Interest rates are extremely low, which has enabled the government to manage those costs.
Yet, as interest rates increase, as they are expected to, so will those payments, taking precious resources away from education and health care.
In 2011—12, Ontario’s per capita program spending is projected to be ,560, which is the lowest among the provinces and 11 per cent below the average program spending across the other nine provincial governments.
The Mc Guinty government is well positioned to implement change, given its strong action to reform education, health care and Ontario’s tax system.
The is the next step in the Mc Guinty government’s plan to balance the budget.
Balancing the budget is ultimately the most important thing the government can do to strengthen the economy, create jobs, and protect health care and education.
Since 2003, class sizes are down, graduation rates and test scores are up, and Ontario’s schools have been recognized as among the best in the world by the Organisation for Economic Co-operation and Development’s Programme for International Student Assessment (PISA) and Mc Kinsey and Company.
The government also eliminated the .5 billion deficit it inherited.
When the global recession hit, the Mc Guinty government chose to lessen the impact on Ontarians, through stimulus investments, boosting job training for laid-off workers and lowering income taxes for nine out of 10 Ontario taxpayers.
The government’s approach is different from arbitrary, across-the-board cuts, which would undermine the strength of Ontario’s economy and put job creation at risk.
Experiences in Canada — including in Ontario in the late 1990s — and around the world have shown that deep, across-the-board cuts ultimately lead to increased costs.