Ontario budget: local reaction & impact on Waterloo Region

Ontario’s Liberals have reintroduced their 130-billion-dollar budget, which is identical to the one the opposition parties rejected in May, triggering last month’s election.

The Progressive Conservatives and New Democrats still don’t like it, but with the Liberals holding the majority of seats in the legislature, there’s no doubt the fiscal plan will be approved.

Finance Minister Charles Sousa says the budget invests in a highly educated and skilled workforce and public transit expansion, while keeping spending under control.

But the Tories don’t believe the Liberals can keep their promise to eliminate a 12.5-billion-dollar deficit in three years.

They warn that failing to meet short-term deficit targets will result in an expensive downgrade in Ontario’s credit rating.

Interest on the nearly 290-billion-dollar debt is over 11-billion-dollars a year, the fourth-largest expenditure item in the budget after health, education and child and social services.

The budget also includes 29 billion dollars for public transit and infrastructure.

It also promises a made-in-Ontario pension plan for workers who don’t have a pension, which will require contributions from both employers and workers.

The Liberals also promise to spend 2.5 billion dollars in grants for companies that create jobs in Ontario.

The N-D-P warn the budget paves the way for the “wholesale sell-off” of provincial assets such as Ontario Power Generation, Hydro One and the Liquor Control Board, but the government says it will retain majority ownership of each agency.

There will also be a higher tax for Ontarians making over 150-thousand dollars.

Other promises in the budget include 11.4 billion dollars over the next decade to expand and upgrade hospitals and 11 billion dollars over 10 years to repair schools.

There is also one billion dollars set aside to develop an access road or rail line into the remote Ring of Fire mineral deposit in northern Ontario.

Local highlights:

Doubling Go Train service frequency between Kitchener and Toronto, from four to eight train trips per day in 2016.

A new four-lane alignment on Highway 7 between Kitchener and Guelph.

A $25 million commitment to the Institute for Quantum Computing, at the University of Waterloo, supporting research and commercialization of next generation technologies.

Investing $29 billion in the Moving Ontario Forward plan funding roads, bridges, transit, and other priority infrastructure.

Completing the roll-out of Full-Day Kindergarten this fall so that every child in Ontario has the best possible start in life.

Continuing the highly successful Ontario Youth Jobs Strategy, helping young people gain experience and a foothold in the job market.

Enhancing retirement security with an Ontario Retirement Pension Plan.

Raising the minimum wage to $11.00 per hour and indexing to inflation.

Newly elected Liberal MPP for Cambridge North Dumfries, Kathryn McGarry tells 570 News it’s possible to invest – and work on cutting the deficit.

“We’ve been able to hold program spending to 1.4 per cent, and now decreasing to 1.1 per cent so a lot of the efficiencies we’ve been able to find in the ministries  are able to pay for this going forward with no new taxes on the middle class.”

Kitchener-Waterloo NDP MPP Catherine Fife tells 570 News she’s not pleased with the Liberals’ budget announcement today.

“It’s obviously irresponsible to bring back the same budget and we have the same concerns that we had back in May. This budget is not what it seems for those people who think of it as a progressive budget.”

Kitchener Conestoga Conservative MPP Michael Harris says he doesn’t see how this new budget can focus on reducing Ontario’s debt

“It is troubling in the fact that Ontarians will pay the price for higher borrowing costs and will take billions out of priority services, or everyone’s wallets.”

Cambridge Chamber of Commerce C-E-O Greg Durocher says he had hoped the new budget might be different from the last one.

“There was a hope in the back of my mind that they might come forward with something to address the ongoing increase of more projected spending and rising deficit. Not to mention, over the last ten years or so they’ve virtually doubled Ontario’s debt.”

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