Here is look at taxation and spending by government including efficiency and effectiveness of spending.

1. Public Sector –
Efficiency and
Effectiveness
PAUL YOUNG CPA CGA
JULY 22, 2020

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public
Finance and Advanced Management
Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. Introduction
 The time for big government is now gone. Government needs to be re-size
to ensure maximum value is being achieved for tax dollars that are
collected by all levels of government.

4. Agenda
 Emerging Markets
 Public Sector Effectiveness
 Blog – Auditor General
 Public Sector vs Private Sector
 Sunshine List
 Government Financial Statistics – March 2019
 All taxation and spending by all levels of government
 Fiscal Monitor
 Blog – Public Sector
 Blog – Public Sector Compensation
 Blog – Lapsing Funds
 Blog – Automation
 Blog – 2019 Election
 Fiscal Monitor
 What is GAP Analysis
 Reforming government
 Municipalities per capita Ontario
 Solutions

5. Emerging
Markets
Source -
https://www.mckinsey.com/
featured-
insights/innovation-and-
growth/outperformers-
high-growth-emerging-
economies-and-the-
companies-that-propel-
them

6. Most Efficient Government
Source - https://www.theglobaleconomy.com/rankings/wb_government_effectiveness/
• From 2006 until 2011 there was a minority government
• 2015 to present the ruling party are the Liberals

7. Blog – Auditor - General
@joycemurray
Your comments on the auditor-general are not completely accurate and/or your government being more open and
transparent are also incorrect!
 Here my comments on liberals when it comes to open and transparent govt.
 In 2014-2015 there was $39M spent on Performance Audits. You are now spending $32M
https://www.slideshare.net/paulyoungcga/2019-election-open-and-transparent-government-canada-
148976592 (see slide 12)
 Your government changed the reporting on the fiscal monitor. You eliminated reporting of depts, why?
https://www.slideshare.net/paulyoungcga/2019-election-open-and-transparent-government-canada-
148976592 (see slide#8)
@joycemurray - Do you honestly think people do not check your comments out on the Auditor-General
@JohnBrassardCPC

8. Public Sector vs Private Sector
Blog – Public Sector vs Private Sector
https://www.canadianmanufacturing.com/financing/d
oug-ford-orders-public-sector-hiring-freeze-excludes-
essential-frontline-staff-214804/
@OPSEUSmokey How about you asked your workers to
take a pay cut?
@ontarioisproud We have 14%+ higher
wages/pension/etc. and Thomas refuses to address the
compensation issues!
Blog – Public Sector vs Private Sector
https://twitter.com/CBCQueensPark/status/9772611909748
65410
Liberals also have grown their public coffers allot larger.
Liberals are great at summary data, but not at the details!
CFIB - https://www.canadianmanufacturing.com/human-
resources/wages-higher-in-public-sector-than-private-in-
ontario-says-fraser-institute-183470/ or
http://thechronicleherald.ca/business/1276204-public-
workers-out-earn-private-sector-%E2%80%94-cfib
https://www.slideshare.net/paulyoungcga/election-2018-
ontario-liberals-vs-ontario-progressive-conservatives-
economic-trends-and-fiscal-management
Where are the Liberals on the broken arbitration process?
https://www.thestar.com/news/canada/2016/04/01/comm
unities-struggle-to-rein-in-budgets-as-policing-costs-rise-
while-crime-rates-fall.html

9. Pandemic – Public Sector vs Private
Sector
 More than a quarter of all federal public servants were
granted paid time off work during the first 11 weeks of
the COVID-19 pandemic, at an estimated cost of $439
million.
 The "other leave with pay" provision, also known by its
pay code 699, is approved at the discretion of
management when employees are unable to report to
work for reasons beyond their control. It is separate
from vacation or sick pay.
 Between March 15 and May 31 of this year, a total of
76,804 employees took this leave, according to the
Treasury Board of Canada Secretariat.
 That's 27 per cent of all federal public workers.
Source - https://www.cbc.ca/news/canada/ottawa/federal-
public-servant-699-leave-with-pay-1.5657743
• Private sector seen lost jobs and hours -
https://www.slideshare.net/paulyoungcga/labor
-market-canada-june-2020
• Small business continue to struggle to survive -
https://globalnews.ca/news/7178651/small-
businesses-new-debt-pandemic-cfib/ or
https://www.slideshare.net/paulyoungcga/cana
da-small-business-whats-next
• Trudeau made the comment that “Federal
government took on debt so Canadians would
not. The problem is many Cdns did take on debt
as CERB did not cover all their expenses -
https://www.slideshare.net/paulyoungcga/covid
19-global-debt-crisis-july-2020

