2009 Provincial Budget Highlights and Potential Impacts

Transcription

1 ~ 2009 Provincial Budget Highlights and Potential Impacts Section Housing and Homelessness Slide Budget Highlights: Housing and Homelessness Potential Impact for Community Services: Housing and Homelessness Budget Highlights: Poverty Reduction and Income Improvement Measures Potential Impact of Poverty Reduction and Income improvement Wasures for Low %-come Londoners, Poverty Reduction and lnwme Improvements Ontario Works (OW) and Ontario Disability Support (ODSP) Tax Changes Jobs Creation and Skills Training Employment Insurance Seniors Summary: Poverty Reduction and Income Improvement Measures in Provincial Budoet Potential Impact on Income for Low Income Londoners Potential Impact Compared to Cost of Living Chart: Potential Income: Minimum Wage Eamer (2010) Chart: Potential Income: Ontario Works Participant (2010) 2 1

2 London I A L A O I I Section Potential impact of Poverty Reduction and Income Improvement Measures for Community Services Areas of Concern Slide Poverty Reduction and Income Improvements Ontario Works (OW) and Ontario Disability Support (ODSP) Jobs Creation and Skills Training Employment Insurance Employment Insurance in London Budget Highlights: Areas of Concern Potential Impact for Community Services: Early Learning and Child Care Potential ImDaCt for Community Services: Long Term Care Conclusion 3 Housing and Homelessness 4 2

3 ..... London C*W*D* More than $700 million over two years for rehabilitation and energy retrofits for 50,000 existing social housing units. More than $360 million to help create 4,500 new affordable housing units for low-income seniors and persons with disabilities. $175 million over the next two years to the Canada-Ontario Affordable Housing Program, targeted to low-income families, senior citizens, persons with mental illness and victims of domestic violence. The Housing Allowance portion of the program is not extended at this time. This Drovincial funding includes the federal stimulus funding for housing 5 Provincial officials noted that they are still negotiating the details of agreements and were not able to give specific information on program criteria. However, they did say that they understood the sector's desire to see programs move swiftly. - The Province will be looking at everything "through a green lens" When asked what portion of the $700 million would be allocated to energy retrofits specifically, Ministry staff said they were not in a position to comment at this time. The City of London is in the process of identifying construction-ready new affordable housing projects through an Expression of Interest process which will close on April 17, 2009 and will be able to participate. 6 3

4 Budget Highlights: Poverty Reduction and Income Improvement Measures 7 Ontario Child Benefit increases from $600 per child per year to $1,100 per child per year (July 2009), two years sooner than originally planned. $3 million for community hubs in selected low-income Neighbourhoods. $3 million ( ) for Community Use of Schools program. 20 additional parenting and family literacy centres in high-needs Neighbourhoods. $35 million over two years to enhance the Youth Opportunities Strategy, including $12 million in ongoing funding. (YOS - helping young people in high-risk Neighbourhoods reach their full potential through the creation of key opportunities, including targeted funding for summer jobs). - Increase minimum wage to $10.25 per hour (March 2010) 6 4

5 2% rate increase to basic adult allowance and maximum shelter allowance - Effective for November for ODSP - Effective for December for Ontario Works Reiterated commitment to reviewing social assistance with the goal of "removing barriers and increasing opportunities" as part of the implementation of the Provincial-Municipal Fiscal and Service Delivery Review (PMFSDR) 9 - Harmonization of the provincial and federal sales taxes (July 2010) Tax relief measures to offset harmonization: - Families with incomes of less than $160,000 and individuals with incomes of less than $80,000 will receive three payments totaling $1,000 and $300 respectively (June 2010, December 2010, January 2011) - New permanent Refundable Sales Tax Credit for low- and middle-income people. Single individuals with income under $20,000 and families with income of less than $25,000 will be eligible to receive $260 per adult and child. Credit will be paid quarterly starting in July New permanent Ontario Property Tax Credii for low and middle-income people. Single individuals with income under $20,000 and families with income of less than $25,000 will be eligible to receive $250 for non-seniors and $625 for seniors plus 10% of occupancy cost - Reduction in the first-bracket income tax rate from 6.05% to 5.05%. About 90,000 lowerincome taxpayers will no longer pay Ontario personal income tax and 725,000 individuals and families with incomes of less than $25,000 will get an average tax cut of 30% 10 5

