Budget 2015 Makes Largest Infrastructure Investment in Ontario's History
Government Is Building Ontario Up, Growing the Economy and Creating Jobs
Finance Minister Charles Sousa today released the 2015 Budget, which makes possible an unprecedented investment in infrastructure to support economic growth and new jobs.
The Budget acts on the government's commitment to finding more innovative ways to grow the economy while maintaining the vital public services that families and communities rely on. This includes unlocking the value of provincial assets to support the largest infrastructure investment in Ontario's history.
The Province is also introducing the sale of beer in grocery stores to increase customer convenience and choice while maintaining Ontario's strong commitment to social responsibility.
Ontario is projecting a deficit of $8.5 billion in 2015-16, less than forecast in the 2014 Budget, and which would be the lowest level since the onset of the global recession. The Province will continue to take a thoughtful and deliberate approach to the path to balance, with a deficit of $4.8 billion forecast for 2016-17 and a return to balance by 2017-18. The government's four-part plan is building Ontario up by investing in people's talents and skills, building public infrastructure such as roads and transit, creating a dynamic, innovative environment where business thrives, and building a secure retirement savings plan.
Building Up Ontario's Infrastructure
Renewing and expanding public infrastructure supports Ontario's industries, creates jobs and positions Ontario to better compete in the global economy while meeting the education, health care, and road and transit needs of the future. When Ontario invests, it is building -- and when it is building, it is growing. The 2015 Budget continues and expands on Ontario's plan to make an unprecedented investment of more than $130 billion in public infrastructure over 10 years. This includes:
- Increasing the dedicated funds for Moving Ontario Forward by $2.6 billion for a total of $31.5 billion over 10 years -- about $16 billion in transit projects in the Greater Toronto and Hamilton Area (GTHA) and about $15 billion available for transportation and other priority infrastructure projects outside the GTHA. The increase is due to a higher target from the Province's asset optimization plan; and
- A planned investment of $11.9 billion in 2015-16 on infrastructure such as roads, bridges, public transit, water systems, hospitals and schools.
The government is moving ahead with a plan to unlock the value of its assets and reinvest the net proceeds through the Trillium Trust in public transit, transportation and other priority infrastructure projects to strengthen Ontario's economy and encourage job creation. Increasing the dedicated funds for Moving Ontario Forward will accelerate priority projects and enable new projects to come on stream. The asset optimization plan includes:
- Broadening Hydro One ownership to create lasting public benefits and ongoing public and ratepayer protections.
- Reviewing a number of prime-located real estate assets for sale.
Partnering with Business to Create Jobs
Ontario continues to create rewarding, high-paying jobs. Employment has rebounded strongly from the recessionary low in June 2009, with over half a million net new jobs created -- three-quarters of which are in industries paying above-average wages. The Province has more than recovered all the jobs lost since the global economic recession. These high-quality jobs provide opportunities for personal development while also creating financial stability and securing prosperity for all Ontarians.
The 2015 Budget continues to build Ontario's economy up by:
- Increasing funding for the 10-year, $2.5 billion Jobs and Prosperity Fund to partner with more businesses, enhancing productivity, increasing innovation, growing exports and creating jobs. The 2015 Budget announces that the fund will be increased by a total of $200 million beginning in 2015-16, increasing the fund to $2.7 billion over 10 years and extending eligibility to the forestry sector.
- Continuing, beyond March 2016, electricity pricing support for qualifying large northern industrial facilities, which sustain jobs and global competitiveness.
- Tackling climate change now to ensure a prosperous economic future and a flourishing society. Ontario will move forward with a cap-and-trade system as its carbon pricing mechanism. Proceeds from a cap-and-trade program will be directed towards key priorities that will help lower greenhouse gas emissions.
Developing a Highly Skilled Workforce
Ontario's greatest strength is its people. By investing in people today and giving Ontarians the support they need to get the right skills and the right jobs, the government is building the strong economy of tomorrow. Budget measures include:
- Continuing to improve education and skills training, from preschool and full-day kindergarten through to postsecondary education and trade apprenticeship programs, with innovations such as experiential learning pilot programs.
