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3 What We Heard Consultations centered around 5 key question areas: Eligibility for the Pilot Site Selection Evaluation Design Benefit Design Administration Public Discussions: 14 public sessions held across the province - A total of 1,193 individuals attended the public engagements. 2 Online surveys A total of 32,870 submissions to the public survey. An additional 1,213 submissions to the expert survey. Received over 80 written submissions from municipalities and community organizations. L7 Ontario Negative Income Tax (NIT) was accepted by many, some interested in universal basic income model. Tax system poses issues for non-filers, financial literacy and supports needed. Support for careful, phased implementation. Communities from across Ontario (North, south, central) should be included, clear interest in urban, rural, and urban-rural sites. Basic Income should reduce poverty, and measure all ten outcome areas*, at the individual and community levels. Top three outcome areas were education, health, and housing. Basic income amount should be at poverty level or higher, coupled with other services and supports; it should consider cost of living. Expert Discussions: Internal Experts Two Academic Advisors Two Expert Sessions: approximately 60 key stakeholders and academic experts attended Thought Leaders Table Finland and the Netherlands The Pilot should be a simple, straightforward intervention start small and build out. There are differing viewpoints on the merits of a saturation study or a randomized controlled trial. Existing tools, expertise and frameworks are available to support the development, implementation and evaluation of the Pilot. The more general the Basic Income, the more likely it can be scaled and expanded to serve the broader Ontario population. Do not select outcomes that/which may not materialize from participants. *Other outcome areas include: life choices, work behaviour, community-level changes (e.g. crime rates, local labour market), administrative efficiency compared to social assistance, food insecurity, perception of citizenship and social inclusion, interactions between Basic Income and other benefits, such as the Ontario Child Benefit. See Appendix A for Background Information and Appendix B for a Glossary
4 Guiding Principles Ontario Reflect the core definition of Basic Income as much as possible Include a research and evaluation approach that has integrity and defensibility Sufficient sample size to obtain quality data and outcome measures Ethical: informed choice and consent to participate Will follow a tax credit model Responsive to significant changes in individual circumstances Pilot sites will be chosen based on selection criteria that is representative of the Ontario population and economy.
5 Theory of Change L7 Ontario Basic income can... Be simpler and less intrusive Help more people in poverty not just social assistance recipients Reduce barriers to enter the workforce In the short term... Reduce depth of poverty Increase food security Decrease stress Decrease stigma In the medium term, improve Mental-health and well-being Health care usage Self-care/health management Housing stability Education and training In the longer term... Betterqualityof life Improve housing quality Reduced interaction with criminal justice system Enhanced labour market attachment Long term system impacts: Reduced pressure on health care Reduced crime rates and incarceration Educational attainment
6 Pohcy Design L7 Ontario The policy intent is to introduce a basic income that will test how enhanced income support with nostrings attached increases and stabilizes income to help low-income individuals better meet their basic needs and reduce stress, leading to longer term improvements in well-being. Policy features: No One Worse Off Individuals will be informed and can choose to opt in or out of the Pilot. Avoid Duplication of other Income Supports The Basic Income will be reduced to account for other income, such as Employment Insurance and Canada Pension Plan. Basic Income amount based on a 75% of the Low Income Measure (e.g. $16,989 for a single individual) Basic Income Model: Simulateatax credit* that decreases as income increases Eligibility: Age (18 to 64), residency (12+ months in Pilot site), income tested Basic Income reduced by 50% of earned income L Benefit unit defined as Tax Family (singles and couples), exckdingchhdren L individual deemed to have a disability would receive an addtiona$50 Pilot length three years Drug and dental benefits for social assistance participants L Participation is voluntary with?!t.?.! Pilot size up to 4,000 participants I * The Discussion Paper and consultation referred to implementing a Negative Income Tax model which refers to implementing through the canada Revenue Agency. For the Pilot, we are describing this as a tax credit model.
