Ontario Budget 2008: Papers

Table of Contents

Foreword

Chapter I: A STRONGER ONTARIO

Section A: A Stronger Ontario: Building Skills and Creating Jobs

• I. Investing in Skills and Knowledge
  • $1.5 Billion Skills to Jobs Action Plan
• II. Investing in Infrastructure for a Stronger Ontario
  • Major Investments in Infrastructure
  • Ontario’s Electricity Infrastructure
• III. Enhancing Ontario’s Competitiveness
  • Lowering Ontario’s Business Costs
  • Ontario’s Business Taxes
  • Modernizing Regulation
• IV. Strengthening the Environment for Innovation
• V. Forming Key Partnerships to Strengthen Ontario
  • Working for a Greener Economy
  • Supporting Opportunities for the Aboriginal Peoples of Ontario
  • New Investments in Key Ontario Sectors

Section B: Stronger Communities: Investing in Municipal Infrastructure
and Communities

• Investing in Municipal Infrastructure
  • Municipal Roads and Bridges
  • Public Transit and Regional Transportation
  • Municipal Infrastructure Investment Initiative
  • Affordable Housing
  • Water and Wastewater
  • Partnerships for Municipal Financing
• Investing in Economic Infrastructure
  • Windsor Border
• Building Stronger Communities
  • A High Quality of Life in Northern and Rural Regions
• Partnering with Municipalities
  • Investing in Municipalities
  • Cutting Business Education Tax Rates
• Protecting and Improving Ontario’s Natural Environment

Section C: A Better Future for Families: Improving Quality of Life

• Overview
  • Poverty Reduction Strategy
• Children and Youth
  • Dental Care for Low-Income Families
  • Student Nutrition Program
  • Parenting and Family Literacy Centres
  • Making Education More Affordable
• Quality of Life
  • Strengthening Ontarians’ Access to Community Services through 211 Ontario
• Low-Income Ontarians
  • Investing in Social Housing
  • Asset-Building Strategy for Low-Income Ontarians
  • Increased Support for Social Assistance
  • Minimum Wage
  • Improving Facilities for Children and Vulnerable Ontarians
• Seniors
  • Senior Homeowners’ Property Tax Grants
  • Ontario Property and Sales Tax Credits for Seniors

Section D: A Smarter Ontario: Excellence in Publicly Funded Education

• Higher Levels of Student Achievement
  • Literacy and Numeracy
  • Graduation Rates
• Reduced Gaps in Student Achievement
• Increased Confidence in Publicly Funded Education
• Helping More People Go On to Higher Education

Section E: A Healthier Ontario: Strengthening Health Care for the Future

• Achieving Better Health
  • Improving Access to Health Care
  • Shortening Wait Times
  • Promoting Health and Preventing Illness
  • Modernizing Health Infrastructure
• Details of Investments in the Health Sector

Section F: Need for a Strong Federal Partner to Support Ontario Workers
and Industries

• Overview
• Helping Ontario Workers
  • Employment Insurance Unfair to Ontarians
  • Additional Supports Needed for Ontario Workers
• Supporting Ontario Manufacturers
• Supporting Ontario’s Infrastructure
• A Fair Share of Federal Funding

Chapter II:  Ontario’s Economic Outlook and Fiscal Plan

Section A: Overview

Section B: 2007–08 Interim Fiscal Performance

• In-Year Revenue Performance
  • Revenue Changes
• In-Year Expense Performance
  • Expense Changes

Section C: Ontario’s Economic Outlook

• Outlook for Strengthening Ontario Economic Growth
  • Private-Sector Forecasts Call for Continued Growth
• Challenging External Economic Environment
  • Ontario’s Resilience in the Face of Global Economic Challenges
  • U.S. Growth Set to Strengthen in the Second Half of 2008
  • Oil Prices Expected to Remain High
  • The Canadian–U.S. Exchange Rate Around Parity
  • Ontario’s Exports to Overcome Short-Term Challenges
  • Interest Rates Lower in 2008
  • Inflation Expected to Drop in 2008
• Continued Strong and Resilient Domestic Economy
  • Strong Investment to Lead Growth
  • Employment Growth to Continue
  • Household Income and Spending to Increase
  • Healthy Housing Market Conditions
  • Details of the Ontario Economic Outlook

Section D: Ontario’s Revenue Outlook

• Uncertainty in Forecasting Corporations Tax Revenue
• Sources of Medium-Term Revenue Change Since 2007 Ontario Budget
• Potential Risks to Provincial Revenue

