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Get the Skinny on the 2008 Ontario Budget 

The Skinny on the 2008 Ontario Budget

Below is a summary of the details of where new and enhanced funding announcements have been made in the recent Ontario budget:

Section A: Building Skills and Creating Jobs

    Investing in Skills and Knowledge:

    $560 million to support new skills for new careers, including:
    • Expand apprenticeships and improve equipment for student training $75 million over the next three years with the goal of increasing apprenticeship from 17,000 to 26,000 students.
    • Second Career Strategy of $355 million over three years to help unemployed workers make the transition to new careers.
    • $45 million over three years for the Apprenticeship Enhancement Fund for state-of-the-art training equipment.
    • $465 million to expand postsecondary student aid and programs, including:
    • $385 million over three years for a new Textbook and Technology Grant.
    • $200 million for new and expanded skills training centres and facilities under the Strategic Skills Training Capital Investments program.
    • $27 million over three years for a new Distance Grant to assist students in rural and remote areas.
    • $17 million for a new research internship program for graduate students through business partners.
    • 16 million in to expand Pathways to Education for at-risk youth.

      $970 million for capital funding, including:

    • $464 million included in the 2007 Economic Outlook and Fiscal Review for postsecondary campus renewal and strategic capital projects.
    • $200 million for Strategic Skills Training Capital Investments to expand training centres and capacity.
    • $200 million in 2007-08 for university campus renewal to maintain and upgrade facilities.
    • $60 million over the next three years for the College Equipment and Renewal Fund to ensure colleges have up to date equipment.

      Money will flow though existing programs including:

    • Next Generation of Jobs Fund
    • Ontario Automotive Investment Strategy (OAIS)
    • and the Advanced Manufacturing Investment Strategy (AMIS)

    Investments in Infrastructure

    • Areas include transportation, health, education, and economic development.
    • Details described throughout this document.

Enhancing Ontario's Competitiveness

$1 billion for municipal infrastructure for 2007/2008. The Renew Program is the main funding source as a 5 year, 30 billion dollar infrastructure plan. Once complete, the government plans to expand it to a $60 billion dollar plan for 10 years. Currently, Renew targets:

    • Innovative Business: $10 billion to renew and expand schools and postsecondary institutions.
    • Health Care: funding for over 100 major projects to upgrade and expand hospitals to provide better services in high-growth areas.
    • Education: $10 billion to renew and expand schools and postsecondary institutions, including $ 600 million for a major expansion of medical and graduate school spaces.
    • Transportation:
      • $17.5 billion for the MoveOntario 2020 Rapid Transit Action Plan.
      • Southern Ontario : 1600 km highway repairs, 130 new kms, and 264 repaired / new bridges.
      • Northern Ontario : 2000 km highway repairs, 64 new kms, and 254 repaired / new bridges.

      Strengthening the Environment for Innovation

    • $300 million new investments by the Ministry of Research and Innovation.
    • Enhancements to the Ontario Innovation Tax Credit, which is available to small and medium-sized corporations performing eligible Scientific Research and Experimental Development in Ontario.
    • $250 million over the next five years to the Ontario Research Fund for investment in research infrastructure, such as laboratories and equipment, at Ontario institutions.
    • Recently announced five-year, $150 million Biopharmaceutical Investment Program, a component of the $1.15 billion Next Generation of Jobs Fund aimed at attracting biopharmaceutical investment to Ontario.

      Forming Key Partnerships to Strengthen Ontario

    The Next Generation of Jobs Fund has three components:

    • Biopharmaceutical Investment Program - supports the expansion of research and advanced manufacturing by pharmaceutical and biotechnology firms.
    • Jobs and Investment Program - helps companies in a wide range of sectors to expand in Ontario and develop innovative products for global markets.
    • Strategic Opportunities Program - supports industry-led, public-private collaborations focused on increasing Ontario's innovation expertise in three key sectors: the bio-economy and clean technologies, advanced health technologies, and creative industries such as digital media and information and communications technologies.

