanInstituteforInternational
Business,RotmanSchoolofManagement,UniversityofToronto;theCentreforSpatialEconomics;andthe
ConferenceBoardofCanada.
254 ChapterVI:ResponsibleFiscalManagement
Comparison to the 2016 Budget
Keychangessincethe2016Budgetinclude:
HigherrealGDPgrowthin2016,followedbymoremodestgrowthin2017and2018;
HighernominalGDPgrowthin2016,butlowergrowthin2017and2018;
HigherCanadiandollarandlowerU.S.realGDPgrowthin2016;and
DownwardrevisionstotheCanadiandollarandinterestratesoverthe201719period.
CHAPTERVI
SectionB:DetailsonOntariosFinancesandEconomicOutlook 255
TABLE6.23 ChangesinMinistryofFinance
KeyEconomicForecastAssumptions:
2016BudgetComparedwith2017Budget
(PerCentChange)
Sources: Statistics Canada, Canada Mortgage and Housing Corporation, Bank of Canada, U.S. Energy Information Administration, U.S. Bureau of
Economic Analysis, Blue Chip Economic Indicators (March 2017) and Ontario Ministry of Finance.
256 ChapterVI:ResponsibleFiscalManagement
Section C: BorrowingandDebtManagement
Introduction
TheProvinceiscommittedtomakingthenecessaryinvestmentstodaytohelpOntariofamilies
andmeettheneedsofitsgrowingpopulation.Ontarioconductsitsborrowingprogram
responsibly,withtheobjectivesofminimizinginterestondebtcostsandgenerating
economicgrowththroughstrategicinvestments.Thegovernmentsuccessfullycompletedits
annualborrowingprogramin201617;at$27.0billion,itisthesmallestborrowingprogramsince
200809.Thisisupfromthe$26.4billionforecastinthe2016Budget,astheProvincecapitalized
onthecontinuinglowinterestrateenvironmentandstrongdemandforOntariobondstoprefund
$3.2billionofits201718requirement.TheProvincestotallongtermborrowingin201718is
forecasttobe$26.4billion.
TheProvincesdebtdiffersfrompersonaldebtinanumberofways.Onekeydifferenceisthe
governmentsroleinmakingmultigenerationalinvestmentsininfrastructure.Byissuingdebtat
comparativelylowinterestrates,theProvincecanborrowmoneytomakeinvestmentsincapital
assetstodaythatimprovequalityoflifeforOntariansandspreadthecostsequitablyoverthe
lifetimeoftheassets.Thebalancedbudgetandthegovernmentscontinuedfocusoncapital
investmentwillalsoaddtoeconomicgrowth,resultinginGDPgrowingmorequicklythandebt,
andloweringthenetdebttoGDPratiotothegovernments27percenttarget.
Ontariosnetdebtisprojectedtobe$301.9billionasofMarch31,2017,$6.4billionlowerthan
forecastedinthe2016Budget.Netdebtwas$294.6billionasofMarch31,2016.Ontariosnet
debttoGDPratiopeakedin201415at39.1percentandhastrendeddownwardssincethen,
nowforecastat37.8percentin201617.Thisratioisforecasttocontinuetodeclineto
37.5percentin201718,37.3percentin201819and37.2percentin201920.Thegovernment
issettinganinterimnetdebttoGDPratiotargetof35percentby202324andcontinuesto
maintainatargetofreducingthenetdebttoGDPratiotoitsprerecessionlevelof27percent,
currentlyprojectedtobeachievedby202930.
GreenBondsareapartofOntariosborrowingprogram,andserveasanimportanttooltohelp
Ontariofinancetransitandotherenvironmentallyfriendlyprojectsacrosstheprovince.Asthefirst
CHAPTERVI
CanadianprovincetoissueGreenBonds,OntarioremainscommittedtotheGreenBondmarket,
andexpectstocontinuetoaccessitonanannualbasis.TheProvinceissueditsthirdGreenBond
inJanuary2017.
SectionC:BorrowingandDebtManagement 257
Long-Term Public Borrowing
TheProvincesdeficitfor201617isprojectedtobe$1.5billion,comparedtothe2016Budget
forecastof$4.3billion.Thetotalfundingrequirementfor201617isnowforecastat$25.6billion,
$4.6billionlowerthanthe2016Budgetforecast.TheProvincestotallongtermborrowingin
201718isforecasttobe$26.4billion,whichis$0.6billionlowerthantheamountborrowedin
201617.Todate,$0.6billioninlongtermpublicborrowinghasbeencompletedfor201718.
TABLE6.24 BorrowingProgramandMediumTermOutlook
($Billions)
201617
2016 In-Year
Budget Interim Change 201718 201819 201920
Deficit/(Surplus) 4.3 1.5 (2.8) 0.0 0.0 0.0
Investment in Capital Assets 11.2 8.9 (2.2) 13.1 15.4 17.1
Non-Cash Adjustments (5.8) (4.8) 1.0 (6.7) (6.9) (7.1)
Loans to Infrastructure Ontario 0.4 0.5 0.6
Other Net Loans/Investments (0.9) (1.0) (0.1) (0.8) 1.4 0.6
Debt Maturities 21.5 20.9 (0.5) 17.5 21.8 27.4
Debt Redemptions 0.1 0.1 0.1 0.1 0.1
Total Funding Requirement 30.3 25.6 (4.6) 23.7 32.3 38.7
Canada Pension Plan Borrowing (0.1) (0.1) (0.9)
Decrease/(Increase) in
Short-Term Borrowing (1.0) 1.0
Increase/(Decrease) in
Cash and Cash Equivalents (2.7) 0.3 3.0 6.0
Preborrowing from 201516 (2.0) (2.0)
Preborrowing in 201617 for 201718 3.2 3.2 (3.2)
Total Long-Term Public Borrowing 26.4 27.0 0.6 26.4 32.2 37.8
Note: Numbers may not add due to rounding.
TheProvinceplanstoborrow$96.5billionoverthethreeyearperiodinthemediumterm
borrowingoutlook,upfromtheforecastof$78.5billionoverthethreeyearperiodcontainedin
the2016Budget.This$18.1billionincreaseinborrowingreflectsthehigherdebtmaturities,
higherinvestmentsincapitalassetsandtheneedforhighercashreserves.
258 ChapterVI:ResponsibleFiscalManagement
CHART 6.7 201617 Borrowing
Approximately74percentof201617sborrowingwascompletedinCanadiandollars,primarily
throughsyndicatedissues,butalsoincludedfloatingratenotes,abondauction,OntarioSavings
Bondsandan$800millionGreenBondissue.Whilethispercentageislowerthanthe81percent
of201516sborrowingcompletedinCanadiandollars,itremainsroughlyinlinewiththetarget
tocompleteatleast75percentintheCanadiandollarmarket.
About$7.1billion,or26percent,ofborrowingwascompletedinforeigncurrencies.TheU.S.
dollarmarketremainedanimportantsourceoffundingforOntarioin201617,with$6.8billion
issuedinU.S.dollars.Theremainingforeigncurrencyborrowingwascompleted
inAustraliandollars.
CHAPTERVI
SectionC:BorrowingandDebtManagement 259
Ensuring Preferred Market Access
CHART 6.8 Canadian Dollar and Foreign Currency Borrowing
$ Billions
Canadian Dollar Foreign Currencies
45 43.8
39.9 39.8
40
36.6 36.0
34.9
35 8.4
32.1
22.4 16.4 6.5 6.6
28.7 10.2
30 6.3 27.0
25 9.7 7.1
20 18.7 18.0
4.5 2.6 31.4
15 28.4 29.4
26.4 25.8
21.4 23.5
10 19.0 19.9
14.2 15.4
5
0
200607 200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
TheProvinceregularlytakesadvantageofborrowingopportunitiesincurrenciesother
thanCanadiandollarstorelievepressureonthedomesticbondmarketanddiversifyitsinvestor
base.ThishelpsreduceOntariosoverallborrowingcostsandensuresthattheProvincewill
continuetohaveaccesstocapitalifmarketconditionsbecomemorechallenging.
GiventhecontinuedstrengthofdemandforOntariosbondsintheCanadiandollarmarket,the
ProvincewillmaintainitsCanadiandollarborrowingtargetofatleast75percentin201718.
260 ChapterVI:ResponsibleFiscalManagement
Leading Canadian-Dollar Green Bond Market
OnJanuary27,2017,OntariosuccessfullylauncheditsthirdCanadiandollarGreenBondof
$800million.