6 $94 million over 2 years to expand support for new Canadians including bridge training and mentorship. $90 million over 2 years to expand literacy and basic skills training, including funding community projects. $50 million for enhancements to Co-operative Education and Apprenticeship Training Tax Credits. 57% increase in funding for summer employment opportunities for youth to nearly $90 million (includes the $35 million for the YOS). This will benefit an additional 27,000 youth Calls on the federal government to ensure Ontarians have equitable access to the El program. - Calls on the federal government to review and change the current El funding formula for training programs to reflect current labour market conditions. 12 6

7 Ontario Senior Homeowners Property Tax Grant will be doubled to $500 maximum to help more seniors remain in their own homes (201 0). Enhancing the Ontario Property and Sales Tax Credit program to ensure that senior couples receiving the guaranteed minimum level of income from governments would receive the full benefit. 13 \\ London CANADA Income improvement measures include: - Accelerated increase to the OCB (July 2009) - 2% increase to social assistance rates (November/December 2009) - Increase to minimum wage (March 2010) - Permanent increase to refundable sales tax credit (maximum benefits and levels to be indexed to inflation) (July 2010) - Permanent change to the property tax credit - benefit levels stay the same but more are eligible (maximum credit to be indexed to inflation) (July 2010) - Reduction in the tax rate on the first $36,848 of taxable income (2010) 14 7

8 Potential Impact of Income Improvements for Low-Income Londoners 15 London <*..la* * Low-income workers will experience the full benefits of the increase to the OCB and tax measures Social assistance recipients will receive the full benefits of the tax relief measures as they will not be clawed back (Income Security Advocacy Centre), but may not experience the full benefits of the increase to the OCB. - Social assistance rates will continue to be restructured, however, the Ministry of Community and Social Services has not released information on the rates that will be in effect in July 2009 when the new OCB rates become effective - From the outset, the Provincial government has committed that social assistance recipients with children will be $50 per month better off as a result of the OCB. It is not clear if this will be achieved in 2009 or n Although the income improvement measures will have a positive impact on 8

9 ,,.,, 135,000 - $30,000 - z 0-125,000 - a E szoooo - 8 $15,000 - E - 2 $10,000 - E C 4 $5, $21,236 $26, $27,780 Sing@ Single Parent, 1 Chlld COUPIO, 2 chlldnn UFull.TlmeMlnlmum Wage Market Baaket Measure (2006 cast of living) Family Type Ontarlo Works Pamclpant.$&&me minimum wage incomes may be overstated as they reflect gross earnings rather than net. They y: \ '_ ~, :,:cpyb&~worki@..lo hoursper week SO weeksperyear. The Ontario Works incomes forfamilies with children $$*my be kigh as they do not reflect the expected rate reduction that is anticipated to come into effect +b&u&t inhe ta the OCB. 17 single single parent, 1 child couple, 2 children Family Type 9

10 ~ ~ $25,000 1 $ i 0 t20,000 I? e.,? cor. E 0 - $15, ,000 4 $7,732 single slngle parent I child couple, 2 children Family Type,,,' ",\ \... \,'\. ~,. ~,, ~,, x,,,,, \:@e Ontario Works rates used in these scenarios are a maximum. They reflect a 2% inwease to ~. ;,<fhe cqen(rates, but do not reflect the expectedrate reduction that is anticipated to come into.,,>,$%ffect w;th the nextincrease to the OCB. The rate adjustments impact families with children only..a~.l~,&~\~. ~ 19 Potential Impact of Poverty Reduction and Income Improvements Measures for Community Services 20 10