To help companies get their projects off the ground sooner, companies are guaranteed a decision within 45 days of submitting a complete proposal.

Green Initiatives of the Government:

    • $100 million to rehabilitate social housing units in communities across the province. Housing providers could use this funding towards energy-efficiency improvements.
    • $30 million over four years to support consultations via the Northern Table on substantial land use planning and resource management in the Far North.

First Nation and Aboriginal Opportunities:

$600 million on average annually on initiatives across government to improve quality of life for Aboriginal peoples, including:

    • $300 million for children and social services, including an increase to the Akwe:go program by $4 million annually.
    • $85 million for health services
    • $80 million for justice and policing initiatives
    • $45 million for education and training programs. This includes an increase of $5 million (on top of the $13 million announced in January 2007) for Aboriginal education on cultural awareness.
    • The government, through the Ministry of Aboriginal Affairs, will explore ways to partner strategically with First Nations communities in Ontario on potential renewable-energy projects. For example, the Province will consider the feasibility of providing loan guarantees to help First Nations businesses develop renewable electricity generation projects in Ontario.
    • Economic Development: This includes the pportunity to engage Aboriginal peoples in advancing the long-term sustainability of the Far North’s communities, economy and environment; developing the Northern Growth Plan; and identifying proposals for sharing in the benefits of natural resource development.

New Investments in Key Ontario Sectors

Financial and professional business services sector is a key priority as they represent 10% of total employment with a growth rate doubling the rest of the economy. Priorities include:

    • Complete the development of regulations to implement the modernization and streamlining of the Credit Unions and Caisses Populaires Act to enhance industry competitiveness.
    • Propose legislative changes to further expand harmonized approaches across jurisdictions for regulating securities dealers and advisers, and investment fund managers.
    • Continuing to champion a common securities regulator to improve the efficiency, integrity and competitiveness of Canadian capital markets.

The Entertainment and Creative Cluster:

Increase the Ministry of Culture's funding by $63 million over the next four years:

    • $7 million to increase the market share of Ontario-produced digital content and support new content production for mobile and online use, by expanding Ontario Media Development Corporation’s Interactive Digital Media Fund.
    • $4 million over the next four years in the International Fund, to support international marketing and touring initiatives.

Tourism:

New investments and a proposed tax measure totaling $92 million over five years starting in 07/08.

    • $8 million over the next two years to conduct research on new tourism markets, inform Ontario's tourism strategy and investments, and determine the steps necessary to attract and increase tourists to Ontario.
    • $50 million over the next four years in tourism marketing and the Festival and Events Attraction and Support Program, to support Ontario festivals and events, and promote Ontario as a major tourist destination.

Manufacturing:

    • $750 million tax reduction targeted towards business modernization in the manufacturing / resources spread over 4 years.
    • $25 million to the manufacturing sector for productivity improvements and energy conservation projects. This is to be delivered through the Canadian Manufacturers and Exporters with assistance from partners including energy providers and the Information Technology Association of Canada.

Mining:

    • $20 million over four years for geological mapping to help Ontario's mineral exploration sector identify areas of economic opportunity.
    • $7 million over four years to implement Ontario's Mineral Development Strategy, which will include modernization of the Mining Act .

Forest Sector:

    • Since 2005, the government has announced more than $1 billion in assistance for the forest sector. The resulting programs have stimulated new investments in value-added manufacturing and co-generation, helping the industry reposition itself in the global marketplace.
    • $25 million towards a centre for research and innovation in the bio economy, to be located in Thunder Bay, which will undertake frontier research in the next generation of higher-value forestry products
    • $15 million over four years for a centre for invasive species management in Sault Ste. Marie.
    • Since 2005, more than $1 billion in assistance. The resulting programs have stimulated new investments in value-added manufacturing and co-generation, helping the industry reposition itself in the global marketplace.