AsthefirstCanadianprovincetoissueGreenBondsandasthelargestandmostfrequentissuer
intheCanadiandollarGreenBondmarket,Ontariocontinuestoleadthewayinestablishingand
developingthismarketwithdomesticandglobalinvestorparticipation.SinceOntariosinaugural
issuein2014,theProvincesGreenBondshaveattractedinvestorsfromtheUnitedStates,Europe
andAsia,bringingnewinternationalbuyerstoOntariosborrowingprogram.Ontarioremains
committedtotheGreenBondmarketandexpectstocontinuetoaccessitonanannualbasis.
GreenBondsareanimportanttooltohelpOntariofinancetransitandotherenvironmentally
friendlyprojectsacrosstheprovince.Twelveeligibleprojectshavebeenselectedtoreceive
fundingfromthethirdGreenBond,withanemphasisoncleantransportation,andenergy
efficiencyandconservation.
Todate,totalGreenBondfinancingamountsto$2.05billion,withupto$1.77billionallocatedto
Metrolinxforcleantransportationprojects.AllthreeGreenBondissueshelpedfundtheEglinton
CrosstownLRTprojectinToronto,oneofthelargestpublictransitexpansionsinthehistoryof
theregion.
CHAPTERVI
SectionC:BorrowingandDebtManagement 261
Extending Term of Borrowing
CHART 6.9 Weighted-Average Term of Borrowing in Years
Years
16
14.1 14.2 13.9
14 13.6
12.8 13.0
12.4
12
10
8.1
8
0
200910 201011 201112 201213 201314 201415 201516 201617
Theglobaldeclineininterestratesoverthepast25yearscannotcontinueindefinitely.Tolimitthe
fiscalimpactofanincreaseininterestrates,theProvincehascontinuedtoextendthetermofits
debt.ExtendingthetermtomaturityallowstheProvincetolockinlowinterestratesforalonger
period,whichreducesrefinancingrisksandhelpsoffsettheimpactofexpectedhigherinterest
ratesontheProvincesfutureinterestondebt(IOD)costs.
Sincethebeginningoffiscalyear201011,Ontariohasissued$63.0billionofbondswithterms
oflongerthan30yearstolockinlowrates.Asaresult,theweightedaveragetermtomaturityof
longtermProvincialdebtissuedhasbeenextendedsignificantly,from8.1yearsin200910to
13.9yearsin201617.
262 ChapterVI:ResponsibleFiscalManagement
Interest on Debt Savings and Affordability
Interestondebtexpenseisprojectedtobe$11,250millionfor201617,whichis$506million
lowerthanforecastinthe2016Budget,reflectinglowerthanforecastinterestrates,thelower
forecastdeficitfor201617andcosteffectivedebtmanagement.Interestondebtexpenseis
forecasttobe$11,581millionin201718and$12,035millionin201819$872millionand
$1,072millionlower,respectively,thanforecastedinthe2016Budget.
Thesesavingscontinueatrendthathasbeeninplacesince2010,throughacombinationoflower
deficitsandborrowingrequirements,andlowerthanforecastinterestrates.Interestondebt
savingsovertheperiodtobalancenowtotal$24.0billionrelativetothe2010Budgetforecast.
$ Billions
16
15 Total Savings = $24.0 Billion
$4.6
14 $4.7
$4.5
13
$3.8
$2.8
12
$2.2
11
$1.0
10 $0.5
9
8
201011 201112 201213 201314 201415 201516 201617 201718
Note: Numbers may not add due to rounding.
Source: Ontario Financing Authority.
CHAPTERVI
SectionC:BorrowingandDebtManagement 263
Chart6.11illustrateshowthesavingsonIODhaveloweredIODtorevenue,akeymeasureofthe
affordabilityofdebt.The2010Budgetforecastthatby201718,theProvincewouldneedto
spend11.3centsofeveryrevenuedollarreceivedoninterest.Thecurrentforecastis3.1cents
lower,at8.2centsofinterestcostsforeverydollarofrevenue.Thisratioislowerthanithasbeen
forthelast25years,andisforecasttoremainlowerthroughtheoutlookperiodto201920.
Per Cent
16.0 15.5
15.0
14.8
15.0 14.5 14.6
14.2
14.3
14.2
13.9 Onset of Interim 201617
14.0 Economic
12.9 12.9 Recession
13.0
12.0
11.1
10.8
11.0
9.9
10.0
9.1 9.1 9.2 9.1 9.1 9.0
8.8 8.8
9.0 8.6 8.8 8.5 8.4 8.5
8.2 8.3
7.7
8.0
7.0
Forthe13yearscommencingin199192,averageIODtorevenuewas13.6percent,declining
to9.1percentoverthenext13years.
264 ChapterVI:ResponsibleFiscalManagement
Ensuring Adequate Liquidity Levels
Ontarioactivelymanagesitsfinancialobligationsthroughthemaintenanceofaliquidreserve
portfolioandtheuseofshorttermborrowing.TheProvinceincreaseditslevelofunrestricted
liquidreservesfollowingthefinancialcrisisin200809.Comingoutofthefinancialcrisis,the
Provincebeganastrategyofcreatinglarge,liquid10and30yearbenchmarkdomesticbond
issuesin200910inresponsetoinvestordemand.Thisstrategyhasbeenverysuccessfuland
continuestolowerOntariosborrowingcostsandenhancetheProvincesaccesstocapital.
However,asaresultoftheselargebondissues,theProvincewillhavelargecashoutflowson
singledayscommencingin201920,ratherthanhavingmaturitiesspreadmoreevenlythrough
theyear.Inanticipationoftheneedforcashreservestomeettheserequirementsforlarge
outflowsonasingleday,theProvincebegan,asnotedinTable6.24,buildingcashreservesin
201617,andwillcontinuetoincreasethesereservesin201718.
TheProvincesshorttermborrowingprogramintheCanadianandU.S.dollarmoneymarketsis
relativelysmall,accountingforonly6.3percentofOntariosdebt.Theunusedshortterm
borrowingcapacitythatthisleaves,combinedwiththehighlevelsofunrestrictedliquidreserves,
ensuresthattheProvincewillalwayshaveadequateliquiditytomeetitsfinancialobligations.
$ Billions
30
24.9
25 23.3 23.6
21.7 20.9
19.4 20.2
20
15 14.4
10 8.3
5
CHAPTERVI
0
200809 200910 201011 201112 201213 201314 201415 201516 201617
SectionC:BorrowingandDebtManagement 265
Reducing Net Debt-to-GDP
Ontariosnetdebtisthedifferencebetweentotalliabilitiesandtotalfinancialassets.
Itisprojectedtobe$301.9billionasofMarch31,2017,downfromthenetdebtprojection
of$308.3billioninthe2016Budget.
Accumulateddeficitisprojectedtobe$193.5billionasofMarch31,2017,comparedto
aprojectionof$197.8billioninthe2016Budget.Theprojecteddifferenceof$108.4billion
betweennetdebtandaccumulateddeficitisduetotheProvincesconsistentlevelofinvestment
ininfrastructure.
Ontario'snetdebttoGDPratiopeakedin201415at39.1percentandhastrendeddownwards
sincethen,nowforecastat37.8percentin201617,wellbelowthe39.6percentforecastfor
201617containedinthe2016Budget.Thisratioisforecasttocontinuetodeclineto37.5percent
in201718,37.3percentin201819,and37.2percentin201920.Thegovernmentissettingan
interimnetdebttoGDPratiotargetof35percentby202324andcontinuestomaintainatarget
ofreducingthenetdebttoGDPratiotoitsprerecessionlevelof27percent,currentlyprojected
tobeachievedby202930.
Per Cent
10
Notes: Net Debt has been restated to include Broader Public Sector Net Debt, starting in 200506. Reaching the interim target
of 35 per cent in 202324 and 27 per cent in 202930 is based on current economic projections.
Source: Ontario Ministry of Finance.
266 ChapterVI:ResponsibleFiscalManagement
About61percentoftheincreaseinnetdebtfrom200809to201617isduetothedeficit,with
netinvestmentsincapitalassetsresponsibleforthebalance.Thebalancedbudgetfrom201718
onwardswillensurethattheincreaseinnetdebtislimitedtothedifferencebetweencash
investmentsincapitalassetsandamortization,whichisanoncashexpenseandassuchdoesnot
representcashoutflows.
