Building a Resilient Ontario: From Poverty Reduction to Economic Opportunity

7/31/2019 Building a Resilient Ontario: From Poverty Reduction to Economic Opportunity

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Building A

Resilient Ontario:From Poverty Reduction to

Economic OpportunityYear Two of Ontarios Poverty Reduction Strategy


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The 25in5 Network for Poverty Reduction is a multi-sectoralnetwork comprised of more than 100 provincial and Toronto-based organizations and individuals working on eliminatingpoverty.

Produced by the Accountability Table of the 25in5 Network forPoverty Reduction November 29, 2010


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In this, the second annual report ofthe 25 in 5 Network for PovertyReduction, we continue to track theprogress of the Ontario governmentin meeting its poverty reduction

commitments.

Poverty reduction is a commitmentwe make to each other, to ensuringthat individuals and families acrossOntario are able to recover fromeconomic and social misfortunes. Itis also a commitment that all partiesin the legislature made to al l

Ontarians.

In the first part of the report, welook at the importance of povertyreduction initiatives for all Ontarians

given the current economic andsocial context. With so muchuncertainty about when the economy

w i l l f ina l l y r ecov er f rom the

recession, continuing to invest inpoverty reduction remains the smartpolicy option. And we also offer

government a plan for priorities inthe coming year, to give Ontariansleadership in these anxious times.

The second part of the report, in thechart that begins on page 10, gives adetailed look at the progress Ontariohas made to date on meeting itsspecific commitments. We also

compare these commitments to 25 in5s Five Tests for Success, to help youdetermine whether the governmentsefforts have successfully met thechallenge.

This report shows how far theprovincial government has come inmaking good on the promise, and

how much further it has yet to go. AsOntario nears the halfway point of itsfive-year poverty reduction timeline,the mission is to stay focused andmake good on the promise. We canttake our eyes offthe prize.


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On moral grounds, it can be argued that some help for

the poor is better than no help at all. But on strict

economic grounds, the costs of providing insufficient help

can be massive. When both private and public (or social)

costs are combined, poverty costs the residents of Ontario

a staggering$32 billion to $38 billion a yeartheequivalent of 5.5 per cent to 6.6. per cent of provincial

GDP. This immense sum of money would obviously be

better spent removing the source of these dead-weight

costswidespread povertythan continuing to treat the

devastating symptoms of its effects. If properly spent,

what this money would ultimately buy is a healthier,

better educated and more productive workforce, in which

far more Ontarians would have a stake in making the

province work for the benefit of all.

Cost of Poverty, Ontario Association of Food Banks.


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Reducing poverty for astrong economic recovery

The clock is ticking on the provincialgovernments commitment to lift 25per cent of Ontario children andtheir families out of poverty byDecember 2013. The halfway point isnearly here.

Making good on this commitment

would distinguish Ontario as the firstjurisdiction in Canada to set apoverty reduction target and timeline

and deliver on the promise.

Delivering on the promise makes forgood economic opportunity. It wouldlift 90,000 children and theirfamilies out of the depths of poverty,

filling a new generation with hope.

And its smart policy, because everyOntarian freed from poverty is betterequipped to contribute to aneconomic recovery that needs allhands on deck.

Unfortunately, we cannot

expect an overnight recovery

from this deep and painful

[economic] crisis, because it wi$take many years for economies

and jobs to be rebuilt. The to$

on the poor wi$be very real.Justin Lin, World Bank chief economist

Investing in equitable and inclusive

education and ski l l s tra in ing ,support ive income programs,employment equity, and earlylearning and child care lays thefoundation for strong, inclusivecommunities and a competitive

workforceone that can respond tothe challenges of a global economy intransition. Action on this, and much

more, is whats needed to meet thegoal of reducing child poverty by 25per cent in the next three years.

The provincial government made itscommitment to reduce poverty onDecember 4, 2008 with the release ofBreaking the Cycle: OntariosPoverty Reduction Plan. In Year

One it backed that commitment withlegislative changes that bind the

government to poverty reduction. Allthree political parties at QueensPark supported the Poverty Reduction Act, pledging unanimoussupport for staying the course on the

Building A Resilient Ontario: From Poverty Reduction to Economic Opportunity 1


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beginning of economy recovery), theproportion of men, women andchildren on Ontario DisabilitySupport Program (ODSP) and

Ontario Works (OW) went up by17.5%. Food bank use skyrocketedacross Ontarioamong low-income

working families as well as those onODSP and OW.

As soon as the rents paid, first

thing I do is stock up on food,

which genera$y means I've gotthree days worth of food. For

the rest of the month I hit soup

kitchens andfood banks.Single OW recipient

Recently, the governments ownsocial assistance advisory councilrecommended an overhaul of incomesupports to transform the currentsystem into programs that showOntarians a pathway out of povertyrather than confine them to themargins.

The government has been slow tomove forward on thisrecommendation. It also appears tohave stalled on its own committees

work to re - imagine affordablehousingone of the most effective

ways to add res s the needs o fOntarians. The governments long-

term affordable housing strategy,promised in 2008, has yet to beannounced.

