Presentation to the:

The Vision: A 21st century income security system that enables all Ontarians to live with dignity, participate in their communities, and contribute to a prospering economy.

Leah Myers, Executive LeadCommission for Review of Social Assistance in Ontario

May 15, 2012

ONWAA Spring Assembly

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Purpose of the Presentation To provide an update on the work of the Commission

To discuss the key issues from the ONWAA submission

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Update on the Work of the Commission

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Engagement with First Nations The Commission held “separate and substantive discussions with

First Nations to ensure reforms that reflect their needs and priorities”, in keeping with the Commission’s Terms of Reference

We engaged with the Chiefs of Ontario, ONWAA and OFIFC, and met with political leadership and communities through regional sessions with various First Nations communities throughout the fall:

• Community Hosts: Fort William First Nation, M’Chigeeng First Nation, Mohawks of the Bay of Quinte, Moravian of the Thames First Nation, Six Nations

• Organization Hosts: Timmins Native Friendship Centre, Fort Frances Chiefs Secretariat, Kenora Chief Advisory

• Assemblies/Annual Meetings: All Ontario Chiefs Conference, Grand Council Treaty #3 AGA, Mushkegowuk AGA, ONWAA assemblies, OFIFC assembly

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Discussion Paper 2 On February 3 the Commission released Discussion Paper 2:

Approaches for Reform along with a companion report on the first phase of stakeholder engagement, What We Heard: A Summary of Discussions on Social Assistance

This second paper continues the conversation on social assistance reform that begun last spring, by seeking feedback from stakeholder groups and communities on different approaches to improving some key areas of the system

• These approaches were developed based on our research, the response to the first discussion paper, and our engagement with First Nations

Discussion Paper 2 looks at different ways to improve social assistance in 5 chapters, organized by the 5 outcomes. A separate chapter is devoted to social assistance and First Nations

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Next Steps Deadline for written submissions and completion of online

workbooks was March 16• We have received approximately 250 written submission and 125

online comments, including input from ONWAA, Grand Council Treaty #3, OFIFC, ONWA

• 175 have been posted on our website

Key meetings ongoing through April/May

Feedback will inform the recommendations of the Final Report• We are currently drafting the paper

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Key Reform Issues

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Employment The paper identifies and discusses 4 key features of effective

employment services and supports:• Consistent assessment and case management

• Integrated pre- and post-employment services and supports

• Access to the same level of services for people with disabilities

• Strong connections with employers It asks a series of questions on how to ensure these features are

effectively and consistently reflected in employment services across the province

It also identifies possible approaches to improving access and delivery of employment services and supports - including changed roles of the province, municipal and First Nations administrators, from improved collaboration to exclusively municipal/First Nations delivery to full delivery by the province through Employment Ontario – and seeks feedback on these models

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Employment (cont’d.) ONWAA emphasized the importance of:

• locally identified program outcomes and targets, to be negotiated with the ministry;

• local flexibility in service delivery approaches, assessment tools;

• focusing on the whole person;

• recognizing regional and community variances in service and funding approaches

ONWAA called for First Nations direct delivery of all employment services programs, and noted the potential for Federal Social Assistance Transfer Fund as a model re employment incentives

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Benefit Structure The paper describes the challenge of finding the right balance

between three key goals:• Adequacy of benefits

• Fairness between people receiving social assistance and low-income people who are working but not receiving social assistance

• Work incentives

It notes the lack of benchmarks to use in developing a rate methodology; the dilemma of the trade-offs between these goals is rooted in the labour market, characterized by low earnings, lack of extended health benefits and growing income inequality

Two approaches are proposed to ease this dilemma: Extended health benefits provided to all low-income Ontarians; and a rate structure that changes over time

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Benefit Structure (cont’d.) The dilemma of trade-offs is even more pronounced in designing a

benefit structure for people with disabilities; the new benefit structure should support the aspirations of people with disabilities to work, while also taking into account additional living costs

One proposed approach is a new supplementary disability benefit to all low-income people with disabilities, which could be phased out as employment earnings increase; another would provide a basic income for people with severe disabilities who are unlikely to generate significant earnings

Other measures to help make work pay and improve fairness in incomes levels include an earned income supplement or a housing benefits for all low income Ontarians

• The problem of high marginal effective tax rates created as these types of benefits are withdrawn is also discussed

The paper also describes possible approaches to reducing the complexity of the benefit structure, including simplifying the number of special benefits and arriving at a “standard” rates

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Benefit Structure (cont’d.) We heard from ONWAA that:

• Benefits should support healthy living standards, taking into account regional cost variations

- The Market Basket Measure needs to be adjusted for First Nations communities

• Benefits should also incorporate annual cost of living adjustments, as is the case for the OAS benefit

• The potential to combine benefits into standard rate depends on adequacy

• Better access to medical assessments and other services are needed to allow First Nations to qualify for disability supplement

• ONWAA is concerned with an approach that focuses on the severity of disability, rather than employment barriers for the individual or the community

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Complexity The paper notes that the current approach to monitoring

compliance with social assistance rules is a major contributor to the complexity of the system, and describes an alternative approach that would involve a more targeted audit-based process, accompanied by effective risk identification tools and penalties

Complex asset rules also create challenges to financial self-sufficiency and contribute to a cycle of dependence. The paper sets out various approaches to revise the current limits on assets that a recipient can have

ONWAA expressed caution about punitive approaches, emphasized the need for flexibility, and cited the potential to move to an local social assistance justice system

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Service Delivery The paper looks at additional approaches to coordinating or

integrating social assistance on a system-wide basis, and make it more effective and efficient

It also discussed the need for new accountability arrangements to accompany any potential changes to the role of municipalities and First Nations

ONWAA pointed to the greater opportunity for First Nations in local delivery of employment services, and that the Temporary Care Allowance should be delivered through First Nations Child Welfare Authorities

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First Nations and Social Assistance: The Bigger Picture The paper notes that a number of First Nations leaders and

administrators spoke of the desire to regain control over their futures through social services, based on principles adopted in the 1990s by the All Ontario Chiefs Conference:

• First Nation controlled – provided by First Nation government and accountable to First Nation members

• First Nation determined – designed and developed within the community by the membership

• First Nation specific – designed to address community needs in harmony with local culture and social structure

• First Nation based – managed and delivered within the community ONWAA pointed to the goal of decreased dependency on social

assistance, and called for changes with the current system and legal framework including: recognizing cultural activities as participation requirements, increasing access to child care, increasing access to addictions services, eliminating the Living with Parent rule, making benefits more adequate, adopting culturally sensitive definitions

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The Bigger Picture (cont’d.) More broadly, ONWAA emphasized the importance of social

programs being developed, designed, and delivered by First Nations and the desire to see a commitment by Ontario to explore the viability of First Nations gaining further control over social services delivered within their territory through:

• First Nations-specific directives• a First Nations Commission that can make recommendations

on a social assistance program under the authority of First Nations law

ONWAA also emphasized the importance of tri-partite discussions about creating opportunities to move beyond the current framework and the current definition of roles and responsibilities

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In Closing The Commission is very appreciative of the advice and input of

First Nations and ONWAA to the task of transforming social assistance in Ontario

I look forward to engaging in dialogue with you in the time we have together this morning