Agriculture:

    • Ontario Ministry of Agriculture, Food and Rural Affairs expenditures are expected to total more than $1.2 billion in the 2007-08 fiscal year
    • $56 million over four years for the Pick Ontario Freshness strategy and the Ontario Farmers' Markets Initiative.
    • $7.5 million annually for four years for broadband access in rural southern Ontario

Section B: Stronger Communities: Investing in Municipal Infrastructure and Communities

Key Priorities: $1 billion in new funding for municipal infrastructure in 2007-08:

    • $400 million for the Municipal Roads and Bridges Fund for communities outside Toronto
    • $497 million for public transit in the Greater Toronto and Hamilton Area for Metrolinx projects and other transit priorities
    • $100 million for infrastructure investments to rehabilitate existing social housing units, including energy-efficiency improvements. The government is also planning to make key public-sector social housing providers eligible for Infrastructure Ontario’s OSIFA loan program, which would provide up to $500 million in low-cost loans.
    • $450 million in 2007-08 in the Municipal Infrastructure Investment Initiative.

Affordable Housing:

    • New investment of $100 million is being provided to rehabilitate existing social housing units, including improving their energy-efficiency.
    • OSIFA loan eligibility expanded to allow access up to $500 million in low cost loans for social housing construction.

Water and Wastewater:

    • $380 million for water and wastewater project applications.

Highways and Bridges:

    • $448 million over the next five years to accelerate projects to rehabilitate bridges that are part of the provincial highway network, including upgrading 100 bridges.
    • In 2008-09, the government will invest $927 million in the Southern Ontario Highways Program and $557 million in the Northern Ontario Highways Program.

Building Opportunities in Northern Ontario

    • $302 million over the next four years for new investments in northern highways.
    • Increasing funding to the Northern Ontario Heritage Fund Corporation (NOHFC) by $10 million per year from $60 million in 2007-08 to $100 million in 2011–12. The NOHFC works with northern entrepreneurs, communities and business organizations to support vital community infrastructure and economic development projects that create jobs and enhance the quality of life in the north.

Building Opportunities in Rural Ontario

    • $30 million increase in funding over four years to the Rural Economic Development program.
    • $30 million over four years to enhance broadband access in rural areas in southern Ontario to grow and improve access to public services such as e-learning, e-health and e-government.
    • Additional $150 million in the existing $300 million MIII. The MIII provides municipalities across Ontario, outside Toronto, with funding to build and repair roads, bridges and other public facilities.
    • New $400 million Municipal Roads and Bridges Fund.

Protecting and Improving Ontario's Natural Environment

    • $41 million over four years to support the development of toxics legislation and a toxics reduction strategy that will require companies that emit toxic substances to reduce their emissions over time.
    • Waste Diversion Ontario (WDO) will be enhancing household waste diversion by introducing a new Municipal Hazardous or Special Waste (MHSW) program. Expected to double the amount of MHSW diverted from landfill or the environment over the next five years, providing nearly $5 million over four years for additional waste inspectors to increase recycling compliance at industrial, commercial and institutional facilities; and almost $2 million over two years to remove 300,000 tires illegally stored in Middlesex County and review the inventory of scrap tires in the province.
    • $7 million to clean up polychlorinated biphenyl (PCB) contaminated sites.
    • A 14 per cent increase in spending for the Ministry of the Environment (MOE) in 2008-09.
    • $20 million over four years for an environmental public education and outreach strategy.
    • $6.5 million over four years for new resources to prepare teachers to teach the new environmental curriculum.

Section C: A Better Future for Families: Improving Quality of Life

Highly political and intended to speak to the government's values. The government's Cabinet Committee on Poverty Reduction, chaired by the Honourable Deb Matthews, Minister of Children and Youth Services, will focus on expanding opportunities for those living in poverty. Target areas include:

    • $32 million over three years for the Student Nutrition Program.
    • $385 million over three years for a new annual Textbook and Technology Grant of $300 per year at maturity for full-time university and college students.
    • $27 million over three years for a new Distance Grant to assist with transportation costs for students from rural and remote areas attending college and university.
    • $13 million over four years to expand the 211 Ontario system.
    • $10 million over four years for an asset-building pilot program for low-income Ontarians.
    • $30 million in one-time funding in 2007-08 for capital projects to support agencies that provide services to children and vulnerable populations.

