Ontario's Action Plan: Protect, Support, Recover – 2020 Ontario Budget
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Ontario’s Action Plan Protect • Support • Recover The Honourable Rod Phillips Minister of Finance 2020 Ontario Budget Download the COVID Alert mobile app at Ontario.ca/COVIDAlert For general inquiries regarding Ontario’s Action Plan: Protect, Support, Recover please call: Toll-free English and French inquiries: 1-800-337-7222 Teletypewriter (TTY): 1-800-263-7776 For electronic copies of this document, visit our website at www.ontario.ca/budget The Fiscal Sustainability, Transparency and Accountability Act, 2019 (FSTAA) sets out the requirement for the Ontario Minister of Finance to release a budget and a mid-year review for each fiscal year. The fall 2020 Budget represents, in compliance with FSTAA as proposed to be amended, the government’s Budget and mid-year review for 2020–21. © Queen’s Printer for Ontario, 2020 ISBN 978-1-4868-4818-8 (PRINT) ISBN 978-1-4868-4819-5 (HTML) ISBN 978-1-4868-4820-1 (PDF) Ce document est disponible en français sous le titre : Plan d’action de l’Ontario pour la protection, le soutien et la relance Introduction Introduction Around the world, COVID-19 has had devastating health consequences and caused a global recession. Beyond its impacts on our health and the economy, it has affected education, mental health, community safety and everyone’s quality of life. The impact of the global pandemic on our families, jobs, communities and province is still evolving in ways that are unknown. Since the outset of the first wave, Premier Ford has made it clear that nothing is more important to our government than protecting the health and safety of the people of Ontario. At the same time, we have worked with our partners to provide unprecedented support for people and jobs during this challenging time. Back on March 25, 2020, I introduced Ontario’s Action Plan: Responding to COVID-19, a one-year economic and fiscal update based on the latest economic projections available. This made Ontario unique among Canadian governments at the time, but I felt it was essential to give the people of Ontario a transparent update on the public finances, even amidst the most volatile economic period in recent history. Since then, the 2020–21 First Quarter Finances has built on that plan and made available $30 billion as part of our response to the global pandemic, including $7.7 billion for health supports, $11.0 billion to support people and jobs, and $11.3 billion in cashflow support. Ontario weathered the first wave and emerged in a strong position relative to jurisdictions around the world. This was due to strong public health measures and, more importantly, the people and businesses of this province who demonstrated their Ontario Spirit by supporting one another and behaving responsibly. But, as we have seen in places that were affected by COVID-19 earlier than Ontario, surges and second waves are to be expected — at least until a vaccine is effectively deployed. Recognizing the sober truth that we will be facing this pandemic for some time, Ontario is at a pivotal moment. The threats before us, first and foremost, demand that governments work together to make available every necessary resource to protect people’s health and support their economic well-being through the second and potential future waves of the virus. That is exactly what this Budget does. But just getting through COVID-19 isn’t enough. Back in March 2020, the most responsible course of action was to rapidly invest in health capacity and provide broad, emergency financial relief. As we learn more about the COVID-19 virus and apply the lessons we collectively learn, our response will evolve and expand. That is why, for example, the government has released a $2.8 billion Fall Preparedness Plan for Health, Long-Term Care and Education (Fall Preparedness Plan) and is providing new supports for businesses located in modified Stage 2 regions. The Premier and our entire government are steadfast in our commitment to do whatever it takes to protect and support people through COVID-19. iii Introduction Like the people of Ontario, our government is realistic that we will be facing this pandemic for some time. Yet, as my colleagues and I speak to people from every region of the province, something has been reinforced for all of us: the strength and resolve of the Ontario people is unbreakable. We will get through this second wave, and any future waves, just as we got through the first one. When we do, the people of Ontario will be just as determined in their pursuit of a strong recovery as they have been in the battle against this virus. One thing is crystal clear: now is the time to begin building the foundation for a strong economic recovery. This will not be a short-term project. While no economic downturn is the same as the last, it took between 24 and 88 months to return to pre-recession peak employment across the last three recessions. Despite early signs for cautious optimism over the summer and early fall, this remains an incredibly uncertain time, particularly as we