Ont. government wages soar in less than 10 years
Fraser Institute study finds they’re responsible for 75% of new program spending.
VANCOUVER — Spending on government worker wages and benefits in Ontario has increased substantially since 2005-06, hindering the province’s ability to balance its books, finds a Fraser Institute study.
How Compensation Spending Consumes Provincial Government Resources in Ontario calculates that between 2005-06 and 2013-14 (the latest year of available data), compensation spending by the Ontario government – including wages, benefits, and pensions – increased by 47.1%, faster than all other program spending (38.8%) and well beyond the combined rate of inflation and provincial government job growth (26%).
Although the public policy think tank’s study notes the government has taken steps to restrain compensation spending, compensation is still responsible for nearly 75% of new program spending from 2009-10 to 2013-14.
In 2013-14, the Ontario government spent $60.2 billion on employee compensation—or approximately 52.0 per cent of the province’s total program spending budget, up from 50.1 per cent in 2009/10.
The Fraser Institute says if compensation spending’s share of total program spending had been restricted to the 2009-10 level, the province would have saved $14.7 billion over a five-year period and sliced $4.4 billion from the 2013/14 budget deficit.
Click here for a copy of the study.