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Province's debt looms over 2020 budget wish list

'There (are) lots of priorities and everybody knows the province owes a lot of money,' says Finance Minister Rod Phillips as the Progressive Conservative government’s 2020 budget consultation tour makes its local stop

At the fourth stop in the Progressive Conservative government’s 2020 budget community consultation tour, Ontario Finance Minister Rod Phillips is already seeing a pattern.

Make life more affordable, invest in important community services like health care, and be fiscally prudent are the top three messages getting across to the man who will be tabling the Doug Ford government’s second budget in March.

Along with Deputy Premier and Newmarket-Aurora MPP Christine Elliott, and Aurora-Oak Ridges-Richmond Hill MPP Michael Parsa, Phillips was in Aurora Jan. 21 for the local consultation.    

“It’s a really important opportunity to get out across Ontario and listen to the priorities that people have for their budget,” he said prior to the consultation getting underway at the Aurora Cultural Centre — just “down the road” from where he grew up on Eagle Street in Newmarket.

About 30 community consultations will be held across the province, he said.

And while submissions can be made online, Phillips added that the face-to-face meetings with constituents in their communities are invaluable.

“The things you get from this format (are) the stories about impact or why something matters.”

The Ford government’s first budget, tabled by then-finance minister Vic Fideli last April, outlined a plan to eliminate the $11.7-billion deficit, with cuts impacting everything from post-secondary education and assistance to victims of crimes to trees and libraries.

“I think that governments always learn as they go, but I think the important thing that we are doing is listening really closely and making sure that we understand not just what people want but why it is that’s important,” said Phillips, who stepped into the finance minister’s job last June. 

“There (are) lots of priorities and everybody knows the province owes a lot of money. We are the biggest sub-sovereign debtor in the world — interest is the fourth biggest expense that we have in our whole government — so there’s pressure, you know, to make sure that we manage the money really well and we focus on the priorities we can.”

About 35 people representing area agencies, associations, health care providers, and businesses registered for a three-minute allotment to bend the ear of the finance minister, deputy prime minister and local MPP.

Phillips twice reminded them that the province faced “a bit of a fiscal challenge” — the deficit is pegged at $7.4 billion — but is committed to spending on “vital services.”

The former environment minister said Ontario spends more on the environment — $600 million — than any other province, “but the ($13-billion) interest on that debt means that we pay more to our creditors in 17 days than we pay for the environment all year”.

“That’s why these consultations are so important. We have to make sure that every hard-earned dollar that we take from taxpayers is used for those vital services, whether it’s the very important work we do in health care or the equally vital and important things we do at the community level that need support.”

Requests included funding for health care, mental health, palliative care, the homeless, seniors care, special needs children, and the environment, while businesses had ideas for saving money — a specialized audit firm offered to work with the province to cut “massive” benefits fraud, for example — but most urged them to “cut the red tape”.

Arden Krystal, president and CEO of Southlake Regional Health Centre, acknowledged the recent investments in reducing alternate level of care (ALC) through the hallway medicine proposals, but urged the province to provide adequate start-up funding to the new integrated health teams.  

Krystal referenced the Ontario Hospital Association study that found Ontario’s hospitals are the most efficient in Canada.

“Years of underfunding at less than the rate of inflation has taken its toll and we require adequate funding, as requested by the OHA, to ensure that we can continue to meet the needs of our aging community…”  

Even with the changes anticipated to relieve overcapacity pressures, Southlake projects its beds will need to be doubled to meet the needs of the community by 2040, which will require adequate investment, she added. 

Kim Gavine of Conservation Ontario urged the province to establish a funding formula that supports risk planning, watershed management, infrastructure updating and emergency response for the increasing number of flood events.

“Our provincial flood strategy can't be to just pay to repair damages — this isn’t sustainable or cost effective.”

Rebecca Shields, CEO of the Canadian Mental Health Association York Simcoe, advocated for funding to improve mental health services, including a York Region mental health and addictions hub that could serve 10,000 people annually and help to relieve the strain on our hospital.

Ann Watson, executive director of Newmarket’s Inn From the Cold shelter, asked that the province restart and finish the basic income project, and provide funding for adequate treatment and support for homeless people struggling with addictions and mental health.  

Clovis Grant, CEO of 360kids, asked for funding for early intervention and transitional housing for youth who are homeless.

Mike Waddington, owner of CPG Aerospace in Newmarket, said his firm is burdened as a result of the province's changes to WSIB, which has doubled their payments. He also urged the provincial government to partner with the federal government to implement a capital investment tax credit.

Heads nodded in agreement when he said the province needs to ensure students are aware of the opportunities for employment and labour trends before pursuing their post-secondary education.

“I know two electricians who pursued their careers only after getting (other) degrees first. If our education system has to train people twice, this is a huge financial burden not only to them but to the province and keeps them out of the labour market longer.” 

A spokesperson for Aurora-based Flow Water Inc., which packages alkaline spring water in eco-friendly Tetra Paks, said local jobs have been lost and the firm’s ability to grow has been impacted by the province’s moratorium on new or expanding water-taking permits for water bottling companies — it has had to move some of its business to the United States.

“The biggest hindrance we have in the film industry is the red tape,” said Chris McDowell on behalf of a film industry association.

You can make your submission here until Feb. 11, 2020.



 

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Debora Kelly

About the Author: Debora Kelly

Debora Kelly is the editor for AuroraToday and NewmarketToday. She is an award-winning journalist and communications professional who is passionate about building strong communities through engagement, advocacy and partnership.
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