Since budget day, the governmentsapproach to one aspect of povertypreventiona seamless full-day earlylearning program for children 12 andunderhas progressed. Full daykindergarten for children aged 4 and5 is underway in many communitiesand a significant investment has beenmade in the next generation of

Ontarians. There is, however, morework to be done. For instance, beforeand after school early learningprograms are still piecemeal, fallingshort of the early learning advisors

vision for a seamless day of programsupports for children and theirparents.

As we near the mid-way point, lackof decisive, timely initiatives toaccelerate the provincia l

governments poverty reductionpromise suggests the governmentmay have taken its eye offthe prize.The window of opportunity isnarrowing, but there is time torefocus and make good on the

promise, starting with the nextprovincial budget.



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If the economy is improving,

someone forgot to let the folks at

the breadlines in on the secret.Joe Gunn, Executive Director, Citizens

for Public Justice

The second chal lenge fac ing

go ver nment s tems f rom theworldwide economic recession.

Political opportunists are usinggovernment deficits caused bystimulus investments as an excuse tocut spending on public services thatall Ontarians rely on.

The global economy fell into deeprecession in 2008the very yearOntario decided to get serious aboutreducing poverty.

Recessions tend to push more peopleinto poverty, so the timing of theprovinces commitment to l iftchildren and their families out of

poverty couldnt have been better.

Ontario was smart to stay the courseon poverty reduction.

Investments in the Ontario ChildBenefit and minimum wage increaseshelped put dollars on Main Street,stimulating local economies at a time

when they needed it most.

Stimulus investments on physicalinfrastructure kept Ontariansemployed while leaving behind alegacy of new community centres,better roads, water pipes, and sewagesystems.

Many of these investments weretargeted to those on the lower end ofthe income spectrum. Though morechildren and their families fell intopoverty during the recess ion,

government actions at the height ofthe economic downturn preventedmany from spiraling into deeperpoverty than they would without

public assistance.

It was smart policy, playing a criticalrole in staving offa longer and deeperrecession. Building healthy, safecommunities where everyone belongsand has a chance to bounce backfrom misfortune is the epitome of

good governmentand its why the

provincial government needs torenew its efforts to reduce povertypost-recession.

There are some who would prey onthe public s fears about sloweconomic growth, using them as an



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excuse to walk away from thepromise to reduce poverty. Butperiods of slow growth are exactly

when governments should redouble

their efforts.

Women, Ontarians from racialized,immigrant , and Aborig inalcommunities, and people withdisabilities are disproportionatelypoor and, therefore, more likely toexperience hardship in times ofeconomic turmoil . Many have

remained on the s idel ines of economic activity, even after years ofstrong economic performance inOntario.

We must not repeat the mistakes ofthe 1990s. During the last recession,Ontarios poorest households werehardest hit by the economic

downturn and it took them muchlonger to bounce back. Investmentsin social programs and equityenhancing measures were cut backseverely, accompanied by ascapegoating rhetoric that tarred andfeathered the most vulnerable.

This troubling period in our history

took a divisive approach to politicsone that only drove wedges betweenus, and failed to accomplish theimportant task of lifting Ontariansout of poverty. Making the samemistake again isnt an option.

Supporting the vulnerable and

helping people succeed is not only

fair but is also good for the

economy.Premier Dalton McGuinty

Putting poverty reduction on holdduring an economic slowdown onlymakes income inequality worseandinequality had already reached newheights before the global recession

weakened Ontarios economy.

Putting poverty reduction on holdalso ignores the reality that Ontarioneeds the work and revenuecontributions of every s ing lehousehold in this province to rebuildour provinces economy, to reduce itsfiscal deficit, and to protect publicservices that benefit everyone.

The economy is on the mend, butrecovery remains fragile. The threatof Ontario dipping back intorecession is very real. Ontario faces aserious challenge in creating ahealthy economy sustained by goodpaying, secure, equitably accessiblejobs to replace the hundreds ofthousands of manufacturing jobs lostin the last decade.

To make Ontario a prosperousjurisdiction in a competitive globalcontext will take a substantialinvestment by the public for the



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public. Ontario will pay a steep priceif we take a political road thatfavours some Ontarians while leavingothers behind. We will pay a steep

price if we allow a generation offormidable minds to waste away onthe sidelines.

In the next few years, thegovernment of Ontario needs toinvest in skills development andtraining supports for the poor andunemployed in a way it hasnt done in

decades.

Fighting poverty brings us

together. Living in poverty tears

us apart.Gunnar, Peoples Blueprint for Social

Assistance.

Smart Policies for ToughTimes: Ontario FamiliesLooking for Leadership

Sitting back and hoping the privatesector will save the province fromthe wrath of global economiccompetition is not an option. Ithasnt worked so far. Not here. Not

anywhere.

Meanwhile, households are growinganxious. According to a pol lconducted by the Canadian PayrollAssociation, six out of 10 Canadians

are struggling to survive frompaycheque to paycheque. Householddebt has reached dangerous levels,spurring Bank of Canada Governor

Mark Carney to warn that it simplyisnt sustainable.

Ontario families are worried and, justlike they did at the start of recession,they are turning to their

governments for leadership in toughtimes. An austerity agenda that walksaway from poverty reduction and

eliminates the public services andprograms that all Ontarians needonly adds to the worry.

