How Kathleen and David are going to spend your beer money

“There’s some good news here.”

That from Sault MPP David Orazietti, speaking to SooToday after Premier Kathleen Wynne’s Liberal government introduced its 2015-2016 budget in the Ontario Legislature Thursday.

The budget’s two main themes are infrastructure spending and deficit reduction.

Orazietti said there is a $5 million increase to the Ontario Municipal Partnership Fund (OMPF) for northern communities such as Sault Ste. Marie for infrastructure needs.

That follows an announcement made Monday in the Sault by Orazietti and fellow cabinet ministers that the Ontario government is re-introducing the Connecting Links program, which will provide $15 million annually, beginning in 2016, for municipalities to maintain their vital, commercial roads.

That goes along with the $100 million Ontario Community Infrastructure Fund, which recently paid out $2 million for work to be done on Second Line widening and $3 million to replace four aging single-lane bridges in our area.

About $15 billion is earmarked for transportation and other infrastructure projects outside the Greater Toronto and Hamilton Area (GTHA).

It’s all part of a $130 billion infrastructure spending plan the government hopes to implement over the next 10 years.

Orazietti said asset management and beer sales at 450 Ontario supermarkets will also bring in money to address infrastructure needs.

That asset management includes the government’s selling off 60 percent of Hydro One, the province’s transmission utility, which is expected to bring in approximately $4 billion.

Beer sales at supermarkets are expected to bring in $100 million annually for the government.

As for the deficit, the government is projecting a deficit of $8.5 billion in 2015-2016 and plans to get that deficit down to $4.8 billion for 2016-2017 before balancing the budget in 2017-2018.

A massive deficit to get rid of by 2017.

How will it be done without massive cuts to healthcare, education and other vital areas?

The province is counting on economic growth, Orazietti said.

“We are projected to experience improved revenues in the Ontario economy which is expected to grow by 2.7 percent next year, which is more than we’ve seen in a number of years, so we’re expecting some expanded economic growth to support that deficit reduction,” Orazietti said.

Deficit reduction, Orazietti said, won’t be at the expense of healthcare.

Overall funding for healthcare has increased by $600 million.

“That additional $600 million will take us to next year, and that brings total healthcare spending to nearly $51 billion.  When I started in government in 2003 they were spending approximately $29 billion in Ontario, so we’ve added about $22 billion to that,” Orazietti said.

At a time when several hundred employees remain on layoff at Tenaris Algoma Tubes, what does the province have to offer in terms of job creation in this budget?

“I’m hopeful there will be some positive news at Tenaris but the change in oil prices has impacted industries that are related to that sector in our own community, and one of the things we did in the budget was make the Northern Industrial Energy Rate Program permanent to reduce energy costs for our largest industrial users annually.”

Orazietti is enthusiastic over a $250 million investment over two years for the Ontario Youth Jobs Strategy, bringing the total investment to $565 million.

“As we know young people have a higher unemployment rate than most other adults so we’ve developed this approach to give them the help they need.”

There is also $55 million in the budget for in-class apprenticeship training.

Orazietti also called on the federal government to invest more FedNor money into Northern Ontario to spur economic activity and jobs, rather than putting FedNor funds back into general revenue.

 A related press release from MPP David Orazietti follows:

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Queens Park, Toronto - Today, the Provincial Government introduced the 2015 Budget, focusing on job creation, infrastructure investments, and continuing to strengthen important public services without increasing taxes, announced David Orazietti, MPP.

“Our government’s budget brings renewed focus to the priorities of Ontarians by making strategic investments in our economy, our infrastructure and our communities while staying on track to balance the budget by 2017/2018,” said Orazietti. “Today, our government delivered a responsible economic plan that continues to build on the important investments we have made over the last twelve years both provincially and here in Sault Ste. Marie.”

