Local politicians cheer the end of pooling contained in Sorbara's budget
By Bill Rea

Finance Minister (and Vaughan - King - Aurora MPP) Greg Sorbara held a prebudget session at a day-care centre in East York last Wednesday. Before talking to reporters, he spent some time with the patrons of the centre, reading them the children's classic The Little Engine That Could.

There was a lot contained in the Provincial budget brought down Thursday by Finance Minister (and Vaughan - King - Aurora MPP) Greg Sorbara.

But it was the announcement that the province would be doing away with pooling money from regions in the Greater Toronto Area (GTA) to help finance social service expenditures in Toronto that drew the most smiles from local politicians.

The budget announced a plan to phase out the pooling, with the amounts for 2007 being rolled back to 2004 levels. Each subsequent year, costs will be reduced by one-sixth of the 2004 levels until the program is eliminated in 2013.

That has been a sore point for years around the York Regional council table. The Region's 2006 budget called for a $84.2 million contribution to the pool, making it one of the largest expenses facing York. Regional councillors have been calling to have the pooling scrapped for some time, so it's not surprising that the municipal politicians attending Monday's budget breakfast, hosted by the Vaughan Chamber of Commerce and the Markham Board of Trade, gave Sorbara standing ovation when he mentioned the issue in his remarks.

"They're actually standing up to pay tribute to themselves," he commented.

He later observed municipal politicians had lobbied for something to be done about the pooling, and Sorbara said he agreed

pooling has represented an unfair burden."

"They made a great case to our government," he added.

"We pushed very hard in the last number of years on pooling," commented Regional Chair Bill Fisch.

He said it was slated to cost York taxpayers some

95 million this year, but the phased elimination of the pool means the figure will be cut to about $79 million, and down to roughly $66 million next year, with the pool expected to be history in seven years.

He also pointed out that's going to free up dollars that can be spend elsewhere or used to reduce taxes, although no decisions have been made yet.

"We haven't worked that out," he said. "It will make a very large difference to what we can accomplish for our residents."

Fisch said they had worked on Sorbara to have something done about pooling for about four months, and he added he had a private meeting with Premier Dalton McGuinty about six weeks ago.

"They both listened, obviously," he observed.

"Many of us worked for many years with many resolutions," observed Mayor Margaret Black.

Sorbara told the Sentinel Friday the doing away with the pooling is "probably the most significant thing to happen in York Region."

"We're doing it because it's the right thing to do," he declared, adding it was one of the most glaring inequities in the tax system.

Sorbara told Monday's audience the government was able to address the pooling issue because Ontario has returned to economic health.

He agreed the services Toronto uses pooling money to provide are valid and important, but they are not the responsibility of 905 taxpayers. He added the Province now has the financial capacity to take on the task.

"We are uploading this burden to where it belongs," he said. "That is the fair and the right and the just thing to do."

Sorbara told Monday's audience the budget was really straightforward. "All you really need to understand are the words right here on the front of the budget: Investing in people; Expanding opportunity; Ontario's new economic strength."

He pointed out Ontario was in rough economic shape when the Liberals under McGuinty took office in 2003. "The province is now back in financial health," he declared.

He said the government is expecting a modest surplus this year, adding they are moving into an era of substantial surpluses.

"Deficits really reflect taxes that are put off to some other date," he observed.

Sorbara said there were a number of uses which this new economic strength could be put to, including investing in Ontario's most vulnerable, such as people living in poverty, especially children, and that is being done through the Ontario Child benefit, which he said would help some 1.3 million kids and 600,000 families.

He stressed the need for this new economic strength to be shared.

As well, he said some $200 million will be spent over the next couple of years to assist the disabled. He stated it's challenging but important for a society to look after those who will never be able to look after themselves.

The government plans to use some of this strength in the area of improving public services, like education, health and post-secondary learning.

The times of the previous administrations were characterized by tensions between teachers, school boards and the government, with people calling for money to go toward private education. But things have changed in public and Catholic schools, he declared. "There is a real sense of dedication and commitment to educating our young people," he said.

He also spoke on the efforts to improve the health care facilities in Vaughan, as well as the government's investments in transportation. That includes extending the subway into York.

Sorbara addressed property taxes in the budget, including methods of assessments. "I am absolutely thrilled with the product we produced in the budget," he declared.

There will be a new assessment established in 2009, and properties with increased assessments will see the new figures phased in over four years, while decreased assessment will take effect immediately.

But not everyone was speaking positively about the budget.

York North MPP Julia Munro focused on a $20 billion increase in spending since the McGuinty government came to power, which she said works out to about $4,500 per household. She wondered if people have been getting their money's worth.

Addressing local matters, Munro pointed out last week's federal budget included an allocation of $12 million to help restore and protect the environment of Lake Simcoe. "The provincial budget is zero," she observed.

Munro also charged the government is not doing enough to reduce the provincial debt, which she said stands at about $144 billion, which means about $750 million in carrying charges. "For me, the issue is you are mortgaging the future," she remarked.

As well, she said the

health' budget should have included more stimulus for job creation. She said 120,000 people lost jobs last year, adding Ontario is dead last when it comes to economic growth. She said a prosperous community paying taxes is needed to pay for government programs.

Munro did note the phasing out of pooling, but added it will be interesting to see what York does with the increased tax room. he said the Region could cut taxes, or not. "This is one of those times when you have to be careful what you wish for,' she remarked.