This presentation looks at three areas of funding: education, healthcare and post-secondary school

1. Government Funding flow
to Front-Line Services -
Ontario
Paul Young CPA, CGA
November 29, 2018

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