Ontario Budget 2008: Chapter I:
Section C: A BETTER FUTURE FOR FAMILIES: IMPROVING QUALITY OF LIFE
Overview
The government is committed to improving the quality of life for all Ontarians, particularly the most vulnerable citizens.
The government’s early initiatives to help reduce poverty and assist other Ontarians in need include:
- $135 million over three years to provide better dental care for low-income families
- $32 million over three years for the Student Nutrition Program
- $385 million over three years for a new annual Textbook and Technology Grant of $300 per year at maturity for full-time university and college students
- $27 million over three years for a new Distance Grant to assist with transportation costs for students from rural and remote areas attending college and university
- more than $13 million over four years to expand the 211 Ontario system, an integrated telephone and web-based system providing callers/users with one-stop information about — and referral to — local community, social, health and related government programs and services province-wide
- $100 million in one-time funding that may be used to rehabilitate existing social housing, including energy-efficiency improvements along with the opportunity for key public housing providers to access $500 million in low-cost loans through Infrastructure Ontario’s OSIFA loan program
- $10 million over four years for an asset-building pilot program for low-income Ontarians
- a two per cent social assistance rate increase that provides an additional $36 million in 2008–09 and $87 million in 2009–10 to Ontario Works and Ontario Disability Support Program (ODSP) recipients
- increasing the minimum wage from $6.85 per hour in 2003 to $8.75 as of March 31, 2008, rising to $10.25 by 2010
- $30 million in one-time funding in 2007–08 for capital projects to support agencies that provide services to children and vulnerable populations.
Other measures in this Budget to assist Ontarians include:
- approximately $1 billion over five years to provide a new property tax grant to senior homeowners with low and moderate incomes
- $16 million over four years to enhance Ontario Property and Sales Tax Credits for senior couples.
Poverty Reduction Strategy
The government’s Cabinet Committee on Poverty Reduction, chaired by the Honourable Deb Matthews, Minister of Children and Youth Services, will focus on expanding opportunities for those living in poverty. It will develop a focused poverty reduction strategy with measures, indicators and reasonable targets by the end of 2008. The Committee will review how best to organize and align the current system of supports to ensure more effective investment and more efficient administration. The government will work with communities and other governments to expand opportunity for all Ontarians and reduce poverty over the long term. Listed below are some early initiatives.
Children and Youth
Dental Care for Low-Income Families
As part of its poverty reduction strategy, the government will be developing a plan to provide dental services to low-income persons. The government will invest $135 million over three years, starting in 2008–09. The intention is to improve and enhance the delivery of the Children in Need of Treatment (CINOT) program, which currently provides urgent dental care services to children in low-income families from birth to Grade 8 or their fourteenth birthday, whichever is later. In January 2009, CINOT will be expanded to include children in low-income families until their eighteenth birthday. In addition, the government will work with Public Health Units, Community Health Centres, dentists and dental hygienists to deliver prevention and treatment services for low-income Ontarians. Details on the program will be announced in the near future by the Minister of Health and Long-Term Care, the Honourable George Smitherman.
Student Nutrition Program
The Student Nutrition Program supports local organizations in delivering nutritious meals and snacks to children and youth in schools and community settings. It helps to alleviate the impacts of poverty by helping children to arrive in the classroom ready to learn. As part of its poverty reduction strategy, the government is proposing to invest an additional $32 million over three years in the program. The government currently provides $8.5 million annually, supporting almost 400,000 children. The new investment will more than double annual funding for this program.
Parenting and Family Literacy Centres
The government is increasing the number of Parenting and Family Literacy Centres in the province by 34 with an additional investment of $2 million in the 2008–09 school year, so that families from all backgrounds can help their children arrive at school ready to learn. These centres help prepare children for successful school entry.
Making Education More Affordable
The government understands that a good education is a foundation for success and that for students to succeed, education must be affordable. That is why the Province is implementing new initiatives in 2008–09 to reduce postsecondary education costs. It is announcing:
- $385 million over three years for a new annual Textbook and Technology Grant of $300 per full-time student when fully in place
- $27 million over three years for a new annual Distance Grant to assist with transportation costs for students from rural and remote areas attending college and university.