TheseinvestmentswillworktoincreaseeconomicgrowthandwillresultinGDPgrowingmore
quicklythandebt,therebyhelpingtolowerthenetdebttoGDPratiotoitsprerecessionlevel.
0
200809 200910 201011 201112 201213 201314 201415 201516 201617 201718 201819 201920
Net Debt ($ Billions) 169.6 193.6 214.5 235.6 252.1 267.2 284.6 294.6 301.9 311.9 323.3 335.9
% Change Due to Deficit 58.8 75.7 65.1 65.7 52.8 62.9 62.6 45.2 20.6
% Change Due to
Net Investments in 41.2 24.3 34.9 34.3 47.2 37.1 37.4 54.8 79.4 100.0 100.0 100.0
Capital Assets
CHAPTERVI
SectionC:BorrowingandDebtManagement 267
Total Debt Composition
Totaldebtconsistsofbondsissuedinthepubliccapitalmarkets,nonpublicdebt,treasurybills
andU.S.commercialpaper.Totaldebt,whichrepresentsallborrowingwithoutoffsettingfinancial
assets,isprojectedtobe$332.4billionasofMarch31,2017.
Publicdebt,asofMarch31,2017,isprojectedtobe$320.8billion,primarilyconsistingofbonds
issuedinthedomesticandinternationalpublicmarketsinsixcurrencies.Ontarioalsohas
$11.6billionoutstandinginnonpublicdebtissuedinCanadiandollars.Nonpublicdebtconsists
ofdebtinstrumentsissuedmainlytotheCanadaPensionPlanInvestmentBoard.Thisdebtis
notmarketableandcannotbetraded.
Canadiandollardenominateddebtrepresents83percentofthetotaldebtprojectedasof
March31,2017.
268 ChapterVI:ResponsibleFiscalManagement
Cost of Debt
TheinterestratethatOntariopaysonitsdebthasdeclinedsteadilysince199091,whenthe
effectiveinterestrate(onaweightedaveragebasis)ontotaldebtwas10.9percent.Asof
March31,2017,itisforecasttobe3.5percent,lowerthanthe3.6percentfromMarch31,2016.
For201718,theimpactofaonepercentagepointchangeininterestratesonIODwouldbe
approximately$300millionfortheProvince.
Per Cent
12
10.9
10.7
10.1
10 9.5 9.8 9.4
9.0 9.0
8.6 8.4
8.2
7.6
8 7.2
6.7
6.4 6.1
6.0
5.8
6 5.2
4.6 4.5 4.4
4.1 3.9
3.7 3.6 3.5
4
CHAPTERVI
SectionC:BorrowingandDebtManagement 269
Limiting Risk Exposure
Ontariolimitsitselftoamaximumnetinterestrateresettingexposureof35percentanda
maximumforeignexchangeexposureoffivepercentofdebtissuedforprovincialpurposes.
AsofFebruary28,2017,thevaluesfornetinterestrateresettingexposureandforeignexchange
exposurewere11.3percentand0.2percent,respectively.Allexposuresremainedwellbelow
policylimitsin201617.
CHART 6.17 Net Interest Rate Resetting and Foreign Exchange Exposure
As a Percentage of Debt Issued for Provincial Purposes
20 3
15 2
11.4 11.0 11.0 10.9 11.3
10 8.3 8.3 8.9
1.0 1.0
0.8 1
5 0.4 0.3 0.3 0.2
0.1
0 0
270 ChapterVI:ResponsibleFiscalManagement
Using Derivatives to Mitigate Risks
Toseekthemostcosteffectivemeansofmeetingitsborrowingrequirements,Ontarioissuesfixed
andfloatingratedebtinbothdomesticandinternationalmarkets.Tomitigatetheriskarisingfrom
foreignexchangeandinterestratemovements,theProvinceusesderivatives,atypeoffinancial
contract,tolimititsexposuretobothofthesevariables.Foreigncurrencyswapsandforwardsare
usedtoconvertforeigncurrencyexposureintoCanadiandollarexposure,whileinterestrate
swapsensureinterestpaymentsontheProvincesfloatingratedebtremainconstant.
TABLE6.25 ConsolidatedDerivativePortfolioNotionalValue1
($Billions)
Forward Foreign
Interest Rate Cross-Currency Exchange
Total Swaps Swaps Contracts Swaptions
201516 180.0 100.8 47.6 31.0 0.5
Interim 201617 160.9 85.0 40.7 35.2
1 Notional amounts represent the volume of outstanding derivative contracts and are not indicative of credit risk, market risk or actual cash flows.
Note: Numbers may not add due to rounding.
Source: Ontario Financing Authority.
CHAPTERVI
SectionC:BorrowingandDebtManagement 271
Reducing Ontarios Electricity Sector Stranded Debt
OntarioElectricityFinancialCorporation(OEFC)interimresultsfor201617showanestimated
excessofrevenueoverexpenseofmorethan$0.9billion,whichwouldreduceOEFCsunfunded
liability(orstrandeddebtoftheelectricitysector)from$4.4billion,asofMarch31,2016,to
below$3.5billion,asofMarch31,2017.Thiswouldbethe13thconsecutiveyearofstrandeddebt
reduction.
Projected201718OEFCresultsareanexcessofrevenueoverexpenseofabout$1.1billion.
ThegovernmentdedicatesrevenuesitreceivesfromtheelectricitysectortotheOEFC.AllOEFC
revenues,includingthedebtretirementcharge(DRC)paidbyelectricityusers,areusedtoservice
andretireitsdebtandotherobligations,asprovidedforundertheElectricityAct,1998.
Throughprudentmanagementofelectricitysectordebtandotherobligations,thegovernment
removedtheDRCcostfromresidentialelectricityuserselectricitybillsbeginningJanuary1,2016,
and,asannouncedinthe2015OntarioEconomicOutlookandFiscalReview,isendingtheDRCas
ofApril1,2018,forindustrial,businessandotherelectricityusers,suchasinstitutionsandnotfor
profitsninemonthsearlierthanpreviouslyestimated.
Inaddition,OEFCwillreceiveafinancialbenefitrelatedtothesecondaryofferingofHydroOne
sharesinaccordancewithsection50.3oftheElectricityAct,1998.Thisfinancialbenefitwill
contributetopayingdownstrandeddebt.
272 ChapterVI:ResponsibleFiscalManagement
Consolidated Financial Tables
TABLE6.26 NetDebtandAccumulatedDeficit
($Millions)
Interim Plan
201213 201314 201415 2015166 201617 201718
Debt1
Publicly Held Debt
Bonds2 245,544 259,933 280,442 293,935 299,257 308,165
Treasury Bills 13,024 12,297 14,631 14,604 16,044 16,044
U.S. Commercial Paper2 6,611 8,657 6,304 6,304 4,864 4,864
Infrastructure Ontario (IO)3 1,909 1,603 950 300 300 300
Other 360 345 317 301 289 279
267,448 282,835 302,644 315,444 320,754 329,652
the Province.
4 Other Net (Assets)/Liabilities include accounts receivable, loans receivable, advances and investments in government business enterprises,
accounts payable, accrued liabilities, deferred revenue and capital contributions, pensions and other employee future benefits, and other
liabilities.
5 Non-financial assets include the tangible capital assets of the Province and broader public sector.
6 The 201516 actuals have been restated to reflect recognizing jointly sponsored net pension assets for the Ontario Public Service Employees CHAPTERVI
Union Pension Plan and the Ontario Teachers Pension Plan on the Provinces financial statements, consistent with the 2016 Budget.
Source: Ontario Ministry of Finance.
SectionC:BorrowingandDebtManagement 273
TABLE6.27 MediumTermOutlook:NetDebtandAccumulatedDeficit
($Billions)
201819 201920
Total Debt 351.3 362.4
Cash and Temporary Investments (28.5) (28.5)
Total Debt Net of Cash and Temporary Investments 322.7 333.9
Other Net (Assets)/Liabilities (10.0) (7.0)
Broader Public Sector (BPS) Net Debt 10.5 9.0
Net Debt 323.3 335.9
Non-Financial Assets (129.7) (142.3)
Accumulated Deficit 193.5 193.5
Note: Numbers may not add due to rounding.
