1. The ONTARIO CHILD BENEFIT and restructuring of social assistance

La prestation ontarienne pour enfants et la restructuration du programme d'aide sociale

COMMITTEE RECOMMENDATIONS AS AMENDED

That Council:

1. Receive this report and approve a request to the Province of Ontario to issue the full amount of the Back to School and Winter Clothing Allowances in 2008 as a Year 1 transition strategy to reduce the financial hardship for social assistance recipients with children in the months of August and November 2008 and that these allowances be paid 100% by the Province of Ontario;

2. Urge the Government of Ontario to ensure that people living in poverty receiving social assistance see an increase in their assistance equal to the full National Child Benefit Supplement; and that this motion be copied to the Association of Municipalities of Ontario (AMO) and local MPPs; and,

3. Urge the Government of Ontario to maintain a separate Back to School Allowance and a separate Winter Clothing Allowance to better assist families living in poverty receiving social assistance; and that this motion be copied to the Association of Municipalities of Ontario (AMO) and local MPPs.

RECOMMENDATIONS MODIFIÉES DU COMITÉ

Que le Conseil :

1. prenne connaissance du présent rapport et approuve la présentation d’une requête au gouvernement de l’Ontario sollicitant le versement intégral de l’allocation de retour à l’école et de l’allocation pour les vêtements d’hiver de 2008, dans le cadre de la première année d’une stratégie de transition ayant pour but d’alléger le fardeau financier, en août et en novembre 2008, des prestataires de l’aide sociale qui ont des enfants; et que la totalité de ces subsides soient versés par le gouvernement ontarien;

2. demande instamment au gouvernement de l’Ontario de veiller à ce que les personnes vivant dans la pauvreté et recevant une aide sociale voient une augmentation de leur aide égale au montant total du Supplément de la prestation nationale pour enfants, et qu’une copie de cette motion soit envoyée à l’Association des municipalités de l’Ontario (AMO) et aux députés provinciaux de la région;

3. demande instamment au gouvernement de l’Ontario de maintenir une allocation de retour à l’école et une allocation pour les vêtements divers séparées afin d’offrir une meilleure aide aux familles vivant dans la pauvreté et recevant une aide sociale, et qu’une copie de cette motion soit envoyée à l’Association des municipalités de l’Ontario (AMO) et aux députés provinciaux de la région.

DOCUMENTATION

1. Deputy City Manager, Community and Protective Services Department report dated 24 April 2008 (ACS2008-CPS-DCM-0001).

2. Extract of Draft Minutes, 1 May 2008.

Report to/Rapport au :

Community and Protective Services Committee

Comité des services communautaires et de protection

and Council / et au Conseil

24 April 2008 / le 24 avril 2008

Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/Directeur municipal adjoint,

Community and Protective Services/Services communautaires et de protection

Contact Persons/Personnes ressource :

Colleen Hendrick, Director/Directrice

Community Funding and Cultural Services/Services culturels et financement communautaire

(613) 580-2424 x, Colleen.Hendrick@ottawa.ca

Danielle Masse, Director/Directrice

Employment and Financial Assistance/Services d’emploi et d’aide financière

580-2424 x,43080, danielle.masse@ottawa.ca

City Wide/à l'échelle de la Ville

Ref N°: ACS2008-CPS-DCM-0001

SUBJECT:	The ONTARIO CHILD BENEFIT and restructuring of social assistance

OBJET :	La prestation ontarienne pour enfants et la restructuration du programme d'aide sociale

REPORT RECOMMENDATION

That the Community and Protective Services Committee recommend that Council receive this report and approve a request to the Province of Ontario to issue the full amount of the Back to School and Winter Clothing Allowances in 2008 as a Year 1 transition strategy to reduce the financial hardship for social assistance recipients with children in the months of August and November 2008 and that these allowances be paid 100% by the Province of Ontario.

RECOMMANDATION DU RAPPORT

Que le Comité des services communautaires et de protection recommande au Conseil municipal d’adopter le présent rapport et d’approuver la présentation d’une requête au gouvernement de l’Ontario sollicitant le versement intégral de l’allocation de retour aux études et de l’allocation d’habillement de 2008, dans le cadre de la première année d’une stratégie de transition ayant pour but d’alléger le fardeau financier, en août et en novembre 2008, des prestataires de l’aide sociale qui ont des enfants; et que la totalité de ces subsides soient versés par le gouvernement ontarien.

EXECUTIVE SUMMARY

In the spring of 2007, the Province released general information about two important and related changes: one is to no longer deduct the National Child Benefit Supplement (NCBS) from social assistance cheques, and the second is to upload a portion of benefits paid to children of parents who are on Ontario Works and Ontario Disability Support Program through a new program called the Ontario Child Benefit (OCB). These changes will begin effective July-August 2008, with full implementation by 2011; however, not all the details of these changes are known at this time.