For further details, see Section D: A Smarter Ontario: Excellence in Publicly Funded Education.
Quality of Life
Strengthening Ontarians’ Access to Community Services through 211 Ontario
This Budget proposes to invest more than $13 million over four years, in cooperation with partners such as the United Way of Ontario and other partners, to make Ontario’s 211 system province-wide beginning in 2008–09. This expansion would constitute a major reform in the way Ontarians receive information about community-based services.
211 Ontario is integrated telephone and internet-based systems providing callers/users with one-stop information about, and referrals to, local community social, health and related government programs and services.
By dialing 2-1-1, Ontarians would be directly connected to a qualified information and referral specialist who can answer their community services inquiries.
211Ontario.ca is a web-based directory that will allow the public to search for and access information online about community-based services in their area of the province.
This investment will enable more powerful web-based searching and better access to knowledgeable community services referral specialists. 211 Ontario is intended to contribute to the overall effectiveness of the social services sector and have a lasting impact on Ontarians’ access to services.
ONTARIO CHILD BENEFIT
The 2007 Budget announced the creation of the Ontario Child Benefit (OCB), a major reform in the way benefits are provided to all low-income families with children. The new OCB will help lower the welfare wall by removing children’s benefits from the social assistance system. It will improve equity by ensuring that all families with similar incomes will receive the same OCB payment per child regardless of whether the parents are employed or receiving social assistance.
- In July 2007, Ontario provided eligible families with a one-time down payment of up to $250 per child.
- Starting in July 2008, the OCB will be delivered monthly through the personal income tax system and will assist all low-income families with children under age 18.
- The OCB is being phased in over a five-year period, increasing annually until July 2011. At the same time, social assistance benefits for children and the Ontario Child Care Supplement for Working Families (OCCS) will be replaced by the OCB.
- Once the OCB is fully implemented, nearly 1.3 million children will receive annual OCB payments of up to $1,100 per child. Families will receive an additional $2.1 billion cumulatively over the first five years.
| 2008 | 2009 | 2010 | 2011 | |
|---|---|---|---|---|
| Benefit Level | 600 | 805 | 900 | 1,100 |
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Low-Income Ontarians
Investing in Social Housing
In this Budget, a further $100 million is being provided that may be used to rehabilitate existing social housing, including energy-efficiency improvements.
Key public social housing providers will be able to use this funding as well as access Infrastructure Ontario’s OSIFA loan program. The government intends to expand OSIFA loan eligibility to include key public-sector social housing providers. They would be able to access up to $500 million in low-cost loans to assist them in making necessary social housing infrastructure investments.
Asset-Building Strategy for Low-Income Ontarians
The government proposes to invest $10 million over four years to create a new pilot program to help low-income Ontarians build equity and save for an education or start a business. Details of the program, including specific goals and savings targets, will be announced later this year by the Minister of Community and Social Services, the Honourable Madeleine Meilleur.
Increased Support for Social Assistance
To help social assistance recipients, the government is proposing to increase the basic adult allowance and maximum shelter allowance by two per cent in 2008–09. This would provide Ontario Works and ODSP recipients with an additional $36 million in income support in 2008–09 and an additional $87 million in 2009–10. Families receiving Temporary Care Assistance and Assistance for Children with Severe Disabilities would also benefit from the increase, as would those living in long-term care homes who receive the comfort allowance.
Municipalities would not be required to contribute to the proposed rate increase until January 2009.
With the proposed increase, social assistance rates would have increased by a cumulative nine per cent since the government first took office in 2003. Before this, general welfare rates were reduced substantially in 1995, while benefits for people with disabilities were held constant at 1993 levels.
When the proposed social assistance rate increase is implemented and the OCB is mature, the total income of a single parent with two children ages five and seven who is receiving Ontario Works benefits would be $5,718 (34 per cent) higher than it was in 2003–04 (see Chart 6).
