Ontario Budget 2019
"Protecting What Matters Most"
April 12, 2019
In yesterday’s budget announcement, the Ontario Government confirmed the integration of employment services into Employment Ontario under the Ministry of Training, Colleges and Universities. They also announced changes to the claw back formulas with OW candidates being allowed to earn up to $300 per month without impacting their social assistance payments. ODSP Income Support recipients will be allowed to keep an annualized $6,000 per year before seeing any claw backs to ODSP-IS.
Both these announcements confirm what was already released in previous months, as announced by MCCSS Minister, Lisa MacLeod.
Further, was the anticipated announcement of cuts to services in general with a projected annual decrease of 2.1% in MCCSS funding for the current 2019/20 year and in 2020/21 for an overall total of 4.2%. Financial constraint was an underlying theme in today's announcement with a declaration of cuts to the same amount across all public sector spending.
However, no specific details were given around which programs will see cuts. What we are unsure of is whether or not there will be any changes (cuts) to ODSP milestone payments or EO and OEAS funding for targets. In general, cuts seem to apply directly to transfer payment agencies that have ‘base’ operating budgets. What we do anticipate is increased scrutiny (accountability) of business practices and outcomes.
Highlights from the 2019 Provincial Budget
Preparing More People For Work
The government will undertake a review of its training and employment support programs to increase non-profit and private-sector involvement and implement an outcomes-based funding methodology that better matches unemployed or underemployed people with available jobs.
Exploring Your Next Career
Ontario’s plan for transforming employment services includes an enhanced labour market information website featuring 500 job profiles to help learners and job seekers explore their first or second career and identify opportunities for relevant education, training and reskilling. The website (found at ontario.ca/jobs) will include improved navigation to the Government of Canada’s Job Bank so that job seekers can find employment opportunities and businesses can find the right workers with the right skills.
Overcoming Barriers to Employment
The government is reforming social assistance — to restore dignity, reduce administrative red tape, and empower social assistance recipients to enter and remain in the labour market. The plan for reform will focus on changes that provide more opportunities for social assistance recipients to achieve better outcomes.
Improving Employment Outcomes
Over the next year, the government will increase the amount of earnings that recipients can have before their benefits are reduced. This will provide more support as recipients enter the workforce, and improve the incomes of those who are currently working.
- Ontario Works recipients will be able to keep up to $300 in earnings per month, an increase from $200 per month without it impacting their social assistance benefits.
- ODSP recipients will experience greater flexibility through an annual exemption of $6,000 in earnings per year instead of the current $200 per month.
- Benefits will be reduced by 75 cents for each dollar earned above these amounts to encourage recipients to increase their labour force participation and achieve greater financial independence.
- Ontario’s employment and training programs also play an important role in helping job seekers, including social assistance recipients, find and keep jobs, and assisting employers in recruiting the skilled workers they need. However, the current system of employment services is fractured and complex, and not sufficiently focused on getting the results needed for success.
The government will transform employment services by:
- Helping job seekers explore their first or next career, and identify opportunities for education, training and reskilling through an enhanced labour market information website;
- Managing employment services more effectively by selecting employment service system managers through a new, competitive process open to not-for-profit organizations, the private sector, as well as Consolidated Municipal Service Managers and District Social Services Administration Boards; and
- Providing wrap-around supports to help vulnerable social assistance recipients address barriers and access employment supports.
For the People: Employment and Training Redesign
The government is transforming employment services to improve labour market outcomes for a range of job seekers and reduce administrative burden in the employment and training system. The government is integrating social assistance employment services into Employment Ontario to improve employment outcomes for the people of Ontario.
Fixing a Patchwork System and Restoring Accountability
Another key aspect of the plan for social assistance reform is fixing the parts of the system that either no longer work or provide unequal support to those in need. Focus will be given to restoring accountability to the system and making it easier to navigate. The government will also introduce more options for social assistance recipients to access information about their benefits. Ontario will strengthen the accountability of both social assistance service managers
and the planned employment service system managers to help people achieve employment goals.
Ontario’s Fiscal Plan and Outlook - Detailed Expense Changes since the 2018 Fall Economic Statement
Children’s and Social Services sector expense is projected to be higher by $34 million, primarily due to higher-than-forecast social assistance costs. The government is reforming social assistance to provide more opportunities for recipients to achieve better outcomes such as overcoming barriers to employment.
Children’s and Social Services sector expense is projected to decrease from $17.0 billion in 2018–19 to $16.0 billion 2021–22 — representing an average annual decrease of 2.1 per cent over the period. The government is implementing social assistance reforms with the goal of achieving better outcomes for clients, reducing costs and administrative burden, and ensuring Social Assistance programs are more accountable to the people of Ontario. This includes transforming employment services through measures such as more effectively selecting system managers through a new competitive process. This will result in estimated annual savings of $720 million by 2021–22.
- Other major sector-wide initiatives will target operational efficiencies and cost savings through evidence-based sector transformation estimated at $510 million annually in 2021–22.
- Efficiencies to be implemented include:
- Identifying options to achieve efficiencies through integrating human service programs, such as income support, child care, affordable housing and homelessness prevention programs to help streamline administration and simplify reporting requirements, ultimately helping people in Ontario find employment and build independence;
- Streamlining transfer payment processes, aligning and integrating multiple service contracts, simplifying reporting requirements and developing outcomes-focused service delivery through locally developed program design;
- Exploring ways to transform services to increase choice for individuals and families and ensure consistency in service experience and quality, as well as improve outcomes for clients and sustainability of services; and
- Evidence-based sector transformation, including in developmental services, child welfare, as well as special needs and early intervention programs, will allow the government to continue investments in core services such as in the Ontario Autism Program.
Children, Community and Social Services (MCCSS) Vision Statement
The Ministry of Children, Community and Social Services will modernize its service delivery by reducing red tape, streamlining internal services and providing more opportunities to access services online.
The Province is continuing to make social assistance a more effective and sustainable program that will help people return to work and achieve better outcomes. This approach is fixing the ineffective, disjointed patchwork of supports that traps people and denies them meaningful opportunities to find jobs and get their lives back on track. The best social program is a job, for those who can get one.
The Province will also support improved integration of human services, focusing on better outcomes for people, more efficient systems and reduced administrative burden.
Training, Colleges and Universities (MTCU) Vision Statement
The government wants all of the people of Ontario to have the skills they need to get a good job. The Ministry of Training, Colleges and Universities is dedicated to making Ontario’s postsecondary education system more sustainable and better aligned with labour‐market needs while operating transparently and efficiently.
The Ministry is committed to providing job seekers with the opportunities and training needed to find and keep good jobs and giving employers the ability to find the skilled workers needed to thrive and restore Ontario to its rightful place as the economic driver of Canada.
The Ministry is modernizing and transforming the skilled trades and apprenticeship system to create more opportunities for apprentices and employers, expand the portability of skills and reduce the regulatory burden on businesses and employers to bring quality jobs back to Ontario.
For more information please see the full 2019 Ontario Budget "Protecting What Matters Most".