Ontario Cuts Growth Outlook Infrastructure Projects on Fast Track $1.9 Billion Deficit Forecast for ‘06-’07 Robert Benzie October 27, 2006 – the Toronto Star
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Ontario cuts growth outlook Infrastructure projects on fast track $1.9 billion deficit forecast for ‘06-’07 Robert Benzie October 27, 2006 – The Toronto Star Ontario plans to spend hundreds of millions projected deficit of $1.9 billion in 2006-07, of dollars to “fast-track” new infrastructure and shortfalls of $2.2 billion in 2007-08 (up projects to lessen the blow of a slowing from an expected $1.5 billion), and $1 billion economy, which could kick-start the York in 2008-09. University subway extension. Despite the continuing failure to balance the “Slower economic growth has real impact on budget — spending is up $913 million to a real people and the communities they live in. record $88 billion in 2006-07— the Our responsibility is to take steps that will government enjoys an additional $190 million mitigate that impact,” Finance Minister Greg in proceeds from the Teranet land registry that Sorbara said yesterday. will be spent on new initiatives. “We are going to fast-track a number of Add that $190 million to the $1 billion infrastructure projects to generate immediate contingency fund and the province has on economic activity and job creation,” said paper an extra $1.19 billion that could be Sorbara. spent on expediting infrastructure like new In delivering his fall economic outlook and hospitals, university facilities and transit fiscal review to the Legislature, the finance projects. minister struck a cautionary tone. But sources told the Toronto Star the actual “There’s slower growth in the U.S. economy amount the province will have to spark new — that’s Ontario’s largest trading partner. A infrastructure investment, much of which will slowdown there has an immediate impact be done through private-public partnerships, here,” said Sorbara. could be far more. Acknowledging that impact, he announced That should be good news for the new 6.2- the government has reduced its gross kilometre Toronto Transit Commission subway extension from Downsview station, domestic product growth projection for the year to 1.6 per cent from 2.3 per cent. through the York campus and across Steeles Ave. into the 905 area. The province has “By 2008 we expect a return to growth of 3 already set aside $670 million for the $2 per cent, and that is just up from the 2.9 per billion project, with the City of Toronto and cent that was projected in the budget earlier York Region on the hook to contribute this year,” he said. another third. However, Sorbara added the Liberals could While Ottawa’s anticipated $670 million well go to the polls in the Oct. 4, 2007, share remains in limbo, the provincial election awash in red ink. Liberals want “shovels in the ground” on the After the one-time accounting changes that project before next year’s Ontario election. left the provincial treasury with a $300 Sorbara declined to discuss specific projects million surplus in 2005-06, there will be a set to receive additional funding, saying Public Infrastructure Renewal Minister David six years remains a problem for provincial Caplan would be making announcements in coffers. the weeks and months ahead. Progressive Conservative Leader John Tory Sorbara did, however, discuss other measures accused the Liberals of fudging the numbers that will be taken to help the sputtering for political purposes. economy. “We’ll focus on services and “They make these accounts up depending on programs to help threatened and laid-off what they think is going to suit them workers,” he said, adding Training, Colleges politically. No one should rely on any of it,” and Universities Minister Chris Bentley Tory said. would be outlining details soon. NDP Leader Howard Hampton also predicted As well, the province will be launching a new the Liberals will actually campaign on a ad campaign “to encourage Ontarians to balanced budget next fall. vacation and travel in their own province ... to strengthen tourism, because it is one of the “I don’t trust any of the numbers by the most important sectors of our economy.” McGuinty government. This is a government that is trying to set the stage to magically Sorbara repeated Premier Dalton McGuinty’s make the deficit disappear on the verge of an warnings that the disputed 2005 Canada- election campaign,” Hampton said. Ontario Agreement worth $6.9 billion over .