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Ontario announces new tax credit, wipes rent control

Ontario announced major moves.

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Eli Ridder | Report

In an economic statement given on Thursday, the Ontario government announced a new tax credit for those earning less than $30,000 a year and will wipe rent control from new units, among other cuts.

More: https://www.fin.gov.on.ca/fallstatement/2018/fes2018-en.pdf

Premier Doug Ford tweeted that “Our Plan For The People will put more money in people’s pockets, while getting our province’s finances back on track” with an image of the party announcing the new legislation.

The cuts laid out in the government’s Fall Economic Statement for 2018-2019 will decrease the province’s $15 billion deficit by $500 million, with the Progressive Conservatives promising the books would be balanced.

The Tories concluded earlier this year that they were left with the multi-billion-dollar deficit by the former government, a figure disputed by critics that say it includes money promised but cancelled by the current regime.

Finance Minister Victor Fedeli took aim at the criticism, with media reporting that he called it “a real deficit”, saying a challenge lay ahead for the province that would include requiring everyone to make “sacrifices”.

Mr. Fedeli said the government has saved $3.2 billion by the cuts, but the deficit is only a half billion smaller due to a drop in revenue after cancelling cap-and-trade, worth $1.5 billion, and $308 billion worth in tax increases.

The primary developments from the economic statement:

  • Eliminating provincial income tax for those that earn less than $30,000 a year, up to $850 in savings for low-income earners.
  •  As part of its newly announced “Housing Supply Action Plan,” Ontario is proposing a strategy to increase the province’s rental housing supply through measures intended to bolster new development while protecting rent control for existing tenants.
  • Hours for alcohol sales will be extended at the Beer Store, LCBO and grocery stores from 9 a.m. to 11 p.m., seven days a week.
  • Plan without a timeline is in place to bring beer and wine in corner stores.
  • Cuts positions of environmental commissioner, French language services commissioner, and provincial advocate for children and youth, with the files taken over by the ombudsman. 
  • Province will give Toronto $25 million over four years to fight guns and gangs.
  • Maintains a public service hiring freeze.
  • Ends taxpayer subsidies provided to political parties in Ontario.

Image of Doug Ford from previous files. ■

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Campus

Province appealing to restore Student Choice Initiative

An Ontario court ruled against the SCI in November.

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File photo of Premier Doug Ford.

The provincial government under the Progressive Conservatives is applying for leave to file an appeal against a ruling from the Divisional Court of Ontario that overturned the Student Choice Initiative.

A leave for appeal is a procedural measure that must be taken before an appeal is heard by the Court. Thus, the ruling of the Court stands and the SCI continues to be deemed unlawful.

The initiative, known as the SCI, was introduced earlier this year and came into play this fall semester. It allowed students to opt-out of paying certain “non-essential” ancillary fees that fund student unions, campus publication and other post-secondary organizations across the province.

The mandate came from the university and colleges ministry and was not passed through Queen’s Park. PC Party officials insisted to The Avro Post that it allowed for freedom of choice, allowing students to pay only for services that they felt was worth their financial support.

In response, the provincial division of the Canadian Federation of Students and York University’s student union filed a legal challenge against the SCI, stating that they failed to consult with students and should not have interfered with the autonomy of student unions.

Judges ruled unanimously in November to throw out the SCI, an unexpected victory for student allies. They found that the government has “no legal power to control the universities even if it wished to”.

A brief filed by the province on Monday evening states that the ruling restricts the authority to attach conditions to the funding given to public colleges and universities, according to reports by student newspapers.

“Attaching conditions to government grants in no way interferes with university autonomy and independence,” the brief reads, adding that post-secondary institutions “remain free” to accept taxpayer dollars, subject to the conditions that come along with the funding.

Over $5 billion comes from provincial coffers to the province’s 21 publicly assisted universities and 24 funded colleges. The Progressive Conservatives argue that the introducing optional student fees is an attempt to allow students to save more financially.

The court ruling, however, pointed out that the optional ancillary fees are a small portion of what students pay in tuition and other fees. For students at Humber College and the University of Guelph-Humber, there was only a charge of $55.95 compared to hundreds in overall fees.

The Winter 2020 semester starts in January and fees are due shortly. Some campuses are currently considering their legal options for removing the opt-out option for ancillary fees, The Globe and Mail reported.

IGNITE did not participate in the lawsuit against the province and did not offer support. The student union also refused to respond to the November ruling against the SCI until the government gave a statement. ■

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Ontario

High school teachers launch day-long strike

The OSSTF is now on strike.

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Photo for demonstration via Pexels.

The union representing public high school teachers launched a one-day strike on Wednesday morning after a deadline for a deal was missed, the first strike in 22 years by the Ontario Secondary School Teachers’ Federation.

This means that classes are cancelled at public and Catholic high schools for the day. The bargaining team for the union had remained in their caucus room since 9 a.m. on Tuesday morning but there was no provincial representation, OSSTF said.

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Administrations, unions give varied response to SCI ruling

The U of T was first to close the SCI.

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File photo.

On Nov. 21, the Ontario Divisional Court deemed the Ford government’s Student Choice Initiative unlawful and the reaction has varied from sending the optional fees website offline to waiting on the Ford government’s response.

On Monday, Nov. 25, the University of Toronto responded by being the first university in Ontario to email its students informing them that they would be freezing the “incidental fees portal” while they took stock.

In an email to students from Vice-Provost Sandy Welsh, University of Toronto students were informed that the school was evaluating the “technical impact” of the court’s decision, and that there would be updates to come. 

In a graphic posted on their social media, Sheridan College said “Sheridan is monitoring the situation to see what course of action the government chooses to take. Until we receive a new directive, we’ll continue under the current one, which allows students to opt-out of paying certain fees.”

Few other post-secondary institutions have posted a public update about the new evolution in the implementation of the province of Ontario’s “Tuition Fee Framework and Ancillary Fee Guidelines” document. [hyperlink: http://www.tcu.gov.on.ca/pepg/mtcu-university-tuition-framework-guidelines-mar2019-en.pdf]

The University of Guelph has not released a statement yet, but administration has advised its student union, the Central Student Association, that large institutions can take time to implement legal decisions, and that figuring out mechanics with which to reverse the ”Student Choice Initiative” will take some time. 

While the government of Ontario has not yet commented on the releases, there is speculation that they are considering an appeal. In a statement on Friday November 22nd, spokesperson Clara Bryne wrote, “The Ministry of Colleges and Universities is currently reviewing the decision released yesterday. We will have more to say on this at a later date.”

Canadian Federation of Students – Ontario National Executive Representative, and the CFS representative in the legal proceedings, Kayla Weiler, said “we haven’t had any confirmation if there will be an appeal or not, and […] we’re hoping the government will respect the unanimous decision of the panel of judges and respect student democracy”

In its reasons, the Divisional Court said, “The University Guidelines [SCI] … are beyond the scope of the crown’s prerogative power over spending because they are contrary to the statutory autonomy conferred on universities by statute.”

Referring specifically to section seven of the Ontario Colleges of Applied Arts and Technology Act wherein governments are prevented from interfering with the “normal activities” of student governing bodies – specifically the court ruled that “normal activities” the government is precluded from includes; “reducing or eliminating the funding used by student associations.” ■

Reporting by Jack Fisher; 
Editing by Eli Ridder.
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