Ontario needs to be restructured on how it delivers program spending when it comes to value for money There are broken processes like arbitration that pushing additional costs on to municipal, school boards and hospitals - https://www.cfib-fcei.ca/en/media/new-report-broken-arbitration-system-causing-unsustainable-rise-municipal-costs Neither Wynne nor Horwath would touch the costing model. Both believe in rewarding unions for their support. Ontario has $15B structural deficit - http://www.auditor.on.ca/en/content/specialreports/specialreports/2018Pre-Election_en.pdf

1. Government Funding flow
to Front-Line Services -
Ontario
Paul Young CPA CGA
April 2019

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Business Process Change
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
• Ontario Operational Expenses
• Municipal Example – Town of Orangeville
• School Board / Example – TDSB
• Healthcare

4. Summary
• Ontario needs to be restructured on how it delivers program spending
when it comes to value for money
• There are broken processes like arbitration that pushing additional costs
on to municipal, school boards and hospitals - https://www.cfib-
fcei.ca/en/media/new-report-broken-arbitration-system-causing-
unsustainable-rise-municipal-costs
• Neither Wynne nor Horwath would touch the costing model. Both believe
in rewarding unions for their support.
• Ontario has $15B structural deficit -
http://www.auditor.on.ca/en/content/specialreports/specialreports/20
18Pre-Election_en.pdf

5. Operation Expenses
Source – Government of Ontario - https://www.ontario.ca/page/public-
accounts-2016-17-consolidated-financial-statements
Health(Est)
Education(EST)
SocialServices
Environment/Economic
Development
PostSecondary/Training
Justice
OtherGovernment
Interest
Total
Transfer Payments 52,526 25,623 15,182 6,243 9,945 439 810 $ 110,768
Wages/Salary (revised to ex pension adj)
$
667
$
216
$
442
$
1,826
$
95
$
2,330
$
954
$
6,530
Interest $ 11,370 $ 11,370
Services
$
2,100
$
153
$
200
$
1,397
$
62
$
967
$
375
$
5,254
Supplies and Equipment
$
422
$
7
$
8
$
203
$
4
$
166
$
39
$
849
Employee Benefits
$
124
$
34
$
70
$
342
$
15
$
318
$
145
$
1,048
Amortn
$
63
$
9
$
36
$
2,011
$
1
$
16
$
67
$
2,203
Pensions
$
5
$
-
$
7
$
24
$
4
$
26
$
1,004
$
1,070
Power supply
$
-
$
-
$
838
$
838
Other interest
$
339
$
339
Transportation/Communication
$
61
$
14
$
20
$
111
$
4
$
121
$
39
$
370
Other
$
57
$
148
$
41
$
557
$
1
$
235
$
47
$
1,086
Total
$
56,025
$
26,204
$
16,006
$
12,714
$
10,131
$
4,618
$
4,318 $ 11,709 $ 141,725
Expenses (ex Transfer and Interest)
$
3,499
$
581
$
824
$
6,471
$
186
$
4,179
$
3,508 $ - $ 19,248 13.6%
% Transfer out 93.8% 97.8% 94.9% 49.1% 98.2% 9.5% 18.8% 0.0% 86.2%
1. 13.6% of Govt spending is
related to administration
2. PC have implemented hiring
freeze
3. Govt attrition rates are about
15% -
http://www.hrreporter.com/cul
ture-and-engagement/36271-
canada-ranks-4th-globally-for-
highest-employee-turnover/
4. Compensation/benefits/pension
funding costs (Compensation
Review)
5. Transfers to front-line services
will continue to flow

6. Federal Funding / Ontario
Source – Government of Ontario

7. Municipal Example
Source - https://www.orangeville.ca/get-
file/5368
Town of Orangville 2016 2015
Year over Year
Change
Taxation
$
32,764 57.7%
$
31,321 4.6%
Users fees
$
16,676 29.4%
$
15,623 6.7%
Grants
$
1,712 3.0%
$
1,762 -2.8%
other
$
5,611 9.9%
$
5,919 -5.2%
Total
$
56,763 100.0%
$
54,625 3.9%
General
$
4,713 9.9%
$
4,628 1.8%
Public Safety
$
13,454 28.3%
$
13,326 1.0%
Transportation
$
8,416 17.7%
$
9,167 -8.2%
Environmental
$
9,562 20.1%
$
9,595 -0.3%
Health
$
95 0.2%
$
87 9.2%
Recreation
$
9,161 19.3%
$
9,023 1.5%
Planning and Development
$
2,078 4.4%
$
1,820 14.2%
Total
$
47,479 100.0%
$
47,646 -0.4%
Surplus(deficit)
$
9,284
$
6,979 33.0%
1. Approximately 87% of a municipal
budget comes from local taxation
2. Municipalities also receive Build
Canada and Gas Tax moneys for
infrastructure
3. Public Safety ranks as one of the
highest spending area -
https://www.thestar.com/news/q
ueenspark/2014/03/14/municipali
ties_pushing_back_against_opp_co
sts.html
4. Social Assistance is managed by
the municipalities -
https://www.thestar.com/news/q
ueenspark/2015/03/19/ontario-
set-to-replace-welfare-cheques-
with-debit-cards.html