Section D: A Smarter Ontario: Excellence in Publicly Funded Education

The government has set a priority to focus on closing the gap in student achievement:

    • A core priority for the government is a quality education for all students in publicly funded schools.
    • Schools need specialized resources to help each student realize his or her full potential.
    • Special attention must be paid to students who are socio-economically disadvantaged, or who face particular cultural challenges or educational hurdles while at school.

Class sizes have become a political measuring stick:

    • 99.7 per cent now have 23 or fewer students this year compared to 64 per cent in 2003-04
    • 88.4 per cent now have 20 or fewer students this year compared to 31 per cent in 2003-04.

Infrastructure is also a priority:

    • $750 million investment, beginning in the 2008-09 school year, to build new schools and repair school facilities.

Other programs:

    • $10 million through the new Program Enhancement Grant in the 2008-09 school year to help students receive a well-rounded education through arts, music programs, physical education and outdoor education programs.

Section E: A Healthier Ontario: Strengthening Health Care for the Future

Perhaps the most political area for spending: 46% of the total budget. Spending in the health sector is proposed to be $40.4 billion in 2008–09, rising to $42.4 billion in 2009–10 and $44.7 billion in 2010–11.

Four key strategies discussed:

    • Improving access to health care
    • Shortening wait times
    • Promoting health and preventing illness
    • Modernizing health infrastructure

Improving access to health care

    • $53 million over the next three years to add 50 more Family Health Teams by 2011-12, targeting rural and under serviced communities.
    • $38 million over the next three years to create 25 nurse-practitioner-led clinics by 2011-12
    • $90 million in 2008-09 for the extension, as announced in March 2008, of the Nursing Graduate Guarantee program.
    • Increasing the number of undergraduate enrolment spaces for midwives, from 60 to 90.
    • $13 million in 2008-09 for enhancements to the Northern Health Travel Grant to help northerners access health care services.

Improving Access to Health Care for Seniors

    • $107 million over the next three years to move towards 2,500 more personal support workers for long term care homes.
    • $278 million over the next three years to address various program needs in long-term care homes.
    • $700 million over the next three years to implement the Aging at Home Strategy.

Shortening Wait Times

The Ontario Wait Time Strategy targets five key areas: cancer surgery, selected cardiac procedures, cataract surgery, hip and knee replacements, and magnetic resonance imaging and computed tomography (MRI/CT) scans. Expanded last year to include Pediatric Surgeries.

    • $180 million over the next three years to provide incentives to make continuous improvements in emergency-department wait times and patient satisfaction.
    • $64 million over the next three years to provide approximately 12,400 additional general surgeries starting in 2008-09, growing to approximately 30,000 additional surgeries in 2010–11.
    • $120 million over the next three years to help hospitals in areas experiencing high population growth to meet anticipated demand.
    • $190 million over the next three years to implement a Chronic Disease Prevention and Management Strategy, starting with diabetes. Prevention of chronic disease and improved patient care should help reduce emergency-department wait times.
    • $80 million over the next three years to improve mental health and addiction services, including funding to increase treatment for eating disorder services and early intervention for psychosis. The government will be developing a comprehensive mental health and addictions strategy.
    • $20 million to support children with complex special needs, bringing total Provincial spending on children's mental health to over $440 million annually.
    • $17 million over the next three years to fund the operation of an additional five MRI machines. This investment will result in approximately 21,900 additional MRI scans, improving access and reducing wait times for diagnostic services in areas of high demand.

Modernizing Health Infrastructure

    • $14 million in 2007-08 for 10 residential hospices across the province to provide end-of-life care in a home-like environment for patients who cannot be cared for at home.
    • $47 million in 2008-09, growing to $239 million in 2010-11, in e-health systems such as diagnostic imaging, drug and lab information, and a Diabetes Registry.