The Ontario Liberal’s 2018 budget contained few new spending surprises following more than a week of major announcements from Premier Kathleen Wynne, who is preparing for an uphill battle in a provincial election that is just weeks away.
Universal prescription drug coverage for people over 65, a new drug and dental program, expanded access to free tuition for college and university students and additional benefits for seniors are among some of the new promises in the provincial budget aimed at voters’ wallets.
The $158.5 billion budget, which effectively functions as an election document this year, contained new details on spending announcements like free preschool child care, increases in funding for healthcare and mental health – all aimed at winning over voters amid Wynne’s declining approval ratings.
The newly announced drug and dental program would reimburse Ontarians up to 80 per cent of prescriptions and dental visits. The program will only apply to those who aren’t already covered by workplace or other government benefits and is expected to cost $800 million over two years.
WATCH: Ontario Finance Minister Charles Sousa announces that the 2018 budget will include 100,000 more affordable child care spaces and free pre-school for every child aged two and a half to kindergarten.
However, there were no details about which drugs would be covered and the program will be capped at a maximum of $400 per person for both drug and dental, $600 per couple, plus $50 for each child in the family.
The Liberals also announced an expansion of the OHIP+ program, which will provide universal drug coverage to everyone 65 and older at a cost of about $575 million a year. Drugs covered in the program include medications for cholesterol, hypertension, diabetes and asthma. The average senior will save about $240 a year, according to the government.
The government is promising to invest $1 billion over three years to give seniors 75 or older a $750 benefit to help cover home maintenance costs. Other budget goodies for seniors include a 15 per cent public transit credit.
Finance Minister Charles Sousa said while the province is in a better financial place, people are still being “left behind.”
“People are saying, ‘we still need more support.” We made a choice to provide that support,” Sousa told reporters. “When you look at families, especially those who don’t have benefit plans, they are looking for supports. Today we are announcing a new drug and dental plan for them.”
“These investments mean something to the people of Ontario,” Sousa said. “We have a strong economy and we are building upon it.”
Ontarians will also see small changes to the way personal income tax is calculated by replacing the surtax with new income tax brackets. For example, a person earning $95,000 would see the surtax removed but pay about $168 more in income tax. The changes would almost 2.5 million people, while an estimated 1.8 million taxpayers would pay an additional $200 a year, on average.
WATCH: Could the 2018 provincial budget be Kathleen Wynne’s last?
Sousa said that 83 per cent of Ontarians will see no change at all, and 700,000 people will pay less.
Wednesday’s budget reveal also included new details about previous announcements from the Wynne government including the promise that Ontario preschooler will have access to free licensed child care from age 2.5 until they start kindergarten beginning September 2020 at a cost of about $2.2 billion. New funding details included $534 million over the next six years to build 10,000 child care spaces in schools and 4,000 community-based spaces.
While child care is free in many European countries, Ontario would be the first province in Canada to offer the service for free.
The average Ontario family with one preschooler would save about $17,000, while families in Toronto, where child care fees are among the highest in the country, would save more, according to government projections. Last year’s budget included $1.6 billion to build 45,000 new spaces.
Despite a previous pledge of balanced budgets, the Liberals planning $20.3 in new spending over three years and are projecting deficits for the next six years, with a $6.7 billion deficit expected in 2018–19, a $6.6 billion deficit in 2019–20 and $6.5 billion in 2020–21.
Meanwhile, the province’s provincial debt is expected to balloon to $325 million next year, and rising again to $342 million in 2019-2020 and $360 million in 2020- 2021.
The Liberals aren’t planning a return to a balanced budget in 2024–25.
Newly elected PC leader Doug Ford accused Wynne of “trying to buy votes.”
“Today, my friends, Kathleen Wynne continued the re-election spending spree with your money. The Liberals think they can buy your vote, your vote is for sale and this proves it in this budget,” Ford said.
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Ford didn’t answer questions about where he agrees with any spending measures announced by the Liberals, as the PCs have not released a platform.
“It’s amazing how they promise billions of dollars for children who haven’t even been born,” Ford said. “I’m surprised that the finance minister and the premier aren’t up here saying, ‘We’re giving away free cars, we’re going to pay your mortgage — you get a free car, you get a free car, you get a free car.’”
Ontario NDP leader Andrea Horwath, who has promised dental coverage for those without benefits, called the Liberal budget a “last ditch pitch for votes.”
“Despite all of the hype, all of the promise this promise will not undo the damage done by her government,” Horwath said, adding her party will release a fully costed platform “shortly. “
Meanwhile, smokers in the province will see taxes on tobacco tax increase go up roughly 2% starting midnight and another $4 a carton.
Other highlights from Wynne’s budget include expanded access to free tuition for university and college students from low and middle-income families who make less $90,000, and more financial aid for students from families who make up $175,000.
The Liberals are also promising major investments in the province’s healthcare system with an $822 million boost for hospitals, in addition to $19 billion over 10 years to build and renovate hospitals, and more than $17 billion over four years on mental health support. Earlier this week, Wynne announced $300 million over three years for special education, as well as a $625 million boost to general education funding, for a total of $24.5 billion.