Greater Toronto Area (GTA) Pooling

Transcription

1 Greater Toronto Area (GTA) Pooling 2002 Current Budget

2 GREATER TORONTO AREA POOLING TABLE OF CONTENTS A. Business Plan 1. a) Provincial Vision Statement for GTA Equalization (Pooling) S 2 b) Peel Vision Statement for GTA Pooling in Peel S 2 2. Program Resources Location Map (not applicable) 3. a) Program Resources (not applicable) b) Organization Business Map (not applicable) 4. Business Plan Highlights S 2 a) 2002 i) Existing Service Level Base S 2 ii) Unmet Needs/Issues/Priorities S 3 iii) Strategic Directives S 4 b) (non applicable) c) (not applicable) B. Corporate Performance Measurement (not applicable) C. Current Budget 1. Activity Analysis S 5 2. Account Analysis S 5 3. Budgeted Cost Per Unit/Units of Service S 5 4. Budget Variance Explanation S 5 D Capital Budget & Forecast to 2011 (not applicable) S 1

3 GREATER TORONTO AREA POOLING A. BUSINESS PLAN 1. Vision Statement a) Provincial Vision Statement for GTA Equalization (Pooling) The Greater Toronto Area (GTA) Equalization formula is established to recognize the social and economic interdependence within the GTA and to ensure that the City of Toronto is not unfairly burdened with costs that result from being at the core of a single catchment for social services. b) Peel Vision Statement for GTA Pooling in Peel The Region of Peel opposes any form of GTA equalization of pooling of services. 2. Program Resources Location Map (not applicable) 3. a) Program Resources (not applicable) b) Organization Business Map (not applicable) 4. Business Plan Highlights a) 2002 i) Existing Service Level Base Given past experience and the Corporation s overall fiscal pressures in 2002, the budget reflects a position in line with previous years estimates of approximately $66 million. Based on very preliminary estimates the 2002 GTA Pooling budget for Peel Region has been calculated as follows (in millions): Estimated Eligible GTA Ontario Works Costs $449.2 Estimated Eligible GTA Social Housing Costs Total Estimated Pooled Costs $894.8 Peel s SHARE Based on Assessment (18.85%) $168.7 Less Peel Specific Costs $105.7 Net Contribution To Pool $ 63.0 Given the complexity and volatility of the various components of the pooled costs, the 2002 budget estimates also includes a $3.0 million contribution to the Pooling Stabilization reserve to provide an allowance for future uncertainties. At the time of the preparation of the budget estimates, there were indications that our total pooled costs for 2002 are trending below the $895 million base used for the 2001 estimates. However, the final estimates will not be provided by the province until after approval of the Region of Peel 2002 budget. S 2

4 GREATER TORONTO AREA POOLING A. BUSINESS PLAN ii) Unmet Needs/Issues/Priorities The Region of Peel opposes GTA pooling since the continued funding of GTA pooling has resulted in not satisfying our unmet needs given our significant growth. The mandatory requirement to fund GTA pooling costs places a significant risk for Peel not to be able to meet its strategic plan direction of financial sustainability for Regional Services. For 2002, the workplan includes the following initiatives: Peel s primary objective is to eliminate pooling from the budget, in order to redirect these resources towards meeting Peel taxpayer objectives. Peel s position is to remove the GTA pooling of social services from the property tax base and utilize provincial income tax funding whereby all Ontarians share in the financing of social services. If the province will not eliminate pooling in 2002, Peel staff will continue to work with the GTA Working Group, a joint provincial/municipal initiative, to protect Peel s interest and limit the impact of GTA pooling in the short term. Some of the objectives of this group include: Have all the financial results of eligible costs for pooling subjected to a third party independent review. To date, the provincial government has resisted such an audit. Review and update the allocation methodology based on updated Current Value Assessment (CVA) and actual transition ratios rather than the legislated average GTA transition ratios. Develop criteria to bring some form of service level standard to the costs that are eligible to be pooled, so as to eliminate discretionary costs. Develop a formula to ensure that Regional efficiencies result in a reduced GTA Pooling allocation. Develop strategies to cap or limit Peel s exposure to pooling in future years. Develop operating protocols to ensure more timely reporting of estimates/actuals pooled costs on a regular basis. Finance, Ontario Works, and Social Housing staff continue to monitor pooled costs to ensure that actual cost reductions are reflected in 2001 and adjusted in a timely manner. Closely monitor developments arising from the province s review of the Community Reinvestment Fund to determine opportunities for reducing the need to pool costs. Ensure that protocols are in place to accurately reflect Social Housing costs given these costs are fully devolved and provincial involvement in their allocation is limited. Continue to educate residents and businesses of Peel as to the negative impact of GTA pooling through a communication plan in conjunction with staff from the Cities of Brampton and Mississauga, and the Town of Caledon. S 3

5 GREATER TORONTO AREA POOLING A. BUSINESS PLAN iii) Strategic Directives The Region of Peel supports the overall GTA co-ordination of services but opposes any funding of service delivery at a GTA level including GTA pooling. On September 27, 2001, the province announced that the Greater Toronto Services Board (GTSB) would be phased-out and a new operating authority would be created to co-ordinate services. S 4

6 GREATER TORONTO AREA POOLING C. CURRENT BUDGET 1. Activity Analysis Budgeted Total Cost 3. Budgeted Total Cost/Unit 2002 from from 2001 GTA Pooling 66,035, (5.16) Total Program Cost $ 66,035,000 $ - $ $ (5.16) 2. Account Analysis Budgeted Total & Net Cost Budgeted Units of Service 2002 from from 2001 Goods & Services 66,035,000 - Brampton 100,800 3,800 Total & Net Program Cost $ 66,035,000 $ - Caledon 16, Mississauga 198,200 3,200 Total Households 315,600 7, Budget Variance Explanation No variance from The 2002 budget represents status quo from the previous year. Net Program Costs from Net Program Cost Variance $ - S 5

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