11 Although the announcement measures are a good start, there is need to continue policy work in the area of income security and social assistance reform through the Child and Youth Agenda, End Poverty priority. Funding for community hubs, Community Use of Schools, parenting and family literacy centres may present opportunities to further the Child and Youth Agenda The minimum wage increase will put pressure on 2010 budget andor increase recreation user fees. 21 Support Program (ODSP) Municipalities will not be required to contribute to the 2% social assistance rate increases until January Potential financial impact to the municipality in approximately $300,000 may be offset by the promised commencement of upload of OW costs,. ~,%.,,,,, We need to continue to monitor the review of social assistance rules. While we support the intent of the review, policy changes that increase eligibility should not result in increased costs to the municipality. \..-,,,,,,., >.,s.; ~. <.CY,..,,-,\, -',, >,~, ~~:s,x :, ' ':,,.,,'_ \,.\..,.,~,,'~',, 22

12 Investments may provide additional opportunities for social assistance recipients. We will continue to work with partners in the employment and training sector to maximize learning and training opportunities for social assistance recipients Roll out of new Employment Ontario strategy delayed, so community agencies continue to operate with uncertainty. 23 Continue to advocate for reform of Employment Insurance as Ontario workers continue to be most impacted by the existing system On February Municipal Council endorsed the following recommendations: shortening or eliminating the two week waiting period especially in layoff situations; reducing the number of qualifying hours needed; establishing targets to increase the percentage of individuals eligible to get El (includes increasing access to El for temporary, casual, self employed, and contract workers); - basing benefit levels on at least 60% of earnings based on the average of the best 12 weeks in the previous 26 weeks; harmonizing El and Provincial training programs, such Second Career training in a way that the benefit to the unemployed is maximized; and raising the number of weeks that an individual can receive benefits to a 24 12

13 * Due to the rising unemployment rate in the London Economic Region, the number of weeks needed to qualify are reduced and the maximum number of weeks to receive benefits has increased. No change to benefit levels (55% of earnings to a maximum of $447 per week) January2009 January 2009 Hours Required to 630 Qualify March Maximum Weeks I 40 I 47 I Payable , London C A L I D I Areas of Concern 26 13

14 ~ ~ ~ 27 - No provincial commitment to continuing Best Start expires in March Called on Federal Government to reconsider its decision to terminate the Early Learning and Child Care agreement and to initiate new funding measures to support child care - Impact for London could be loss of child care fee subsidies for up to 800 children and numerous child carelobs In community agencies - Mental health and addictions - no new funding to support London CAReS - No investment to reduce wait times for addiction treatment Fair funding for Lona Term Care. Announcements limited to: - 1,750 long-term care beds added by $223 million in for the Aging at Home Strategy, supporting seniors and their caregivers - $65 million, including $39 million provided in , for increased home care, personal support and homemaking sewices and enhanced integration between hospitals and x,,\'\%.\.,,\,,.,,~ Community Care Access Centres,\,, v; " >\:':. ~ ~ ~ ~.-. No ~ change to funding formula For long term care homes,,, '.,,.~-~\ ':.';'.,. '.:\\..\;.,, ' ',,, ' London C&**D* Overall, the response to the budget has been positive. It is generally agreed that lower- and middle-income families and individuals will benefit: - Scenarios suggest that families and individuals working full-time in minimum wage occupation will have income that is above the cost of living. It must be noted, however, that cost of living in these scenarios reflects 2006 costs and incomes may be slightly overstated as they reflect gross earnings - Scenarios for social assistance recipients indicate that annual incomes will remain below cost of living as measured by the MBM The tax relief measures may be the beginning of welfare reform as the credits are outside of the social assistance program. Child care remains an issue for our community and we must continue to advocate for funding as child care is a key support to employment and training. We must continue to push for El Reform, and monitor changes to social assistance. 28

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