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The province has announced a cash injection of $42 million for homelessness prevention programs.
Designed to lend a helping hand to people participating in Ontario Works or the Ontario Disability Support Program (ODSP), the money will be shared by municipalities across the province. Toronto will receive $12.3 million or about 29% of the money, Sandy Mangat, a spokesperson for the Ministry of Community and Social Services said in an email to NinetyTwoPointEight.
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| Slum courtyard, Agnes Street, Toronto, 1913. City of Toronto Archives |
Poverty is a significant problem in Toronto; about 25% of the city lives without, according to the Social Planning Network.
For some context, the Hamilton Spectator reports Hamilton is to receive $3.19 million. The Standard reports Niagara Region will receive $1.9 million.
In plain language, the upshot of the provincial announcement is this: the province aims to provide some stability for people receiving Ontario Works or ODSP while municipalities develop local plans for poverty and homelessness prevention.
"This one-time funding will work in combination with existing housing and homelessness supports," Minister John Milloy said in a statement.
Municipalities, including Toronto, have more responsibility for poverty reduction now because the province replaced five previous social assistance programs, which provided directed provincial funding for services including emergency hydro help, emergency rent help and short-term assistance for lodging and personal expenses, with single block grants.
Toronto can use the grants for whichever poverty and homeless initiatives it wishes, be it emergency shelters, permanent housing, food banks or helping residents with rent.
Clearly, when the province hands millions of dollars over for homelessness prevention initiatives, you don't kick it in the teeth, you thank it, like the Wellesley Institute did in a statement yesterday, calling it "outstanding" and thanking the Liberals for "stepping up to the plate."
And, more local control by Toronto over poverty programs isn't all bad. In fact, it may allow those initiatives to become more relevant.
But in its 2012 budget, the province also eliminated the Community Start-Up and Maintenance Benefit, which helped people with big housing expenses.
And only half the money dedicated to that program will be given to the municipalities in the future.
It's clear there's less cash around to help people. The city has already identified $12.8 million less.
The draft 2013 city budget shows Toronto Employment & Social Services will direct what money it will get to a local assistance program. But the Toronto Star reported in October that those on the front lines of poverty reduction in this city fear their efforts will be hampered by a lack of provincial money.
Accepting cuts to social services is hard in good times, let alone when the province is trying to slay a $15 billion deficit amidst the backdrop of economic instability. Minister Milloy admitted to the Star that the cuts are being driven by the province's deficit.
Also, as the province retreats from social welfare responsibilities, Toronto is faced with the same problem ─ and now with one arm tied behind its back.
And all of this as Toronto's 8% unemployment rate remains higher than the national average.
However, it's not practical to tell the poorest Torontonians that they have to help bail out the province just like the middle class and the wealthy. The reality is, some people can help and some people can't.
If the province can't currently provide for the neediest who live here, it should consider moderately increasing ─ not simply freezing ─ corporate tax rates to balance the social deficit created by the cancellation of the Community Start-Up and Maintenance Benefit.
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