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: Building Up Ontario’s Infrastructure
Largest Infrastructure Investment in Ontario’s History

Backgrounder April 23, 2015

Renewing and expanding public infrastructure supports Ontario’s industries, creates jobs and provides long-term benefits to Ontarians and the economy. That is why investing in infrastructure is a key pillar of the government’s plan for Ontario.

Ontario, through its ongoing and planned investments, is leading the renewal and expansion of transportation and other critical infrastructure. Over the last decade, the Province has made unprecedented investments in infrastructure, supporting mobility and economic growth.

QUICK FACT:

Congestion in the Greater Toronto and Hamilton Area (GTHA) alone costs Ontario’s economy up to $11 billion per year.

Building Together: Ontario’s Plan to Invest in Public Infrastructure

Ontario is investing more than $130 billion over 10 years in public infrastructure, such as roads, bridges and transit, including $31.5 billion in dedicated funds through the Moving Ontario Forward plan. This represents the largest infrastructure investment in Ontario’s history.

Total investments are expected to support over 110,000 jobs per year, on average, in construction and related industries, including 20,000 jobs from investments made as part of Moving Ontario Forward.

Education Infrastructure

Over 10 years, the Province plans to provide more than $11 billion in capital grants to school boards. These funds will help build new schools in areas of high growth, improve the condition of existing school facilities and invest in projects to reduce surplus space through school consolidations.

Postsecondary Infrastructure

The Province plans to provide almost $900 million over 10 years to address critical maintenance repairs and upgrades to existing postsecondary facilities.

Health and Social Infrastructure

Ontario plans to provide more than $11 billion in hospital capital grants over 10 years to provide adequate infrastructure capacity in the health care sector.

 

Moving Ontario Forward

The Moving Ontario Forward plan demonstrates Ontario’s strong stance on the importance of investing in critical infrastructure by strategically unlocking value from certain provincial assets.

$31.5 billion

The 2015 Budget increases projected dedicated funds by $2.6 billion, to $31.5 billion available over 10 years for public transit, transportation and other priority infrastructure projects across Ontario. About $16 billion will be invested in transit projects in the Greater Toronto and Hamilton Area (GTHA) and about $15 billion will be invested in transportation and other priority infrastructure projects outside the GTHA.

$5.7 billion

The government has increased its asset optimization target to $5.7 billion – a $2.6 billion increase over the 2014 Budget projection.

QUICK FACT:

Net proceeds from the sale of qualifying provincial assets will be placed in the Trillium Trust, to be used to support infrastructure investments under the Moving Ontario Forward plan.

QUICK FACTS:

Moving Ontario Forward will transform the GO Transit network to a more frequent, flexible and convenient regional transit service.

One key outcome will be Regional Express Rail (RER): more trains, more frequent trips and faster service for commuters.

RER will provide significant new travel choices including enhanced service, with trains running up to every 15 minutes, and providing two-way, all-day services on weekdays, during the evenings and on weekends in core areas.

QUICK FACTS:

In order to lay the foundation for RER, the government will provide additional funding to enhance existing GO Transit rail service.

RER will provide the backbone for a regional network, which would also be the foundation for the SmartTrack proposal in the City of Toronto. The SmartTrack funding proposal entails contributions of about $5.2 billion in new funding from partners, including the City of Toronto and the federal government.

Moving Ontario Forward dedicated funds would be supported by:

  • Dedicated proceeds from 7.5 cents of the existing provincial gasoline tax to public transit and transportation infrastructure priorities. This would be over and above the existing gas tax funding to municipalities, with no increase to the current tax rate.
  • Repurposing revenues from the existing Harmonized Sales Tax charged on the current provincial taxes on gasoline and road diesel.
  • Dedicated proceeds from targeted revenue measures.
  • Working with the federal government to secure federal funding through the Building Canada Plan.
  • Dedicating net revenue gains from high-occupancy toll lanes, when they become available.
  • Supplementing dedicated funds by leveraging provincial borrowing to ensure a stable funding source is available to support priority projects.

ASSET OPTIMIZATION FACTS:

In February 2015, Ontario completed the sale of its remaining shares in General Motors, which, including the redemption of its preferred shares, resulted in a gain of $1.1 billion. This exceeded the $900 million target for asset optimization set in the 2014 Budget.

These gains, including the additional $200 million generated, are now dedicated to the Trillium Trust, for investment in public infrastructure.

Unlocking value from provincial assets will provide:

  • $5.7 billion available to help support long-term infrastructure projects.
  • A boost in consumer choice and convenience.
  • A spur to long-term economic growth.