274 ChapterVI:ResponsibleFiscalManagement
Chapter VII
Thegovernmentisproposingmeasurestocurbtaxavoidance,parallelfederaltaxchanges,
andsupporttheclimatechangeactionplan.Inaddition,changestotobaccotaxratesarebeing
implementedtosupportkeygovernmentpriorities.
DetailsoftaxmeasuresrelatedtohousingaffordabilitycanbefoundinChapterII:HelpingYou
andYourFamily.
TheProvinceisalsoworkingwithmunicipalities,theMunicipalPropertyAssessmentCorporation
(MPAC)andtaxpayerstoenhancethefairnessandeffectivenessofOntariospropertytax
andassessmentsystem,whichiscriticaltosupportlocalservicesandadequatelyfund
Ontariosschools.
Alistofproposedlegislativeamendmentsisalsoincluded.
CHAPTERVII
SectionA:Taxation 277
278 ChapterVII:AFairandSustainableTaxSystem
Section A: Taxation
TheOntarioFertilityProgramprovidespubliclyfundedfertilityservicesat51fertilityclinicsacross
theprovince.Forexample,sinceitslaunchinDecember2015,theprogramhashelpedover
7,200individualstryingtostartorexpandtheirfamiliesthroughinvitrofertilization.Theprogram
isavailabletoeligibleOntariansofanysex,gender,sexualorientationorfamilystatus.
The2017federalbudgetproposedtoclarifytheapplicationofthefederalmedicalexpensetax
creditsothatindividualswhorequiremedicalinterventiontoconceiveachildareeligibletoclaim
thesameexpensesthatwouldgenerallybeeligibleforindividualsonaccountofmedicalinfertility.
Thesechangeswillapplytothe2017andsubsequenttaxationyears.
Ontariosmedicalexpensetaxcreditparallelsthefederalcredit.Ontariowilladoptthefederal
changesoncetheyhavebeenapprovedbythefederalgovernment.ThiswouldallowOntariansto
claimtaxreliefforeligiblefertilitytreatmentcoststhatarenotdirectlycoveredbytheProvince,
givingevenmoresupporttohelpeveryonewhowantstoconceiveachild.
CHAPTERVII
SectionA:Taxation 279
Consolidating Tax Credits for Caregivers
Inits2017budget,thefederalgovernmentproposedtosimplifyitsexistingsystemofpersonal
incometaxcreditsforcaregiversbycreatinganewconsolidatedCanadaCaregiverCredit.
Thisfederalcreditwouldbeeffectivebeginninginthe2017taxationyear.
Ontarioparallelsthefederalcaregiverandinfirmdependanttaxcredits.Tosimplifyandenhance
accesstotaxreliefforcaregivers,Ontarioproposestoreplacetheprovincialcaregiverandinfirm
dependanttaxcreditswithanewOntarioCaregiverTaxCredit(OCTC).Thefollowingchanges
wouldapplybeginninginthe2017taxationyear:
ThenonrefundableOCTC,attherateof5.05percent,wouldbeavailableinrespectof
relativeswhoareinfirmdependants,includingadultchildrenoftheclaimantorofthe
claimantsspouseorcommonlawpartner.
Dependantswouldnotberequiredtolivewiththecaregiverclaimingthenewcredit.
Themaximumamountreceivedinrespectofdependantswhodonotlivewiththecaregiver
wouldbeincreasedtoremainconsistentwiththeamountthatcouldhavebeenclaimedin
respectofdependantsunderthecaregivertaxcredit.
Forthe2017taxationyear,themaximumamountoftaxableincomeforwhichthiscredit
isavailablewouldbe$4,794.TheOCTCwouldbeginphasingoutatthedependantsnet
incomeover$16,401.
TheOCTCwouldnotbeavailableinrespectofnoninfirmseniorparentsorgrandparents
whoresidewiththeiradultchildrenorgrandchildren.
Forfurtherdetailsonsupportforcaregivers,seeChapterIV,SectionA:StrengtheningHealthCare.
280 ChapterVII:AFairandSustainableTaxSystem
Other Measures
Lowering Public Transit Costs for Seniors
AsmentionedinChapterII:HelpingYouandYourFamily,thegovernmentisproposinganew
OntarioSeniorsPublicTransitTaxCreditforallOntariansaged65orolder,coveringeligiblepublic
transitcostsasofJuly1,2017.
Thecreditwouldbeavailabletoclaimonthe2017taxationyearreturns.Furtherdetailsaboutthe
credit,includingeligibilitycriteriaforpublictransitcosts,willbeannouncedintimefor
implementation.
Theauthoritytolevyahoteltaxwouldalsobeextendedtosingletierandlowertiermunicipalities
throughproposedamendmentstotheMunicipalAct,2001.
AllmunicipalitiesthatadoptthehoteltaxandthathaveanexistingDestinationMarketingFee
(DMF)programinplacewouldberequiredtosharetheirhoteltaxrevenuewiththeappropriate
notforprofittourismorganizationinanamountthatmatchesthetotalrevenuegeneratedbythe
existingDMFprogram.Forlocalmunicipalitieswheresuchaprogramdoesnotexist,atleast
50percentoftheirhoteltaxrevenuewouldbesharedwiththerespectiveRegionalTourism
Organizationoranotforprofittourismorganization.
CHAPTERVII
SectionA:Taxation 281
Supporting Renewable Biodiesel in the Coloured Fuel Market
Ontarioiscommittedtoaddressingclimatechange,reducinggreenhousegas(GHG)emissionsand
transitioningtoalowcarboneconomy.Insupportoftheseinitiatives,theProvinceisproposing
changestoallowbiodiesel,arenewablealternativetofossilfuel,tobemorewidelyavailableas
partofOntariostaxexemptcolouredfuelprogram.
BiodieselmaycontributetolowerGHGemissionscomparedtodieselandprovideoccupational
healthandsafetybenefits,sinceitislessflammablethandiesel.Inaddition,studieshaveshown
thatbiodieselusedinanoccupationalsettingmayhavepositivebenefitsforairqualitycompared
todiesel.
Currently,theProvinceprovidescertaincompanieswiththeauthoritytocolourfuel.
Thesecompaniesarecalledregistereddyers.Colouredfuelpurchasedfromregistereddyersis
taxexemptfuelandcanonlybeusedforspecifiedpurposesdefinedbytheFuelTaxAct.
Tosupportrenewablefuelssuchasbiodiesel,theProvinceisproposinglegislativechangestothe
FuelTaxActtoaddanewcategoryofregistereddyerswhowillbepermittedtodyebiodieselthat
hasnotbeenblended,mixedorcombinedwithanyothertypeorgradeoffuel.Thisnewcategory
ofregistereddyerswouldbeexemptfromthefueltransportationrequirementscurrentlyimposed
onallregistereddyers.Thiswouldenablemorecompaniestooffercolouredbiodieselproducts
whileassistingtheProvincestransitiontoalowcarboneconomy.
282 ChapterVII:AFairandSustainableTaxSystem
Strengthening Ontarios Tax System
Thegovernmentistakingactiontostrengthentheintegrityofthetaxsystemandensureeveryone
paystheirfairshareoftaxes.Buildingonexistinginitiativesthatincludeactionstocombatthe
undergroundeconomy,theProvincewillconductapolicy,legislativeandadministrativereview
ofalltaxes,includingthosesharedwiththefederalgovernment.Thisreviewwillseektoidentify
andeliminateloopholes,furtherstrengthenadministrationofexistingtaxlawsandenhance
partnershipswithothergovernmententities,suchastheCanadaRevenueAgency.Areviewof
revenuesfromgovernmentbusinessenterpriseswillalsobeundertaken.Thisintegratedapproach
willhelppromotegreaterfairnessandefficiencyandensuretheongoingintegrityofthetax
system.
Aspartofitsreviewtoenhancerevenueintegrity,Ontarioisdevotingadditionalexpertresources
toidentifyandaddresstaxloopholesandsophisticatedtaxplanningschemes.TheProvincewill
workcloselywiththefederalgovernmenttoprotectthecommontaxbaseandeliminateunfairtax
advantages.
The2016federalbudgetintroducednewantiavoidancemeasurestopreventmultiplicationof
theSBDthroughcertaincomplexstructures.Aspartofitscommitmenttoenhancetaxfairness,
thegovernmentproposestoparalleloneofthesemeasuresbyeliminatingtheEHTexemption
foranyemployerthatisadesignatedmemberofapartnership,asdefinedintheITA.Thischange
wouldbeeffectiveonaprescribeddatenoearlierthanJanuary1,2018,toprovidethe
opportunityforfeedbackandconsultation.
