Quick BUDGET Facts

While the government claims it is increasing health care operating spending $1.2 billion, or 5.4%, in fact, the increase is almost $300 million less than that. If all health care operating spending is included the increase is only $913 million, or 4%. The government’s calculations leave out what they call "major one time health care costs", costs which have occurred in five out of the last five years.

Claims that we can no longer afford public health care spending are wrong. Public health care spending as a proportion of the provincial economy continues to be well below the levels established before the Conservatives came to power and, in fact, shrank slightly with this budget.

Hospital operating spending for 2001-02 was set at $8.4 billion in the budget, $100 million less than the $8.5 billion in operating funding for 2000-01.

The funding problem is compounded by the fact that the government also indicated that it will introduce a Public Sector Accountability Act that will forbid hospitals (and other public sector bodies) from running deficits. The total hospital debt is about $2.2 billion right now and hospitals are projecting total deficits of at least $650 million for 2001-02. The Ontario Hospital Association says of the budget: "While corporations are guaranteed tax cuts for the next five years, hospitals, their employees and our communities were not given any guarantees today that the province will be there to support them. Hospitals will now be forced to suggest service cuts to the government for its consideration."

Long Term Care is budgeted at roughly $100 million more than last year’s budget, an increase of about 3.2% -- about the current rate of inflation in the province. OHIP is up approximately 5% and "other health care" is up somewhat under 8%.

The government says it will introduce a Public Sector Accountability Act that will require public sector organizations to ""look for areas where the private sector could do a better job."" As well, in what the government calls a "value for money" review, private sector "experts" will examine whether programs should be cut, or privatized.

Ironically, while the government steps up the pressure to privatize, the budget also revealed that spending on drugs — an area dominated by transnational corporations — saw by far the largest increase in health care spending. The government has increased funding for drugs 20% since last year, far more than what other health care sectors got. Indeed, since the 1998 budget (only three years ago) public money going for the drug industry has increased 64%.

May Newsletter Table of Contents

Urgent Cross-Province MPP Actions called for May 23
List of local May 23rd actions in your area
OHC Privatization Fact Sheet Insert
OHC Health Spending Fact Sheet Insert
Quick Facts about the Ontario Budget
Long Term Care Update
Local Coalition Update

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