Elementary Teachers’ Federation of Ontario reacts to Ontario Fall Economic Statement

BY PAUL JUNOR

There have many reactions to Ontario’s government Fall Economic Statement, released on Thursday, November 2^nd, 2023. Surprises were delivered by Ontario’s Minister of Finance, Peter Bethlenfalvy. The Ontario government promised in

early March that it would balance the budget by 2025, but now the province is forecasting a $5.6 billion deficit for 2023-2024. This represents an increase of about $1.3 billion over what has been previously predicted.

Some of the highlights as reported in the Canadian Press on November 2^nnd are:

Ontario Infrastructure Bank

The fact that it is not possible for taxpayers to fund major capital projects convinced the provincial government to start this bank. This will start off with an investment of $3 billion that will help the bank set itself up and start its operations. Public-sector pension plan organizations will be the focus as they are believed to be trusted institutional investors.

Projects that the bank will fund will be in five areas: long-term care homes, energy infrastructure, affordable housing, municipal and community infrastructure and transportation.

Invest Ontario Fund

There will be an extra investment of $100 million by the province into this fund, which will see it increase to $500 million. The purpose of this fund is to attract investors to Ontario.

Water Fund

There will be an investment of $200 million that is intended to help municipalities gain access to funds to help: repair, rehabilitate and expand core water, wastewater and stormwater projects that promote growth and enable housing development.  

 Contingency Fund

Ontario has previously diverted $1 billion as announced in its March 2023 budget and will add an extra $2.5 billion that will make the fund reach a total of $5.4 billion.

Vaping Tax

The province will act on the advice of the World Health Organization and the Canadian Cancer Society to implement a tax on vaping to reduce vaping among individuals.

Gas Tax Cut

There will be an extension of the gas tax cut which was first introduced with a 5.7 cent tax cut in July 2022 and will continue for another six months.

Rental Housing

Ontario has decided to eliminate the harmonized sales tax (HST) on new purpose-built rental housing construction.

Mammograms

Regular breast cancer screenings will now start at 40 years instead of 50 years.

The Elementary Teachers’ Federation of Ontario expressed concerns about the Fall Economic statement that they believe ignores the needs of students and educators and is another missed opportunity to undo damaging cuts to public education.

In a press release issued on November 2^nd, 2023. President Karen Brown stated, “In its 2023 budget, the Ford government had the opportunity to strengthen public education in Ontario but chose instead to make cuts to services that impact student success and well-being. Now with its fall economic statement, we’re seeing the same refusal to prioritize public education. They must reverse the cuts and deliver the funding Ontario students deserve.”

She noted further that in spite of projected surpluses over the next six years as predicted by the Financial Accountability Office, the provincial government has reduced funding by $1,200 per student when inflation is factored in. “Ontario’s current fiscal position provides a unique opportunity to adequately fund public services and reinstate funding that has been cut from public education over the past five years.

Unfortunately, the government is continuing to withhold billions of dollars in contingency funds, instead of providing much-needed funding to Ontario’s public schools.”

She concludes, “Ontario’s: students, education workers, and families deserve a fully funded, high-quality, equitable, and inclusive public education system.”