Oliver Tweed
Active Member
Note: been a long time since I've posted, so not sure if this article is up somewhere else? Just erase it if so.
Ontario cities bailed out on welfare costs
Article Comments (133) KAREN HOWLETT AND JENNIFER LEWINGTON
Globe and Mail Update
October 31, 2008 at 9:53 AM EDT
The Ontario government will relieve the province's cities of responsibility for welfare costs beginning in 2010 under a landmark agreement that will see them receive benefits totalling $1.5-billion a year when fully implemented by 2018.
The McGuinty government will assume all social assistance benefits and security costs from cities. But the 10 years for the move to reach its full effect is much longer than cities had initially hoped.
Under the consensus agreement, municipalities' costs for welfare benefits will be reduced by more than $400-million a year by 2018. The cost of court security will also be assumed by the province, beginning in 2012.
â€This is a milestone in our partnership with municipal governments and all Ontarians will benefit from the spirit of collaboration of the review,†Municipal Affairs Minister Jim Watson said Friday.
He said that the agreement will help reduce cost pressures on municipalities and property taxpayers but that the province has not been able to move as quickly as initially hoped because of the weakening economy.
Carried out in co-operation with the city of Toronto and the Association of Municipalities of Ontario (AMO), the review was due last February, then delayed to June and, most recently, to the end of this month.
The review was supposed to look at the delivery and funding of housing, health and social services, use of user fees and other municipal financing tools, infrastructure funding and the Ontario Municipal Partnership Fund, the vehicle for transfer payments to local governments.
AMO estimates that more than $3-billion of $18-million collected in municipal taxes pays for provincial social services.
Other provinces foot the entire bill for welfare, but municipal taxpayers in Ontario pay 50 per cent of the cost of welfare administration and 20 per cent of benefits.
This year, for example, Toronto contributed $111.1-million toward administration and $155.7-million for the city's share of benefits.
Of particular concern to municipalities is the capping of provincial payments, effectively putting more of the load on local taxpayers. The cumulative impact on Toronto over the past decade has been $127-million.
Meanwhile, current rules require municipalities to pay for the cost of security (such as police) when the province builds new courthouses. The cost to Toronto, for example, is $40-million a year.
The McGuinty government has already taken steps to ease financial pressures on local governments, including a sharing a portion of provincial gas tax revenues.
As well, the province has assumed the cost of public health, land ambulance and, by 2011, the municipal share of the Ontario Disability Support Program and Ontario Drug Benefits for social-assistance recipients.
In a pattern expected for the deal to come, the province back-loaded its commitment on the disability and drug benefit programs, so municipalities will not feel the biggest relief of the $935-million upload until the fourth and final year of implementation.
Last August, Mr. McGuinty also pledged $1.1-billion for municipal infrastructure, with $238-million earmarked for Toronto, as a stimulus in uncertain economic times.
Toronto Mayor David Miller praised the agreement, one that he said will no longer force cities to divert millions of dollars collected with property taxes to provincial services from core municipal services."Today, together we have righted this lingering wrong," he said at a news conference.
Ontario cities bailed out on welfare costs
Article Comments (133) KAREN HOWLETT AND JENNIFER LEWINGTON
Globe and Mail Update
October 31, 2008 at 9:53 AM EDT
The Ontario government will relieve the province's cities of responsibility for welfare costs beginning in 2010 under a landmark agreement that will see them receive benefits totalling $1.5-billion a year when fully implemented by 2018.
The McGuinty government will assume all social assistance benefits and security costs from cities. But the 10 years for the move to reach its full effect is much longer than cities had initially hoped.
Under the consensus agreement, municipalities' costs for welfare benefits will be reduced by more than $400-million a year by 2018. The cost of court security will also be assumed by the province, beginning in 2012.
â€This is a milestone in our partnership with municipal governments and all Ontarians will benefit from the spirit of collaboration of the review,†Municipal Affairs Minister Jim Watson said Friday.
He said that the agreement will help reduce cost pressures on municipalities and property taxpayers but that the province has not been able to move as quickly as initially hoped because of the weakening economy.
Carried out in co-operation with the city of Toronto and the Association of Municipalities of Ontario (AMO), the review was due last February, then delayed to June and, most recently, to the end of this month.
The review was supposed to look at the delivery and funding of housing, health and social services, use of user fees and other municipal financing tools, infrastructure funding and the Ontario Municipal Partnership Fund, the vehicle for transfer payments to local governments.
AMO estimates that more than $3-billion of $18-million collected in municipal taxes pays for provincial social services.
Other provinces foot the entire bill for welfare, but municipal taxpayers in Ontario pay 50 per cent of the cost of welfare administration and 20 per cent of benefits.
This year, for example, Toronto contributed $111.1-million toward administration and $155.7-million for the city's share of benefits.
Of particular concern to municipalities is the capping of provincial payments, effectively putting more of the load on local taxpayers. The cumulative impact on Toronto over the past decade has been $127-million.
Meanwhile, current rules require municipalities to pay for the cost of security (such as police) when the province builds new courthouses. The cost to Toronto, for example, is $40-million a year.
The McGuinty government has already taken steps to ease financial pressures on local governments, including a sharing a portion of provincial gas tax revenues.
As well, the province has assumed the cost of public health, land ambulance and, by 2011, the municipal share of the Ontario Disability Support Program and Ontario Drug Benefits for social-assistance recipients.
In a pattern expected for the deal to come, the province back-loaded its commitment on the disability and drug benefit programs, so municipalities will not feel the biggest relief of the $935-million upload until the fourth and final year of implementation.
Last August, Mr. McGuinty also pledged $1.1-billion for municipal infrastructure, with $238-million earmarked for Toronto, as a stimulus in uncertain economic times.
Toronto Mayor David Miller praised the agreement, one that he said will no longer force cities to divert millions of dollars collected with property taxes to provincial services from core municipal services."Today, together we have righted this lingering wrong," he said at a news conference.