Doug Ford has established a special commission -- headed by former B.C. Premier Gordon Campbell -- to look into Ontario's finances. The auditor general took a look at those finances four months ago. And, Alan Freeman writes, Bonnie Lysyk is no patsy:
Lysyk issued a report alleging that the projected deficit for 2018-19 of $6.7-billion was seriously understated, and was in fact closer to double that figure, at $11.7-billion. She blamed the discrepancy on the government’s accounting of pension plan assets and the costs of the Fair Hydro plan, which essentially gave a big cut in power rates now, only to be paid back well into the future.
Lysyk went beyond the usual role of provincial bean-counter. In fact, her approach was so aggressive that it caused considerable discomfort within the Ontario public service and made working with her office difficult for many. For one thing, government accounting is a pretty esoteric business, and there were expert voices who disagreed with Lysyk’s views. And she had a habit of going beyond her mandate as an agent of the legislature—as when she reported on how she would have analyzed partisan-inclined ad spending under an old law that the legislature had already superseded.
Be that as it may, her repeated criticisms and lengthy reports — her 2017 AG report was a mere 1,107 pages — did more than anything to undermine the fiscal credibility of the Liberals and allow the Doug Ford Conservatives to use Ontario’s rising debt as a cudgel to ultimately beat their adversaries.
So why does Doug Ford want to re-do Lysyk's work? It's not about the numbers. It's about the politics:
The reason why Ford is naming his own commission is that this process is not about accounting or even the long-term structure of government finances. It’s about politics and the Ford government’s need to prepare the public for swingeing cuts in spending, even though he promised just the opposite. Remember the Tory election campaign. Lower taxes, Lower deficits. And improved services. All through the magic of painless “efficiencies.” Electioneering is easy. Governing a lot less so.
So far, Ford’s “efficiencies” have only added substantial red numbers to the budget. The cancellation of cap-and-trade and the elimination of 758 renewable energy projects are supposed to be about savings but will probably end up costing billions to the treasury as lawyers go after the province for breach of contract.
The abrupt cancellation of the energy projects shows how politics is already trumping sound financial management in the Ford government. While the energy programme was probably ill-conceived, wouldn’t it make more sense to do a line-by-line analysis of every project and decide which ones can be renegotiated or delayed at less cost to the treasury than simply a blanket cancellation of every project? But that would take time and make for a less sexy headline.
What Ford is looking to do is lay the groundwork for a revised 2018-19 budget deficit that’s will be closer to $15-billion than the original $6.7-billion predicted in the spring, followed by a series of cuts. An inflated budget number this year will also make it easier to show progress in the future.
The most telling quote of the week came from Finance Minister Vic Fedeli, who said after the announcement of the dual inquiries, “We are prepared for the likelihood that we might not like what we see.” Translation: We’re bracing for a humongous deficit and we’re going to do everything possible to stick it on the Liberals now and forever.
So who's going to be hit first? Hospitals? Doctors and Nurses?
My bet is that Ford will go for cuts to education before health. The Conservatives generally don’t have much time for universities or for teachers and slashing health care won’t be appreciated by his most loyal supporters, who skew towards an older demographic.
Ford had no use for education in his past life. There is no reason for him to change his perspective. Ontario's teachers, those who work in its schools -- and the students who attend them -- should get ready for Mike Harris 2.0
Image: CTV News
10 comments:
I still live with the recollection of Gordon Campbell coming to power with the intent to bring everyone but his close friends and party contributors to heel. The previous government had shown two successive budget surpluses according to auditor's reports, but Campbell told us that there was a 2.3 billion dollar deficit and started swinging the broadaxe, starting with a halving of the corporate tax rate and followed up with years of grinding on Health and Education spending, MCFD, and infrastructure (except for mega projects run by friendly contractors and IPPs that were, and continue to be, corporate giveaways). The litany is too long and too well-documented elsewhere to bother repeating it here, but the appointment of Mr. Campbell is no accident, promotes a weird sense of déjà-vu, and should be a warning shot to anyone who is unfortunate enough to be living in Ontario at present.
With former B.C. Premier Gordon Campbell involved Ontarians can look forward to a very corrupt government, one which will be difficult to recover from.
That's what so tragic about all of this, Danneau. B.C. and Ontario have been here before. These days, every day seems like Groundhog Day.
Having had Rob as the mayor of Toronto, we should have known what to expect, Toby. And, having made a truly foolish choice, our noses will surely be rubbed in that choice.
Look on the bright side. Ontario can take over from BC as the money laundering capitol of Canada.
Interesting, isn't it, Deacon? These folks who claim to be good managers seem to attract corruption. One wonders who's really minding the store.
.. Dough Ford (not a typo)
is just another political animal pushing a wheelbarrow of money and influence at Gordon Campbell. A former 'liberal' who was actually a Harper conservative sellout. Afer Gordo handed over BC's Environmental Oversight to Stephen Harper's ReformerTories government.. he ended up as High Commissioner to the UK as a reward.. off to London he foes for some 4 years of pomp, ceremony and a free ride. How on earth did Dough Ford sniff out this thug ? He matches Harper et al's dreams of trashing First Nation treaties..
Nobody will get fired - proven horseshite straight from the horses ass.. and the beat goes on. A Ford 'efficiency' was cancelling funding to Mohawk College Climate Study Centre.. smacking of Harper doing the same to The Small Lakes Experimental Centre.. a jewel known worldwide.. bigo bango, Harper had it gone in a flash with a majority.. don't expect less venomous sleaze from Dough Boy.. who has 4 years to hone his fluckery against Democracy, Environment, Habitat and Species.. Pollution ? He will legislate to allow mine waste dumped in pristine waters.. if he can get somewhere to frack.. he will .. this is a demagogue re abortion, school curriculum.. a great buddy with an open ear to Charles McVety and his twisted ideologies
I have made the point persistantly.. Political Parties are not our friends, they are not 'public servants', they do not represent their ridings after being elected.. and they are self toxifying..
Precisely, Sal. They are toxic to the environment and to civil society.
I am going to speak selfishly here, Owen, and say that in these times I am especially grateful for being retired from education.
I feel as you do, Lorne. I'm really glad I'm not there anymore. And I pity those who are there.
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