Ontario's $24.7 Billion Deficit

Posted by Laura Steiner Oct 27, 2009

I honestly don't know where to start with this one. $24.7 billion?! The number is shocking. I can understand running a deficit now- the entire world is running a deficit. I grant that they had to bail out the car companies, (around $11 billion there) put extra money into education, and retraining for the unemployed.

So where did the rest come from? Logic dictates there has to have been some mismanagement going on... oh wait there was. $1 billion wasted on eHealth- $75 million on Cancer Care Ontario, and those are just the scandals we know about. And it seems McGuinty has no real plan to help fight it. Or rather he's unwilling to rush it. It does take time to come up with a solid plan that's easily doable. Allow me Mr. Premier, on behalf of the pissed off Ontario voters to offer my suggestions:

1. Premier& Cabinet Pay and perks cut: This might be only a symbolic gesture, but every little bit counts. If you get into cutting out some of the perks, you'll start saving.

2. Public Service Raise adjustment: Ask all Public service unions (including teaching uinons) to take a cut on their raise in exchange for a longer contract. For example say a union signed an agreement for a 6% raise over three years, working out to 2%/ year. Ask them to shave a half percentage point off, in exchange for an extra year added to the agreement. The government gets labour peace, and a little extra money, while the unions still get their raises in the end.

3. Consultants: Cut them all out. Most of what consultants tell you, is what common sense should say. Do the work yourself!! You may find you'll learn something.

4. Rollback or stop the tax harmonization: The thinking is, tax harmonization will raise revenues. And it will in the short-term. But in the longer term people will realize they're paying more tax, and tax on items they didn't before. It'll cause people to stop spending money and set this so-called economic recovery back, maybe even lengthening the recession.

5. Rollback or stop the Implementation of all-day kindergarten: This is the kind of thing, that should be done only if it's done right. It will work I think, only if you've got fully qualified teachers teaching. At a price tag of approximately $1 billion over five years we have to ask ourselves: do we really have that kind of cash with a $24.7 billion deficit hanging over our heads?? The answer should be no.

Whatever happens, healthcare should be left alone. With all this debt hanging over our heads, we at least need that. These are suggestions Mr. Premier, a starting point. Now it's time to get a plan.

For more info see:

McGuinty Government Releases Economic Statement and:

Ontario Moves Ahead With Tax Harmonization