This report provides information on the impact of the new OCB program and recommends a request to the Province to issue the full amount of the Back to School and Winter Clothing Allowances for social assistance recipients in 2008 as a year 1 strategy to reduce hardship through the transition of consolidating these benefits within the new Ontario Child Benefit.

RÉSUMÉ

Au printemps 2007, la Province a rendu publics des renseignements généraux concernant deux changements importants en la matière : le premier consiste à cesser la déduction du supplément de la Prestation nationale pour enfants (SPNE) des chèques d’aide sociale, et le deuxième, à prélever une part des prestations versées aux enfants dont les parents bénéficient du programme Ontario au travail ou du Programme ontarien de soutien aux personnes handicapées aux termes de la nouvelle initiative appelée Prestation ontarienne pour enfants (POE). Ces changements entreront en vigueur en juillet et en août 2008 et leur mise en œuvre complète sera terminée d’ici 2011. Cependant, à ce jour, nous ne connaissons pas encore tous les détails relatifs à ces modifications.

Le présent rapport fournit des renseignements sur l’impact du nouveau programme POE et recommande également de déposer une requête auprès du gouvernement de l’Ontario sollicitant le versement intégral de l’allocation de retour aux études et de l’allocation d’habillement payables aux prestataires de l’assurance sociale en 2008, dans le cadre de la première année d’une stratégie de transition visant à atténuer les difficultés financières de ces personnes durant l’implantation du nouveau programme qui consiste à consolider ces allocations en une seule, soit la Prestation ontarienne pour enfants.

BACKGROUND

With implementation of the new program changes, clients on social assistance will continue to receive the National Child Benefit Supplement. The NCBS, the new Ontario Child Benefit, and the Canada Child Tax Benefit will be consolidated into one child benefit cheque that will be sent out to families by the Canada Revenue Agency. Municipal funding that currently results from the NCBS claw back will instead be realized from social assistance restructuring and the introduction of the new 100% provincially funded OCB. The impact on actual funding will be included in the City's budget submission for 2009.

DISCUSSION

National Child Benefit Reinvestment Fund

With the introduction of the OCB and resulting social assistance restructuring, the province expects municipalities to "maintain and build on local programs for families and children in need that are currently supported by NCBS reinvestment dollars. Since social assistance is being restructured, and the OCB is funded 100% by the province, local programs for families and children should not be negatively impacted by these changes". (Province of Ontario, Q&A, Dec. 21, 2007).

In 1998 the provincial government provided specific objectives for NCBS reinvestment:

· To help prevent and reduce the depth of child poverty; and

· To promote attachment to the workforce - resulting in fewer families having to rely on social assistance - by ensuring that families will always be better off working.

The NCB Reinvestment Fund is a valuable tool for building collaborative relationships and working partnerships between CPS and the community to strengthen families and reduce child poverty. As part of restructuring, the province will no longer determine objectives for municipal reinvestment but has stated the expectation is that the reinvestment be maintained and local programs for families and children not be negatively impacted by these changes.

Staff will continue to monitor the changes in the size and composition of the social assistance caseload and will be monitoring the financial impact of the new program following its implementation this summer. The impact of these changes on the NCBS Reinvestment Fund will be known by the fall of 2008 and any implications will be considered during the 2009 budget process.

Ontario Child Benefit

Currently, parents in receipt of social assistance receive benefits on behalf of their children including basic needs allowance, a winter clothing allowance and a back to school allowance for children under the age of 18. The benefits are cost shared 80% Province / 20% City.

Beginning, July-August 2008, the Province will introduce a new program called the Ontario Child Benefit (OCB) that essentially uploads some children’s social assistance benefits to the Province. These benefits will be consolidated into the monthly OCB and dispersed to eligible low-income families (including social assistance clients) with no 20% cost-sharing requirement from municipalities. The total monthly income (Ontario Works, Child Tax Benefit, NCBS and the Ontario Child Benefit) available to social assistance families before and after the changes is depicted in Document 1.

According to the Province, the introduction of the OCB will result in savings to the City. In December 2007, the MCSS provided municipalities with an estimate of those savings for the period of August 2008 to March 2009. Savings for the City of Ottawa, based on the caseload as of September 2007, is estimated to be $1.2 million[1]. However the size and composition of the OW and ODSP caseload after July 2008 will impact the final amount. The Department will include estimates of the impact as part of its 2009 budget submission.