deal with a second wave. The difficulty of predicting the trajectory of the pandemic makes economic projections even more challenging than usual. Despite this uncertainty, I’m convinced that no matter how long the pandemic lasts and no matter how severe the economic impacts, the key ingredient to our recovery will be creating the conditions for economic growth. Before COVID-19, important progress had been made in our government’s commitment to once again make Ontario open for business. Still, much work remained, including addressing the previous government’s hydro mess, uncompetitive taxes, and too many unnecessary regulations and red tape. While this government was well on its way to addressing these long-standing barriers to job creation and prosperity, the pandemic has only underscored the urgency of taking steps to create the right conditions for growth. What was a strong headwind to economic growth pre-COVID-19, could prove to be gale force winds that are impossible to overcome, and that hold Ontario back, as the entire global economy strives to recover in the coming months and years. And to be clear, recovery from COVID-19 doesn’t just mean regaining the jobs and economic output lost during the pandemic. Ontario will recover stronger than ever. We will make Ontario the best place in the world to work, live and raise a family, while dealing with the long-term impacts of the global pandemic. For our government, and for the people of Ontario, the responsible path forward will be to create the conditions for our economy to grow, make Ontario open for business and once again become the economic engine of Canada. We will need growth that creates jobs, encourages entrepreneurship, empowers innovation and attracts employers from all around the world. That is how Ontario will recover from the pandemic. iv Introduction It may seem ambitious to talk about recovery while we’re still facing COVID-19. Indeed, growth anywhere in the world right now will be a challenge. But it’s not too early to start planning. And there are some fundamental actions we will take in Ontario’s Action Plan: Protect, Support, Recover that lay the foundation for a recovery fuelled by growth — and driven by the Ontario Spirit. Original signed by The Honourable Rod Phillips Minister of Finance v Introduction Ontario’s Action Plan: Protect, Support, Recover provides $15 billion in new supports, building on the $30 billion in total supports to date from the first phases of Ontario’s response to COVID-19, for a total of $45 billion in total supports over a three-year period. This Budget is built on three pillars: Protect is the first pillar. It builds on the government’s urgent response to COVID-19 and provides $15.2 billion in supports, including $7.5 billion in new funding. Highlights of the $7.5 billion in new funding include: Increasing average daily direct care from a nurse or personal support worker (PSW) per long-term care resident to four hours a day over a four-year period, making Ontario the leader among Canadian provinces in protecting our seniors; Making available $4 billion in 2021–22 and a further $2 billion in 2022–23 in dedicated support to protect people’s health and to support the fight against the COVID-19 pandemic; and Opening the new Cortellucci Vaughan Hospital site with a new emergency room, state-of-the-art diagnostic imaging and operating rooms. This is the first newly built hospital to open in Ontario in 30 years that adds net new capacity to the system. vi Introduction These investments build on supports announced as part of the first phases of Ontario’s response to COVID-19, including: Investing $2.8 billion in a Fall Preparedness Plan to support response efforts to the second wave of COVID-19. Key investments include over $1.4 billion to continue to ramp up COVID-19 testing, case and contact management, $351 million to support 2,250 hospital beds, $284 million to address the surgical backlog and $70 million to purchase influenza vaccines; Investing $1.75 billion to increase long-term care capacity and access for residents by building 30,000 long-term care beds. The government is also introducing a new and innovative Accelerated Build Pilot Program that will enable the faster construction of four new long-term care homes and add up to 1,280 beds to the sector, with a targeted completion of early 2022; Investing an additional $572 million in hospitals for costs incurred during the pandemic; Providing $270 million for public health, home and community care supports and virtual care and Telehealth initiatives; Providing over $1.5 billion for pandemic pay — a temporary pay increase of $4 per hour for more than 375,000 frontline workers for work performed from April 24 to August 13, 2020 — in partnership with the federal government; Purchasing nearly $1.1 billion in personal protective equipment (PPE) and other critical supplies to protect our health care workers, patients and people across the province; Launching a recruitment campaign to hire 98 more occupational health and safety inspectors, so that Ontario will have more active inspectors than at any time in its history.