Ontario budget’s deficit balloons

TORONTO • The Ontario government tabled a budget Tuesday that forecast a ballooning deficit, investments in the home and community care sector, and support for a first-of-its-kind medical school. Here are the highlights:

BALLOONING DEFICIT

Ontario is projecting a deficit of $9.8 billion in the coming fiscal year, almost double what was projected in its fall economic update.

The $214.5-billion budget says high interest rates will continue to hurt Ontario’s economy, with real GDP growth expected to slow to 0.3 per cent in 2024.

The budget also cites higher public sector salaries, increased infrastructure spending and gas tax relief as reasons for the deficit.

BILLIONS FOR HOME AND COMMUNITY CARE

The budget pledges $2 billion over three years to the home and community care sector, which sees care provided at home or in a community setting by nurses, personal support workers and others. The budget says the funding will increase compensation for personal support workers, nurses and other front-line care providers, and will “stabilize” expanded services. Meanwhile, the budget’s base funding for health care is projected to go from $85 billion this coming fiscal year to $89.9 billion in 2026-2027.

POLICE HELICOPTERS AND AUTO THEFT

The budget supports the purchase of four new police helicopters to help increase Greater Toronto Area patrols and response times. The $46-million investment will be over three years.

The budget also includes $49 million over three years to fight auto theft. That investment will, in part, go toward the OPP’S auto theft team and the province’s Major Auto Theft Prosecution Response team.

OPP Deputy Commissioner Marty Kearns said last week the number of recent car thefts in Ontario was unprecedented, with reports of nearly 3,000 vehicles reported stolen in the past seven weeks.

AUTO INSURANCE REFORMS

The budget says mandatory auto insurance accident benefit coverage will continue to apply to medical, rehabilitation and attendant care benefits, but all other benefits would become optional. The budget cites the example of a driver who already has access to certain benefits through workplace plans, who would get to avoid paying for that benefit twice through their auto insurance policy.

HOUSING STARTS TICK UP, STILL BELOW WHAT’S NEEDED

Housing starts are projected to rise over the next several years however, the numbers are still far below what’s needed to meet the government’s target of building 1.5 million homes by 2031.