Last March, the good ship Ontario set off on a voyage in troubled but not turbulent waters. Since then, a sea monster known as the credit crisis has attacked in the U.S., setting off waves of fear and trauma for economic sailors everywhere.
It's something this province's fiscal captain, Finance Minister Dwight Duncan, maintains no one could have predicted when he launched his budget last March.
And that's why he's decided to start bailing out, running a $500 million deficit - something the government vowed it wouldn't do last spring.
"[It] will allow us to maintain our important investments in Ontario's economic future as we work through the real challenges that confront the world today," Duncan explains. "Having eliminated the previous government's $5.5 billion deficit and having delivered three consecutive surplus budgets, we don't take this decision lightly."
But the Liberals aren't throwing all their plans overboard, just pulling their oars out of the water for now. It involves delays in hiring 9,000 nurses, adding 50 family health teams, putting off $25 million in needed school repairs and temporarily slamming the brakes on the launch of a $20 million venture capital fund.
Overall it adds up to some $100 million in delayed spending.
Cities will still get their allotted payments under the plan - but not the increase they'd hoped was coming.
Duncan felt he had no choice because the projected growth in Ontario - which had been at 1.1 per cent - is now down to just 0.1 per cent. And the private sector is looking at a paltry 0.7 per cent hike. But at least it's better than no growth at all.
There were no tax increases, as promised, but the de facto freeze - however temporary - will certainly put an additional chill on the province's residents.
Duncan blames the turbulent financial waters. "In Canada, around the world, and in Ontario, it is not business as usual," he warns. "The impacts of this are real, present and directly affect individuals, families, businesses and governments ... Ontario families are worried ... and understandably anxious and concerned for their future."
The Finance Minister also took the opportunity to take a swipe at the newly re-elected federal Conservatives, complaining a lack of funding for the provinces has left one of the country's key economic ships of state in dry dock.
But the opposition insists it's Duncan who's sailing against the tide.
"Just eight months ago in this very place, he had a $5.6 billion surplus and bragged about an $800 million reserve fund," thunders Conservative critic Tim Hudak. "Just four weeks ago he stood in this very place and said everything was under control and the budget would still be balanced. Today, he had to admit that this was all nonsense."
And he predicts every family will be paying the price for the decision down the road.
"McGuinty has added on some $31 billion in new provincial debt. That translates for every household in the province of Ontario another $6,500 that they owe plus interest. And working families know what that means. That means higher taxes for already strapped middle class families and seniors to pay down that debt.
"It also means higher interest payments instead of investments in front line services like health care or education. It is unnecessary. Irresponsible. And harmful to run a deficit in the province of Ontario."
But Duncan rejects allegations that taxpayers will mutiny, noting no one could have known what was around the bend "even a few short weeks ago."
Will the changes mean labour unrest?
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