Breaking the Cycle: A Planfor Year Three

The pressure to maintain thecommitment to the Ontario

governments own poverty reductiongoals is not go ing away. In thecoming year, Ontarians are looking totheir provincial government toimplement and fund smart policiesthat achieve four core goals duringthis next period of economicrecovery:

1. Ensure no one falls throughthe cracks dur ing ti mes ofn e e d . This requi resimplementation of policies toensure unemployed Ontarianshave a secure safety net thatallows them to live in dignity and



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to develop their skills to get backinto the labour market. Thisincludes:

Kick-starting the incomesecurity review and buildingl i v a b l e i n c om e s : Theprovince has committed toreview Ontario Works (OW) andthe Ontario Disability SupportProgram (ODSP), but to datethere has been no action. The

government needs to start a

social assistance review thatlooks at the broad incomesecurity system and how topromote opportunity and dignityfor a l l Ontarians . Socia lassistance incomes today havethe same purchasing power asthey did in 1967. The incomes ofpeople on social assistance need

to be increased immediately,through measures such as the$100 Healthy Food Supplement.Ontario should also immediatelyimplement the rule changesrecommended by its own SocialAssistance Review AdvisoryCouncil, including raising assetlimits.

2. Invest in people, their skills,and their efforts to securework. This requires action, suchreforming social assistance, toalign it with broader humandevelopment goals that lead to

equitably accessible opportunity.This includes:

Listening to l ived

experience:People living inpoverty have expert ise onactions that need to be taken tomake life better. Governmentmust create a community-based,inc lus ive ly representat iveadvisory committee to provideexpert advice to the

government's Results Team and

must ensure that the SocialAssistance Review has a centralrole for those with l ivedexperience with the system.

A strategy fordisproportionately poorc o m m u n i t i e s :W o m e n ,Ontarians from racialized groups

(communities of colour andAboriginal Peoples), and peoplewith disabilities, and newcomersare disproportionately poor. Theprovince needs a poverty reduction strategy that usestargeted measures to effectivelyaddress the structural andsystemic poverty within diverse

communitiesone that offershope and opportunity for thisand future generations.

Increased supports for post-secondary education andtraining:Education is linked to



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benefit and improved socialassistance incomes are crucial tost imulat ing jobs and localeconomies by putting resources

into the hands of low-incomeOntarians.

Investments Needed toReach Poverty Goal

Poverty reduction benefits everyone.Its smart policy because its aboutbuilding resilient communities. As

Ontario nears the halfway point of itspoverty reduction timeline, themission is to stay focused and tomake good on the promise.

This report shows how far theprovince has come in making goodon its promise, and how muchfurther it has yet to go. One thing is

clear: Without an investment plan inthe 2011-12 budget, Ontario will notmeet its goal of reducing poverty by25% by 2013. As a result, families willfalter and Ontario, already strugglingfrom the weight of a worldwiderecession, will fall further behindanoutcome we cannot afford.

Ontarios Poverty ReductionStrategy Commitments andResults to Date (2008-2010)

The chart that begins on thefollowing page compares the

government of Ontarios PovertyReduction Commitments with theFive Tests outlined in 2008 by the 25in 5 Network, and shows the

governments progress on itscommitment in Years One and Twoof the Poverty Reduction Strategy.

Legend

* No action toward meeting the 25 in 5Test

* Partial fulfillment or work underwaytoward meeting the 25 in 5 Test

* Fulfillment of government commitmentthat meets the 25 in 5 Test for aSuccessful Poverty Reduction Strategy

!* Progress made, but caution required



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25 IN 5 NETWORKSFIVE TESTS FOR ASUCCESSFUL POVERTYREDUCTION STRATEGY

GOVERNMENTSPOVERTYREDUCTIONSTRATEGYCOMMITMENTS

RESULTS TO DATE

TEST #1: A 25 in 5 TARGET

An overall target of reducing

poverty by 25% in 5 years

Reduce the number of

children living inpoverty by 25 percentover 5 years.

Year One: A target was set for child poverty, but not adult poverty.

YEAR TWO: 25 in 5 continues to advocate for a broader poverty reduction strategyto address adult poverty as well as child poverty.

TEST #2: A SOLID MEAS RING STICK

A clear way to measureprogress: A lead income-measure combined with a set ofadditional indicators

Lead Income Measure:see Measure #6.

Measure #1: SchoolReadiness - Indicator:Early DevelopmentInstrument.

Measure #2:Educational Progress -

Indicator: EQAOScore.

Measure #3: HighSchool GraduationRates - Indicator:Graduation Rates.

Measure #4: BirthWeights - Indicator:Healthy Birth Weights.

Measure #5: Depth ofPoverty - Indicator:Low Income Measure(40%).

Measure #6: LowIncome Measure -Indicator: Low IncomeMeasure (50%).

Measure #7: OntarioHousing Measure -Indicator: HousingMeasure.

Measure #8: Standardof Living - Indicator:Deprivation Index.

Year One: The 25 in 5 Network called for a lead income-measure combined with aset of additional indicators.

