Provincial Budget Highlights
The 2008 Budget from Finance Minister Dwight Duncan
sends the right signals as several of the union’s largest units head into
bargaining.
Investing in public services and the people who
deliver them will help Ontario cope with the current economic climate. The
Duncan Budget does this, but does not make up for the impact of many years of
Conservative cuts.
With the revenue projections in this Budget, the
money is clearly there for fair settlements in the major units OPSEU represents.
Wisely, the Liberal government ignored Federal
Finance Minister Jim Flaherty’s calls for a substantial corporate tax cut.
Public services are critical; more so after the years of vicious Conservative
cuts. Remember - tax cuts mean service cuts. These cuts hurt not only OPSEU
members, they hurt the people of Ontario.
Providing people with new skills is essential,
especially for those losing jobs in manufacturing. Recruiting more skilled
workers, and retaining them, is essential. The government has made a start in
the right direction. But a deeper long-term commitment to funding our community
colleges is needed.
Details
A three year, $1.5-billion set of programs were
outlined that would address retraining, expanded apprenticeships and skills
education.
The Budget Speech:
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included references to the importance of well
funded public services, and the need to honour the contribution of public
employees during collective bargaining with “our union partners”repeated
references to prudence
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much pride in post secondary education –
Ontario produces more graduates per capita than any Western nation
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No reference to a greater recognition of the
rights of labour or acting on the rights of part-time college employees.
Growth and Revenues
(The Canadian Centre for Policy Alternatives
estimates that the current impact of the previous Conservative government’s tax
cuts on Ontario’s fiscal capacity is $17-billion.)
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Revenues in 2007 were up $5.5-billion over
expectations – totaling $96.6-billion. 2008/09 revenue is expected to be up
by $300-million to $96.9-billion, to cover spending plans of $96.2-billion.
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New ten-year tax exemption for newly
established corporations that focuses entirely on commercializing academic
research.
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$750-million over three years for business tax
breaks and tax rebate program - over and above the $1.1-billion in the 2007
economic statement.
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No new personal income tax cuts – no tax
increases.
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Surplus for 2007-08 is $600-million, – rising
to $800-million for 2008/09.
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Province expects Gross Domestic Product (GDP)
to rise 1.1 per cent in 2008, 2.1 per cent in ‘09 and jump to 2.8 per cent
in 2010 – this is disputed by Bay Street where there is less enthusiasm
about growth (note that a one per cent decline causes about a $750-million
loss of revenue).
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Debt to GDP ratio has gone down by about 28 per
cent since the 2003 defeat of Conservatives.
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Unemployment rate is expected to rise in 2008
to 6.6 per cent.
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Inflation is thought to be 1.4 per cent for
2008, 1.9 per cent for 2009 and 2.0 per cent for 2010.
Spending Program Changes
The Liberals are sticking with priorities
established previously - education, infrastructure, innovation, and
strengthening partnerships.
There is a multi-year Skills Training program of
$1.5 billion – but the colleges component of new spending is for capital and
capacity not educational programming. Programs will reach one in ten laid-off
workers.
Overall, modest spending increases are planned for
this fiscal year 2007-08 using the added revenue from the strong year 2007; most
ministries are receiving larger budgets with lower budget for only a few
ministries, most of which got in-year one time increases in 2007-08.
Health care spending goes to $40-billion, with an
added focus on health care teams, nurse practitioners, personal care workers,
and cancer screening.
Long-term care staff funding will be $107-million
over three years for 2,500 personal support workers. OPSEU called this
‘inadequate.’
A 2 per cent increase in Ontario Works and ODSP
rates, a modest amount for student meals and a free dental program are the
anti-poverty measures
There will be $1-billion for seniors over 5 years
in property tax relief.
Also, $1-billion is set aside for municipal
infrastructure – half for Toronto and Hamilton transit.
Other
Wage settlements are said to be a key cost driver
that “could have a substantial impact” yet each one per cent increase for the
entire OPS would be $56-million on a $96-billion budget – or 0.05 per cent of
government spending. A one per cent wage increase for colleges would cost
$14-million. Sadly, the P3 (public-private partnership) continues to be a core
feature of Liberal infrastructure plans.
The opposition parties: PC leader John Tory called
for more tax cuts. NDP leader Howard Hampton says new programs will not help
the crisis in manufacturing or address needs of enough laid off workers.
http://ontariobudget.ca/
