The Honourable Dwight Duncan, Minister of Finance delivered the 2009 Ontario Economic Outlook and Fiscal Review on October 22, 2009.
A quick summary provided by the Association of Municipalities of Ontario:
The provincial government is now projecting a $24.7 billion deficit for 2009-10. This is a significant increase over previous government estimates including one issued just last month at $18.5 billion. This highlights the significant economic challenges Ontario currently faces. In future years, deficits of $24.7 billion in 2010-11 and $19.4 billion in 2011-12 are projected.
The Minister announced that the government would be conducting, “a rigourous strategic spending review” focusing on government programs and services. The spending review will be conducted in the coming months with a detailed plan announced as part of the 2010 Budget. The review will include all provincial agencies, boards, and commissions. In addition, the government will work with broader public sector partners to improve efficiency and effectiveness. The priorities of the government will remain the sustainability of job creation, health care and education.
This economic outlook underscores the importance of the outcomes achieved for municipalities during the Provincial-Municipal Fiscal and Service Delivery Review announced last year. Ontario Drug Benefits were fully uploaded by the province in 2008. Administration costs for the Ontario Disability Support Program (ODSP) were fully uploaded this year and in 2010, 90% of ODSP benefits will be provincially funded and the Ontario Works benefit upload (3%) will commence. In addition, the Ontario Municipal Partnership Fund (OMPF) social programs component will continue to respond to changing social assistance costs throughout this period. These uploads will benefit municipalities and local property taxpayers for years to come.
This information is available in the Policy Issues section of the AMO website at www.amo.on.ca.
