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First time in colour- Just thought I'd give it a try!
But I don't like colour: Make Black and White.
I don't like colour: Make Black and White.
published 05|12|05
| Liberals cut deficit, spend by degrees Sorbara calls post-secondary funding 'historic' Books not due to be balanced until 2008-09 ROBERT BENZIE QUEEN'S PARK BUREAU CHIEF Higher learning and a lower deficit are Finance Minister Greg Sorbara's top budget priorities. The Ontario government yesterday pledged a total of $6.2 billion in new funding for colleges and universities through 2009-10 while also slashing the provincial deficit in half to $3 billion. At the same time, the province unveiled an ambitious five-year, $30 billion infrastructure renewal program for public works projects. "I am proud to announce historic new investments in universities, colleges and training — the most significant injection in 40 years," Sorbara said in his speech to the Legislature. "We are improving services and at the same time we are reducing the deficit. Both can be done. Both have been done." Sorbara's second budget, which outlines a record $83.5 billion in operating and capital spending, projected Premier Dalton McGuinty's government will be awash in red ink until at least the 2007 election. "Given our progress, it would have been possible to project a balanced budget by 2007-08. Instead, we've chosen to invest in what Ontarians value: education and health care. We believe these are the right choices," the treasurer told the Legislature. "But even with our investments, we will eliminate the deficit by 2008-09 at the latest and it may be possible to get there in 2007-08 if we don't need our reserve." Responding to former NDP premier Bob Rae's February report on the state of the province's colleges and universities, Sorbara unveiled a scheme entitled Reaching Higher: The McGuinty Government Plan for Post-secondary Education. Through 2009-10, the province will invest an additional $6.2 billion in higher learning, including an additional $683 million in 2005-06. The money for 2005-06 includes $192 million in student financial assistance. Rae had recommended a total of $2.1 billion in new funding by 2007-08 — including $1.25 billion in operating grants, $321 million in student aid and $540 million for new buildings. But Sorbara admitted that by that year there would be only $932 million in operating grants and $282 million for student loans. (No figures for new buildings at colleges and universities were included in the budget, but such facilities will be financed under the infrastructure program.) "Let me ... publicly thank former premier Rae and the work that he did. His report represented probably the best analysis of the post-secondary in years in the province of Ontario," he told reporters. "Bob Rae called for these investments to be made over the course of three years. Given our financial circumstances, we have to extend that framework to five years." Even so, Rae said he was "delighted" by the budget. "It's very significant progress. The commitment of dollars is very substantial. This is a very fine move by the province," he said, noting additional money may also flow from federal government coffers. While post-secondary students should benefit from the new measures, so too will their younger siblings. Thanks to the Ottawa's new national child-care program, the province's Best Start program of early childhood learning will get a much-needed boost. "Let's give credit where credit is due. The federal government will help, starting with $272 million this year. With federal funding, our province's investment will double by 2007-08 (to $451 million)," he said, noting that means more subsidized child-care spaces for low-income families. The Liberals will also follow their Progressive Conservative predecessors by embracing a form of public-private partnerships (P3) to help finance $30 billion in new infrastructure programs over five years. These projects are to include affordable housing, hospitals, schools, university research facilities, roads, bridges and transit. Detailed announcements are expected in coming weeks. "A healthy business climate depends on infrastructure that is modern, reliable, efficient and affordable," said Sorbara. "Our five-year, $30 billion infrastructure investment plan will involve both long-overdue projects and urgent new initiatives," he said. "To help municipalities get infrastructure projects off the ground — or in the ground — we are making available low-cost, long-term loans through the Ontario Strategic Infrastructure Financing Authority." Unlike last year's budget, which introduced an unpopular annual health premium of up to $900 per person, Sorbara boasted there were no tax increases or hikes in any fees or levies. "While we are investing in priority areas, we will be holding the line on costs in most ministries. We will continue to be focused and disciplined," Sorbara said. Indeed, the operating budgets for nine departments were cut. Most jarring — considering the large farmers' protests at Queen's Park in recent months and concerns over food safety — was a 23 per cent cut in the Ministry of Agriculture and Food's budget from $733 million to $564 million. Agriculture Minister Steve Peters scrambled to defend his massive budget reduction, saying the change would not impede the department's work. "We were there to support farmers and we will be there to continue to support farmers," said Peters. Health-care spending continues to rise, up almost 6 per cent from $31.1 billion last fiscal year to $32.9 billion in 2005-06 — accounting for 46 per cent of program spending. New initiatives include more money for extra cardiac, cataract, cancer and joint replacement operations, and an effort to reduce waiting lists for treatment. Still, Sorbara said that overall, things are moving in the right direction after the Liberals were saddled with a hidden $5.5 billion budget deficit after toppling former premier Ernie Eves' Tories in 2003. Progressive Conservative Leader John Tory, however, said it is time for the Liberals to accept responsibility for governing — and to acknowledge the budget shortfall is their fault. "The deficit is a self-inflicted wound from the last year," he said, noting that despite a $2.6 billion increase in revenues over and above the $2.4 billion brought in by "the illegal health tax," the deficit is still $3 billion. Tory added it was something of a vindication of his party's previous P3 policies that the Liberals are doing essentially the same thing to bankroll new infrastructure. But NDP Leader Howard Hampton said the funding scheme was "privatization by stealth." |
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