- Investing an additional $250 million over two years in the Ontario Youth Jobs Strategy, bringing the total investment in youth employment programming to more than $565 million.
- Modernizing the Ontario Student Assistance Program to strengthen financial assistance for students.
The government has a proven track record of strong fiscal management. Since 2010-11, the Province has held average annual growth in program spending to 1.5 per cent, below the rate of inflation, without cutting vital services.
The 2015 Budget makes further progress towards fiscal balance by:
- Continuing Program Review, Renewal and Transformation (PRRT), a fundamentally new approach to multi-year planning and budgeting. It is identifying both short- and longer-term opportunities to transform programs and services, and making tough choices to end programs that are not performing, do not link to key priorities or no longer serve a clear public interest. For 2014-15, a $250 million program review savings target was met through a number of initiatives that identified efficiencies, lowered costs or reduced administrative overhead without affecting front-line services. The program review savings targets are $500 million for each of 2015-16, 2016-17 and 2017-18.
- Managing program expense growth over the medium term, which is projected to be held to an average of 0.9 per cent between 2013-14 and 2017-18.
- Total health sector expense is projected to grow on average by 1.9 per cent per year, education sector expense by 2.0 per cent per year, children's and social services sector expense by 2.9 per cent per year and justice sector expense by 1.5 per cent per year.
- Postsecondary and training sector expense will be largely unchanged and all other programs expense is projected to decrease on average by 5.5 per cent per year.
- Continuing to negotiate collective agreements with the Ontario Public Service and broader public sector within Ontario's existing fiscal framework, which does not include additional funding for wage increases. Any modest wage increases must be offset by other measures within current funding available to employers to create a net zero agreement.
- Since July 2012, the average annual negotiated wage increase across Ontario's provincial public sector has been 0.6 per cent. This is lower than Ontario's municipal public sector (1.9 per cent), the federal public sector in Ontario (1.7 per cent) and Ontario's private sector (2.0 per cent).
- Combatting the underground economy, which is estimated to be $15 billion in annual economic activity in Ontario, to help level the playing field for business. The Province is achieving this through better collection of information and analytics, increased measures to address contraband tobacco, and reducing corporate tax avoidance. The Province will also propose to make the use, manufacture or distribution of electronic sale suppression technologies illegal.
- Most private-sector forecasters predict that Ontario’s economy will rank among the provincial growth leaders in each of the next two years.
- The government provided more than $1.3 billion in student grants and loans in 2013‒14, helping more than 380,000 students.
- The Employment Ontario network helped approximately one million Ontarians in 2013‒14, including over 150,000 employers across Ontario.
- On June 1, 2014, the hourly minimum wage rose to $11. It will rise to $11.25 in October 2015.
- Read the 2015 Ontario Budget
- Read the Budget speech
- Read highlights of the 2015 Ontario Budget
Read background information on the 2015 Ontario Budget:
- Building Up Ontario’s Infrastructure
- Partnering with Business to Create Jobs
- Developing a Highly Skilled Workforce
- Investing in a Fair Society for All Ontarians
- National Leadership – Strong Ontario, Strong Canada
- Strengthening Retirement Security for All Ontarians
- Unlocking Value to Build Ontario Up
- Read the Final Recommendations of the Premier’s Advisory Council on Government Assets
“Ontario’s 2015 Budget is more than a report on the province’s finances. It is about protecting, preserving and enhancing the quality of life of people all across this province. Ontario is poised to lead Canada in the modern economy through historic infrastructure and public transit investments which will not only move goods to market faster and get people home from work safer, but make Ontario a more competitive, more productive province.
This budget outlines our plan to invest in people’s skills and training, support a dynamic and competitive business climate, foster a secure retirement and manage our program spending. Ontario is on track to balance its budget by 2017–18 and we will do so in a way that is both fair and responsible”