Unveiling the 2024 Ontario Economic Outlook and Fiscal Review: Building Ontario for You

November 1, 2024

With the summer's legislative break officially over, on October 30, 2024, the Ontario government released its fall economic statement: the 2024Ontario Economic Outlook and Fiscal Review. The statement highlighted the ongoing challenges faced by Ontario given high interest rates and global instability, but continued to focus on its Plan to Build and related infrastructure investments to support its goal of getting more homes built faster.

While the statement included a number of areas to be addressed by the government, including healthcare and education, this insight focuses on the key infrastructure-related announcements.

Overview

As detailed in its news release, the statement recognized pressures on Ontario families and their finances in the wake of these challenges. In response, the Ontario government noted that it wanted to continue to rebuild the economy without tax increases, with a focus on:

• Rebuild the economy - This includes an additional CA$100 million to the Invest Ontario Fund to support it in securing strategic investments that create jobs and drive economic growth.
• Building infrastructure - This includes support for critical infrastructure to better connect people to jobs, services and their homes.
• Reducing costs for individuals and families - This includes various taxpayer rebates for individuals and those with eligible children and a plan to review property assessment and taxation systems.

Other overall changes include healthcare investments aimed at increasing priority access for Ontario residents to medical school seats and additional funding and tax incentives aimed at fertility treatments. In addition, changes aimed at exploring better detection of tax evasion, money-laundering and other similar legislative proposals were also announced.

1. Ontario Municipal Partnership Fund

The Ontario Municipal Partnership Fund (OMPF) provides the Province's main general assistance grant to municipalities, and primarily supports northern and rural municipalities across the province in recognition of their unique financial challenges.

For 2024, the government is maintaining the structure of the OMPF program, which provides funding to 390 municipalities across the province. Additionally, the Province is proposing to increase the OMPF by CA$100 million over the next two years. This would bring total funding provided by this program to CA$600 million by 2026, with a CA$50 million increase coming immediately in 2025.

1. Infrastructure and transit

The Ontario government also stated that this was the "most ambitious" capital plan in the province's history, with approximately CA$190 billion of investment over the next 10 years. In particular, the Province highlighted its intention to focus on building highways, hospitals and other critical assets, in advancement of Ontario's Plan to Build.

The Province is proposing to invest CA$27.8 billion over 10 years in roads and highway projects and CA$68.2 billion over 10 years to build the largest public transit expansion in North America, all with a view to connecting people to jobs and homes and to supporting the provincial economy.

In addition, a new CA$5 million Ontario Transit Investment Fund was announced which intends to bring municipalities, Indigenous communities, non-profits and others together to address transit service gaps in a more integrated, coordinated and sustainable way.

1. Housing-related investments

The Ontario government announced a nearly CA$2 billion investment in housing-enabling infrastructure with the continued goal to build more homes. This included investments to its Municipal Housing Infrastructure Program as well as its Housing-Enabling Water Systems Fund, the latter of which was launched by the Province last year to help municipalities develop, repair and expand critical drinking water, wastewater and stormwater infrastructure, with a view to keep up to population growth and enhance growth.

In addition, an additional CA$260 million was added to the Skills Development Fund Training Stream to connect job seekers with employers in certain sectors, including construction, which no doubt aligns with the goal of increasing homes to be built.

Dentons will continue to monitor further announcements or developments related to the 2024 Ontario Economic Outlook and Fiscal Review and related initiatives. In the meantime, should you have any questions about the announcement and its proposed land development and infrastructure changes, please contact Katarzyna (Kat) Sliwa, Isaiah Banach, Karen Sadler, Diana Doracin or any member of Dentons' Municipal, Land Use Planning and Development team.