Posted by Greg Sorbara on 5/19/2004, 9:50 pm, in reply to "Ontario's incredible shrinking deficit" Ontario taxpayers are being hit hard in the Liberal government's first fiscal plan. As he rose in the provincial legislature Tuesday afternoon, Finance Minister Greg Sorbara noted it has been 14 years since a Liberal last laid out a fiscal plan for the province. "So, it is with tremendous pride that I stand... to present a budget that sets out a comprehensive four-year plan," Sorbara said. "A plan for growth, a plan for prosperity, a plan for better health and better education for our kids." Struggling to be heard over the jeers of the opposition benches, the finance minister said his party has had to make some tough choices in light of problems inherited from past governments. "These deficits are not our legacy, but they are our responsibility," he said, listing "the large fiscal deficit," overcrowded schools and doctor shortages as some examples. To that end, Sorbara signalled his government's intention to abandon the election promise of freezing taxes and balancing the budget. Instead, the Liberals are calling on taxpayers to cough up an extra $9 billion over four years to "return the province back to fiscal health." Smokers will be the first to feel the pinch, as they'll be asked to pay an extra $2.50 per carton of cigarettes starting Wednesday. On June 21, drinkers will get tapped for an extra 15 cents on a bottle of wine, or 45 cents more for a case of beer. And drivers trying to renew their licence will also have to pay more, as the cost increases by $25. A host of small-claims court costs and fees are also going up under the new budget. Ontarians who don't drink or drive aren't escaping the government's reach. Starting in July, the government plans to start charging an indexed health-care levy. "None of us can afford to believe any longer that the problems in our health-care system, from ever longer waiting times, to the lack of family doctors, to deteriorating long-term care, can be solved without additional revenue," Sorbara said. "To shorten waiting times, to provide more doctors and nurses, to deliver results for patients, we are proposing an Ontario health premium." That means low-income earners will pay $300 a year, going up to $900 for high-income earners. Those earning less than $20,000 annually will be exempt. Pegged at $1.63 billion in its first year, the government said the money raised will be dedicated to covering the $4.8 billion in additional health-care spending planned for the next four years. That growing health care budget will go to a range of priorities, including 8,000 new full-time nursing positions; more than 3,700 new long-term care beds; nine new MRI and CT scan sites; and the creation of 150 "family health teams." Other budget highlights include: Most eye exams, physiotherapy and chiropractic services will be delisted from the provincial health plan That figure can only be achieved by applying the $3.9-billion in new revenues raised by the decision to lift the Conservative cap on hydro rates. In 2005, the deficit will fall to $2.1 billion as it tracks a course to disappearing in 2008. In his speech, the finance minister didn't let the apparent contradiction go unnoticed. Drawing a fiscal plan that raises taxes while putting the government into the red represent "choices that are inconsistent with our election commitments; we openly acknowledge that," Sorbara said. "However, it would simply not be possible to deliver a balanced budget this year without destabilizing vital public services and perhaps even the economy itself. Such an approach would be irresponsible, and we reject it." Because the move violates the Balanced Budget Act, the premier will be fined $16,000, while his cabinet ministers will each have to hand over $9,000. The approximately $200,000 raised will be put towards paying down the deficit, McGuinty said. Ontarians fuming Despite the Liberals' insistence that the budget represents the best way forward in the province, CTV's Toronto affiliate found Ontarians fuming. "Appalling" and "disgusting" were just some of the words that typified reaction when people were asked what they thought of the new fiscal plan. "What if you're poor and can't afford it," one woman told CFTO News, reflecting on the plight of someone too poor to afford one of the newly-delisted health services. 'Could the savings wind up costing more in the long term?' she asked. Echoing her concern, a spokesperson for the province's chiropractic association said the decision to delist services is a bad one. "This people who are injured, who don't come to see us, will now go to emergency rooms which are already overburdened. They're going to go to medical doctors' offices. They're not effective at treating these back and neck problems. We are." And Natalie Mehra of the Ontario Health Coalition said the introduction of the health care premium is a slap in the face. "It's a betrayal of what the government ran on in the election," she told CFTO. "Nobody voted on that one." http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1084893007749_80302207/?hub=TopStories
Ontario budget imposes health care 'premium'
CTV.ca News Staff
Welfare and disability benefits will be increased by three per cent
Over four years, $2.1 billion in new spending will be dedicated to schools, aimed at shrinking class sizes, hiring teachers and buying new textbooks.
$3.3 billion in funding dedicated to public transit, road and bridges, including one cent of the provincial gas tax for cities, starting in October.
With their budget plan, the Liberals also forecast a $2.2 billion deficit for 2004 -- a stark contrast from the promise of balanced books Premier Dalton McGuinty had campaigned on last fall.
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