Using Performance Data to Inform Budgeting at the Subnational Level: The Ontario Experience by Greg...
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The Ontario Perspective Using Performance Data to Inform Budgeting at the Subnational Level
10th Annual Meeting of the OECD Senior Budget Officials Performance And Results Network
Greg Orencsak Deputy Minister, Treasury Board Secretary of Treasury Board and Management Board of Cabinet Ontario, Canada
November 24, 2014
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Population | 13.5 million Languages | one official, over 200 spoken Size | over one million square km
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About Ontario
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• Defense & Foreign Affairs
• Employment Insurance
• Criminal Law
• Trade & Commerce
• Taxation (Direct & Indirect)
Key Federal Responsibilities
• Health
• Education
• Social Services
• Administration of Justice
• Local Government
• Property & Civil Rights
• Taxation (Direct)
Key Provincial Responsibilities
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• Immigration
• Agriculture
• Energy
• Pensions
• Environment
Concurrent Responsibilities
Jurisdictional Arrangements in Canada
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Ontario’s Composition of Revenue: 2014-15
Source: 2014 Ontario Economic Outlook and Fiscal Review
Personal Income Tax
$29.1B 25%
Federal Transfers $21.9B
18%
Income from Government Enterprise
$5B 4%
Other Non-Tax Revenue
$8.6B 7%
Sales Tax $21.9B
18%
Other Taxes $22B 19%
Corporate Tax $9.9B
8%
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18%
14% 14% 26%
16%
19% 15%
34% 35%
39%
Source: Provincial Budgets and Updates
Federal Transfers as a Percentage of Revenue
British Columbia
Alberta
Saskatchewan Manitoba
Ontario
Québec
New Brunswick
Newfoundland
Prince Edward Island
Nova Scotia
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Budget Legislation in Provinces
Most provinces have legislation seeking to achieve or maintain balanced budgets. They tend to be principles-based rather than rules-based.
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Budget Practices Comparison: FISCAL RULES
0
25
50
75
100
No Rules Revenues Expenditures BudgetBalance
Debt
Percentage of Canadian Jurisdictions and OECD Member States with Fiscal Rules for Specified Planning Variables
Canada OECD
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Per cent
Source: L’Observatoire de l’administration publique, Fiscal Governance in Canada: A Comparison of the Budget Practices and Processes of the Federal Government and the Governments of the Provinces and Territories (2011)
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Budget Practices Comparison: PERFORMANCE TARGETS
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25
50
75
100
Canada OECD
Share of Canadian Jurisdictions and OECD Member States By Proportion of Ministries and Agencies that
Use Performance Targets
0% 1% to 40% 41% to 60% 61% to 80% 81% to 100%8
Per cent
Source: L’Observatoire de l’administration publique, Fiscal Governance in Canada: A Comparison of the Budget Practices and Processes of the Federal Government and the Governments of the Provinces and Territories (2011)
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Provincial Planning Experience
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“Results-based Planning” guides all Ontario ministries in the development of multi-year plans to meet expense targets.
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Broader Reviews
Ontario supplements its annual planning process with a combination of broad and targeted reviews to help inform budgeting decisions.
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RESULTS: Patient- and Activity-Based Hospital Funding
Global Budgeting for Hospitals
• Provider-centred system • Fixed annual funding • Based on historic funding
levels • No link between actual
costs and allocations • Not based on volume and
types of services delivered
• Not linked to outcomes (i.e. improved performance / increased efficiencies)
Activity-based Funding Model for Hospitals and Community Care Access Centres
• Patient-centred system • Funding based on volume
and types of services delivered
• Evidence and demographic information used to better reflect needs of patients
• Shifts resources to where they are most needed
• Helps drive better patient outcomes
• Directs funding to efficient providers 11
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RESULTS: Postsecondary Strategic Mandate Agreements
Recent Postsecondary Education System
• Rapid enrolment growth • Tuition fee increases of
about 5% annually • Institutions expand programs
with little regard for duplication
• Unsustainable cost structures; over-reliance on enrolment growth and tuition fee increases
• Quality of learning experience at risk
• Limited accountability
Differentiated Postsecondary Education System
• Slower enrolment growth • Tuition fee increases capped
at 3% • Institutions focus on unique
strengths; avoid unnecessary duplication
• More efficient and financially sustainable system
• Improved quality of learning experience
• Improved transparency and accountability with measurable results
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RESULTS: Children’s Mandatory Immunizations
Un-coordinated Immunization Records Tracking
• 8 publicly-funded vaccines in 2003
• Public Health Units receive immunization lists directly from schools and school boards
• Processes vary across organizations, resulting in errors and duplications
Modernized Immunization Program
• Immunization records now linked to Ontario Education Number
• Improved accuracy and efficiency in collecting and recording immunization information
• Uses evidence to identify new mandatory immunizations and dose requirements
• 21 publicly-funded vaccines, saving parents $2500 per child
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Program Review, Renewal and Transformation
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Ontario is launching a new approach to multi-year planning and budgeting, called Program Review, Renewal and Transformation.
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Program Assessment and Measurement Framework
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Third Party Advice and Innovation
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Source: Better Outcomes For Public Services, Mowat Centre, 2014
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Summary Observations
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• Strong linkages to government priorities • End-to-end partnerships are key
• Public servants and elected officials • Funders and delivery organizations
• Evidence matters • No one has all the right answers
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Contact
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Greg Orencsak Deputy Minister, Treasury Board Secretary of Treasury Board and Management Board of Cabinet Government of Ontario, Canada