The Canada Revenue Agency will be providing the OCB to low-income families with children, regardless of their income source, based on families having completed their tax return. For social assistance clients who are eligible to receive the OCB but who are not receiving it, (e.g. because they have not yet filed their income tax return for the previous year, they are newcomers to Ontario, or they have a newborn who is not yet registered for the Child Tax Benefit) the Province has created a transition child benefit that will be available to eligible clients (as of August 2008) pending their receipt of OCB. The Employment and Financial Assistance (EFA) Branch staff will be responsible for the administration of this 100% provincial transition benefit. Over the coming months, EFA staff will be trained on the detailed provincial directives and guidelines to ensure compliance with the legislation related to the OCB, the transition benefit and social assistance restructuring. All other mandatory and discretionary benefits for children (e.g. dental, vision care, special diet etc.) will continue to be issued by the EFA Branch.

The OCB is being phased-in over five years. In July 2007, eligible families received a one-time payment of $250. Regular payments of $50 monthly will begin in July 2008 ($600 annually). The OCB will grow as follows until its full implementation:

· $60.08 monthly ($805 annually) per child in 2009

· $75.00 monthly ($900 annually) per child in 2010

· $91.67 monthly ($1,100 annually) per child in 2011

The maximum benefit will be paid to families with children under eighteen years of age whose adjusted net income is $20,000 annually or less and will be reduced incrementally based on their adjusted net income over $20,000.

Back to School and Winter Clothing Allowances

The Back to School and Winter Clothing Allowances serve a specific need for families receiving social assistance. Beginning in 2008, these benefits will no longer be provided in August and November as in previous years. In 2008, families receiving social assistance will not have adequate finances or notice period to save money to address these particular needs. The City’s consultation with the Poverty Issues Advisory Committee (PIAC) looked at these factors. As a result, the PIAC carried a motion, subsequently built into this report, that the Province issue these allowances in 2008 as a transition strategy.

The City should also ask that this transition strategy (one-time payment in 2008) be paid 100% by the Province. This is consistent with the Association of Municipalities (AMO) position that any new initiatives, programs or expenditures related to social and health programs be fully funded by the Province.

The Province's intention with restructuring and the new OCB program is to change the way it provides benefits for children of low-income families regardless of source of income. Ultimately, families with children on OW and the ODSP will be slightly better off and the programs will benefit all children of low-income families in Ontario, whether the parents work or receive social assistance. Also the OCB will help families make the transition from social assistance to employment because parents would continue to receive the OCB after they begin working.

CONSULTATION

Staff attended the January meeting of the Poverty Issues Advisory Committee and the April Health and Social Services Advisory Committee meeting to provide a verbal summary about the OCB program and social assistance restructuring. Both Advisory Committees were supportive of this report and endorsed the recommendation.

FINANCIAL IMPLICATIONS

The impact to the City of Ottawa resulting from restructuring and the introduction of the OCB will be included in the City's budget submission for 2009 as the actual amount of funding will be determined by the size and composition of the OW and ODSP caseload after the program is introduced in July 2008.

CITY STRATEGIC DIRECTIONS

This report supports the following City Strategic Directions:

E. Sustainable Healthy and Active City:

4. Upload the cost of social services, social housing and public health while retaining responsibility for local administration to reflect the needs of the community.

7. Ensure that cultural and recreation programs are offered across a range of levels of activity such that every resident, and in particular, every child, has a chance to participate.

DISPOSITION

Community and Protective Services Department will action any direction received as part of consideration of this report.

SUPPORTING DOCUMENTATION

Document 1 – Comparison of Total Monthly Income

DOCUMENT 1

COMPARISON OF TOTAL MONTHLY INCOME

Ontario Works Payment Combined with the Canada Revenue Agency Payment*

Family Type		Before OCB	After OCB	Net Difference
#1	Single parent with one child (age 13-17)	$1243.00	$1244.00	+ $1.00
#2	Single parent with two children (ages 13-17)	$1589.00	$1610.00	+ $21.00
#3	Couple with two children (ages 13-17)	$1684.00	$1727.00	+ $43.00
#4	Couple with two children (one age 0-12 and one age 13-17)	$1640.00	$1710.00	+ $70.00
#5	Single parent with two children (ages 0-12)	$1485.00	$1576.00	+ $91.00
#6	Couple with four children (ages 0-12)	$2221.00	$2377.00	+ $156.00

* CRA payment includes the Canada Child Tax Credit, the NCBS and the Ontario Child Benefit

The ONTARIO CHILD BENEFIT and restructuring of social assistance

La prestation ontarienne pour enfants et la restructuration du programme d'aide sociale

ACS2008-CPS-DCM-0001 CITY WIDE / À L'ÉCHELLE DE LA VILLE

Paul Durber, First United Church supported the report recommendation and agree with the comments made by the Poverty Issues Advisory Committee that during this transition year, it will be extremely difficult for people of low income to save the money they would otherwise lose if the school and winter clothing allowances are discontinued. They hoped the City and the Association of Municipalities of Ontario (AMO) would press the provincial government to make these payments in 2008, otherwise, they foresee some real problems at a time when everyone wants to fight to end poverty and are even more aware of problems that affecting children and youth in economically marginalized families. A copy of his written submission is held on file.