Ontariowillfurtherreviewothermethodsandstructuresbywhichsomeemployersavoidpaying
EHT,toensureEHTreliefistargetedtosmalleremployers.Thepublicwillhavetheopportunityto
providefeedbackonanyfuturechangesthatmayariseasaresultofthereview.
CHAPTERVII
SectionA:Taxation 283
Technical Measures
Multijurisdictional Tax Filers
ThegovernmentisproposingamendmentstochangethewayprovincialsurtaxandtheOntario
TaxReduction(OTR)arecalculatedforOntarioresidentswhopaytaxtoanotherprovince,
andnonresidentsofOntariowhopaytaxtoOntario(referredtoasmultijurisdictionalfilers).
ThesechangesareintendedtoensureconsistencybetweenthesurtaxandOTRtreatmentfor
multijurisdictionalfilersandotherfilers.Currently,theamountofsurtaxandOTRfor
multijurisdictionalfilersdonotproperlyreflecttheirtotalincome.
ThesurtaxwouldbecalculatedbasedonthetotalamountofOntariotaxontaxableincome.
Thetotalamountoftaxpayable,includingthesurtax,wouldthenbeproratedbasedonthe
percentageofincomeallocatedtoOntario.TheOTRamountswouldalsobeproratedbasedon
thepercentageofincomeallocatedtotheprovince.Thesechangeswouldbeeffectivefortaxation
yearsendingafterDecember31,2016.
284 ChapterVII:AFairandSustainableTaxSystem
Section B: Tobacco
TofurtheraccelerateOntariosgoalofhavingthelowestsmokingratesinCanada,theProvince
willbeincreasingtobaccotaxratesby$10percartonof200cigarettesoverthreeyears,bringing
Ontariosratesclosertothenationalaverage.Tobaccotaxesareaprovenmethodof
encouragingsmokingcessationandprevention,andacriticalcomponenttoachievingresultsin
tobaccocontrol.Thisapproachwillreplacetheinflationbasedtaxincreasesannouncedinlast
yearsBudget.
Thesechangeswillbeginwithanincreasetotobaccotaxratesfrom15.475centsto16.475cents
percigaretteorgramoftobaccoproductsotherthancigars,effective12:01a.m.,April28,2017.
In2018and2019,tobaccotaxeswillbeincreasedbyanadditional2centspercigaretteorgram
oftobaccoeachyear.
Wholesalersoftobaccoproductsthatarenotcollectorsoftobaccotaxarerequiredtotakean
inventoryofalltobaccoproducts(exceptcigars)thattheyholdattheendofday,April27,2017,
andremittheadditionaltaxontheinventorytotheMinistryofFinance.
Thegovernmentrecognizesthattobaccocontrolpoliciescanbeunderminedbyunregulated
tobaccosales,anditwillbemovingforwardwithadditionalmeasurestohelpaddressthisissue.
PleaseseeChapterVI,SectionA:TransformingGovernmentforSustainabilityandFairnessfor
detailsonaddressingunregulatedtobacco.
CHAPTERVII
SectionB:Tobacco 285
286 ChapterVII:AFairandSustainableTaxSystem
Section C: StrengtheningOntariosPropertyTax
andAssessmentSystem
Buildingonimprovementsannouncedinthe2016Budget,thegovernmentproposestobroaden
eligibilityformembersoftheMPACboardofdirectorsbyincludingformermunicipalofficials.
Consistentwithbestpracticesinboardgovernance,thegovernmentwouldadjustthesizeofthe
MPACboardfrom15to13members.
Goingforward,thegovernmentwillcontinuetoconsultonadditionalopportunitiestoimprove
MPACboardgovernance.
Aspartofthereview,theProvincehasheldconsultationswithmunicipalitiesandrepresentatives
oftherailwayindustry.Basedontheseconsultations,theProvinceistakingactiononthreekey
issuestoaddressconcernsrelatedtoindexationofrates,variationinrates,andimplicationsfor
shortlinerailways.
CHAPTERVII
SectionC:StrengtheningOntariosPropertyTaxandAssessmentSystem 287
TABLE7.1 ProposedMeasurestoModernizeRailwayRightofWayTaxation
Key Issues Proposed Measures for 2017
1. Indexation of Rates: Municipalities have Beginning in 2017, property tax rates on railway rights-of-way will be
expressed concerns that property tax rates on updated to reflect the average annual percentage change in taxes on
railway rights-of-way have not been updated since commercial properties. This means that municipal property tax rates
the late 1990s. will increase by approximately $6 per acre for 2017.
2. Variation in Rates: Municipalities have also The Province will begin to address rate inequities by adjusting the
expressed concerns about the significant variation lowest property tax rates on railway rights-of-way to a minimum of
in railway rights-of-way property tax rates across $80 per acre in 2017. Currently, the lowest rate is approximately
the province, with the lowest rates being $35 per acre.
approximately one-twentieth of the highest rate.
3. Shortline Railways: The railway industry The Province recognizes the challenges faced by shortline railways
expressed concerns about the impacts of potential and will take this concern into account when setting rates.
property tax increases on shortline railways.
For2018andfutureyears,thegovernmentwillcontinuetoadjustratestoaddressthesekey
issues.TheProvinceiscommittedtomodernizingthepropertytaxationofrailwayrightsofway
andremainsopentofurtherstakeholderinput.
Basedondiscussionswithmunicipalrepresentativesandagriculturalorganizations,the
governmentisintroducingalegislativeframeworkthatwouldprovidemunicipalitieswith
flexibilitytoreducepropertytaxratesforeligiblesmallscalevalueaddedandcommercial
activitiesonfarms.Currently,theseoperationsaretaxedatindustrialorcommercialrates.Under
theproposedchanges,aportionoftheassessmentattributabletothevalueaddedprocessingor
commercialactivitywouldbeeligibletobetaxedbythemunicipalityatareducedrate.
Thismeasureisintendedtoprovidesustainablepropertytaxtreatmenttofarmerswhodiversify
theiroperationsbyengaginginsmallscaleprocessingorretailactivitiesasadirectextensionof
theirfarmingbusiness.
288 ChapterVII:AFairandSustainableTaxSystem
Moving Forward with Provincial Land Tax (PLT) Reform
ThegovernmentremainscommittedtomovingforwardwithProvincialLandTax(PLT)reform
andestablishingamoreequitableandmodernPLTsystem.Buildingonchangesannouncedinthe
2015Budgetand2016OntarioEconomicOutlookandFiscalReview,legislativeamendmentswill
beintroducedtofurthersupportincreasedequityintaxationandinhowservicesarepaidforin
thenorth.
Consistentwiththeannouncementinthe2016Budget,theProvincewillmaintaintheadjustment
toeducationpropertytaxratesfor2017tosupporttheongoingintegrityofeducationproperty
taxrevenues,whichhelptofundOntarioselementaryandsecondaryschools.
Theshareofeducationexpendituresfundedbypropertytaxeshasdecreasedfromnearly
44percentin199899to27percentcurrently.Goingforward,theProvincewillcontinueto
monitorandrevieweducationpropertytaxestoensurethatthesetaxesmakeanappropriate
contributiontoeducationfunding.
CHAPTERVII
SectionC:StrengtheningOntariosPropertyTaxandAssessmentSystem 289
Summary of Measures
TABLE7.2 TaxMeasures
($Millions)
290 ChapterVII:AFairandSustainableTaxSystem
Technical Amendments
Toimproveadministrativeeffectivenessandenforcement,maintaintheintegrityandequityof
Ontariostaxandrevenuecollectionsystem,andenhancelegislativeclarityandregulatory
flexibilitytopreservepolicyintent,amendmentswillbeproposedtovariousstatutesadministered
bytheMinisterofFinance.