7 Site Selection: Criteria LX Ontario The Pilot will target low-income Ontarians in geographic regions that include urban, urban/rural mix, and rural locations. Regions and locations have been assessed based on need, economic indicators, demographics, and availability of resource and services, reflective of provincial averages. Comparability to provincial averages across various indicators Lowincome individuals & subpopulations Local Need and economic conditions [ I Prevalence of low income Median income across family types Local cost of living Institutional stabilizers Unemployment rate Health system indicators Population growth H Geographic isolation Key demographic information Labour market participation and demand Availability of housing (vacancy rates) Post-secondary education institutions J /
8 PiNot Sites L.7 Ontario!1 This three-year study will take place in three Sites in Ontario. Site 1 and 2 will follow a randomized control trial evaluation method. Site 3 will include evaluation of community level EflJflJEflfl impacts LHEEEEflH ZZEEEEEEfl znz,- a (2,000 people) 2 flflhflflfl Lindsay Oil flflefl (1,000people) Thunder Bay md 3 Oliver Paipoon e Shuniah Neebing, Conmee, onnor, SITE 1 (1,000 people) i les Hamilton Brantford
9 First Nations Approach LX Ontario In a separate but parallel process, a Basic Income Pilot for First Nations is being co created and designed in collaboration with First Nations partners. o A resolution regarding the First Nations Basic Income Pilot was passed at the All Ontario Chiefs Conference (AOCC) on June 15, 2017 which directed the working group to continue working with MCSS-PRSD to inform considerations for First Nations Pilot projects. Over Spring 2017, First Nations members of the First Nations Income Security Reform Working Group (FNISRWG) met with MCSS to discuss the Premier s announcement of the Ontario Basic Income Pilot (OBIP) and discuss the scope, design options, and considerations, for a co-created First Nations Basic Income Pilot. Through the Fall, the province will engage with First Nations and Provincial-Territorial Organizations (PTOs) that are interested in being a Pilot site and engaging directly with the province to implement a 300-person Pilot that will test one outcome. The province will then select a site from the interested First Nations based on a selection criteria and begin the co-creation process towards a Pilot starting in February 2018.
10 OBIP Governance Structure.I. > V Ontario Community of Practice Ministers Advisory Council Basic Income Pilot Pr Mananement 0 Operations Advisory Group Basic Income Centralized Team Local Team A dashed line indicates where the Basic Income Pilot Project Management Office will provide administrative/secretariat support to the MAC and consultative groups in carrying out their mandates. A solid line indicates a direct working relationship. The black line indicates liaison between REAC Chair and the third party evaluator. The evaluator provides information, updates and reports to the REAC Chair.
11 Ministers Advisory Council (MAC) Mandate: To provide advice and recommendations to the Minister of Community and Social Services and the Minister of the Poverty Reduction Strategy to achieve successful delivery of the three-year Basic Income Pilot. Current Status: Terms of Reference (ToR) approved. Susan Mclsaac appointed as Chair by way of Minister s Letter. Dr. Kwane McKenzie* appointed as Member of MAC by way of an Order-In-Council. First MAC meeting held November 15th Upto5members kyr Ontario Research and Evaluation Advisory Committee (REAC) Mandate: To act as the advisory body to PMO for the Basic Income Pilot evaluation; and To provide advice and recommendations to the PMO; and through the Chair of REAC to the Ministers Advisory Council (MAC) and the Minister of Community and Social Services and the Minister Responsible for the Poverty Reduction Strategy. Current Status: REAC ToR drafted. The Chair is confirmed: Dr. Kwame McKenzie*. ToR for the Chair approved. UptolOmembers. Invitations distributed; confirming participants First REAC meeting - November 28th *Dr Mckenzie is approved as Special Advisor of the MAC and takes the role of the Chair of REAc.
12 Phased mpnementation t Ontario June to October 2017 Test design and implementation elements, recruit up to 400 participants and set baseline data in Hamilton, Braniford, and Brant County, and Thunder Bay and the surrounding area. Multiple enrolment tactics tested: randomized mail, in-person sessions, agency referrals. 400 participants received payments in October October 2017 onward Second recruitment allows the opportunity to re-calibrate implementation based on learnings from the initial phase. Completion of participant recruitment in Hamilton, Braniford, and Brant County and Thunder Bay and the surrounding area. Lindsay participant recruitment started in October Close to 800 participants will receive payments in November 2017.