10. Sunshine List / Ontario
Both London and Hamilton have low unemployment rates, but high social assistance rates. The new Ontario government will need to focus
on policies that will encourage economic development for cities like Hamilton and London
https://www.slideshare.net/paulyoungcga/london-ontario-issues-and-solutions-may-2018 or
https://www.slideshare.net/paulyoungcga/city-of-hamilton-issues-and-solutions-may-2018
Is it anyone surprised that two cities that elect socialist government have high welfare rates?
https://www.ontario.ca/page/public-sector-salary-disclosure#section-0
In 2003 there were about 20K government workers on Sunshine List as compare to over 123K in 2017.
The cost of the sunshine payroll went from $2B in 2003 to 16B in 2017. When did you hear
@AndreaHorwath call these numbers out?
@fordnation @ontarioisproud

11. Public Sector vs Private Sector
 Government needs to re-think how it operates as part ensuring its
programs are sustainable.

 The problem is too many people think government needs to hold their
hand from cradle to grave.
 https://www.slideshare.net/paulyoungcga/understanding-the-cost-of-
government-payroll-canada
 Private sector and consumer spending drive taxation into the govt.

12. Government Taxation and Spending
Spending
Source https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1010001501 or
https://www.fraserinstitute.org/sites/default/files/canadian-consumer-tax-index-2018.pdf
• Govt workers are
paid 14% higher
on average than
the private sector
• Approximately
1/3 of your taxes
paid goes to
paying govt
salaries

13. Taxation and Spending by all Levels of
Government

14. Ontario Public Sector Compensation
Source - https://www.canadianmanufacturing.com/human-resources/ont-provincial-agencies-will-
require-government-approval-for-wage-settlements-223065/
• Approximately 50% of the government spending is tied to wages
• I estimate the govt could save $2B to $3B if they introduced wage and benefit reform
• Public Sector have been baby too much by various govt. Many leaders counted on the
public sector vote as such bent over backwards towards all public sector union

15. Taxation / Flow - Ontario
https://www.policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2014/10/Narrowing_the_Gap.pdf
Liberal Party, especially Wynne never think they do anything wrong and yet the facts continue to show how inept they are with various
portfolios. It is sad the electorate in many cases is now admitting they either never voted for Wynne or now are fighting back on Wynne's cuts.
1. Source - http://ottawacitizen.com/opinion/columnists/reevely-bob-chiarelli-stands-by-attack-on-auditor-general-regardless-the-cost
2. Source - http://news.nationalpost.com/2014/05/09/even-an-ex-liberal-finance-minister-warned-wynne-that-deep-spending-cuts-are-
needed-to-balance-ontarios-budget/ or
3. Source - http://www.fraserinstitute.org/research-news/display.aspx?id=22200
4. Source - http://www.cfib-fcei.ca/english/article/6406-ontario-budget-reissued.html or http://www.ceocouncil.ca/publication/letter-
honourable-kathleen-wynne-premier-ontario.
Trust there are many more, especially how wynne deflects the municipalities issues at Harper:
http://www.slideshare.net/paulyoungcga/municipalities-canada or Brad Wall's comments:
http://www.cbc.ca/news/canada/saskatchewan/saskatchewan-premier-brad-wall-concerned-about-ontario-quebec-position-on-energy-east-
1.2848930.
Welcome to Ontario home to Premier Mom!
https://www.policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2014/10/Narrowing_the_Gap.pdf
Or http://globalnews.ca/news/1356467/tax-cuts-since-2005-net-canadians-30b-pbo/ or
http://www.slideshare.net/paulyoungcga/corporation-taxation-canada-44675640
or

