Commission on the Reform of Ontario's Public Services

Current Context — Key Fiscal Challenges Facing the Sector
Moving forward, the justice sector faces fiscal challenges that will need to be addressed
to bend down the cost curve for justice services. Key challenges facing the sector include
compensation, increasing remand costs, infrastructure costs, the impact of federal legislation
and greater expectations from the public for justice-related services.
Compensation: The primary cost driver in the justice sector is compensation, including
salaries and benefits for the 25,000 staff. Compensation costs represent about 70 per cent
of total expenditures. Increases in compensation are almost entirely driven through collective
bargaining awards or compensation commissions (e.g., for lawyers, judges/justices of the
peace, OPP and AMAPCEO/OPSEU). As pointed out in the Auditor General’s Review of the
2011 Pre-Election Report on Ontario’s Finances, the OPP negotiated an 8.5 per cent wage
increase for 2014 (the three-year contract starting in 2012 begins with wage freezes in 2012
and 2013), while the correctional officers’ collective agreement (the OPSEU collective
agreement) ends on Dec. 31, 2012.
Custody Remand: There has been a substantial increase in remand, particularly in the
Greater Toronto Area. Remand refers to accused individuals who have been charged and
detained in custody and have either been denied bail or have yet to appear before a judge.
They are in custody while awaiting trial. There are currently more people on remand than
there are sentenced offenders in Ontario correctional facilities.
Infrastructure: The justice sector’s infrastructure is aging and deteriorating. There are now
103 courthouse facilities and 26 correctional facilities that are over 30 years old and require
significant renewal or replacement.
Federal Legislation: The impact of federal legislation is a significant challenge. The federal
government has jurisdiction over criminal law, including amendments to the Criminal Code.
The September 2011 omnibus crime bill, the Safe Streets and Communities Act, includes
proposals for tougher sentences and mandatory jail time for serious offences. The provincial
government has estimated that the minimum annual operating impact for Ontario on an
ongoing basis will range from $22 million to $26 million at maturity, but this estimate could be
much higher and we will return to this later in the chapter. The Safe Streets and Communities
Act follows another federal crime initiative, the Truth in Sentencing Act, passed in October
2009, which contained several changes including ending two-for-one credit for time served.
Both of these are expected to have fiscal implications for Ontario’s justice system. Increased
incarceration rates and more trials in Ontario’s criminal justice system will result from
these bills.
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