Defend Public Healthcare

The Ontario government recently  put out a release bragging that they will fund $50 million per year to renew existing hospital facilities.  However, in her September report the Auditor General reported that  Ontario hospital funding is less than the renewal needs for existing hospitals. "The assessments of hospital facilities identified $2.7 billion dollars of renewal needs, requiring annual funding of $392 million to bring assets to what is considered good condition. However, since 2014/15 actual annual provincial funding has been $125 million..."  In other words, the government has put out a release announcing that they are reducing hospital capital renewal funding -- from a   level that was already only a fraction of what is needed to bring hospitals to good condition. The release also brags that they will provide $12 billion over ten years for new hospital facilities (as distinct from funding to renew existing hospital facilities discussed above). That

There has been a general trend downwards in public sector employment in Ontario according to Statistics Canada. In the last two years, Ontario has lost 19,000 public sector workers, with most of the loss occurring in the last year. The downwards trend in Ontario contrasts with the upward trend across the rest of Canada.  While Ontario lost over the last two years, the rest of Canada gained 73,400. Over the last year the rest of Canada gained 65,300 public sector jobs, while Ontario lost 12,700 public sector jobs. This may understate the cuts in the Ontario broader provincial public sector (i.e. public sector workers, like health care workers, that are primarily funded by the province, excluding federal and municipal employees). Austerity has been much harsher for the Ontario government than the federal and Ontario municipal governments. So the Ontario broader provincial cuts may be softened by modest growth in the federal and municipal sectors. The level of public

The litany of health care problems identified by the Auditor General  in her 2015 report is frightening. Here's thirty-seven of them dealing with LHINs, LTC, EMS, Rehab Hospitals, Health Infrastructure, Home Care, and Health Human Resources. Local Health Integration Networks (LHINs): A Lot of Problems LHINs have not met performance expectations. "Most LHINs performed below expected levels in the year ending March 31, 2015. In that year, LHINs on average achieved their respective local targets for six of the 15 performance areas".  Also: "Based on the provincial results that include all 14 LHINs, only four of the 11 provincial targets that measure long-term goals for LHINs were met." Performance has not improved. "While province-wide performance in six of the 15 areas measured has improved between the time the LHINs were created and 2015, in the remaining nine areas, performance has either stayed relatively consistent or deteriorated since 2010 or

Shocker.  The Ontario government is forecasting that it will beat its deficit forecast -- for the seventh year in a row . The deficit for this year is forecast in t he province's Fall  Economic Outlook and Fiscal Review  to be $1 billion less than forecast in the spring 2015 Budget .  The forecast for next year is already $300 million less than in the 2015 Budget.  That would make eight years in a row. For this year, the decline in the deficit was driven by higher than expected revenue ($1.245 billion more revenue,  primarily due to an underestimation of revenue from the Hydro sell-off and $600 million higher than forecast revenue from personal income and land transfer taxes).  Lower than expected interest expense on debt ($140 million) has also helped.  Program spending however is $397 million higher than expected.   The major in-year increases in spending compared with the 2015 Budget are in two areas, the Hydro privatization and the new Green Investment Fund:

The suggestion that Ontario has a deficit because its public sector is too large does not bear scrutiny. Consider the following.  Public sector employment has fallen in the last three quarters in Ontario.  Since 2011, public sector employment has been pretty flat, with employment up less than 4 tenths of one percent in the first half of 2015 compared with the first half of 2011. This contrasts with public sector employment outside of Ontario which has gone up pretty consistently and is now 4.7% higher than it was in the first half of 2011. Private sector employment has also gone up consistently over that period. In Ontario, it has increased 4.3% since the first half of 2011, while in Canada as a whole it has increased 4.9%. As a result, public sector employment in Ontario is now shrinking as a percentage of the private sector workforce.  In contrast, in the rest of Canada, it is increasing. Moreover, public sector employment is much higher in the rest of Canada

Funding increase hits new low: The Ontario government plans health sector spending growth of 1.2% this year compared with the interim spending estimate for 2014/15.   This deepens the trend to cut health care funding increases. ($000s) 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012–13 Actual 2013–14 Interim 2014–15 Plan 2015–16 Health and Long-Term Care 32,947 35,655 38,118 40,734 43,054 44,414 46,491 47,571 48,933 50,173 50,771 % Increase 4.0% 8.2% 6.9% 6.9% 5.7% 3.2% 4.7% 2.3% 2.9% 2.5% 1.2% The average increase over the last four years is 2.2%.  Over the previous six years, funding increases averaged 5.9%, well more than double the more recent average.  This year's plan of 1.2% is a new low.  In 2011, the then Auditor General noted that various factor