Section E: Ontario’s Medium-Term Expense Outlook

• Details of Expense Outlook
• Risks to Expense Outlook
  • Contingent Liabilities

Section F: Ontario’s Fiscal Plan

• Medium-Term Fiscal Outlook
• Key Elements of Ontario’s Medium-Term Fiscal Plan
• Fiscal Prudence
• Risks and the Fiscal Outlook

Section G: Accountability, Transparency and Financial Management

• Investing Unanticipated Year-End Surpluses
• Strengthening Accountability for Government Transfer Payments
• Public Service Efficiencies
• Improving Transparency in Financial Reporting
  • 2007 Pre-Election Report
  • Consolidation of Hospitals, School Boards and Colleges
  • PSAB Joint Working Group
  • Investments in Tangible Capital Assets
  • Fiscal Transparency and Accountability Act, 2004

Section H: Details of Ontario’s Finances

• Support from Gaming for Health Care
• the Ontario Trillium Foundation and Communities
  • Revenue from Lotteries, Charity Casinos and Slot Machines at Racetracks
  • Benefits from Commercial Casinos
  • Other Beneficiaries of Charity Casinos and Slot Machines at Racetracks

Chapter III: Tax Support for Families and Business

• Overview
• Investing in People and Communities
  • Senior Homeowners’ Property Tax Grant
  • Ontario Property and Sales Tax Credits for Seniors
  • Tax-Free Savings Account (TFSA)
  • Transfers from Family Farm Corporations
  • Retail Sales Tax (RST) Exemption for Newspapers
  • RST Exemption for Destination Marketing Fees
  • RST Exemption for Admissions to Live Theatres of Not More than 3,200 Seats
• Supporting an Innovative Economy
  • Ontario Tax Exemption for Commercialization (OTEC)
  • Ontario Innovation Tax Credit (OITC)
  • Ontario Interactive Digital Media Tax Credit (OIDMTC)
• Lowering Costs for Business
  • Capital Tax Elimination for Manufacturing and Resource Activities
  • Capital Tax Elimination Schedule
  • Accelerated Capital Cost Allowance (CCA) for M&P Machinery and Equipment
  • Capital Cost Allowance: Other Measures
  • Reducing Business Education Taxes
  • Mandatory Phase-in of Assessment Increases
• Promoting a Healthy Lifestyle and Environment for Ontarians
  • RST Exemption for ENERGY STAR^® Household Appliances and Light Bulbs
  • RST Exemption for Bicycles and Related Safety Equipment
  • RST Exemption for Nicotine Replacement Therapies
• Paralelling Federal Tax Measures
  • Concordance with the Income Tax Act (Canada)
• Corporate Tax Harmonization and Simplification
  • A Single Corporate Tax Administration
  • Relief from Tax Instalments for Small Businesses
• Technical Measures
  • Assessment Act
  • Retail Sales Tax Act
  • Succession Duty Act
  • Tobacco Tax Act
• Implementing the Tax Measures Announced
  in the  2007 Economic Outlook and Fiscal Review
• Other Technical Amendments

Chapter IV: Borrowing and Debt Management

• Long-Term Public Borrowing
  • Debt
  • Debt-to-GDP Ratios
  • Total Debt Composition
  • Debt Management
  • Debt Maturities
  • Cost of Debt
  • Consolidated Financial Tables

Glossary

 

List of Tables

Chapter I: A Stronger Ontario

• Table 1:   Metrolinx Transit Projects
• Table 2:   Maximum Annual Ontario Child Benefit Payment
• Table 3:   Property Tax Grant
• Table 4:   Investments in the Health Sector

