Commission on the Reform of Ontario's Public Services

Chapter 1: The Need for Strong Fiscal Action
Chapter 1: The Need for Strong Fiscal Action
Ontarians want excellent public services from their government. The <strong>Commission</strong> understands
and supports this desire. We see no reason why Ontario cannot have the best public services
in the world — with the proviso that they must come at a cost Ontarians can afford. With such
a goal, we face three overarching tasks. First, we must understand Ontario’s economic
challenges and address them directly. Second, we must firmly establish a balanced fiscal
position that can be sustained over the long term. And third, we must sharpen the efficiency
of literally everything the government does so Ontarians get the greatest value for money from
the taxes they pay. This report addresses these issues and offers a road map to a day when
Ontarians can count on public services that are both excellent and affordable — the public
services Ontarians want and deserve.
Ontario faces more severe economic and fiscal challenges than most Ontarians realize.
We are in the midst of a period of deep and widespread uncertainty over the course of the
world economy and its financial system — a period unprecedented in the lifetimes of almost
all of us. But even after the world once more finds its footing, Ontarians can no longer simply
assume the strong economic growth and prosperity to which they have become accustomed
and on which the province has built its public services. Government programs can be
sustained in the long term only if the government enjoys the steady and dependable revenue
growth needed to finance them. An expanding economy is the foundation for rising revenues.
If the economy fails to grow quickly enough, Ontario’s revenues will fall short of the sums
needed to support government programs.
Improving Ontario’s economic prospects relative both to the past and to Canada’s resourcerich
provinces should always be a priority for policy-makers. But they should act immediately
to address the province’s fiscal position, which is entirely within their control. Endless deficits,
which would undermine the province’s economic and social future, are not inevitable. The goal
of eliminating the deficit can be met in large part through reforms to the delivery of public
services that are desirable in their own right, not just because they are less costly. Affordability
and excellence are not incompatible; they can be reconciled by greater efficiency, which
serves both the fiscal imperative and Ontarians’ desire for better-run programs. Balancing the
budget, however, will also require tough decisions that will entail reduced benefits for some.
Given that many of these programs are not sustainable in their current form, the government
will need to decide how best to target benefits to those who need them most. The treatment
may be difficult, but it is worth the effort.
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