Inaddition,amendmentswouldbeproposedtootherstatutestoimproveadministrative
effectivenessandenforcement,andenhancelegislativeclarityandregulatoryflexibilityto
preservepolicyintent,including:
AlcoholandGamingRegulationandPublicProtectionAct,1996
CityofTorontoAct,2006
ElectricityAct,1998
FamilyLawAct
FinancialAdministrationAct
FreedomofInformationandProtectionofPrivacyAct
MunicipalAct,2001
MunicipalFreedomofInformationandProtectionofPrivacyAct
NursingAct,1991
Oil,GasandSaltResourcesAct
OntarioInfrastructureandLandsCorporationAct,2011
WineContentandLabelingAct,2000
CHAPTERVII
SectionC:StrengtheningOntariosPropertyTaxandAssessmentSystem 291
Other Legislative Initiatives
Additionalproposedlegislativeinitiativesinclude:
AnamendmenttotheAlcoholandGamingRegulationandPublicProtectionAct,1996,
thatwouldremovetheprovisioninthemicrobrewerdefinitionthatpreventsamicrobrewer
frommakingbeerforabeermanufacturer.Alsoproposedisaconsequentialamendmentto
clarifythatbeermadebyamicrobrewerforabeermanufacturerissubjecttothebeer
manufacturerstaxrate.
NewlegislationthatwouldrecognizethemergerofthreeOntarioaccountingbodies,which
nowoperateasCharteredProfessionalAccountantsofOntario(CPAOntario).Theproposed
legislationwouldprovidethegovernanceandoversightstructurefortheoperationofCPA
Ontarioandwouldrepealthestatutesthatgovernedthethreepreviousaccountingbodies:
theCertifiedGeneralAccountantsAct,2010,theCertifiedManagementAccountantsAct,
2010,andtheCharteredAccountantsAct,2010.Consequentialamendmentstovarious
statuteswouldalsobemade.
Amendmentstoupdatesecuritieslawswhichwouldprovideacivilcauseofactionfor
whistleblowerswhereareprisalistakenagainstthemcontrarytosecuritiesorcommodity
futureslaw;protectOntarioSecuritiesCommission(OSC)commissioners,managementand
stafffrombeingcompelledtotestifyorprovideevidenceincivilproceedings;authorize
regulationoftheoperationsofinformationprocessors;provideauthoritytorequire
applicationstotheOSCundertheOntarioBusinessCorporationsActtobefiled
electronically;ensureappropriateregulationofentitiescarryingonclearingagency
functions;andpermitceasetradeordersandprovideforthemandatoryrecognitionof
clearingagenciesundertheCommodityFuturesAct.Thegovernmentisalsoconsidering
legislativechangestoprotectthestabilityofthefinancialsystem,includingexpanding
informationcollectionpowersforthepurposeofmonitoringsystemicrisk.
AmendmentstotheCorporationsActtoenableOntariosfarmmutualinsurancenetworks
reinsurancecompanytoexpandanddiversifyitsoperations.Theamendments,ifpassed,
wouldallowtheFarmMutualReinsurancePlantoinsureindividualsandbusinessesin
additiontoitsreinsurancebusiness.
AmendmentstotheCrownEmployeesCollectiveBargainingAct,1993toreformthe
GrievanceSettlementBoard(GSB)byremovingvicechairsfromtheOrderinCouncil
appointmentprocessandreplacingthatappointmentprocesswithaprocessforthe
establishmentofarosterofmediatorarbitratorstohearmattersbeforetheGSB;providing
fortheremunerationofthemediatorarbitratorsontherosteratratestobedeterminedby
theCrownandtradeunions;andotherrelatedamendmentsandotheramendmentsto
reflectthecurrentroleandoperationalpracticesoftheGSB.
AmendmentstotheElectricityAct,1998regardingtheapplicationofpaymentsinlieuof
federalandprovincialtaxagainstataxpayerstransfertaxliability.
292 ChapterVII:AFairandSustainableTaxSystem
AmendmentstotheFinancialAdministrationActtoimprovetheadministrationofsection
28oftheAct,includingprovidingforpotentialchangestotheapplicationofthesection.
AmendmentstotheForestFiresPreventionActtobetterenabletherecoveryofcostsof
firesfromresponsibleparties,includingrailwaycompanies.Amendmentswouldalso
increasepenaltiesforoffences.
AnamendmenttotheFuelTaxActtoenabletheMinistertoprescribealternative
conditionsthatarerequiredtobemetbyregistereddyerapplicants.
AmendmentstotheInvestmentManagementCorporationofOntarioAct,2015toprovide
increasedflexibilityforanewvoteallocationstructureformembersoftheInvestment
ManagementCorporationofOntarioandadjusttermlimitsforitsdirectors.
AmendmentstotheLandTransferTaxActtorestricttheabilityofqualifyingpurchasersto
claimtheirspousesinterestforthefirsttimehomebuyersrefundifthespouseisnota
CanadiancitizenorpermanentresidentofCanada.
AmendmentstotheLandTransferTaxActtorepealallprovisionsrelatingtotheOntario
HomeOwnershipSavingsPlan(OHOSP).Thiswouldinvolvethetransferoftheoffence
provisioncurrentlyundertheOHOSPprovisiontothefirsttimehomebuyersprovision.The
fineamountundertheoffenceprovisionwouldalsobeincreasedfrom$2,000to$4,000.
AmendmentstotheLandTransferTaxActtointroduceaprovisiontodeemtheamountofa
refundorrebatewronglyobtainedtobetaxpayableonthedatetherefundorrebatewas
paidtothetaxpayer.
AmendmentstotheMinistryofNaturalResourcesActtoreplacetheadjudicativebody
currentlyknownastheMiningandLandsCommissioner,withtherenamedMiningand
LandsTribunal,andconsequentialamendmentstootherActs.
AmendmentstotheMinistryofRevenueActtoprovideconsistencyinadministration,
improveefficiencyandhelpincreaserecoveryofmoneyowingtoOntario.Wheredebtors
failtopayormakearrangementstorepaytheirnontaxdebts,theamendments,ifpassed,
wouldenabletheProvincetouseenhancedcollectiontools,suchasgarnishments,warrants
andliens,againstdebts,includingdebtsthatexistedpriortotheamendmentscoming
intoforce.
AmendmentstotheOil,GasandSaltResourcesActtoenableprescribedcompressedair
energystorageprojectsandotherprescribedsubstancesthatwouldbeinjected,storedor
withdrawnintoundergroundformationstoberegulatedundertheAct.Proposed
amendmentswouldalsomodernizetheliabilityprotectionofferedtoCrownemployeesand
agentsoftheCrown.
CHAPTERVII
SectionC:StrengtheningOntariosPropertyTaxandAssessmentSystem 293
AmendmentstotheOntarioInfrastructureandLandsCorporationAct,2011toenable
InfrastructureOntariotocontinueexistingloanagreementswithLocalDistribution
Companies(LDCs)thatremainatleast90percentmunicipallyownedfollowingan
amalgamationwithotherLDCs.
AmendmentstothePensionBenefitsActtobetterfacilitatemergersforthosepublicsector
employerswhowouldliketomergetheirsingleemployerpensionplanswithanexisting
jointlysponsoredpensionplan.
AmendmentstothePensionBenefitsActrelatingtoU.S.SteelCanadasfundingobligations
underthepensionplansitsponsorsandtothePensionBenefitsGuaranteeFund.The
purposeoftheamendmentswouldbetofacilitatetherestructuringofU.S.SteelCanada
undertheCompaniesCreditorsArrangementAct(Canada)toensurethebestpossible
outcomeforpensionmembersandotherstakeholdersunderthecircumstances.
AmendmentstotheRegisteredInsuranceBrokersActtoensurethatitmeetscurrent
standardsandadequatelyprotectsOntarioconsumers,includingrequiringdisciplinary
hearingstobeopentothepublic;allowingforthecontinuationofdisciplinaryprocesses
whenamemberresigns;andstrengtheningenforcement,includingenablingtheRegistered
InsuranceBrokersofOntariotoimposeadministrativepenalties.
Anamendmenttoclarifytheabilityofadivorcedspousetoqualifyforfinancialsupport
fromaformerspousesestateundertheSuccessionLawReformActfollowingrecent
amendmentsmadebytheAllFamiliesAreEqualAct(ParentageandRelatedRegistrations
StatuteLawAmendment),2016.
AnamendmenttotheTaxationAct,2007toparallelchangesmadetothefederalsmall
businessdeductionthatwouldreduceacompanysOntariobusinesslimitbythesame
amountthefederalbusinesslimitisreduced.Thiswouldapplyifthecompanyassignedany
portionofitsbusinesslimittoanothercompanyundercertaincircumstances.
AnamendmenttotheTaxationAct,2007tolistexcludedproductionsfortheOntario
ComputerAnimationandSpecialEffectsTaxCreditdirectlyinlegislation,tomaintainthe
Provinceslongstandingtreatmentoftalkshowsasineligiblefortheprovincialfilmand
televisiontaxcredits,asannouncedonJanuary11,2017.
