Rapid Recap: 2024 Ontario Fall Economic Statement

Wednesday, October 30, 2024 – This afternoon, Ontario’s Finance Minister, Peter Bethlenfalvy, presented the 2024 Fall Economic Statement Building Ontario for You which focuses on five key themes: Ontario’s Economy; Building Infrastructure, Highways and Transit; Keeping Costs Down; Better Services; and Working for Workers.

With most Ontarians anticipating an early election call by the PCs, Minister Bethlenfalvy did not miss the opportunity to add in pre-election style messaging into his Fall Economic Statement (FES) speech. The Finance Minister critiqued several former Liberal governments for their perceived economic failures and tying the province to the federal government’s carbon tax.

Tabling a $6.6B deficit in 2024 and planning a $1.5B deficit in 2025, the government outlined a path to balance the budget by 2026-27, despite uncertain global economic conditions. The Minister emphasized a responsible and targeted approach to ensure a stable financial future for Ontario, while also building critical infrastructure, reducing gridlock and making life more affordable by keeping taxes low. The FES also outlines progress on the government’s planned investments over the next 10 years, totalling more than $191B, to build and expand critical highway, transit and community infrastructure. Ontario’s economy is expanding despite high interest rates and geopolitical uncertainties, and real GDP growth is expected to moderate to 0.9% this year, but strengthen to 2.3% by 2027. 

Health sector expenses are projected to increase from $86B in 2024-25 to $90B in 2026-27 due to increasing demand for health services, transformation and modernization of the province’s health care system, and recruitment and retention supports to grow the province’s health human workforce.

A detailed list of health care announcements is outlined below. 

New Health Announcements

Today’s FES includes new health care commitments and investments, specifically: 

• Over $13M starting in 2024-25 to establish an Amyotrophic Lateral Sclerosis (ALS) provincial program and expand regional services into Northern Ontario.
   
• Exploring the creation of a comprehensive assistive devices loan and recycling program to allow Ontarians living with physical disabilities to have improved access to a larger range of affordable recycled devices.
   
• $7.7M in 2024-25 to support the Frankfort Family Reena Residence in constructing new spaces for employment services, sports programs, meeting rooms and wellness programs for building residents and the surrounding community. This project will enhance the quality of life for people in their community and help them live with dignity.

Commitment to Previous Health Announcements

There were also a number of previously announced commitments restated in the FES, including:

• $150M over two years to expand the Ontario Fertility Program to cut waitlists and triple the number of families connecting to government-funded fertility services in hospital and community clinic settings.
   
• $94M as part of Phase 2 of the Life Sciences Strategy for a total investment of $146M to help secure the province as a global biomanufacturing and life sciences hub.
   
• $17.7M in 2026-27 to expand the Ontario Learn and Stay Grant (OLSG) to further improve access to primary care across the province. 
• $22.4M in 2024-25 to support the continued operation of Behavioural Specialized Units in long-term care homes, as well as the creation of approximately 210 new specialized beds, to expand care for individuals with complex needs. 
• An additional $17M over the next three years to expand access to services and activities for seniors through 100 new Seniors Active Living Centres, including in local and community-based organizations such as Legions, Lions Clubs, and other recreational clubs. 
• $50B over the next 10 years in health infrastructure, including over $36B in capital grants to support more than 50 hospital projects. These investments will add approximately 3,000 new beds over the next decade, significantly increasing access to health care across the province. 
• An additional $10M over five years to support social responsibility and public health efforts to promote safe alcohol sales and consumption as the government expands alcohol sales in up to 8,500 eligible convenience, grocery and big-box grocery stores in Ontario. 
• An additional $260M in the latest round of the Skills Development Fund Training Stream to address challenges in hiring, training, and retaining workers. Within this investment, nearly $17M has been committed to train over 36,000 workers in Northern Ontario for in-demand careers in partnership with First Nations, labour unions, local employers, and community organizations.
   
• Proposed amendments to the Insurance Act by introducing a licensing framework for Life & Health Management General Agents (MGAs) to better protect customers.
   
• Planned investments that total a historic $6.4B since 2019 to build 58,000 new long‐term care beds across the province, and upgrade existing beds to modern design standards, by 2028. As of fall 2024, 113 long‐term care homes are either completed, under construction, or have the approval to start construction across the province. This includes:
  • 32 homes that are completed, representing 2,385 new beds and 2,610 beds upgraded to modern design standards.
  • 81 homes that are either under construction or approved to start construction, representing 7,026 new beds and 6,418 beds being upgraded to modern design standards.
  • The government continues to invest in the construction funding subsidy to support the cost of developing or redeveloping a long‐term care home. These investments help to fast‐track construction for the next tranche of beds. Eligible projects will receive an additional construction funding subsidy of up to $35 per bed, per day, for 25 years. In addition, eligible not‐for‐profit applicants will be able to convert up to $15 per bed, per day, of the supplemental funding into a construction grant payable at the start of construction, to increase a project’s upfront equity and enable the applicant to secure financing. 

• Former Federal Liberal Health Minister Dr. Jane Philpott will lead a primary care action team to connect all Ontarians to a family doctor or other primary health care provider within five years. 
  • It is estimated that 2.5M people do not have access to a primary care physician and the opposition parties have accused the government of ignoring the crisis in health care. Drawing on the best-in-class Periwinkle model designed by Dr. Philpott and colleagues in the Frontenac, Lennox and Addington Ontario Health Team, she will provide and implement an action plan to help the Ontario government further expand team-based primary health care across the province. 

Major Non-Health Announcements

Today’s statement also included government commitments to:

• Allocate an additional $100M to the Invest Ontario Fund, bringing the fund total to $600M, to support Invest Ontario in securing strategic investments that create jobs and drive economic growth. 
• Introduce a $200 taxpayer rebate for all eligible adult Ontario tax filers, plus an additional $200 for each eligible child under age 18 for those families who qualify for a Canada Child Benefit payment for 2024. 
• Expand the Ontario Guaranteed Annual Income System (GAINS) program, which will see up to 100,000 more low-income seniors receive increased financial support, with the benefit now being adjusted to inflation annually. 
• Extend the temporary gas tax and fuel tax rate cuts, keeping the rates at 9% per litre until June 30, 2025. These tax rate cuts have helped to lower consumer price inflation and are estimated to, on average, save Ontario households $380 over three years since July 2022. 
• Invest $750,000 over three years in the Scientists in School program to ignite students’ curiosity in STEM and broaden their knowledge of STEM-related career pathways. 
• Increase the Ontario Municipal Partnership Fund by $100M over the next two years, bringing total funding provided through this program to $600M by 2026. 

Next Steps

Although the Ministry of Finance is set to launch their formal budget consultation process on November 14, Santis Health encourages organizations to start advocacy and pre-budget submissions early. 

With a potential Spring/Summer 2025 election, the 2025 Budget could act as the PC platform for the election (as it did in the 2022 General Election). 

Please reach out to the Santis Ontario Government Relations team for more information. 

Further Reading

Read the Fall Economic Statement here.

Read the News Release here.