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Budget Document 2012 ONTARIO BUDGET STRONG ACTION for ONTARIO BUDGET PAPERS The Honourable DWIGHT DUNCAN Minister of Finance STRONG ACTION for ONTARIO BUDGET PAPERS The Honourable DWIGHT DUNCAN Minister of Finance For general inquiries regarding the 2012 Ontario Budget: Budget Papers, please call: Toll-free English & 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 at: www.serviceontario.ca/publications By phone through the ServiceOntario Contact Centre Monday to Friday, 8:30 AM to 5:00 PM 416 326-5300 416 325-3408 (TTY) 1 800 668-9938 Toll-free across Canada 1 800 268-7095 TTY Toll-free across Ontario © Queen’s Printer for Ontario, 2012 ISBN 978-1-4435-9256-7 (Print) ISBN 978-1-4435-9257-4 (HTML) ISBN 978-1-4435-9258-1 (PDF) Ce document est disponible en français sous le titre : Budget de l’Ontario 2012 – Documents budgétaires Table of Contents Contents Foreword............................................................................xix Chapter I: Transforming Public Services Highlights.............................................................................. 3 Introduction........................................................................... 5 Knowledge and Skills................................................................ 9 World-Class Schools............................................................ 9 Delivering Full-Day Kindergarten....................................... 9 Class Sizes...................................................................10 Protecting Gains in Education...........................................10 Labour Framework........................................................10 Underutilized Schools ....................................................12 School Board Amalgamations............................................13 Cost-Effective Student Transportation ................................13 Cap on Successful Secondary Credits ..................................13 Postsecondary Education and Training .....................................14 Building on Postsecondary Education Achievements................15 Supporting Students and Their Families...............................16 Modernizing Employment and Training Services....................17 Integrating Employment and Training Services ......................17 Strengthening Apprenticeships..........................................19 Second Career..............................................................21 Transforming Health Care.........................................................22 Physician Compensation ......................................................24 Keeping Ontario Healthy .....................................................25 Faster Access and a Stronger Link to Family Health Care...............26 Providing the Right Care, at the Right Time, in the Right Place ......27 iii 2012 Ontario Budget Evidence-Based Decisions ....................................................29 Funding Reform ................................................................29 A Fair and Efficient Drug System............................................30 Jobs and Prosperity .................................................................33 Jobs and Prosperity Council..................................................34 Jobs and Prosperity Fund .....................................................35 Reaching Out to Global Markets ............................................36 Solvency Funding Relief for Private-Sector Pension Plans..............37 Infrastructure Supporting Jobs and Growth....................................38 Northern Ontario and the Ring of Fire .........................................42 Strong Children’s and Social Services ...........................................43 Ontario Child Benefit .........................................................44 Expanding Opportunities in Developmental Services ...................45 Improving Child Welfare Outcomes .......................................45 Reforming the Youth Justice System .......................................46 Electricity Sector....................................................................46 Capping the Ontario Clean Energy Benefit for Large Users............48 The Aboriginal Loan Guarantee Program..................................49 Supporting Municipalities .........................................................50 Ontario Municipal Partnership Fund .......................................51 Service Delivery Efficiencies .................................................52 Gaming Support for Municipalities .........................................52 Provincial Offences Act (POA)..............................................52 Municipal Infrastructure ......................................................53 Financial Services and Capital Markets..........................................54 Securities ........................................................................54 Insurance.........................................................................55 Auto Insurance Anti-Fraud Task Force ................................56 Scientific and Evidence-Based Approaches............................57 Modern Insurance Regulation...........................................58 iv Table of Contents Other Actions Across Government to Balance the Budget ..................60 Government Spending Per Capita...........................................60 Update on Savings of $1.5 Billion Announced in the 2011 Budget ..............................................................61 If No Action Is Taken..........................................................63 A Long-Term Plan for Public-Sector Compensation ....................69 A Balanced Approach .....................................................70 Provincial Compensation Framework .................................71 Interest Arbitration........................................................74 Public-Sector Pensions ...................................................75 Executive Compensation.................................................79 Managing the Size of the Ontario Public Service .........................81 Comparison of Public Service Staffing Levels ........................83 Removing Overlap and Duplication ........................................84 Centralizing Collection Functions Across Government ............84 Using Digital Imaging to Reduce Paperwork and Improve Efficiencies ......................................................85 Enhancing Audit Functions ..............................................85 Prison Modernization.....................................................86 Collaborative Purchasing in the Broader Public Sector .............86 Agency Reduction.........................................................86 More Efficient and Effective Delivery Models ............................87 ServiceOntario.............................................................87 Better Outcomes with New Partnerships .............................89 TVO .........................................................................90 Realty Transformation Strategy.........................................90 Delegated Administrative Authorities .................................91 Ministry of Natural Resources Transformation ......................92 Modernizing the Delivery of Court Services .........................94 v 2012 Ontario Budget Civilian Data Entry........................................................94 Unclaimed Intangible Properties .......................................94 Focusing on Core Business ...................................................95 Ontario Northland Transportation Commission Divestment .....95 Capping Funding for Risk Management Programs ..................96 Maximizing the Value of Public Assets .....................................97 Optimizing the Liquor Control Board of Ontario Revenue Potential.........................................................97 Modernizing the Ontario Lottery and Gaming Corporation......................................................98 Driving Efficiencies in Ontario Power Generation and Hydro One .................................................................99 Effective Implementation of Reform ..................................... 100 Internal Audit ............................................................ 101 Responsible Actions to Increase Revenues............................... 102 Freezing Business Tax Rates........................................... 102 Non-Tax Revenues...................................................... 103 Chapter II: Ontario’s Economic Outlook and Fiscal Plan Highlights........................................................................... 109 Ontario’s Economy .......................................................... 109 Ontario’s Finances ........................................................... 109 Section A: Overview ........................................................ 111 Section B: 2011–12 Interim Fiscal Performance In-Year Revenue Performance.................................................. 114 Revenue Changes ............................................................ 117 In-Year Expense Performance .................................................. 118 Expense Changes............................................................. 120 vi Table of Contents Section C: Ontario’s Economic Outlook Overview..........................................................................
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