8. Education Flow
Educational funding
• Average 61.6% of the funding goes to salaries and benefits
• http://nationalpost.com/opinion/allan-richarz-ontarios-teachers-
are-overpaid
• Teachers Pensions - https://www.theglobeandmail.com/globe-
investor/ontario-teachers-pension-benefits-have-to-be-cut-duncan-
declares/article4097656/

9. School Board - TDSB
• School Grants – 1.58B comes from the
provincial govt via property taxation
• Cities Mill rate includes educational tax -
https://www.toronto.ca/services-
payments/property-taxes-utilities/property-
tax/property-tax-rates-and-fees/2017-
property-tax-rates/
• Many school boards are struggling with
declining enrollment - http://www.standard-
freeholder.com/2017/06/29/ontario-hitting-
pause-on-school-closures---media-
teleconference
• Pressure on rural schools to consolidate due
to less student enrollment. Ontario Liberals
failed support rural economic development
• Horwath receives supports from various
teachers union as is opposed to school
closings

10. Healthcare money flow

11. Healthcare
• https://globalnews.ca/news/4120816/ontario-doctors-say-
government-mismanagement-to-blame-for-broken-health-care-
system/
• Healthcare system is completely broken, especially the delivery
model
• https://www.slideshare.net/paulyoungcga/election-ontario-
healthcare-may-2018-98284209

12. Post Secondary Funding
Source – Government of Canada, Province of Ontario and University of Queens
3.1%
2016
vs
2017
Post-Secondary Funding
2015-2016 2016-2017
Program 9,900 10,100
2.0%
2016
vs
2017
Tuition Fees continue to rise -
https://www150.statcan.gc.ca/n1/daily-
quotidien/180905/dq180905b-eng.htm

13. Blog – Issues Facing
Ontario
• I think too many of you read way too many articles from left-leaning organizations that push hiking taxes on the rich
and corporations, right? The Liberals at the federal level hike taxes on the top 1% as such that led to a loss to the
treasury - https://www.theglobeandmail.com/politics/article-high-income-earners-paid-46-billion-less-in-taxes-in-
2016-despite/
• The top 1% pay nearly 20% of the federal income tax - https://www.fraserinstitute.org/studies/measuring-the-
distribution-of-taxes-in-canada
• The low income pays very little in taxes - https://globalnews.ca/news/1356467/tax-cuts-since-2005-net-canadians-
30b-pbo/.
• Corporation pay more than corporate taxes, i.e. cpp/ei premiums, HST/GST/PST, Excise Taxes, regulatory taxes
(environment, etc.) - https://www.slideshare.net/paulyoungcga/how-corporate-and-business-taxation-flows-to-
government
• Pension plans invest with profitable companies. https://www.newswire.ca/news-releases/canadian-pension-
returns-retreat-in-2018-rbc-investor-amp-treasury-services-843300484.html
• Ontario / Canada need to be competitive when it comes to its economic policies -
https://www.slideshare.net/paulyoungcga/business-competitivesness-canada-march-2019
• AG report -
https://www.ontariopc.ca/auditor_general_pre_election_report_is_proof_that_kathleen_wynne_can_t_be_trusted
• Education mess - https://www.slideshare.net/paulyoungcga/government-policy-education-ontario
• Healthcare mess - https://www.slideshare.net/paulyoungcga/healthcare-ontario-analysis-and-commentary-january-
2019
• Ontario Fiscal Mess - https://www.slideshare.net/paulyoungcga/ontario-fiscal-and-economic-cliff
• Liberals failed clean tech policies - https://www.slideshare.net/paulyoungcga/ontario-climate-change-march-2019

14. Ontario Competitiveness
• Someone needs to explain to @MikeSchreiner how taxing works. If your entity does not make taxable income, then there is
no corporate tax!
• https://torontosun.com/news/provincial/ontario-lost-up-to-1-2-billion-selling-clean-energy-at-a-loss-engineers
• https://www.bnnbloomberg.ca/awash-in-red-ink-canadian-clean-tech-struggling-despite-ottawa-s-green-goals-1.729679
• NR companies in general make profit - https://globalnews.ca/news/4643295/canada-big-oil-company-profits-report/
• Ontario’ fail clean agenda - https://www.slideshare.net/paulyoungcga/green-agenda-failure-ontario
• Corporate Taxation - https://www.slideshare.net/paulyoungcga/how-do-corporate-taxes-flow-to-social-programs
• Ontario needs to become more competitive - https://business.financialpost.com/transportation/im-worried-about-whats-
going-on-in-canada-magnas-ceo-concerned-about-competitiveness or https://councilgreatlakesregion.org/reduce-business-
property-taxes-to-make-on-more-competitive/

15. Public Sector vs Private Sector
Source - http://ftw.fraserinstitute.org/article/times-have-changed-public-sector-employment-rise-canada-especially-ontario