May 1, 2014
Ontario’s projected population growth will result in significant demand for all types of infrastructure, including transportation, health care and education. That is why the government is planning to invest more than $130 billion in infrastructure through Ontario’s new 10-year economic plan, which will continue to help stimulate the economy, create jobs and increase prosperity and fairness for Ontarians. Ontario’s planned infrastructure investments would support more than 110,000 jobs on average each year in construction and related industries.
Investing in the province’s highways, bridges and other transportation infrastructure helps manage congestion and travel times on key corridors and at international gateways. It also strengthens access to important export markets in the United States and abroad.
In 2014–15, investments totalling $2.5 billion are planned for highway rehabilitation and expansion projects across the province, an increase of approximately $400 million above 2013–14 levels.
Key projects scheduled to start construction this year include:
In addition, the following projects are planned to support growth and improve traffic flow:
Ontario is laying out a bold new plan — Moving Ontario Forward — to make nearly $29 billion available for investment over the next 10 years in public transit, transportation infrastructure and other priority infrastructure projects across the province.
The government will not increase the tax on gasoline, the Harmonized Sales Tax (HST), education property taxes or personal income taxes on low- to middle-income individuals.
Two new dedicated funds would be created to support infrastructure projects essential to Ontario’s economic growth and job creation. These two funds would be based on the following principles:
The Province would create two dedicated funds – one for the GTHA with up to $15 billion available for investment in transit and one for the rest of the province with nearly $14 billion available for investment in roads, bridges, transit and other critical infrastructure.
|Available for Investment in the GTHA||1.7||1.7||1.6||15.0|
|Available for Investment Outside the GTHA||1.6||1.6||1.4||13.9|
|Note: Totals include available net new borrowing for public transit, transportation infrastructure and other priority projects.|
It is proposed that the two funds be allocated to the GTHA and the rest of the province using census data from Statistics Canada. By allocating the proceeds to the two funds by population, the Province would ensure that the allocation is fair, accountable and transparent. New revenues collected outside the GTHA would fund transit and infrastructure outside the GTHA only.
About two-thirds of the dedicated funds for public transit and transportation infrastructure would be supported by:
The remaining balance would be supported by:
Proceeds from the dedicated fund for the GTHA would be invested exclusively in public transit priorities that address congestion and improve mobility throughout the region. Proceeds would be used to build priority projects included in Metrolinx’s regional transportation plan, The Big Move, and for other potential projects that support economic development and improve mobility, such as the East Bayfront Light Rail Transit (LRT) project on Toronto’s waterfront.
The government recognizes continued expansion towards two-way, all-day GO Transit rail service as a priority. GO Transit improvements on all corridors would include additional track, grade separations, improved signalling, station improvements and additional fleet, which are all building blocks towards two-way, all-day service. In addition, analysis is underway on a proposal to electrify the GO rail system to deliver service at intervals as frequent as 15 minutes.
The Province has asked Metrolinx to begin work immediately to examine opportunities to move GO service towards a regional express rail, providing fast and frequent electrified service on all corridors at intervals as frequent as 15 minutes. This would represent a game-changer in how people move about the region, and enhance ridership and efficiency on GO Transit and other projects that connect to the network as well.
Outside the GTHA, the new dedicated fund would be used to support important infrastructure projects. Projects would be identified through an evidence-based process in partnership with Ontario regions and communities.
Priority projects outside the GTHA could include local and regional transit, roads and bridges, infrastructure development in the Ring of Fire, funding for bus and rail infrastructure delivered by the Ontario Northland Transportation Commission, strategic highway improvements and other projects to be identified through the Building Canada Plan negotiations with the federal government.
The first wave of projects in Metrolinx’s Regional Transportation Plan, The Big Move, currently funded and underway includes:
The Province also continues to support key municipal transit projects, including:
The Province is continuing its support for strong communities under the Municipal Infrastructure Strategy introduced in 2012. A new permanent municipal roads and bridges fund of $100 million per year will be launched this spring.
The new permanent fund will continue support for the most critical projects in communities with challenging fiscal circumstances. It will also continue to provide support for municipal asset management planning. The new permanent fund will include application- and formula-based funding for eligible municipalities, with an objective of transitioning to full formula-based funding over time.
The Province is taking steps to ensure that the health care sector continues to offer quality service while protecting sustainability of the system for future generations. To that end, Ontario plans to invest more than $11.4 billion in capital grants in major hospital expansion or redevelopment projects over the next 10 years. This would support more than 40 projects that are under construction or in various stages of planning and include the construction or expansion of surgical and cancer treatment services.
The government is providing additional funding of $300 million over 10 years to help shift care from hospitals to community settings and ensure adequate infrastructure capacity in the health care sector by:
The Province will also increase infrastructure funding for Community Health Centres, community-based mental health and addiction programs, and Aboriginal Health Access Centres.
Over the next 10 years, the Province is providing additional funding of almost $700 million to address deferred maintenance in hospitals. This investment would double funding available to hospitals for repairs.
A strong education system and the capacity for leading-edge research are foundations of a successful economy and a central part of Ontario’s 10-year economic plan.
The Province is making investments in education and postsecondary infrastructure by providing:
The Province is prepared to commit up to $1 billion towards infrastructure development in the Ring of Fire, contingent on a matching investment by the federal government. This would ensure that the necessary infrastructure investments, estimated to be more than $2 billion, would be able to proceed.
The Province is building more public spaces for healthier communities to support Ontario’s economic growth and social well-being, including healthy and vibrant communities:
The Province will also leverage private-sector expertise by using Alternative Financing and Procurement, a made-in-Ontario public-private partnership model, to:
Over the last decade, more than $21 billion has been invested in cleaner generation and Hydro One alone has invested over $11 billion in transmission and distribution infrastructure. Ontario’s elimination of coal-fired electricity generation is the single-largest greenhouse-gas reduction measure implemented in North America to date, and Ontario is now a North American leader in renewable energy and a world leader in energy technology, innovation and smart grid solutions.
Even with all these investments in infrastructure and clean energy, the stranded debt is estimated to have been reduced cumulatively by about $10.5 billion between March 31, 2004, and March 31, 2014, based on interim results. This would be the tenth consecutive year of stranded debt reduction. See Backgrounder: Clean, Reliable and Affordable Energy for Ontarians.
Ontario’s updated Long-Term Energy Plan has tasked the Province’s two nuclear operators, Bruce Power and Ontario Power Generation, to find savings for ratepayers through economies of scale in both refurbishment and operations. Ontario also remains committed to ensuring the province’s nuclear facilities remain publicly owned, while finding greater operational efficiencies and synergies between both organizations.
* Refer to “Building Ontario Up Today For A Brighter, Stronger Tomorrow” (July 14, 2014 Budget news release) for updated language.
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This bar chart compares the average provincial infrastructure investment per capita between two time periods: 1994–95 to 2003–04 and 2004–05 to 2023–24. The average provincial infrastructure investment grew from approximately $250 per capita to an estimated $830 per capita from the first time period to the second.