AmendmentstotheWorkplaceSafetyandInsuranceAct,1997withrespecttoworkrelated
chronicmentalstress,workerbenefitsandindexation,andWorkplaceSafetyandInsurance
Boardoperationalcomplianceandpolicymakingauthority.
294 ChapterVII:AFairandSustainableTaxSystem
Chart 1.1: Ontarios Return to Balance
ThisbarchartshowsOntariosactualdeficitsversusdeficittargetsfrom200910through
201516,andthefiscaloutlookfor201617to201920.
Inthe2009OntarioEconomicOutlookandFiscalReview,Ontarioprojecteda$24.7billiondeficit
for200910.Theactualresultfor200910wasadeficitof$19.3billion.
The2010Budgetprojecteddeficitsof$19.7billionfor201011,$17.3billionfor201112,
$15.9billionfor201213,and$13.3billionfor201314.Theactualdeficitswere$14.0billion
in201011,$13.0billionin201112,$9.2billionin201213,and$10.5billionin201314.
Inthe2014Budget,Ontarioprojecteda$12.5billiondeficitfor201415.Theactualresultfor
201415wasadeficitof$10.3billion.
Inthe2015Budget,Ontarioprojectedan$8.5billiondeficitfor201516.Theactualresultfor
201516wasadeficitof$3.5billion.
The2016Budgetprojectedadeficitof$4.3billionin201617.
Thegovernmentisprojectinganinterimdeficitof$1.5billionin201617,andbalancedbudgets
in201718throughto201920.
ThislinechartshowsOntariosnetdebttoGDPfrom199091to201920.
ThenetdebttoGDPratiopeakedat39.1percentin201415andhassincebeenonadeclining
track.Itisprojectedtobe37.8percentin201617,37.5percentin201718,37.3percent
in201819and37.2percentin201920.
Chart 1.3: Net Debt Growth after Balance Is Due Only to Investments in Capital Assets
Thisbarchartshowsthefactorsforgrowthinnetdebtfrom200809to201920.
Between200809and201617,thepercentincreaseinnetdebtismainlyduetothedeficit,
withnetinvestmentsincapitalassetsresponsiblefortherest.Onceaperiodofbalancedbudgets
isreachedin201718andonwards,growthinnetdebtwillbe100percentduetoinvestments
incapitalassets.
ChartDescriptions 295
Chart 1.5: Employment Gains since June 2009 Concentrated in Full-Time and Private-Sector
Positions
Thelinechartshowsemploymentfrom2008to2017inOntario.SincetherecessionarylowinJune
2009,Ontariohasaddednearly700,000jobs,themajorityofwhicharefulltimeandintheprivate
sector.Thepiechartsprovidegreaterdetail.Forexample,sincetherecessionarylowinJune2009,
over676,800ofthejobscreated(98percent)werefulltime,503,600positions(73percent)were
addedintheprivatesectorand538,900jobs(78percent)werecreatedinindustriesthatpay
aboveaveragewages.
Chart 1.6: Ontario Is a Key Export Market for the United States
ThisgraphichighlightstheU.S.statesforwhichOntariowasthenumberoneandnumbertwo
marketforinternationalmerchandiseexportsin2016.Ontariowasthenumberoneexportmarket
forthefollowing20states:Alabama,Arkansas,Georgia,Indiana,Kentucky,Maryland,Michigan,
Mississippi,Missouri,NewJersey,NewYork,NorthCarolina,NorthDakota,Ohio,Oklahoma,
Pennsylvania,Tennessee,Virginia,WestVirginiaandWisconsin.In2016,Ontariowasthenumber
twoexportmarketforthefollowingstates:Colorado,Illinois,Iowa,Kansas,Minnesota,Nevada,
RhodeIslandandSouthDakota.
Thisbarchartshowsthatin2017,OntarioscombinedfederalprovincialgeneralCorporate
IncomeTax(CIT)rateof26.5percentiswellbelowtheaverageU.S.federalstateCITrateof
38.9percentandlowerthantheaverageCITrateofG7membercountriesof30.8percent.
OntarioscombinedfederalprovincialgeneralCITrateisalsolowerthantheaverageofCanadian
provincesat27.0percent,andcompetitivewiththeaverageCITrateofOrganisationforEconomic
CooperationandDevelopment(OECD)countriesat24.6percent.
296 ChartDescriptions
Chart 2.1: Making Tuition More Affordable: Jacqueline in College Living at Home
Thisinfographicpresentsanillustrativescenariocomparingstudentaidforacollegestudent
Jacqueline,livingathomebeforeandafterfullimplementationofOSAPreforms.Assuming
afamilyincomeof$40,000peryearforafamilyoffour,Jacquelinewouldget$5,914intotal
OSAPaid,including$2,771innonrepayablegrantsin201516.In201819,Jacquelinewouldget
$6,539intotalOSAPaid,including$4,528innonrepayablegrants,whichrepresentsasignificant
increaseinnonrepayablegrantsthatcoverhertuition.ScenarioassumesJacquelinepaysregular
collegetuitionof$2,768in201516and$3,026in201819.
Chart 2.2: Making Tuition More Affordable: Jerome in University Living away from Home
Thisinfographicpresentsanillustrativescenariocomparingstudentaidforauniversityartsand
sciencestudentJerome,livingawayfromhomebeforeandafterfullimplementationofOSAP
reforms.Assumingafamilyincomeof$80,000peryearforafamilyoffour,Jeromewouldget
$11,744intotalOSAPaid,including$4,344innonrepayablegrantsin201516.In201819,
Jeromewouldget$15,236intotalOSAPaid,whichrepresentssignificantlymoreaidincludingan
increaseinnonrepayablegrantsto$6,226.WhileJeromesparentscontributionwouldhavebeen
requiredin201516,itwillnotberequiredin201819.ScenarioassumesJeromepaysaverage
artsandsciencetuitionof$6,160in201516and$6,712in201819.
Chart 2.3: Greater Toronto Area Price Increases Outstrip Other Cities
Thisbarchartshowstheaveragehomeresalepricefor10Ontarioregionsandtheprovincial
averagefor2015and2016.Italsoshowsthepercentchangeinaveragehomeresalepricesfor
2016.In2016,theaverageresalehomepriceincreaserangedfrom1.0percentinThunderBayto
17.3percentintheGreaterTorontoArea(GTA).ForOntarioasawhole,theaverageresalehome
priceincreasedby15.3percentin2016.
ChartDescriptions 297
Chart 3.1: Support from Early Years to Adulthood
ThisinfographicdescribesOntariogovernmentssignificantinvestmentsandinitiativestosupport
learnersfromearlyyearstoadulthood,suchas:
Underage6:arenewedframeworkforearlyyearsandchildcareandhelping100,000more
childrenaccessaffordable,qualitylicencedchildcare;
Fromage6to13:expandedbeforeandafterschoolprogramsforchildren6to12yearsofage
and60minutesperdayfocusingoneffectiveinstructioninmath;
Fromage13to18:focusedlearningonaspecificeconomicsectorwiththeSpecialistHighSkills
Majorprogramandimprovingmathskillsdevelopmentandfinancialliteracy;
Fromage15to29:OntariosnewCareerKickStartStrategy,EmploymentOntarioservicesand
Apprenticeshipsupports;
Aboveage18:NewOSAP,includingfreetuitionformorethan210,000students,eCampusOntario
foronlinelearning,andexpandedcareerreadinessopportunitiestoprovidehandsonlearning.
Ontarioisplanningtoinvestabout$156billionoverthenext10years,ormorethan$190billion
over13years,startingin201415.
Figuresexcludethirdpartyinvestmentsinhospitals,collegesandschools.
TheProvincesupdatedcommitmenttomakesignificantinfrastructureinvestmentsofabout
$156billionoverthenext10yearsincludes:
$56billioninpublictransit;
$26billioninhighways;
Morethan$20billionincapitalgrantstohospitals;and
Almost$16billionincapitalgrantstoschoolboards.
298 ChartDescriptions
Chart 3.3: Economic Impact of the Ontario Governments Infrastructure Plan
ThischartillustratesthelongtermeconomicreturnresultingfromtheProvinces10year
infrastructureplaninvestmentsfrom201617to202526andongoingannualpostplanspending
bythegovernmenttomaintainservicelevelsofassetsbuiltduringthe10yearplanoutto2050.