YEAR TWO:

Lead Income Measure: 2008 Statistics Canada data became available for the LowIncome Measure (LIM) in 2010. This data shows that 15.2% of children in Ontariowere living in low income (after tax) in 2008. The target, therefore, is to reduce thisnumber to 10.5% by 2013. Note that in 2010 Statistics Canada revised the way inwhich LIM is calculated to make it consistent with the way it is calculated

internationally. These baseline 2008 LIM figures are thus higher than anticipated,but only because of this revision of the calculation methodology.

LIM after tax (for all persons, including both children and adults) rose from 11.2% in2007 to 12.5% in 2008. A 25% reduction in overall poverty would mean bringing theproportion of all people living in poverty down to 9.4% by 2013.

Measure #7: The new Ontario Housing Measure was released in December 2009in conjunction with the governments first annual report on poverty reduction.

The government will track progress on the percentage of families with children withincomes below 40% of median family income (LIM 40 Measure #5) who pay morethan 40% of their income on housing. In 2007, 4% of Ontario families were in thissituation; however, this data includes homeowner households, a group with medianincomes more than twice that of tenant households. Statistics Canada data showsthat 20% of Ontario tenant households pay 50% or more of their household income

on shelter; 45% of tenant households pay 30% or more). As of 2010, there are141,635 low-income households on active waitlists for social housing an increaseof 9.6% in one year.

Measure #8: The Deprivation Index was also released in conjunction with thegovernments first annual report. It showed that 12.5% of all children in Ontario in2009 met the standard of deprivation, lacking two or more items in the DeprivationIndex.

The government has not committed to break down its poverty measures / indicatorsalong geographic or demographic lines. Doing so is required in order to providevital information that will help direct provincial and municipal poverty reductionstrategies toward historically disadvantaged population groups and areas ofgreatest need and impact.

TEST #3: POLICY SPECIFICS

Sustaining Employment

Poverty-proof the minimumwage for full-time earners

Confirm commitment toraise minimum wage to$10.25 an hour by2010.

Year One: The minimum wage was raised to $9.50 an hour in March 2009.

YEAR TWO: The minimum wage was raised to $10.25 an hour in March 2010, asscheduled. The government has not indicated whether it will increase the minimumwage to $11 an hour in 2011 or create a new schedule for regular increases.



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RESULTS TO DATE

Update and enforceemployment standards for allworkers.

Invest $10 millionannually to hire newemployment standardsofficers, improveEmployment StandardsActcompliance andreduce the backlog ofclaims.

Year One: Budget 2009 invested an additional $4.5 million annually to hire moreEmployment Standards Officers.

YEAR TWO: The Open for Business Act (Bill 68), passed on October 21, 2010,creates a Task Force and Modernization Strategy in the Ministry of Labour to helpease the backlog in dealing with Employment Standards complaints and violations.The Workers Action Centre and Parkdale Community Legal Clinic are concernedthat this will create new barriers and burdens for workers who face unpaid wages,including the new mandatory self-enforcement step, settlement of claims for lessthan what workers are owed under the law, and changes to the requirements forinformation before claims are accepted. See www.workersactioncentre.org for moreinformation.

!

Propose legislationrelated to temporaryhelp agencies.

Year One: Bill 139, The Employment Standards Amendment Act (Temporary HelpAgencies) was passed on May 4, 2009 and came into effect November 6, 2009 toprovide new protections to workers.

YEAR TWO: While Bill 139 is welcome legislation, worker advocates report thatagencies continue to find ways to avoid paying severance and equal pay, and notethat charging fees for permanent placements are still allowed. Theseimplementation issues and broader enforcement of worker rights across the boardneed a strategy beyond the promise to address the backlog of claims within twoyears, so that workers can truly realize the promise of new and existing legislation.

!

Create strong employment andpay equity programs.

No commitment wasmade.

Year One: The government remains silent even though Ontario is in violation ofUnited Nations pay equity standards.

YEAR TWO: No commitment / no progress. Mandatory employment equity and payequity legislation would go a long way to addressing systemic discrimination in theworkplace. Colour of Poverty / Colour of Change, along with 25 in 5, continues toadvocate for employment and pay equity.

Expand access to dental, drugand vision coverage.

Invest $45 millionannually to providedental care for low-income Ontarians.

Year One: In January 2009, the Children in Need of Treatment (CINOT) programwas expanded to include children up to age 18. In October 2009, the governmentinvited public health units across Ontario to submit proposals for start-up funding todeliver a new Low-Income Dental Program, with children and youth as the firstpriority. Access must be expanded to provide services to low-income adults.

YEAR TWO: On Oct. 1, 2010 the government announced the launch of the HealthySmiles Ontario Program. The aim is to deliver preventive health services to children17 and under whose family net income is below $20,000 and who are not eligiblefor any other form of dental coverage. This program is being delivered through localpublic health units.

This is a step forward. However, low income adults are still without access to

preventive and basic dental care or vision care.



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RESULTS TO DATE

Make training and educationreal, meaningful and easy toaccess.

