Ontario Budget - March 27, 2009

Poverty-Reduction Items

 A Communication from the Honourable Deb Matthews

 I am happy to tell you that with last week's budget, the McGuinty
 government is moving forward with our commitment to improving
 opportunities for all Ontarians.
 
 I invite you to read the text of the budget.  It was the right budget
 for the challenging economic situation.  As you'll see, our government
 recognizes that these tough times are also the right time to focus on
 poverty reduction. 
 
 The budget included:
 
 Accelerating the Ontario Child Benefit (OCB)
 
 The government will accelerate the phase-in of the OCB by two years,
 providing low and moderate income families with up to $1,100 per child
 annually, starting in July 2009. This means:
 
 *    over $400 million more in children's benefits between 2009-10
 and 2011-12;
 *    almost 115,000 more families would become eligible for the OCB
 than in 2008;
 *    an 83 per cent increase in the maximum monthly benefit per child
 compared to 2008, from $50 to $92. 
 
 Support for Housing
 
 The government plans new housing infrastructure initiatives. Over the
 next two years, the province, together with the federal government,
 plans to invest over $1.2 billion, including:
 
 *    more than $700 million over the next two years for social
 housing rehabilitation and energy retrofits;
 *    more than $360 million to help create new affordable housing for
 low-income seniors and persons with disabilities; and
 *    $175 million over the next two years to extend the
 Canada-Ontario Affordable Housing Program, which is creating new homes
 for low-income families, senior citizens, persons living with mental
 illness, and victims of domestic violence.
 
 In addition, the 2009 Ontario Budget would invest more than $5 million
 annually, beginning in 2009-10 to ensure stable funding for municipal
 rent banks across Ontario.
 
 Development of Community Hubs
 
 The government is proposing to make investments in community hubs,
 where people can gather to stay active, learn and participate in
 community-based organizations.  These proposed investments include $3
 million in 2009-10 to help establish community hubs in selected
 low-income neighbourhoods.
 
 Increase to Social Assistance
 
 To help social assistance recipients, the government plans to increase
 the adult basic needs allowance and maximum shelter allowance by two
 percent in the fall of 2009.
 
 A single-parent family with two children aged five and seven receiving
 the OCB and social assistance would have an annualized income of
 $22,730 - $1,110 higher than in 2008. This would represent an increase
 of $5,670 or 33 per cent, from the family's 2003 annualized income.
 
 Social Assistance Review
 
 In addition to the two percent increase to social assistance, the
 government will undertake a review of social assistance with the goal
 of removing barriers and increasing opportunity - with a particular
 focus on people trying to move into employment from social assistance.
 
 
 Youth Opportunities Strategy
 
 The budget provides more than $35 million over two years, including
 more than $12 million annually on an ongoing basis, to enhance the
 Youth Opportunities Strategy (YOS).  This would more than double
 ongoing support for the YOS, a commitment of the Poverty Reduction
 Strategy.  The YOS helps young people in high-risk neighbourhoods
 reach their full potential through the creation of key opportunities,
 including targeted funding for summer jobs.
 
 Minimum Wage
 
 On March 31, 2009 the minimum wage will increase by 75 cents per hour
 as planned, bringing the minimum wage to $9.50 per hour and the plan
 is to raise it again to $10.25 per hour by 2010.
 
 Employment Standards Officers
 
 To ensure that people have secure work environments where they are
 treated with dignity and respect, the government is proposing to
 invest an additional $4.5 million annually for employment standards
 officers to reduce the backlog of claims and proactively enforce the
 Employment Standards Act, 2000.
 
 Tax Relief
 
 To help low- and middle-income Ontarians and ease the transition to
 the single sales tax, the government is proposing $10.6 billion in tax
 relief for people over three years, including:
 
 *    $4 billion in cash payments to 6.5 million families and
 individuals in 2010-11, totalling up to $1,000 for each family and up
 to $300 for single people
 *    A new permanent refundable sales tax credit for low- and
 middle-income people of up to $260 for each adult and child
 *    An enhanced refundable property tax credit to provide more
 relief to low- and middle income homeowners and tenants
 *    Reducing the first-bracket income tax rate from 6.05 per cent to
 5.05 percent, the lowest rate of any province in Canada.  As a result,
 approximately 90,000 lower-income taxpayers would no longer pay
 Ontario personal income tax, and individuals and families with incomes
 under $25,000 would get an average tax cut of 30 per cent.
 
 Under the planned tax changes, a Single Parent of one child, making
 $25,000 a year, will see a net benefit of $570, from the tax changes
 alone.  This doesn't include the proposed increase to the OCB.
 
 I am proud to be a part of a government that, during these challenging
 times, is still willing to stick to its commitment to support all
 Ontarians, and move forward in this bold, but responsible, way.  As I
 often say, not only is it the right thing to do, but it's the smart
 thing to do.
 
 Thank you again for your continued commitment to this issue.  I look
 forward to continuing to work with you, as we take these important
 steps in the fight against poverty.
 
 Sincerely,
 Deb Matthews