Finance Minister Dwight Duncan presented a so-so budget yesterday. It had its good points- the expansion at Milton District Hospital escaped the knife, and there are signs the Liberals really mean to clamp down on public sector unions. It gave a slight nod to both the Progressive Conservatives (P.C.)'s by asking seniors making over $100 thousand to pay for some drugs, and the N.D.P. by freezing hospital C.E.O. and M.P.P. salaries. It attempted to strike a happy medium by keeping the Green Energy rebate, but capping it at 3000 kWh.
Lots in there for the education system. The Liberals have moved to cut the so-called "lap year," where students take an extra semester or two to boost marks. They're continuing to implement their centre piece all-day Kindergarten program, and will offer 30% tuition grants for post-secondary students. And contrary to what the opposition says there is a Jobs& Prosperity fund; expected to save according to their numbers $250 million. How that will affect job creation remains to be seen.
The bad points have to start with getting tough with the public sector unions. The ultimatum that the Liberal government could legislate a wage freeze, coupled with noises about public sector pensions will anger unions. O.P.S.E.U and the teaching unions are all in various stages of contract negotiations and I can't see them willing to just take the freeze without a fight. And I'm betting it could be a messy fight as well. I have to give the Liberals points on this though to be willing to break with the union support. But I have to ask, is it too little, too late? The ship labelled "public sector wage freeze" set sail the moment they began selectively giving raises.
Did it do enough to create jobs? Honestly no. The province isn't expected to see the savings from the Job & Prosperity fund until 2014-2015. Meanwhile there is still unemployment; cancelling corporate tax cuts while glamorous, and something that will win points with the N.D.P. won't create jobs. It needs to be easier for businesses to hire; people need to be working it increases the tax base.
In my opinion this budget isn't worth fighting an election over. While the budget is lacking in parts, it isn't worth wasting 35 days, and $100 million over. However when you take the so-so budget, and combine it with the Ornge scandal, and public sector union back lash against the budget we may find ourselves voting sometime in early May.
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