16. Blog – Public Sector / OFL
 https://www.cbc.ca/news/canada/toronto/labour-group-protests-ontario-education-system-teacher-cuts-
1.5101611?fbclid=IwAR2chdsZ9vKa8q3ccn2qGWYdaI_m2X_62Rn3iXPPE5gL5-lQ4mzyaMxQOTs
 Attention: OFL
 You do realize the government does not operate in a competitive environment, right? Public sector wages are a big
issue in Ontario - https://www.competeprosper.ca/work/working-papers/the-realities-of-ontarios-public-sector-
compensation
 I also do not see OFL making any suggestions on how to fixed either economy or the fiscal management cycle
Issues
 Auditor General -http://www.auditor.on.ca/en/content/specialreports/specialreports.html
 Drummond Report - https://business.financialpost.com/opinion/the-drummond-report-gave-ontario-a-good-plan-
then-kathleen-wynne-buried-it
 Moody’s downgrade - https://business.financialpost.com/news/economy/moodys-downgrades-ontarios-credit-
rating-from-aa3-to-aa2-citing-deficit
 Ontario has spending problem https://www.fraserinstitute.org/article/ontarios-financial-problems-are-ontario-made
 https://nationalpost.com/opinion/allan-richarz-ontarios-teachers-are-overpaid - Teachers
 https://www.slideshare.net/paulyoungcga/ontario-economic-and-fiscal-mess

17. Blog – Public Sector Compensation

 There has been huge gaps between private sector and public sector pay -
https://www.fraserinstitute.org/studies/comparing-government-and-private-sector-compensation-in-ontario-2018
 Wynne never dealt with a broken arbitration process that was not based on the ability to pay -
https://www.slideshare.net/paulyoungcga/2019-election-issues-municipal-and-local-government-issues-and-analysis-may-
2019 (see slide 32)
 People need to understand that government does not work in competitive environment as such there are no market
pricing rules. Yet people will argue that private sector should increase wages. Businesses against other businesses when it
comes to their goods and services - https://www.slideshare.net/paulyoungcga/is-canada-losing-its-business-
competitiveness-february-2019
 Ontario is fiscal mess as such has to reign in compensation as it is about 50% of every dollar the government spends when
it comes to program spending - https://www.slideshare.net/paulyoungcga/fiscal-management-cycle-ontario-issues-and-
analysis
 Wynne and McGuinty added over $200B through waste and nothing is said, why? https://www.thespec.com/opinion-
story/9343836-ontario-s-budget-based-on-math-not-
ideology/?utm_source=twitter&source=thespec&utm_medium=socialmedia&utm_campaign=500am&utm_campaign_id=
opinion&utm_content=ontario-s-budget-based-on-math-not-ideology. Wynne and McGuinty has zero respect for the AG
reports as such did nothing with the AG reports. https://www.thestar.com/news/queenspark/2017/12/06/auditor-general-
takes-aim-at-liberals-over-spending-and-waste.html. Wynne also ignored recommendations in the Drummond Report -
https://business.financialpost.com/opinion/the-drummond-report-gave-ontario-a-good-plan-then-kathleen-wynne-
buried-it. BTW – Horwath back many budgets!

18. Blog – Lapsing Funds
All governments used lapsing funding including @justintrudeau -
https://globalnews.ca/news/4447716/trudeau-liberals-leave-372m-meant-for-
veterans-unspent/
Yet Trudeau called out @andrewscheer about how Harper used lapsing funds!
https://www.slideshare.net/paulyoungcga/fiscal-management-role-of-
lapsing-funds

19. Blog – 2019 election
Who do you trust more to manage the finances of Canada?
@JustinTrudeau who continues to hand money to pander for votes (reckless spending)
https://torontosun.com/opinion/columnists/lilley-trudeau-is-spending-your-cash-to-get-your-
vote
@AndrewScheer who will have a responsible approach to the fiscal management cycle
https://www.slideshare.net/paulyoungcga/2019-election-fiscal-management-cycle-canada-
issues-and-analysis-august-2019