Social assistance encompasses Ontario Works, which provides income support and employment assistance to people in temporary financial need, and the ODSP, which offers financial assistance and employment supports for adults with long-term disabilities. Social assistance recipients also have most of their prescription drug costs covered through the Ontario Drug Benefit (ODB) Program. For more information on these programs, please refer to the Glossary.
Minimum Wage
| March 31, 2008 | $8.75 |
| March 31, 2009 | $9.50 |
| March 31, 2010 | $10.25 |
The government is raising the minimum wage to $10.25 by 2010, with consecutive annual increases of 75 cents on March 31, 2008 and onwards.
After a nine-year period during which the Ontario minimum wage was frozen, the government has increased it five times from $6.85 per hour in 2003 to $8.75 at March 31, 2008.
Improving Facilities for Children and Vulnerable Ontarians
The government is also investing $30 million in one-time funding for capital projects to support community agencies that provide services to children and vulnerable populations, including families that require child care services; women experiencing abuse; adults and children with developmental disabilities; and youth with emotional or behavioural problems. These expansion and renovation projects will help make critical upgrades to these facilities. Examples include expansions of Violence Against Women shelters and Children’s Treatment Centres, and upgrades to improve accessibility.
Seniors
Senior Homeowners’ Property Tax Grants
| 2009 | 2010 | 2011 | |
|---|---|---|---|
| Value of Grant | Up to $250 | Up to $500 | Up to $500 |
| Number of Seniors Benefiting (Individuals and Couples) |
550,000 | 575,000 | 600,000 |
| Net Benefit to Seniors | $120 million | $245 million | $260 million |
The Province proposes a new property tax grant of approximately $1 billion over five years for seniors with low and moderate incomes who own their own homes. In 2009, about 550,000 senior homeowners would be able to obtain a new grant of up to $250. The maximum grant would be increased to $500 for 2010 and subsequent years.
An eligible senior homeowner with up to $35,000 in annual income and $2,000 in property taxes would receive a grant of $250 in 2009 and $500 in 2010, representing 25 per cent of 2010 property taxes. He or she would also be entitled to property tax relief under the existing Ontario Property and Sales Tax Credits.
Ontario Property and Sales Tax Credits for Seniors
Under the provincial income tax system, low-income seniors who own or rent their homes may be eligible for assistance through the Ontario Property and Sales Tax Credits program. Since 2003, the government has made several improvements to these credits to ensure that they better reflect circumstances facing seniors. In 2008, the government is proposing to enrich this program again, by investing $16 million over four years to ensure that senior couples receiving the guaranteed minimum level of income from governments receive the full benefit of these credits. For more details, see Chapter III: Tax Support for Families and Business. In 2008, nearly 735,000 senior recipients would benefit from an estimated $107 million in enhancements since 2003.
Property Tax — A Fairer Appeal System
In a report issued on March 28, 2006, Ontario’s Ombudsman recommended that the onus of proof on property assessment appeals be reversed so that when a property owner appeals an assessment, the Municipal Property Assessment Corporation (MPAC) would be required to prove the accuracy of the assessment. The government agrees with the Ombudsman that this measure would enhance the fairness of the appeal process. It intends to introduce legislation that, if passed, would place the onus on MPAC to prove the accuracy of property assessments that are appealed to the Assessment Review Board (ARB).
The government also intends to introduce legislation to implement changes to the assessment appeal system announced in the 2007 Budget — changes designed to create a more streamlined and transparent appeal system. A key proposed change would make the Request for Reconsideration (RFR) program the first stage of the appeal process for property owners. The RFR, which is free of charge, encourages the sharing of information between MPAC and the property owner, and provides taxpayers with the opportunity to resolve their concerns directly with MPAC in an informal setting.
The Ministry of Finance is also working with MPAC and the ARB to disclose valuation information to taxpayers about their property assessment in a timely way. This will help property owners review the accuracy of their assessment, decide whether to engage in the RFR process, and prepare for their hearing if they decide to appeal to the ARB.
These measures are proposed to take effect for the 2009 taxation year. Details about the proposed new appeal procedures and deadlines will be communicated to property owners in the coming months, prior to the 2009 implementation date.