Theimpactsaremeasuredin2015constantdollarsandonadiscountednetpresentvalueto
ensurecomparabilityovertheentire2016to2050period.OntariorealGDPisestimatedto
increasebyupto$925billionoverthelongtermasaresultoftotalinfrastructurespendingof
$155billionwhichreflectsbothOntariosInfrastructurePlanspendingfrom201617to
202526,aswellasongoingpostplanspendingtomaintainservicelevelsoftheinfrastructure
assetsbuiltduringthe10yearplan.Thisimpactestimateassumesbusinessesareabletoobtain
thefullproductivitybenefitsresultingfromtheinfrastructureplan.
Chart 3.5: Reducing Red Tape for Ontario Businesses is a Key Element of the Governments
Plan to Create Jobs and Grow the Economy
Thisgraphicillustratesthegovernmentsburdenreductioninitiativesincluding:
ThegovernmentsintroductionoftheBurdenReductionAct,2017,whichmakes150
changestostatutestosavebusinessesupto$31millionandhelpthemavoidcostsofupto
$200million,and
OntariosRedTapeChallengeonlineconsultationtool,whichoverthenexttwoyearswill
makeiteasierforbusinessestooperateinsixbusinesssectors:autopartsmanufacturing,
foodprocessing,financialservices,mining,chemicalmanufacturingandforestry.
Inaddition,theCanadianFederationofIndependentBusiness(CFIB)hasnominatedOntariofor
theGoldenScissorsAwardthreeyearsinarow,recognizingtheeffortstheProvincehastakento
makeitaneasierplacetodobusiness.
ChartDescriptions 299
Chart 3.7: Planned Use of Carbon Allowance Proceeds
Thisgraphicillustrateshowcarbonallowanceproceedswillbeinvested.
Proceedsareprojectedtobe$1.8billionin201718and$1.4billionannually,startingin201819.
Consistentwithlegislation,allproceedsfromthequarterlyauctionsofemissionsallowanceswill
beallocatedtoinitiativesthatarereasonablylikelytoreduceorsupportthereductionofGHG
emissions.
ThepriorityinvestmentareasthatwillsupportthereductionofGHGemissionsinclude:
Supportinghomesandbusinesseswithaplannedinvestmentofapproximately$800million
in201718;
Promotingelectricvehicleswithaplannedinvestmentofapproximately$90million
in201718;
Engaginggovernmentsandstrengtheningpartnershipswithaplannedinvestmentof
approximately$55millionin201718;
Modernizingtransit,activetransportationwithaplannedinvestmentofapproximately
$420millionin201718;
Enhancingresearchanddevelopmentwithaplannedinvestmentofapproximately
$20millionin201718;
Preservingagriculture,landsandforestswithaplannedinvestmentofapproximately
$5millionin201718;and
ImplementingGreenInvestmentFundinitiativesaswellasotherinvestmentsof
approximately$410millionin201718.
Plannedinvestmentsaresubjecttotheavailabilityofcarbonallowanceproceeds.
Chart 3.8: Retirement Income from the Canada Pension Plan Enhancement
Thischartillustratestheamountoffutureretirementincomethataworkerwillreceivefromthe
CanadaPensionPlan(CPP)enhancementforagivenlevelofdailyCPPcontributions.
Aworkerearning$40,000annuallywillcontribute$1perdaytoreceiveanextra$3,222annually
inretirementincomefromtheCPPenhancement.Thiswillbeinadditiontothe$9,671annually
thattheworkerreceivesfromthecurrentCPP.
Thebenefitcalculationassumesthattheworkerwillpaycontributionsonsteadycareerearnings
of$40,000annually(beforetax)foratleast40years,andthattheworkerwillbegincollecting
benefitsatage65.Allfiguresareroundedandexpressedin2017dollars.
300 ChartDescriptions
Chart 4.1: Hospital Projects Completed and Underway
ThismapshowshealthinfrastructureprojectsacrossOntariocompleted,underconstructionor
inplanning.
Chart 4.4: Investments in Transit and Transportation over the Next 10 Years
ThischartillustratesrecentandplannedinfrastructureinvestmentsbytheProvince.Ontarioplans
toinvestabout$84billionoverthenext10yearsinthetransportationsector,including$56billion
forpublictransitand$26billionforhighways.
ChartDescriptions 301
Chart 6.1: Ontario Public/Private Wage Settlement Trends
Thislinechartshowsaveragebargainedwageincreasesfortheprovincialpublicsector,
themunicipalpublicsector,thefederalpublicsectorinOntario,andtheprivatesectorinthree
periods,fromApril2010toJuly2012,July2012toApril2015,andfromApril2015toMarch2017.
Theprovincialpublicsectoraveragewageincreasedecreasessharplyfrom1.6percentto0.6per
centduringtheApril2010toJuly2012period,andremainssteadyduringtheJuly2012toApril
2015period.Theotherthreesectorsremainsteadybetween1.7percentand1.9percentover
thissameperiod.BetweenApril2015andMarch2017,averagewagesintheprovincialpublic
sectorincreasedfrom0.6to1.3percent,whileincreasesintheotherthreesectorswerebetween
1.6to1.9percent.
ThelargestexpenseistheHealthSectorat$53.8billion,accountingfor38.1percent
oftotalexpense.
TheremainingsectorsoftotalexpenseincludetheEducationSectorat$26.5billionor
18.8percent;thePostsecondaryandTrainingSectorat$8.4billionor6.0percent;theChildrens
andSocialServicesSectorat$16.9billionor12.0percent;theJusticeSectorat$4.7billionor
3.3percent;andOtherProgramsat$19.2billionor13.6percent.InterestonDebt,includedas
partofTotalExpense,is$11.6billionor8.2percent.
NotethattheEducationSectorexcludestheTeachersPensionPlan.TeachersPensionPlan
expenseisincludedinOtherPrograms.
302 ChartDescriptions
Chart 6.4: Ontario Economic Growth Expected to Broaden
ThebarchartshowsthecompositionofOntariogrowthovertheoutlook(201720).Theoverall
economyisexpectedtoaveragerealGDPgrowthof2.0percent,ledbybusinessinvestmentand
exportswithaverageannualincreasesof3.1percentand2.3percent,respectively.Average
growthbetween201720isexpectedtobe2.0percentforhouseholdspending,1.3percentfor
government,1.1percentforresidentialinvestmentand2.0percentforimports.
Chart 6.6: Demographic Fundamentals to Support Housing Starts over the Medium Term
ThiscombinedlineandbarchartcomparestheannuallevelofhouseholdformationsinOntario
withtheannuallevelofhousingstartsinOntariobetween2012and2020.Theline,representing
householdformations,beginsat55,000in2012andendsat60,000householdformationsin2020.
Thebars,representinghousingstarts,beginat77,000housingstartsin2012andendat
72,000housingstartsin2020.Overthehistoricalperiod,2012to2016,householdformations
averaged57,000annually,comparedwithhousingstarts,whichaveraged68,000annually.Over
theforecastperiod,2017to2020,householdformationsareexpectedtoaverage59,000annually,
comparedwithhousingstarts,whichareexpectedtoaverage71,000annually.
ChartDescriptions 303
Chart 6.10: Interest on Debt: Budget Forecast versus Actual
Interestondebtexpensein201617isnowforecasttobe$4.7billionlowerthantheforecast
containedinthe2010Budget.Interestondebtsavingsovertheperiodtobalancenowtotal
$24.0billionrelativetothe2010Budgetforecast.
304 ChartDescriptions
Chart 6.17: Net Interest Rate Resetting and Foreign Exchange Exposure (as a Percentage
of Debt Issued for Provincial Purposes)
TheProvincesinterimnetinterestrateresettingexposure,calculatedasapercentageofthedebt
issuedforProvincialpurposes,was11.3percentasofFebruary28,2017.Thiscomparestothe
10.9percentasofMarch31,2016and11.0percentasofMarch31,2015.Theinterestrate
exposurelimitissetat35percent.TheProvincesinterimforeignexchangeexposure,calculated
asapercentageofthedebtissuedforProvincialpurposes,was0.2percentasof
February28,2017.Thisislowerthanthe0.3percentasofMarch31,2016and0.3percentasof
March31,2015.Theforeignexchangeexposurelimitissetat5percent.
ChartDescriptions 305
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