The deficit is still $12.5 billion and the Liberals still stand behind an Ontario pension plan.
The finance minister tabled a budget that looks a lot like the one they put forward on May 1st, which ultimately triggered an election in the province.
Finance Minister Charles Sousa didn't change any spending increases in healthcare and education, despite warnings from critics and credit agencies that Ontario’s rating could change, meaning more interest paid one debt. He maintains he won't get rid of any public sector jobs or make huge service cuts to pay down the deficit by 2017-18.
It’s expected that after this year, there will be vast changes to provincial spending to balance Ontario’s books.
Now that the budget is likely to pass with a majority government in place, you can count on your wallet getting hit.
There is still a plan in place for an Ontario-based pension plan that would be put in place by 2017. The details remain the same: Someone making $45,000 a year would be contributing $788 a year. If you make $70,000, you'll contribute $1,263 annually. Those who bring in $90,000 a year will contribute $1,642. It will be mandatory for those who don't have a comparable workplace pension plan, with maximum contributions of 1.9 per cent.
Personal income taxes will go up for those making $150,000 and more a year – which will affect two per cent of all those who file taxes. Those making up to $220,000 would pay $425 more a year. If you make over $220,000, you will pay $5,500 more.
The budget outlines in greater detail a phased in aviation fuel tax which would act as a transit funding tool, which would see a one cent a litre increase each year, for four years starting on September 1st. It would affect the price of plane tickets.
There is no major change to their transit funding tool proposal as a whole, which includes: the aviation fuel tax, restricting large corporations from claiming the small business deduction and restricting the fuel-tax exemption for road-building machines. This is on top of previously announced initiatives like: future High Occupancy Toll (HOT) lane revenue, green bonds, the trillium infrastructure fund, 7.5 cents of the existing gas tax and using the HST made on gas and diesel fuel.
There have been some tweaks to legislation to include an MPP wage freeze in the budget.
Interim Tory Leader Jim Wilson says they won't be supporting what he calls a political budget. He says the people of Ontario didn't vote for the Liberals’ plan but instead voted against his party. He points to the “mistake” to propose 100,000 public sector job cuts during the campaign.
NDP leader Andrea Horwath says she also won't vote for the budget, underlining it’s not progressive.