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2017 Ontario Budget a Stronger, Healthier Ontario

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2017 Ontario Budget a Stronger, Healthier Ontario 2017 Ontario Budget A Stronger, Healthier Ontario The Honourable CHARLES SOUSA Minister of Finance Budget Papers For general inquiries regarding 2017 Ontario Budget: Budget Papers, 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 A printed copy of this publication can be ordered: Online: www.serviceontario.ca/publications By phone: ServiceOntario Contact Centre (Monday to Friday, 8:30 AM to 5:00 PM) Telephone: 416-326-5300 TTY: 416-325-3408 Toll-free across Canada: 1-800-668-9938 TTY Toll-free across Ontario: 1-800-268-7095 © Queen’s Printer for Ontario, 2017 ISBN 978-1-4868-0080-3 (Print) ISBN 978-1-4868-0081-0 (HTML) ISBN 978-1-4868-0082-7 (PDF) Ce document est disponible en français sous le titre : Budget de l’Ontario 2017 – Documents budgétaires FOREWORD Foreword A Balanced Approach The 2017 Budget is a balanced budget, the first one since the 2008–09 global recession. This was achieved through the hard work and determination of the people of Ontario. The recession had negative effects across the world, and Ontario was not immune. Many people lost their jobs and the economy weakened, resulting in a substantial drop in the Province’s revenues. Faced with this new reality, the Ontario government embarked upon a plan to invest in our people and return to a balanced budget. Rather than slash the programs and services upon which Ontario families rely to eliminate the deficit, our government chose to build Ontario up. We chose to implement a plan that reflected the values and aspirations of Ontarians. We focused on growing the economy and creating jobs. We listened to people in communities across the province and we continued to invest in the things that matter most to them, particularly health care and education. We chose to build for the future, instead of trying to hold on to the past. We expanded and renewed our infrastructure to make sure the needs of our growing population are met through investments in hospitals, schools, public transit and roads. We built a clean, sustainable electricity system and put ourselves at the forefront of fighting climate change, leading in green and clean technologies. Our plan was realistic and responsible. We managed our expenses and began transforming how we deliver public services, making them more efficient and effective. We took aim at the underground economy to ensure everyone pays their fair share. We embraced new opportunities arising from an economy increasingly based on information and knowledge. Our plan is working. Over the past three years, our economy has grown faster than Canada’s and that of all G7 countries. Today, more Ontarians are working and our unemployment rate is the lowest it has been since 2007. We have added nearly 700,000 net new jobs since the recession. The vast majority of these are full‐time jobs, in the private sector, and in industries paying above‐average wages. Our household incomes have risen and business investment has increased. Our exports are up, along with gains in manufacturing, financial services and retail sales. Our plan to achieve a balanced budget has also been successful. Last year, our deficit was $1.5 billion, the eighth year in a row that we beat our deficit reduction target. Not only are we presenting a balanced budget this year; we are on track for balanced budgets in 2018–19 and 2019–20. Foreword v With our economic growth projected to continue and balanced budgets planned for the foreseeable future, Ontario is once again in a strong and healthy position. Across the province, people are working hard and deserve to share in the prosperity we’re building. Too many still feel uncertain about the future and the rising cost of living. We will continue to invest in priorities such as health care, education and making life more affordable, because when government makes sure people can get ahead, that helps our economy stay ahead too. In this Budget, I hope you will see the many ways that we are working hard to make that happen. The Health Care Ontarians Deserve Everyone deserves access to high‐quality, publicly funded health care. Our health care system has provided critical support and care to families for generations. Ontarians are proud of our universal health care, and we are leading the way to strengthen it. Beginning in January 2018, we will be the first province to provide drug coverage for every Ontarian aged 24 and under. This universal pharmacare will help keep our children and youth healthy and ensure that parents are never put in the position of having to choose between paying for their children’s medication or other essentials. To meet the needs of patients today and in the future, we are improving access to care, reducing wait times, and enhancing their experience and recovery. Our additional investment of $7 billion over the next three years will ensure patients receive care closer to home, see specialists faster, and have access to expanded mental health and addictions services. This includes an additional investment of $1.3 billion to reduce wait times throughout the province. Targeted investments will help more people receive high‐priority procedures more quickly, including MRIs, cataract and cardiovascular surgeries, and hip or knee replacements. To provide patients expanded access to care, we will invest an additional $518 million in 2017–18 in hospitals, representing a three‐per‐cent increase to the sector. To meet the needs of our growing and aging population, we must ensure hour healt care is being provided in modern facilities. Across Ontario, 34 major hospital projects are now underway. We’re adding to that, with $9 billion over 10 years in new capital grants to support the construction of several new major hospital projects. We will also be improving community health infrastructure across the province. Many of us spend time each day caring for loved ones. We are creating better supports for families caring for aging parents, so that the people who raised us and loved us receive proper care when they need it most. Caregivers will be better supported through access to respite care, a new organization focused on providing training and resources, and a simplified approach to caregiver tax credits, recognizing their additional cost pressures. As part of a new, comprehensive dementia strategy, more people will be able to access day programs and respite services, providing safe environments for those with dementia and reducing stress for loved ones. vi Foreword More funding for home and community care also means more patients will be able to continue to live at home. Expanded community and personal support services will help meet increased demand and support faster and more equitable access to services across the province. To help meet the need for long‐term care, we are encouraging operators to accelerate the redevelopment of more than 30,000 beds. And for those living in long‐term care facilities there will be increased comfort and privacy with the elimination of four‐bed wards and more nutritious and culturally sensitive food options. Helping You and Your Family With a growing economy and a balanced budget, we are investing in key services and programs, while finding ways to reduce everyday costs for families. We all want our kids to get a great start. By helping 100,000 more children access affordable, quality licensed child care, we are supporting families across Ontario, providing more parents with choice when it comes to returning to work and assistance with their child care costs. This year, our investments will support access to licensed child care for 24,000 more children through new fee subsidies and spaces. People from across the province shared their concerns about rising electricity bills. We listened and we are responding. Recognizing that there needed to be a fairer way to share the costs of building a cleaner, more modern and reliable electricity generation system, we are taking action to reduce electricity costs. Through Ontario’s Fair Hydro Plan, starting this summer, household electricity costs would be lowered by an average of 25 per cent. We are also capping rate increases to inflation for the next four years. Low‐income families, and those living in rural, remote or on‐reserve First Nation communities, would receive additional relief as well. Like electricity, housing is essential for families. With a strong economy and more jobs created, the demand for housing in Ontario, particularly in the Greater Toronto and Hamilton Area (GTHA), has increased rapidly. While a strong housing market is a sign of Ontario’s growing prosperity, this growth also brings challenges. People are struggling to buy a home, and they’re finding it difficult to afford increasing rents. To help make housing more affordable for buyers and renters, the government has proposed a Fair Housing Plan. This plan would include measures such as expanding rent control, a proposal for a new 15‐per‐cent Non‐Resident Speculation Tax (NRST) in the Greater Golden Horseshoe, and encouraging additional supply by giving municipalities the power to tax vacant lots. As well, the City of Toronto will now have the ability to implement a Vacant Homes Property Tax at a higher rate to encourage owners to sell unoccupied units or make them available to be rented. Foreword vii Providing Greater Opportunities and Security Ontarians believe every child should have the opportunity to reach their full potential. That is why we will continue to invest in our world‐class public education system. Families will benefit from new class size caps on full‐day kindergarten classes and enhanced support for students with special needs.
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