Invest $2 billion overthree years in Skills toJobs Action Plan,including the SecondCareer Program, aretraining program forworkers laid offsince 2005, with agrant of up to $28,000to help pay for tuitionfees, books and livingexpenses.

Year One: To cope with overwhelming demand, on November 13, 2009 thegovernment announced new guidelines for the Second Career Program to includefamily income testing. These new guidelines will limit access to re-trainingprograms for many workers, including women.

YEAR TWO: In the first year of the poverty reduction strategy, 28,000 workers wereserved by the Second Career program. Additional funding of $78 million in the 2010budget will allow for another 30,000 workers to receive support over two years.

Advocates report that while the Second Career program holds tremendouspromise, there is much more demand for laid-off worker retraining and upgradingthan is currently being offered.

In addition, the new family income test has left many laid-off workers withsignificantly insufficient incomes to support their transition back into the labourmarket. Workers wait anxiously to hear if they are approved for training, only to findthey cant live on the income theyre assigned. Additional income supports, such asextended EI benefits, are required to make Second Career a truly successfulprogram.

The program has also revealed a need for additional support for those who requirebasic, pre-college upgrading. A new foundational infrastructure of basic skills andliteracy bridging programs, with a strong link to Second Career, is also required bymany Ontarians some of whom are older workers or people from racializedgroups who lack these aspects of formal education.

Call on Ottawa to enrich theWorking Income Tax Benefit.

Call on federalgovernment toincrease its support forthe Working IncomeTax Benefit.

Year One: The 2009 federal budget made some progress. Ontario has not yetresponded to Ottawas invitation to discuss tailoring the WITB to the provincialstrategy.

YEAR TWO: The Ontario government has responded to Ottawas invitation bysaying the federal government should increase the WITB. As of yet, Ontario hasnot yet taken Ottawa up on its offer to tailor the design of the WITB to provincial

programs.

Livable Incomes

Close the gap between life onsocial assistance and movingout of poverty.

Review socialassistance with thegoal of removingbarriers and increasingopportunity.

Year One: The review continues to be delayed.

YEAR TWO: The government announced the creation of the Social AssistanceReview Advisory Council (SARAC) on December 2, 2009. In June 2010, SARACissued a report calling for a broad review of income security programs in Ontarioled by two commissioners. The report also pointed to the need for an immediateincrease in incomes for adults receiving social assistance.

While SARAC was preparing its report, the government announced its intent tocancel the Special Diet Allowance Program and replace it with a more restrictiveNutritional Supplement Program, delivered through the Ministry of Health andLong-Term Care. At the time of writing (November 2010), the government hasneither launched the Social Assistance Review nor announced details of theNutritional Supplement Program.

25 in 5, along with a number of health and anti-poverty groups around the province,are calling for deliberations on the new program to be specifically included in theSocial Assistance Review, so that the question of how best to respond to dietaryneeds can be considered within the broader context of all income securityprograms.



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RESULTS TO DATE

Tighten the regulation ofpaydaylending and other financialservices.


Year One: Bill 48, the Payday Loans Act was passed on June 9, 2008. Variousprovisions of the Act came into effect on April 1 and July 1, 2009, tighteningregulations on payday lenders and setting a maximum total cost of borrowing capfor payday loan agreements in Ontario of $21 per $100 borrowed.

YEAR TWO: Key parts of this Bill have yet to be enacted, including an EducationFund paid for by the industry to inform customers about their rights regardingPayday Loan services. A variety of enforcement mechanisms have also not yetbeen proclaimed.

Call on Ottawa to expandcoverage ofEmploymentInsurance (EI) and enrich theCanada Child Tax Benefit.

Call on the federalgovernment to host asummit to discussEmployment Insurancemodernization.

Year One: The Ontario government called on the federal government to expand EIcoverage and enrich the CCTB when they released the Poverty Reduction Strategyand again when the 2009 provincial budget was released.

YEAR TWO: The province continues to call for better Federal EmploymentInsurance coverage to assist Ontarians impacted by the recession. The CanadaChild Tax Benefit has currently reached its maximum of $3,416 per child and the

federal government has made no commitment to increase it.

Develop andimplement aSustainableProcurement Strategy.

Year One: No action to date.

YEAR TWO: The government has not yet announced a Sustainable ProcurementStrategy.

Develop a SocialVenture Capital Fund.


YEAR TWO: The government has not yet announced a Social Venture CapitalFund.

Encourage social

investment, innovationand collaboration.

Year One: Government has funded research by Social Innovation Generation at

MaRS on social venture financing.YEAR TWO: No information is available on further work in this area.

Strong and Supportive C mmunities

Make housing easier to afford.Build it to suit to peoples need.Keep it in good repair.

Stabilize the ProvincialRent Bank Programwith dedicated annualfunding of $5 million.

Year One: Budget 2009 allocated $5 million a year, beginning in 2009-2010 formunicipal rent bank programs, designed to help tenants pay arrears and avoidhomelessness. The program is administered sometimes as a loan, sometimes as agrant, depending on the municipality.

YEAR TWO: While $5 million has been annualized for rent banks, housingadvocates report that this program is oversubscribed in many locations across theprovince, with some municipalities running out of funds. In some municipalities, OWand ODSP recipients and people in subsidized housing are not eligible for thisprogram.