13 Focused Outreach V Ontario Local Networks are in each region to support the implementation of the pilot. These networks: Consist of community partners (including representatives from Legal Aid Ontario, Chambers of Commerce, and the Ontario Federation of Indigenous Friendship Centres, in addition to OBIP staff). Leverage local community relationships and understanding to support the unique local needs of the Pilot Sites by providing regular updates; identifying site specific issues (both from the pilot and the community); ensuring the community has information available on what is Basic Income and what it means to be a part of the pilot, what to expect if they are a site, and what to expect if someone applies. Information Sessions Hamilton, June 19: 53 participants (mix of community agency staff, and general public), no media Brantford, June 28: 31 participants (majority were City Council Members, and agency staff), no media Thunder Bay, June 29: 60 participants (Agency and Public), and media (TBNewswatch, Chronicle Journal and CBC) were in attendance. Thunder Bay, August 22: 170 participants and media (TBNewswatch, TB TV, CHAS FM, CKPR FM) were in attendance. Braniford, August 24: 63 participants and media (CKPC AM, Brant News, Brant Expositor) were in attendance. Hamilton, August 28: 98 participants and media (Hamilton Spectator, CHML AM)
14 Stakehoider Views on Basic Income V Ontario I Institute for Research on Would ensure that no one falls through the cracks; current benefit programs demonstrate Public Policy that governments are not far from achieving this objective Brookings Institute Income inequality means that the cost of a Bl could be funded by higher-earners as opposed to higher taxes on ordinary wages, diluting disincentive effects lower down Conference Board of Canada An efficient and intelligent way to fund and deliver social assistance Food Banks Canada Believes that food banks are an unofficial safety net because the social assistance system is broken, and that a basic income could eliminate the system s bureaucracy and stigma Canadian Medical Association A basic income as a means to improve health outcomes Association of Local Public Supports basic income because of the relationship between social determinants of health Health Agencies in Ontario and income and income distribution Ontario Chamber of The growth of non-standard work requires governments to consider innovative solutions Commerce (0CC) that would provide all workers with access to the benefits of the social safety net U.S. Basic Income Guarantee There is a case to decouple employment from income in an automated future with fewer Network jobs There is a strong practical case for the Basic Income it underpins security, replaces the complexity of the current system, and provides a platform for freedom and creativity Canadian Centre for Policy There are a number of other social welfare measures that should be central elements of Alternatives any guaranteed income reform program, but are often ignored in guaranteed income debates. Caledon Institute of Public Promotes a federal basic income for persons with severe disabilities, but argues that basic Policy income is not enough to address poverty and unemployment on its own Canada Without Poverty Poverty is also about stigmatization and discrimination, a Basic Income or any single policy will not address that.