Chapter II: Ontario’s Economic Outlook and Fiscal Plan

• Table 1:   2008 Budget — Numbers at a Glance
• Table 2:   2007–08 In-Year Fiscal Performance
• Table 3:   Summary of In-Year Changes to Revenue in 2007–08
• Table 4:   Summary of In-Year Expense Changes in 2007–08
• Table 5:   Ontario Economic Outlook
• Table 6:   Private-Sector Forecasts for Ontario Real GDP Growth
• Table 7:   Impacts of Changes in Key Assumptions on Ontario Real GDP Growth
• Table 8:   Canadian Interest Rate Outlook
• Table 9:   The Ontario Economy, 2005 to 2010
• Table 10: Changes in Key Economic Forecast Assumptions,
  2007 Budget Compared to 2008 Budget
• Table 11: Summary of Medium-Term Outlook
• Table 12: Personal Income Tax Revenue Outlook
• Table 13: Corporations Tax Revenue Outlook
• Table 14: Summary of Medium-Term Revenue Change Since 2007 Budget
• Table 15: Selected Economic and Revenue Risks and Sensitivities
• Table 16: Selected Expense Risks and Sensitivities
• Table 17: Selected Compensation Costs
• Table 18: Medium-Term Fiscal Plan and Outlook
• Table 19: Medium-Term Fiscal Plan and Outlook
• Table 20: 2008–09 Fiscal Outlook
• Table 21: Revenue
• Table 22: Total Expense
• Table 23: Other Expense
• Table 24: 2008–09 Infrastructure Expenditures
• Table 25: Ten-Year Review of Selected Financial and Economic Statistics
• Table 26: Support for Health Care, Charities, and Problem Gambling and Related Programs
• Table 27: Support for Agricultural Sector and Municipalities

Chapter III: Tax Support for Families and Business

• Table 1:   Proposed Senior Homeowners’ Property Tax Grant —
  Typical Grant Amounts and Existing Property Tax Credits
• Table 2:   Ontario’s Accelerated Capital Tax Elimination Plan with Proposed Initiatives
• Table 3:   Northern Ontario Business Education Tax Annual Ceiling Rates
• Table 4:   Northern Ontario Business Education Tax Cuts
• Table 5:   2008 Budget Impact Summary

Chapter IV: Borrowing and Debt Management

• Table 1:   2007–08 Borrowing Program: Province and OEFC
• Table 2:   Medium-Term Borrowing Outlook: Province and OEFC
• Table 3:   Net Debt and Accumulated Deficit — Interim 2008
• Table 4:   Debt Maturity Schedule — Interim 2008
• Table 5:   Medium-Term Outlook — Net Debt and Accumulated Deficit
• Table 6:   Derivative Portfolio Notional Value — Interim 2008

 

List of Charts

Chapter I: A Stronger Ontario

• Chart 1:   New Apprentices
• Chart 2:   Financial and Professional Business Services: Growing Faster than the Economy
• Chart 3:   Employment in Entertainment and Creative Industries
  Growing Faster than in Rest of Economy
• Chart 4:   Employment in Entertainment and Creative Industries
  Growing Faster than in Rest of Economy
• Chart 5:   Operating Support to Municipalities Is Increasing
• Chart 6:   Supporting Families Receiving Social Assistance
• Chart 7:   2008–09 Program Expense
• Chart 8:   Education Sector Investment
• Chart 9:   Grants for Student Needs — School Year
• Chart 10: High School Graduation Rates
• Chart 11: 2008–09 Program Expense
• Chart 12: Health Sector Investments
• Chart 13: Medical School Expansion in Ontario
• Chart 14: Cumulative Change in Health-Related Revenues and Expenses,
  2003–04 to 2010–11
• Chart 15: Low EI Coverage for Ontarians
• Chart 16: Ontarians Do Not Receive Fair Treatment

Chapter II: Ontario’s Economic Outlook and Fiscal Plan

• Chart 1:   Ontario’s Strong Fiscal Performance
• Chart 2:   U.S. Real GDP Growth
• Chart 3:   Crude Oil Prices
• Chart 4:   Canadian Dollar
• Chart 5:   Ontario’s International Merchandise Export Share
• Chart 6:   Ontario CPI Inflation
• Chart 7:   Ontario Employment
• Chart 8:   Ontario Housing Resale Market
• Chart 9:   2006–07 Corporations Tax Revenue Variance from Forecast
• Chart 10: Surplus Allocation Examples
• Chart 11: Composition of Revenue, 2008–09
• Chart 12: Composition of Program Expense, 2008–09
• Chart 13: Composition of Total Expense, 2008–09

Chapter III: Tax Support for Families and Business

• Chart 1:   Eliminating Capital Tax for Manufacturing and Resource Activities

Chapter IV: Borrowing and Debt Management

• Chart 1:   Borrowing — All Markets
• Chart 2:   Borrowing — Domestic Market
• Chart 3:   Debt
• Chart 4:   Net Debt-to-GDP
• Chart 5:   Accumulated Deficit-to-GDP
• Chart 6:   Total Debt Composition
• Chart 7:   Net Interest Rate Resetting Exposure
• Chart 8:   Foreign Exchange Exposure
• Chart 9:   Debt Maturities
• Chart 10: Effective Interest Rate (Weighted Average) of Debt