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RESULTS TO DATE

Institute a new 10-year,$60 billioninfrastructure plan,including socialhousing, in 2009.

Year One: The infrastructure plan has not been released.

YEAR TWO: The government has been working on its Long Term Affordable

Housing Strategy since early 2009, which is one part of the infrastructure plan.Earlier this year, governments announcement of its affordable housing strategywas postponed until the fall. We are still awaiting this critical announcement.

The Housing Network of Ontario, a partner organization of 25 in 5, has stated thatthe government should meet a series of 5 Tests in order to create a trulycomprehensive strategy. Doing so would ensure an affordable, accessible,inclusive and sustainable plan. See the Housing Network of Ontarios website formore information about the 5 Tests at www.stableandaffordable.com.

Energy poverty has become an increasingly pressing issue with the addition of theHST to monthly energy bills, a $5 monthly charge for smart meters and a newGreen Energy fee, and the hydro debt retirement surcharge. Rising energy costshave an impact on all Ontarians, but low-income households are hit hardest.

The Low Income Energy Network (LIEN) indicates that there has been recentmovement in the following areas:

The governments Energy Consumer Protection Act includes provisions aroundsmart metering now called suite metering that will prevent landlords fromimposing meters on individual tenants without their consent. If a tenant agreesto a suite meter, the legislation requires that their rent be reduced by an amountthat will cover the electricity cost and any other charges associated with themeter.

The Act also puts in place new rules to restrict and regulate the activities ofenergy retailers across Ontario, including a cooling off period during whichconsumers can change their minds about energy contracts.

The new Northern Ontario Energy Credit, introduced in Budget 2010, is arefundable tax credit that will help low- to middle-income people in the north toafford their energy costs. This is a small step on the road to permanent energycost assistance for all low-income Ontarians.

The Ontario Power Authority (OPA) is developing new province-wide electricityconservation initiatives for low-income consumers.

The Ontario Energy Boards (OEB) Low-Income Energy Assistance Program(LEAP) includes provisions to help low-income Ontarians better manage theirelectricity and natural gas bills.

LIEN continues to work toward making energy more affordable for low-incomeconsumers, and to propose and promote practical programs and solutions that canbe implemented. More information is available at www.lowincomeenergy.ca.

Make early learning and childcare both universal andaffordable.

Implement full-daylearning for four- andfive-year olds.

Year One: On October 27, the government announced the phase-in of full-dayjunior and senior kindergarten for four and five year olds starting September 2010with the goal of full implementation across Ontario by 2015. Part of the first phaseof implementation will be focused on low-income neighbourhoods.

YEAR TWO:

Nearly 600 schools offer full day JK-SK in 2010. That number is scheduled to riseto nearly 800 schools in 2011.

In Budget 2010, the government announced a permanent $63 million annualinvestment in child care subsidies to replace federal funding that had expired.



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RESULTS TO DATE

Build a public educationsystem that focuses onequitable outcomes.

Triple the number ofParenting and FamilyLiteracy Centres to300.

Year One: The Ministry of Education reports that there are 144 Parent and FamilyLiteracy Centres across Ontario as of November 2009.

YEAR TWO: The Ministry of Education reports that there are currently 145 Parentand Family Literacy Centres across Ontario. In addition, the government reportsthat work has started to develop Best Start Child and Family Learning Centres as asingle point of integrated service for children aged 0-12 and their families, asrecommended in the Pascal Report on early learning and child care.

Invest $10 millionannually in an AfterSchool Program tosupport children in highneeds neighbourhoodswith new after-schoolprograms and new

initiatives focused onphysical activity andwellness.

Year One: Launch of the program was announced October 9, 2009, with the aim ofhaving programs in 270 locations and to reach 15,500 children and youth.

YEAR TWO: The government reports that the program is being offered by 100organization at more than 300 locations, serving 18,000 children. Plans areunderway to expand the program to First Nations on reserve in fall 2010.

Education advocates note that while this annualized funding is extremely important,all of the real costs of these programs are not fully covered. Many after school

programs are funded in conjunction with external sources, such as communityfoundations. Such fractured funding means that these programs may not besustainable in the long term.

Focus a portion of theLearning OpportunitiesGrant on helping low-income students whoneed it most.


YEAR TWO: The government reports that the funding formula for LearningOpportunities Grants has been adjusted so that low income status is given moreweight. Funds are provided to those school boards which, based on five social andeconomic indicators, have a higher risk of academic difficulty. The five indicatorsare low income status, Aboriginal ancestry, low parental education, lone parentfamilies and recent immigrants.

Education advocates note that transparency in the use of these funds by school

boards and the complexity of their administration is a problem. It is difficult to trackhow these funds are used, which may indicate that some school boards use thisgrant to meet current budget needs rather than to fund new programming to assistthe neediest students. Advocates recommend that the Ministry of Educationdevelop a new grant for equity, with tighter guidelines for use to ensure the needsof the most vulnerable students are met. In addition, no additional funds have beeninvested in the Learning Opportunities Grant to meet the need in schools.

Encourage schoolboards to ensure thatall students canparticipate in classactivities, not just those

who can afford it.