15 Stakehoider Views on Basic Income k,r Ontario Detractor position Fraser Institute Practical challenges of a basic income make it seem less plausible Canada Without Poverty is also about stigmatization and discrimination; a Basic Income or any single policy Poverty will not address that. David R. Henderson * Argues that a BI would be very expensive and therefore impractical, and disagrees with the (Stanford University) idea that a BI is morally just Swiss Federal Council Concerned that a Bl may lead to many low paid jobs disappearing or be transferred abroad Women may be forced into housework and care work Taxes may rise considerably to finance basic income and thus weaken incentives to work Argue that the goal of each person having the ability to live a life in dignity can be achieved under existing system Federal I Provincial I Municipal Federal Minister Jean- Interested in studying the effectiveness of a basic-income guarantee compared to Yves Duclos traditional means of delivering social assistance, but provinces would take the lead. Income-based and tax-free Canada Child Benefit can be considered a form of basicincome guarantee. Quebec Premier Appointed a cabinet committee (January 2016) to look at creating a guaranteed income Philippe Couillard Interested in how a guaranteed minimum income could help people adapt to structural changes in the labour market Kingston City Council Passed a resolution calling for a Guaranteed Annual Income (GA!); Mayor claims current system is inefficient and there are better ways to make tax dollars go further See Basic Income Pilot in Ontario information note for further details. I
16 Media Summary Media coverage has been extensive, both province-wide and internationally. L7 Ontario Ontario-based coverage has been very positive, reporting on the details of the pilot announced by Premier Wynne in late April, as well as extensive previous reporting by local media on the government s public consultations across Ontario in late 2016 I early Negative media coverage has been limited: some columnists or commentators have questioned policy aspects of the model, such as whether there will be enough incentive for participants to pursue employment. There was short-lived coverage of disappointment in communities that were not chosen as host communities (Smiths Falls and North Bay). OPSEU has issued a news release, voicing concerns about job impacts on social assistance caseworkers, but that has not been picked up by the media. International coverage has mainly been positive, with mentions of Ontario as an early adopter and assessor of the concept of basic income: prominent UK and US coverage in The Guardian, The Independent, BBC, MSNBC. International media continues to express interest in covering Ontario s pilot: NBC Network News has asked to interview the Premier in late August and coverfrg the Hamilton information session scheduled for then, along with the Wall Street Journal. Additional inquires to pursue in-depth coverage (e.g. information sessions, interviewing participants) have come from Vice Motherboard, BBC, NHK Japan Broadcasting (public broadcaster), PBS, Vice News, France2 TV, and French ARTE TV.
17 Appendix A: Background V Ontario 2016 Budget commitment: One area of research that will inform the path to comprehensive [income security] reform will be the evaluation of a Basic Income pilot. The pilot project will test a growing view at home and abroad that a basic income could build on the success of minimum wage policies and increases in child benefits by providing more consistent and predictable support in the context of today s dynamic labour market. The pilot would also test whether a basic income would provide a more efficient way of delivering income support, strengthen the ottochment to the labour force, and achieve savings in other areas, such as health care and housing supports. The government will work with communities, researchers and other stakeholders in 2016 to determine how best to design and implement a Basic Income pilot. June 21, 2016: Appointment of the Honourable Hugh Sega! as the Special Advisor on the Design of a Basic Income Pilot in Ontario. November 3, 2016: Public release of the Special Advisors Discussion Paper and launch of the Basic Income Pilot Consultation Phase. March 16, 2017: Public release of the What We Heard report, summarizing the feedback received during the consultation phase Budget commitment: In response to structural changes in the labour market, the government is developing innovative approaches to support Ontarians. This includes moving forward with the Basic income Pilot, first announced in the 2016 Budget. A three-year pilot will test the idea that providing people with a basic income could be a simpler and more effective way to ensure security and opportunity in a changing job market, support people living on low incomes, and reduce poverty. Three communities across the province Hamilton, Thunder Bay, and Lindsay will be eligible for participants aged 18 to 64. Through this pilot, people earning below a specified amount will receive regular payments that will help them better afford basic needs like housing or food, and participate in the community. Enrolment will be voluntary and based on informed consent. Work will continue with experts and communities to ensure delivery of a Basic Income Pilot that is fair, effective, and based on a representative sample. April 2017: Premier announced the details of the Pilot. I
18 Appendix B: G ossary ft-fli- ntario Negative Income Tax - Benefits are provided to those whose income falls below a minimum income level and are teduced as earned income increases at a set rate. Randomized Controlled Trial A Randomized Controlled Trial (RCT) is considered the gold standard of experimental research design. Trial participants are randomly selected to receive a treatment or intervention, and observed changes of the treatment group are compared against a control group. Control Group In a Randomized Controlled Trial there is always a control group which does not receive the intervention. This group serves as the baseline for the study, and the other groups receiving intervention(s) are compared against this group. Treatment Group(s) Randomized Controlled Trials can include multiple treatments groups receiving different interventions. This allows researchers to compare different interventions, for example different levels of Basic Income, and look at the outcomes those groups experience.
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