On February 25th, 2016, the Ontario government tabled their annual budget. Below are some highlights for organizations in Hamilton.

Key numbers:

The budget has an ambitious $133.9-billion spending plan with a projected $4.3 billion deficit – leaving the provincial debt at $296.1 billion. Other data analysis

Regulatory costs & increases:

Gasoline prices to increase 4.3 cents per litre next year as part of the new cap-and-trade program to curb greenhouse gas emissions. Read more

Natural gas rates to rise 3.3 cents per cubic metre — the equivalent of $5 on a homeowners monthly heating bill.

Cap and Trade: $1.9 billion in new revenue from the carbon-pricing scheme with all proceeds going toward fighting climate change. Read more

ORPP: Before tabling the budget, the Liberal government announced its intention to roll out the Ontario Retirement Pension Plan a year later than originally scheduled. Employers won’t have to start contributing to the ORPP until at least 2018, and they’ll have until 2021 before they are expected to dedicate the maximum contribution.

Key Investments:

A retooled financial aid system for post-secondary education. Under the new model, existing grants will be pooled together, the existing tax credit system discontinued and as a result in a program titled “Ontario Student Grants” families with an annual income of less than $51,000 will receive a 100% grant for their tuition and ancillary fees with some leftover for other living costs. As well, additional grants will be distributed towards more than half of families earning between 51,000- 83,000 to receive additional grant funding up to a 100% of their cost of tuition and ancillary fees. Read more

Enhances hospital funding for the first time in five years — a $345-million hike, as well as reduced parking fees.

A $25-a-month increase for singles on Ontario Works and a 1.5 per cent rate hike for others relying upon Ontario Works and the Ontario Disability Support Program.

Some other Investments specific to Hamilton

1. Social Housing: The budget announced a proposal to spend $178 million over two years to boost their long-term housing strategy. The fund is hinted to have a portion directed towards City of Hamilton’s current $283 Capital shortfall for social housing and rising waitlists.
2. Advanced Manufacturing:  The Government of Ontario is investing $35M towards a unique $50M Advanced Manufacturing Consortium involving McMaster, Waterloo and Western. By leveraging existing research strengths, infrastructure and research capacity, the Consortium will serve as a centre for the development of new technologies, creating new products and production methods and generating new highly-skilled jobs. Read more, HERE & HERE
3. Regional GO Connectivity:  “Ongoing plans to build Light Rail Transit in Waterloo Region, Hamilton, Ottawa and Peel Region are formalized. The budget also pledged $13.5 billion to improve GO transit through Metrolinx’s Regional Express Rail plan. It promises eventual all-way, two-way GO service on all lines, with Saturday service starting this year for the first time on the Kitchener and Barrie lines. And Niagara, Brantford and Bowmanville will get dedicated GO service for the first time.
4. Gas Tax for Transit: The province also “re-announced” its gas tax committee to municipalities. Hamilton will get in 2016, $10.7 million that will go toward transit projects.

Other coverage:

Toronto Star | Globe and Mail | National Post 

Reaction from the Ontario Chamber of Commerce: CLICK HERE

For more information please contact:

Huzaifa Saeed | Policy & Research Analyst | Hamilton Chamber of Commerce | h.saeed@hamiltonchamber.ca | t: 905-522-1151 ext: 230