YEAR TWO: In November 2009, a Draft Access to School Activity Fees guidelinewas circulated to Ontarios school boards for consultation. The Guideline sets outguiding principles and best practices for boards to use when developing orreviewing existing policies, and provides examples of appropriate andinappropriate practices.

Advocates note that, while these guidelines have been distributed, the actualpractice of charging fees continues due to chronic lack of basic funding for schoolbudget needs. In addition, these guidelines do not advocate fee removal, but rathermore transparency in their application.

In addition, People for Education has expressed a concern about equity, noting thatincreased reliance on school-generated funds will inevitably lead to a system ofhave and have not schools a form of exclusion or built-in inequity. Seewww.peopleforeducation.com for more information.



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RESULTS TO DATE

Re-focus a portion ofthe Parents ReachingOut Grants funding tobetter help parents inhigher-need areasparticipate in theirchilds education.

Year One: No public information is available on the status of this commitment.

YEAR TWO: Approvals for Parents Reaching Out (PRO) Grant applications from

Priority Schools have increased by 25% over last year. Since the 2008/09 schoolyear, there has been a 354% increase in approvals for PRO Grant applicationsfrom Priority Schools.

Fund vibrant community-basedprograms that connect andenrich us.

More than doublefunding for the YouthOpportunities Strategyto over $22 millionannually.

Year One: Budget 2009 provided more than $35 million over two years, includingmore than $12 million annually on an ongoing basis, to enhance the YouthOpportunities Strategy.

YEAR TWO: Total investment in 2010 was $24 million. The government reports thatthe program, which provides youth with summer jobs, is now operating in 32communities across the province.

Invest $5 millionannually in aCommunityOpportunities Fund toencourageneighbourhoodrevitalization.


YEAR TWO: No progress to report.

Invest $7 millionannually in thedevelopment of aCommunity Hub

Program, usingschools as hubs thatrespond to communityneeds related topoverty reduction andstudent achievement.

Year One: Budget 2009 allocated $3 million for 2009-2010 to establish CommunityHubs in selected low-income neighbourhoods.

YEAR TWO: The Ministry of Education has released a Facility PartnershipsGuideline for all Ontario school boards to encourage better use of school board

facilities by community partners.Education advocates say that while this guideline has been issued, no priority isgiven to not-for-profit organizations so the practice of issuing permits toorganizations which can best pay for space continues. In addition, school boardscontinue to be under tremendous pressure to close schools with decliningenrolment without first looking at using these schools as Community Hubs.

They report that the Community Hub Program budget for 2010-11 has not yet beenspent.

Advocates also report that the Priority School Initiative, which provides free accessfor community organizations to use 125 designated Priority Schools, is generallyworking well. Each Priority School is given $34,000 to offset the costs associatedwith providing free community use.

In another initiative to provide local services through a community hub structure,the Ontario government has partnered with the federal government and private-sector donors to fund United Way of Torontos Building Strong NeighbourhoodsStrategy, which will build community hubs in eight of Torontos 13 priorityneighbourhoods. The first three of these community hubs opened in 2010, and willcreate accessible community space while bringing together health and socialservices in one location.



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RESULTS TO DATE

Support public and communitytransit. Improve access. Make itaffordable.


Year One: Capital investments and gas tax transfers have been made, but nosustained operating funding has been provided to address access and affordability.

YEAR TWO: No specific commitments for public transit were made in the context ofthe poverty reduction strategy.

TEST #4: LEGISLATION AND ACCOUNTABILITY

Table legislation that brings theplan into law and invites allparties to support Ontariospoverty reduction strategy.

Introduce legislation inspring 2009 toenshrine an ongoingcommitment to a long-term strategy.

Year One: The Poverty Reduction Act (Bill 152) was passed into law with all-partysupport on May 6, 2009.

The legislation was unanimously adopted by all parties in the Ontario legislature.

Carry on the work of theCabinet Committee on PovertyReduction and create a Poverty

Reduction Secretariat that isresponsible for bringing togethervarious Senior Ministers, drivingimplementation, and trackingprogress.

Create a Cabinet-levelcommittee tasked withimplementing the

Poverty ReductionStrategy and supportedby a dedicatedsecretariat. This teamwill seek advice fromexternal experts andwill be responsible foroverseeing:

implementingdecisions;

annual reporting onprogress; and

ongoing

consultations withkey stakeholdersand the public.

Year One: In January 2009, a Results Team was created to oversee theimplementation of the Poverty Reduction Strategy and recommendations from theRoots of Youth Violence report. The Results Team is chaired by the Minister of

Children and Youth Services, includes members of Cabinet, MPPs and advisors,and receives staff support. No dedicated secretariat has been confirmed.

YEAR TWO: The government reports that the Results Team meets monthly. It ischaired by the Minister of Children and Youth Services and is comprised ofmembers of Cabinet, MPPs, and external advisors. The ministers involved are:Education; Training, Colleges and Universities, Community and Social Services,Health, and the Minister Responsible for Seniors. Mark Chamberlain (former chairof the Hamilton Poverty Reduction Roundtable) and Michael Mendelson (of theCaledon Institute) are the external advisors.

