From My Bottom Step

The Honourable Dalton McGuinty
Premier of Ontario
Main Legislative Building
Room 281, Queen’s Park
Toronto ON M7A 1Al

Dear Premier McGuinty:

Re: Need for Fair Cost Sharing of Ontario Works (OW) & Ontario Disabilitv Support Proqram (OSAP) costs

On behalf of the City of London, I first offer sincere congratulations on your recent announcement relative to moving forward with the Government’s Learning Strategy for 0-12 year olds. commencing with a full day of learning for 4 and 5 year olds. It is exciting news, and we are poised in London to move forward!

Meantime, I am also writing on a matter of concern. In his letter to the MARC0 group this summer, The Honourable Jim Watson, Minister of Municipal Affairs and Housing, stated it was the position of your Government that Consolidated Municipal Service Managers would be able to mitigate increased Ontario Works costs in 2009 by the upload of ODSP costs. This was said within the context of our current economic situation and the need for all orders of government to work together.

Premier, while we appreciate the spirit of Minister Watson’s letter, we must respectfully advise that this offset does not work for the City of London. Your Government has previously acknowledged that London municipal taxpayers are already paying a disproportionate share of social services costs, by providing financial relief via the Ontario Municipal Partnership Fund (OMPF) and for that we are grateful.

As you know, we in the London CMA have been hard hit by the current recession and currently have an
unemployment rate of 11.8%, the second highest in Canada. This challenging impact is being strongly felt in
our Ontario Works – London Office, where the caseload has increased by 22.3% for the period June 2008 to
June 2009. By comparison, the Provincial increase was 15.9%; The City of Toronto 11.4%; Ottawa 3.4% and Windsor 16.9%.

In fact, we have experienced a full caseload increase of 39% over the past two years. Our September, 2009 caseload totaled 10,381 (almost 22,000 individuals supported), as compared to our September 2007 total of 7,448 cases.

As a result, our costs have also dramatically increased, by 30%. up to $12M in 2009 from $9.2M in 2007. These costs include an increased municipal share of transfers to recipients, as well as increased program and staffing costs in order to meet our legislated program requirements. And, making matters even more challenging, we are paying for these increased costs at 100% local dollars, as both the Employment funding envelope and OW Cost of Administration funding has been capped since 2005.

This means our actual cost increases in 2009 for Ontario Works will be $6.9M over 2008.

Your Government has committed to upload London ODSP costs this year in the amount of $8.6M. However, the value of the upload has been diminished by a reduction in OMPF funding of $5.9M and an unexpected and extra billing from the Province on ODSP case costs of $1.261M. Because of these issues, the net value of the ODSP upload is only $1.439M, and the end result is over-expenditure by the London CMSM of $5.461M in 2009. These costs are summarized on the slide attached as Appendix 1.

Premier, you know London City Council is a willing and supportive partner with your Government, as we carry out our legislated responsibilities under the Ontario Works Act. Further, our Ontario Works – London Office is recognized by your Minister of Community and Social Services for its creativity, innovation and results. In 2009, Council invested 100% local tax dollars to ensure that we can continue to meet our legislated requirements and assist our clients in finding work. Indeed, this addition to the City budget represented 1% of our total 2.6% budget increase. In spite of the difficult economy, we continue to deliver positive outcomes in terms of exits to work and employment earnings, two key metrics for your Government.

Therefore, considering this significant situation, we are most disappointed that your Government has not proactively moved to ensure fairness for London. As it stands now, the majority of Ontario CMSMs will be able to offset increased OW costs by the ODSP upload. London will not, and this matter must be addressed.

With this goal in mind, the City of London implores you to make an early commitment to London property taxpayers to address this funding inequity, through an appropriate reconsideration of our current OMPF grant. Thank you for your consideration of this crucial matter. We look forward to hearing from your Government at the earliest opportunity.

Sincerely,

Anne Marie DeCicco-Best
Mayor