Parks and Recreation Ontario

2007 Federal and Provincial Budget Update

 

 

To:  PRO Members and Stakeholders                                                           March 26, 2007

From: Diane English, Communications Officer

Read the full article below to learn more about the impact these budgets will have on the parks and recreation sector.
Federal Budget Sport and Recreation Highlights:
  • $1.5m to support the Canadian Heritage Sport Fund
  • Support for Own the Podium 2010
  • Money for Infrastructure to flow through the provinces

Ontario Budget Sport and Recreation Highlights:

  • Creation of the Ontario Child Benefit, which will end the clawback of the National Child Benefit Supplement, a program that has supported recreation, after school and other community-based programs
  • Two funds for investment in Youth
  • $2.5m increase in Communities in Action Fund for a total yearly budget of $7.5m
  • Continuing the Quest for the gold lottery which provides approximately $10m to amateur athletes
  • $2m for the 2009 World Junior Hockey Championships
  • Continued support for the Healthy Eating, Active Living strategy
  • An additional $15m for community recreation infrastructure and multi-use facilities
  • An additional $70m for the Rural Infrastructure Investment Initiative, a program in which sport and recreation facilities were listed as one of five priority areas.
  • Commitment to complete the Provincial-Municipal Fiscal and Services Review by 2008
  • $3m for the Heart and Stroke Foundation in support of their advocacy for using automated external defibrillators in community centres and arenas

Last week, both the Federal and Ontario Governments delivered their budgets for the 2007 – 2008 Fiscal Year. 

In Ottawa, Canada’s Minister of Finance, Jim Flaherty’s budget was entitled Aspire to a stronger, better, safer Canada.  The five pillars of the budget are: Environment and Health - Preserving our Environment and Modernizing our Health Care System; Tax Relief for Families and Businesses; Restoring Fiscal Balance for a Stronger Federation (transfer payments); Security; and Creating a Canadian Advantage in Global Capital Markets. 

The budget was disappointing from a physical activity, recreation and parks perspective.  National organizations have been advocating for a 1% investment (approximately $435m) of the total federal healthcare spending to be invested in sport and physical activity.  This was not part of the Conservative plan this time.  They did however, announce, as part of a section called “Celebrating our Culture” a $1.5m investment over two years in The Canadian Heritage Sport Fund.  This Fund will provide support for, among other things, encouraging youth involvement to heritage sports, such as Canadian three-down football and lacrosse.   There was also funding for the Own the Podium 2010 program.  To view a detailed analysis of the Federal Budget, visit Sport Matters at www.sportmatters.ca.

In the 478 page document, recreation is mentioned only three times:  two times in the context of environmental funding and a third time in the section on infrastructure.  The “Build Canada Fund” is money for infrastructure that will be allocated among the provinces and territories on an equal per capita basis.  Cultural and recreation facilities were mentioned as possible projects, but there was no emphasis placed on sport and recreation infrastructure funding.  This was especially disappointing after the Provincial and Territorial Ministers responsible for sport and recreation again made funding for sport, recreation and physical activity infrastructure their number one priority.  The federal government appears to be downloading responsibility for infrastructure to the provinces, instead of stepping up to the plate and taking leadership.  It will be more important than ever for Parks and Recreation Ontario to advocate at the provincial level for more support for our infrastructure crisis.  In addition, PRO members will be instrumental in advocating on a local level to ensure that sport and recreation infrastructure is considered a priority.  PRO will be shortly releasing an infrastructure report that will be extremely valuable in making the case for increased support from all orders of government.

At Queen’s Park, Ontario’s Minister of Finance, Greg Sorbara unveiled the fourth budget for the McGuinty Government.  The budget is titled Investing in People and Expanding Opportunity.

There is a strong emphasis on investing in children and youth, continuing to strengthen education, healthcare and infrastructure – and balancing the budget.

Children and Youth

1.      The major new project in this budget is the announcement of the Ontario Child Benefit (OCB).  According to projections, the OCB will reach nearly 1.3 million children, when fully implemented and represents a cumulative investment over five years of $2.1 Billion.  As part of the OCB, the Government intends to end the National Child Benefit Supplement (NCBS) community reinvestment funding (i.e. clawback) effective July 2008. 

IMPACT:  At the recent pre-budget consultations with Minister Sorbara, PRO advocated that if this NCBS reinvestment funding is ceased, the provincial government should continue to provide money equivalent to the community reinvestment portion of the NCBS in order to maintain the valuable programs for children and families currently in place. 

