First Quarter Report Confirms Growing Deficit
The Ministry of Finance’s first quarter financial accounts show the Ontario deficit is already growing to $4.4 billion higher than expected. In fact, the massive deficit of $18.5 billion projected for this year is 30 per cent more than forecast.

Governments, businesses, non-profit organizations, families and individuals are all facing an economic downturn. However, the McGuinty government is falling into debt more quickly because of a tax-and-spend culture that has been in place since this government took office. As you will recall, one of the first actions of this government was to impose a health tax after promising taxes would not be raised. Over the past six years, their program spending has increased by 59%. Total government expenditures have grown by an average of 8% each year, while the Ontario economy has increased by 4% annually.

The new Dalton Sales Tax expected in less than a year means Ontarians will not only be facing a big deficit, but also a big tax increase. The public debate over this new tax has led to a closer scrutiny of how this government handles our tax dollars. And most Ontarians are disappointed by what they see. In addition to demanding greater accountability and fiscal discipline, Ontarians are sending a clear message that the new tax will not be tolerated. Nor will a tax-and-spend approach to government in Ontario. Our cost of electricity, insurance, municipal taxes, as well as licences, fees and permits will all be going up as the provincial economy is going down.
The latest provincial government spending controversy has been the e-health fiasco. As of my deadline for preparing this column, news reports revealed that the $5 million in un-tendered contracts awarded to consultants by eHealth has grown to about $15 million. It’s further evidence of careless spending by the McGuinty government.

Dalton’s Sales Tax Will Cost Drivers at the Pumps
Whether you’re driving to work, to the grocery store, or to your summer vacation, the new provincial sales tax will cost taxpayers more. If gasoline costs around 90 cents per litre, the tax will add about seven cents to that amount and raise the price to about $1. That’s because the price at the pump currently includes only GST and not the PST. For a typical commuter filling the tank once a week, the added cost of gas could be about $200 per year. This is one more example of how the extension of the provincial sales tax will be bad news for Ontario. It’s important to stop the “Dalton Sales Tax” (Sometimes nicknamed the DST) before it comes into effect in July of 2010. For a full list of items to be taxed under the DST and to sign an online petition, please visit www.daltonsalestax.com.

Region Has High Profile in “Shadow Cabinet”
Our Durham Region is well-represented among the Opposition Critics announced last week by the Leader of the Opposition, Tim Hudak. Oshawa-Whitby MPP Christine Elliott has been named Critic for Health and Long-Term Care as well as Deputy Leader of the Opposition. Jerry Ouellette, MPP for Oshawa, will serve as Critic for the Ministry of Natural Resources. I look forward to serving as Opposition Critic for the Ministry of Government Services in the “shadow cabinet.” My critic’s portfolio will include many aspects of the provincial public service as well as government branches such as ServiceOntario that provide government information and services to individuals and business.

Government Must Clarify Future of Licence Offices
The Ontario government has yet to clarify the role of private vehicle licencing offices now that ServiceOntario centres across the province will spend the next 18 months expanding their integrated services. There is some confusion because announcements last week from the Province regarding integrated services failed to explain what will happen to 70 privately operated offices that provide motor vehicle licencing and related services. If these offices close, there will be lost jobs and added inconvenience for residents of smaller communities across Ontario. In my experience, private licencing offices are busy, efficient, and less costly to the taxpayers of Ontario. Improving access to government services is important. But, I fail to see how services will improve if private licencing offices are allowed to close.

Community Supports Hospital Expansion
Bowmanville Hospital’s donors and volunteers are to be commended for their leadership in raising funds for the new mammography facilities and gift shop renovations scheduled to begin in the near future. Funding support for state-of-the-art digital mammography equipment valued at $1.35 million is coming from the Memorial Hospital Foundation Bowmanville. Gift Shop renovations costing an estimated $150,000 will be paid for by the Association of Hospital Volunteers Bowmanville. Last week’s announcements were described as the beginning of a larger project that will result in an expanded ER as well as consolidation of the Special Care Unit and renovation of the endoscopy services.

The commitment of the community to funding local hospital improvements is one of the many reasons why community hospitals must have a permanent place in Ontario’s healthcare system. Community support for Ontario’s smaller hospitals goes beyond the thousands of signatures on petitions and letters or the hundreds that attend public rallies when hospital services are threatened. Local citizens back up their community hospitals through the hard work of fund-raising projects, along with personal and corporate donations. Our hospital volunteers and foundations work hard for our community hospitals.

Infrastructure Funding to Not-for-Profit Projects
Not-for-profit organizations will have an opportunity to apply for upgrading local facilities through the Canada/Ontario infrastructure program. There is a deadline of August 18 for applications. The government of Canada will contribute towards one-third of eligible costs on approved projects. (And in exceptional cases, up to one-half of eligible project costs.) These funds will be matched by the Province of Ontario. A program guide and short application form can be accessed at www.creatingjobs.gc.ca