Randall Denley: How Ontario wound up with a surprise $4.4B in health care funds

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A report from the province\u0027s Financial Accountability Office includes $4.4 billion in money that has not yet been allocated.

Recommended from EditorialWhat the government calls “incremental health care investments” didn’t rate more than a small mention in this year’s budget. One had to read to page 86 to find it. The information there actually says spending will go up $15.3 billion, but who’s going to quibble over $100 million? The government’s budget package points to 28 “highlights,” but the health care spending increase wasn’t one of them.

A government spokesperson said that its previous spending underestimate was partly due to uncertainty over how much extra money the federal government would contribute in a new health care deal with the provinces. That’s a legitimate partial answer. In the end, the federal government will contribute $4.4 billion over three years, the same amount of money that the province has not tied to any program. Perhaps that’s just an unfortunate coincidence.Article content

The FAO notes that the fallout from Bill 124, the province’s wage restraint law, could be expensive. A court has ruled the bill unconstitutional and Ontario is waiting to hear the results of an appeal. The initial ruling has triggered retroactive pay for some workers totalling about $900 million. If all hospital employees end up with retroactive pay, that could add another $2.7 billion in costs. Goodbye supposed surplus.

 

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Ontario may have to pay $2.7B in retroactive wages if they lose Bill 124 appealOntario has allocated $4.4 billion more than what is needed to fund the provincial health-care system, according to the Financial Accountability Office (FAO), but if the province loses its appeal of Bill 124, it could be paying back more than half of that to workers in the public sector.
Source: CP24 - 🏆 30. / 67 Read more »