Tuesday, May 2, 2017

CLAC Briefing on the Ontario Budget 2017

Budget 2017 has been touted by the Ontario government as the first balanced budget in nearly a decade. In the lead up to an election in 2018, the Wynne government has put its best foot forward towards repairing its reputation and approval ratings.

Key items include

A new $7-billion “booster shot” to healthcare, improving access to care, expanded mental health and addiction services, and universal Pharmacare for children and youth under the age of 24.
Lowering household electricity bills by 25 percent and expanding access to natural gas.
Expanded home and community care health programming to the tune of $250-million.
A new Dementia Strategy worth over $100-million over the next three years.
A $6.4-billion investment in education, over three years, at all levels including new school construction, free tuition for more than 210,000 students in postsecondary education, and more child care spaces.
New investments in transformational technologies and 40,000 new work-related opportunities or students and recent graduates.
Measures to make home-buying and renting more affordable including:
- 15 percent non-resident speculation tax on homes in the Greater Golden Horseshoe purchased by non-Canadians;
- Expanded rent control to all private rental units;
- Ability for Toronto and other municipalities to introduce a tax on vacant homes.

For CLAC members the healthcare, pensions, and construction investments will be of significant interest. We have listed the investments below and provided an update about what your representatives will be focused on in these areas on your behalf.

Healthcare

Of the $7-billion commitment to healthcare, an additional $58-million will be allocated to long term care (LTC) homes, representing a two percent increase. LTC homes provide residential care and support to some of Ontario’s most vulnerable citizens, including seniors with complex care needs such as dementia and multiple medical conditions. Funding will also be provided to expand the exemplary work already underway in the long term care sector to improve access to training and supports for quality palliative and end‐of‐life care in long term care homes.

This investment will support the care that loved ones deserve, and provide comfort and dignity towards the end of life. The government will increase the food allowance by over six percent this year, or $15 million, to ensure that LTC homes can provide nutritious menus that are responsive to medical and ethno‐cultural needs.

Additionally, more than $20 million will be committed in 2017 for respite care. This builds on the 2016 investment to offer respite to the unpaid caregivers (family and friends) of seniors, people living with dementia, and other home care patients. This funding is used for personal support services or nursing support at home, allowing caregivers to schedule breaks from the crucial work of caring for a loved one. With these new investments in respite care, the province’s three‐year investment for respite care will total $120 million.

Since 2013, the government has increased its investment in home and community care by about $250 million per year to fulfill the commitment outlined in “Patients First: A Roadmap to Strengthen Home and Community Care.” Continuing this investment in 2017–18 will support more hours of care for complex patients, much needed respite for caregivers, and the delivery of key improvements in mental health and addiction services, healthcare for indigenous populations, and implementation of a dementia strategy in Ontario, among other priorities.

CLAC continues to push for the allocation of LTC spending within this calendar year. We appreciate the member support in signing petitions and will have an update on the introduction of the petition at Queen’s Park shortly. We will also work with the ministry of health and long-term care on a paperwork reduction project for LTC and will provide a further update soon.

Pensions

CLAC has been advocating for many years for pension managers to issue benefits directly to retirees. In this budget, the government signals that they will move forward with this suggestion.

“Defined contribution (DC) pension plans are another important component of retirement security
for Ontarians, since they represent a growing share of workplace pension plans. The government is
taking steps to expand and modernize the legislative and regulatory framework related to DC
plans, and consider innovative options for payouts in retirement.

“As a first step, the government is introducing amendments to facilitate the implementation of
variable benefits, and intends to develop regulations later this spring. Enabling the payment
of variable benefits so that payments can be made directly from DC plans would allow retirees
with variable benefit accounts to take advantage of investment expertise and cost efficiencies
of the plan.”

We would like to thank Jim Doornbos and Marie Grootenboer for their hard work in pushing this forward with the ministry of finance. This will result in significant cost savings for CLAC members when in place.

Construction

Public infrastructure investments now stand at more than $190 billion over a 13-year period, beginning in 2014-15.

Budget 2017 was really about healthcare and education, but the government continues to invest heavily in infrastructure. Nonetheless, construction did not weigh heavily in this budget.

New hospital and school investments were announced and CLAC members in most jurisdictions may be able to participate in these projects.

The government also noted: “In the coming months, Ontario will consult on the creation of a Community Benefits framework, guided by the principle that public procurement can create community benefits that go beyond simply building infrastructure.”

CLAC is engaged with the ministry of infrastructure on this and will advocate for fair policies for all construction workers in Ontario.

CLAC Briefing on the Ontario Budget 2017

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