The 2015 Budget unveiled new provincial priorities including:

Investing in Infrastructure:

·         $130 billion over ten years, the largest infrastructure investment in the province’s history

·         An increase of $2.6 billion to the Moving Ontario Forward program – $35.1 billion over 10 years for transportation infrastructure

·         $15 billion for areas outside the GTHA, including the 4-laning of Northern highways

·         $15 million for the new Connecting Links program, helping municipalities like Sault Ste. Marie maintain local roads and highway connections

·         $272 million Small Communities Fund for community projects in municipalities with less than 100,000 residents

·         $100 million annual investment in the Ontario Communities Infrastructure Fund (OCIF), helping small, rural, and northern municipalities build and repair critical infrastructure

·         $5 million increase to the Ontario Municipal Partnership Fund (OMPF) for northern communities

Building on our Economic Growth:

• $1 billion for the Ring of Fire’s transportation infrastructure development
• $200 million increase to the Jobs and Prosperity Fund (JPF), extending eligibility to the forestry sector and bringing the total investment to $2.7 billion over ten years
• $120 million for the now permanent Northern Industrial Electricity Rate Program (NIERP)
• $250 million over two years for the Ontario Youth Jobs Strategy, bringing the total investment to $565 million
• $55 million investment for in-class apprenticeship training
• $60 million investment in the forest access roads program, a $10 million increase
• $20 million to establish a Health Technology Innovation Fund, and appoint a Chief Innovation Strategist, supporting innovation in the healthcare sector

Continuing to Improve Health Care and Education:

• Overall funding for healthcare has increased by $600 million
• Increasing home and community care funding by $750 million over three years
• $75 million for homecare visits for individuals requiring nursing services and expanded care for those with complex needs
• Allowing nurse practitioners to issue direct referrals to specialists
• Personal Support Workers (PSW) wage increase of $4 per hour by 2017
• Education funding has increased by $700 million
• $138 million over three years for mental health and addiction supports
• $120 million over three years to expand childcare spaces in schools
• $40 million investment in technology in classrooms for students in K-12
• 100 major capital projects for elementary and secondary schools
• Expanding student assistance by increasing the maximum student loan by $155 per week for single students, and indexing this to inflation

Helping Ontario Families:

·         Require all auto insurance providers to offer a discount for winter tires

·         Introducing the largest shakeup to the beer market since prohibition by allowing beer to be sold at 450 grocery store outlets across the province and increasing exposure for Ontario Craft Brewers within the Beer Store

·         $80 million annually for the Investment in Affordable Housing Program

·         Increasing the Ontario Child Benefit maximum to $1,336 per child

·         Doubling the Senior Community Grant Program to $2 million annually, providing more opportunities for seniors to participate in their communities

·         A one per cent rate increase for adults on Ontario Works and the Ontario Disability Support Program

·         Moving forward on the Ontario Retirement Pension Plan (ORPP) design, by considering feedback from consultations and establishing the ORPP Administration Corporation

·         Establishing mandatory qualifications for condominium managers and implementing an improved dispute resolution system by reforming the Condominium Act

The Ontario government is on track to exceed its deficit reduction target for the sixth year in a row, while continuing to make significant investments in healthcare, education and infrastructure projects.

“Our government has delivered a balanced approach to spending, ensuring we reduce the provincial deficit while protecting the programs and services that matter most to Ontarians,” said Orazietti. “In this budget, Ontario is making an unprecedented investment in the province’s infrastructure while balancing the budget in a way that is both fair and responsible.”

In 2015-16, Ontario will contribute roughly $6.7 billion to the federal government’s Equalization program, while the province will only receive approximately $2.4 billion in return. This represents a shortfall of $4.4 billion, leaving Ontario at a fiscal disadvantage compared to other provinces.

“Ontario is making a significant investment in projects that matter to northerners, like the Ring of Fire, however the federal government has failed to commit any support to infrastructure funding for this project,” said Orazietti. “Ontarians need the federal government to step up as an active, willing partner and this year’s federal budget certainly does not give us confidence that they will deliver their fair share for northerners.”

Quick Facts

• Ontario has created 522,500 net new jobs since the recessionary low in 2009
• The province is projecting deficits of $8.5 billion in 2015/16, $4.8 billion in 2016/17, and will return to a balanced budget in 2017/18
• Ontario has the lowest per-capita program spending among provinces, while still providing high-quality public services
• Since 2010-11, Ontario has held annual growth in program spending to 1.5 per cent below inflation, without cutting critical services
• Since 2003, Ontario has:
  • Funding to our local education system has increased by approximately 70%
  • Funding to our local healthcare system has increased by approximately 75%
  • Increased post-secondary funding by 80%
  • Funded over $100 billion in infrastructure projects
  • 5,600 more doctors and 24,000 more nurses working in the province

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