Annual public reporting onprogress.

Report back every yearto Ontarians on theindicators ofopportunity.

Year One: The Poverty Reduction Act stipulates that the Annual Report be tabledno later than March 31, 2010 and each subsequent year. The government isexpected to report in December 2009.

YEAR TWO: The government tabled its first year report in December 2009, and isexpected to report again in December 2010.

Create an Advisory Committeethat includes grassroots leaders,

experts, and people living in lowincome.


Year One: The government made no commitment to an Advisory Committee onpoverty reduction either in the Poverty Reduction Strategy or in the Poverty

Reduction Act.

YEAR TWO: 25 in 5 continues to call for a community-based and inclusivelyrepresentative Advisory Committee to be established.



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RESULTS TO DATE

Commit to ongoing publicconsultation as the planunfolds.

Engage people in theircommunities at thehalfway point of thefive year target tomake sure the plan ison track.

Year One: The Poverty Reduction Act requires the Minister to undertake publicconsultations as part of the process for creating a new poverty reduction strategy atleast every five years. The halfway point of the current strategy, when publicconsultation should take place, is early in 2011.

YEAR TWO: The halfway point of the current strategy, when public consultationshould take place, is early in 2011. 25 in 5 expects the government will begin thesepublic consultations soon.

Create anindependent SocialPolicy Institute to

Evaluate socialpolicy, includingeconomicevaluation;

Identify bestpractices in other

jurisdictions for usein Ontario; and

Work withinternational expertsto developinnovationroadmaps forOntario in specificareas of competitivestrength, socialpolicy and economic

importance.


YEAR TWO: No progress to report thus far.



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RESULTS TO DATE

TEST #5: BUDGETARY C MMITMENTS

Make significant commitments to

poverty reduction in provincialbudgets.

Budget 2009

acceleratedincreases to theOntario ChildBenefit;

increased therefundable propertyand sales taxcredits;

invested $700million over twoyears for socialhousingrehabilitation; $360

million to buildaffordable housingunits for seniors andpeople withdisabilities; and,$175 million toextend the Canada-Ontario AffordableHousing Program

set aside $4.5million annually tohire employmentstandardsenforcement officers

increased socialassistance rates by2%.

Year One: Acceleration of the Ontario Child Benefit, which came into effect in July

2009, was an important policy both for poverty reduction and economic stimulus,putting an additional $400 million a year into the hands of families struggling to getby. However, social assistance rates were once again adjusted downwards forfamilies with children.

The indexed, refundable property and sales tax credit increases come into effect inJanuary 2010, offsetting additional HST costs for low income households.

Budget 2009 included the promised funding to stabilize the Rent Bank Program. Inaddition, it designated $700 million over two years to rehabilitate social housingand make it more energy efficient; $360 million to build new affordable housing forlow-income seniors and persons with disabilities; and $175 million over two yearsto extend the CanadaOntario Affordable Housing Program. While the governmentof Ontario has matched federal housing dollars, this is in the context of a multi-yeardecrease in funds for the Ministry of Municipal Affairs and Housing.

$4.5 million annually for employment standards enforcement represents 45% of thegovernments commitment to invest $10 million a year.

The 2% increase in social assistance is effectively an adjustment for inflation. Itwould take a 55% increase in social assistance rates to re-establish thepurchasing power they had in 1993.



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RESULTS TO DATE

Budget 2010

1% increase to social

assistance; Announcement to

replace Special DietAllowance withnutritional supplementprogram;

$63 million annually toreplace federalchildcare funding;

An additional $6 millionover two years toincrease the number ofemployment standardsofficers in the province;

Ontarios minimumwage rose to $10.25per hour on March 31,2010;

A new permanent,refundable OntarioSales Tax Credit forlow- to middle-incomepeople of up to $260annually for each adultand each child,benefiting about 3.1million families andsingle people;

Four rule changes tosocial assistance:

1.expanding theexemption of smallpayments and in-kindgifts;

2.shortening thesuspension periods fornon-compliance withparticipationrequirements;

3.clarifying the rules fordisposing of assets inrelation to eligibility(e.g., for personspaying off agovernment debt); and

4.changing the shelterallowance calculationfor people who sharethe cost of theiraccommodation.

YEAR TWO:

Government reiterated the commitment to increase the Ontario Child Benefit to

$1,310 per year by 2013.$8.5 million annually for employment standards enforcement is getting closer tothe governments commitment to invest $10 million a year.

The 1% increase in social assistance in 2010 does not meet the increase ininflation. The announcement that government will end the Special Diet Allowancecould mean a significant decrease in incomes for people with therapeutic dietaryneeds.

$63 million annually to replace federal childcare funding.

Indexed, refundable property and sales tax credit increases come into effect inJanuary 2010, offsetting additional HST costs for low income households.

The increase to $10.25 per hour in the minimum wage meets the governmentscommitment to date. No further increases have been scheduled.

Changes in four rules of social assistance are a step in the right direction, but thegovernments Social Assistance Review Advisory Councils further eight proposalsremain outstanding.



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Building a Resilient Ontario: From Poverty Reduction to Economic Opportunity

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