The McGuinty government estimates that when the OCB is fully implemented in five years, the savings to municipalities will be $15m because of reduced social assistance costs that will be rolled into the OCB.  There are also other cost “uploads” in this budget that promise to provide more monies for municipalities.  However, these are all being phased in over time and will not address the immediate budget shortfalls that will be caused when the NCBS reinvestment ends in 2008.

Therefore, there will be an immediate strain on municipal budgets to continue these valuable community-based programs, many of which are delivered through municipal recreation departments.  It will be up to those recreation departments, supported by the advocacy initiatives of PRO, to ensure that municipal leadership recognizes the value of these programs to their communities and constituents, and that municipalities should reinvest any savings received through the 2007 budget to support the programs.

PRO and the Access to Recreation for Low-Income Families Task Group will continue to advocate at the municipal and provincial level on behalf of members and stakeholders for the funds to support community-based programs and services.  We will provide members with information and tools to assist in advocacy efforts.

2.      There were also two positive announcements about programs for youth.

  • The Youth Opportunities Strategy will expand its reach and invest $28m over three years to expand community programs that help at-risk youth choose a better future in London, Ottawa, Thunder Bay, Windsor and Hamilton.
  • The confirmation of the Youth Challenge Fund, which supports community-led programs that offer young people positive alternatives to guns and gangs, such as sports and community activities.  The government is providing up to $30m over three years.

IMPACT:  The new application and guidelines are now available from the Youth Challenge Fund website (www.youthchallengefund.org) and the deadline for submissions for the next round of applications is April 16, 2007.

Ministry of Health Promotion

In his budget speech, Minister Sorbara positioned the promotion of wellness and preventing illness very strongly.  He said, “Preventing Ontarians from getting sick is central to the government’s plan for health care.  This is why the government is focusing on healthy and active living, illness prevention and health promotion.  Over the long-term, these investments will help manage health care costs. 

Funding for the Ministry of Health Promotion for the 2007-2008 Fiscal year will e $373M, down from the projected $396m for 06-07.  This is because of the one-time infrastructure funding announced as part of the recent economic stimulus package and the wrap up of the Sport, Culture and Tourism program. 

The good news is:

  • An additional $2.5m for the Communities in Action Fund, bringing to total to $7.5m per year
  • Continuing the Quest for the gold lottery which provides approximately $10m per year to amateur athletes, through 2010
  • $2m for the 2009 World Junior Hockey Championships

In addition, the Healthy Eating, Active Living (HEAL) Strategy will continue and there is some investment in public health initiatives as well.

IMPACT:  PRO is a member of the Deputy Minister for Health Promotion’s HEAL Advisory Committee and will continue to advocate for the promotion a comprehensive physical activity strategy.  PRO has received approval for funding under HEAL to support the work of the Access to Recreation for Low-Income Families Task Group.  In addition, PRO has applied to the Communities in Action fund for several projects that benefit the sector.

Infrastructure

The budget states that the government is investing $41m in community infrastructure and multi-use facilities.  This however, represents only $15m in new funding, all of which is already allocated to seven projects, including $3m for Port Colborne’s multi-use sports complex, $3m for the Hunt-Club Riverside Community Centre in Ottawa, $1.3m for Cobourg’s ice rink and $1.3m for the Moosonnee multi-use facility.

The McGuinty government continued to put an emphasis on strong rural communities. The Rural Infrastructure Investment Initiative was renewed with an additional $70m.  Cultural and recreation facilities are one of the five priority areas in this program.

IMPACT:  PRO advocated for an immediate investment of $100m dedicated to sport and recreation infrastructure.  PRO will work to create a strategy involving members and a broader group of stakeholders to ensure that the infrastructure crisis in sport and recreation is made a priority for long-term funding, supported by all orders of government.

Other Issues

1.      The Heart and Stroke Foundation was given $3m in funding in support of their advocacy for using automated external defibrillators in community centres and arenas.  PRO has been asked by the Ministry of Health Promotion to assist with this program.

IMPACT:  PRO will ensure that the needs of members are considered when programs are implemented.

2.      The government proposes to increase the hourly minimum wage to $10.25 by 2010, with three annual increases of 75 cents starting on March 31, 2008. 

IMPACT:  This will have a direct impact on municipalities and facility operators who hire part-time or seasonal staff.  PRO will monitor trends through the part-time wage survey it publishes.

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Diane English
Parks and Recreation Ontario, Communications Officer
416-426-7306
denglish@prontario.org