Last week, former TD Bank Chief Economist Don Drummond released a long-awaited set of recommendations to the Government of Ontario on options for changes to the Province’s spending program.
Formally titled Public Services for Ontarians: A Path to Sustainability and Excellence, the Drummond Report was commissioned by Premier Dalton McGuinty to provide independent, expert advice to his government as it shapes its plans for the 2012-013 budget – and well beyond.
The report is a serious, thoughtful and long document, and it pulls no punches:
“Ontario faces more severe economic and fiscal challenges than most Ontarians realize. We can no longer assume a resumption of Ontario’s traditional strong economic growth and the continued prosperity on which the province has built its public services. Nor can we count on steady, dependable revenue growth to finance government programs. Unless policy-makers act swiftly and boldly to prevent such an outcome, Ontario faces a series of deficits that would undermine the province’s economic and social future.”
While a significant proportion of its recommendations deal specifically with health and education initiatives, the report does touch on at least two areas of particular interest to the province’s orchestras:
1. Expenditure restraint
To bring the provincial economy into balance by 2017-18, the report recommends annual reductions in (non-health, non-education) program spending of 2.4%. Rather than simply reducing spending, the report urges government to seize the “opportunity to reform programs and service delivery.” Presumably the recommended spending reductions and program reforms could affect the province’s cultural investment, be it through the Ontario Arts Council or the Ministry of Culture and Tourism’s own programs.
2. Role of the Non-profit sector
The report notes the important role played by the non-profit sector, and urges the Ontario government to ‘reform funding practices in the non-profit sector to increase flexibility and reduce administrative costs’, with a focus on creating a single point of access to government, and funding programs based on outcomes.
The government’s response will be contained, in large part, in the upcoming budget. We will study it with great interest.
To read the report for yourself, please visit fin.gov.on.ca.