20. Government /
Automation
Source -
https://www.mckinsey.com/industrie
s/public-sector/our-insights/how-
governments-can-harness-the-
power-of-automation-at-
scale?cid=other-pso-twi-mps-mps-
oth-1908

21. GAP Analysis – Financial Planning and
Analysis
 What is GAP Analysis? – “It’s comparing what you are doing now and what you should be
doing. It’s identifying the “Gap” between what you are doing now and what you really want
for yourself and your family. Gap analysis is used to achieve a specific goal by assessing
what you are doing now with the resources available to you versus what you could be
doing to allow these resources to be better utilized at all times. If resources are being
utilized in the wrong way – too inefficiently, too costly, too risky (or not the right kind of
risks) – it will likely undermine the long term prospects of achieving your goals. A gap
analysis is sort of a snap shot of your current situation and an understanding of the
different “best practices” you could use to make adjustments and get your plan on track.”
 Source http://www.wflains.org/annuities/financial-article-archive/2016/06/financial-planning-gap-
analysis-do-you-know-where-you-are-headed/

22. Reforming Government
 https://www.slideshare.net/paulyoungcga/how-to-reform-local-and-municipal-government
 Over the years the size and cost of government has grown. COVID19 has shown that very few governments had crisis management plans to handle a
major crisis. All levels of governments are faced with constraints like the following:
 Union contracts including a broke arbitration process - https://www.owensoundsuntimes.com/news/local-news/owen-sound-fire-arbitration-decision-
will-produce-substantial-savings
 Compensation reforms (pensions and wages) - https://www.slideshare.net/paulyoungcga/2019-election-public-sector-efficiency-canada-july-2019
 All levels of government need to embrace data and AI as part of streamlining reporting as well as automating internal audit programs -
https://www.slideshare.net/paulyoungcga/the-role-of-operational-and-performancebased-auditing-on-government-and-the-private-sector
 Local government needs to embrace new models when it comes to building affordable housing - https://www.slideshare.net/paulyoungcga/urban-and-
rural-planning-whats-next-236315321
 All levels of government need to find efficient and effective ways to build new infrastructure as well as replace aging infrastructure -
https://www.slideshare.net/paulyoungcga/construction-sector-whats-happening
 Reforming public safety including the use on analytics and more oversight - https://www.slideshare.net/paulyoungcga/how-do-we-improve-public-
safety-including-police-reforms
 More emphasis on education and training - https://www.slideshare.net/paulyoungcga/human-capital-management-skills-and-education
 More emphasis on economic development - https://www.slideshare.net/paulyoungcga/transforming-the-economy-postcovid19-canada-and-the-world
 Better support for buying locally - https://www.slideshare.net/paulyoungcga/canada-retail-sales-april-2020
 More coordination with private sector on broadband expansion - https://news.ontario.ca/opo/en/2020/06/ontario-improving-broadband-and-cell-
service-for-rural-communities.html

23. Per capita spending / local govt
Source - https://www.fraserinstitute.org/blogs/government-spending-varies-widely-across-
major-ontario-municipalities

24. Solutions
 All government program spending needs to go through value for money including changes to the costing model
 Too many governments are not getting value for their government services.
 Government needs to become lean - https://fcpp.org/2018/10/12/employment-data-shows-canadas-public-sector-getting-
fatter/
 Canada needs to have competitive tax rates or risk a brain drain - https://www.slideshare.net/paulyoungcga/technology-
market-canada-and-the-world-march-2019
 Canada needs have govts that support policies that encourage business investment -
https://www.slideshare.net/paulyoungcga/business-competitivesness-canada-march-2019 or
https://www.slideshare.net/paulyoungcga/how-best-to-get-goods-to-market
 All levels of government need to focus on lean business practices as part of streamlining operations
 It should be mandatory that all politicians take accounting, economics and finance courses before running for office.

25. Other Sources
 If you like to learn
more about trade
and/or other subjects
as part of your
professional learning
and development
then feel free to
review my material
on
https://www.udemy.c
om/ (search Paul
Young CPA CGA