Linda Lalonde stated that while the province said it would stop the clawback, thereby adding $122/child to a low income family, it also said it would add the Ontario Child Benefit (OCB) which would be $50 for a total of $176/child. However, the figures in the staff report show a low income family (with four children) only getting ahead by $156. Therefore, those families are still not ahead, even with the OCB. She circulated information showing the changes that would happen this summer to a family with a child of eight years of age and a child of 14 years of age. She went on to state that those families will end up with less money each month and will lose the back to school and winter clothing allowances permanently. Ms. Lalonde also referred to Bill 235, “An Act to establish the Ontario Social Assistance Rates Board” which would set the rates each year based on what it actually costs. This Bill is being presented to the provincial government in the hopes they would introduce it as a government bill, but if unsuccessful, it would be reintroduced as a Private Members Bill, which the City should support. If the province does not accept financial responsibility for this, she wondered whether the City would be prepared to commit to covering this amount for 2008. Copies of her reference material are held on file.

Councillor Cullen recognized that the back to school and winter clothing allowances were being folded into the new OCB and being spread over the year. He was concerned that while the amount of money will be spent by the families trying to maintain themselves, for those not having sufficient funds or any funds to address back to school requirements, the City will be faced again with a challenge when they go back to school the following year. Ms. Masse confirmed that this year is a different problem than next year because in 2009, families will receive an equivalent of the back to school and winter clothing allowance but will receive it on a monthly payment. It will be difficult for families to save that money until the fall to buy the items they will need at that time. The councillor noted that the recommendation only talks about how the program transitions and does not speak to the problem that the clawback is not being fully restored or to the issue that this blending of the back to school and winter clothing allowances is not going to help families when they really need it.

Cliff Gazee, Chair, Poverty Issues Advisory Committee raised several concerns with the Committee and the more salient comments noted were as follows:

· It will be difficult for families to save a specific amount of money each month to cover the costs associated with kids going back to school and clothing them sufficiently in the winter; this would only serve to set them back to the point where they will never recover that initial amount of money

· The timing of the issuing of cheques is going to be a problem because they will get a small cheque at the beginning of the month and they will have to wait several weeks into the month to get the larger portion and people who are not in social housing will have to strike deals with their landlords to hold off collecting the rent until later in the month

· How is this being communicated to people? While bilingual brochures are available and there is information on the City’s website in 21 languages, whether or not that information gets transmitted to those who need to know and to be sure they understand is questionable

· The province must take responsibility for this during the transition year.

In closing, Mr. Gazee urged the Committee and Council to provide whatever support they can to community gardens, thereby allowing people to grow their own food.

Responding to questions posed by Councillor Feltmate with respect to process, the Director advised that late last year, the province informed the City of this initiative and early this year, staff were advised of the proposed restructure to social assistance. She explained that the OCB applies not only to social assistance recipients, but also to all low-income people, noting that the program was mostly for the latter so they would receive those new amounts each year. It was not intended to increase the income of social assistance, but to provide money for low income families. She went on to state that the province will issue the first OCB in July and the impact on the first social assistance cheque will be in August. She confirmed that AMO has looked at this, but in terms of whether it creates financial pressure on the municipality, which it does not. In fact, this program might even produce some savings, and this will be known later in the year.

Staff is very concerned about the allowances being changed for the very reasons previously mentioned by the delegations. And, because the OCB only starts in July, families would only have six months of the winter clothing and back to school allowances. For 2008, therefore, they are not even getting the amount they need compared to last year. This is why staff are proposing that the province considers this a transition year and allows the payment of those two benefits at 100% provincial dollars.

When asked what that estimate would be for the City, Ms. Masse indicated that if the province paid it, it would be $2.6M. If the City had to pay it, it would be through discretionary benefits at a cost of between $400,000 and $500,000. If there was no space in the budget, she would report back in June on what amount would be necessary and to ensure the City has the ability to give it before school starts.

Councillor Feltmate inquired about the kind of education that was being done to rally the community to speak with the province and the Director indicated that the Income Security Advocacy Committee (ISAC) have taken the issue publicly and are preparing fact sheets. Also, staff have had information sessions with the agencies to advise them what was happening and what the consequences would be. They also have staff that can talk to specific groups as requested. In terms of clients, she noted that they have received a letter that details the proposed changes and each office has a powerpoint presentation playing continually the proposed clients as they sit in the waiting room. Clients will also be met individually between now and July to ensure they are told how specifically this will impact on their own individual situation.

Responding to a concern voice by Chair Deans, the Deputy City Manager advised that this is the province’s responsibility and he would not support bringing forward a budget request mid-year to compensate for a provincial decision.

Moved by A. Cullen

Whereas people in poverty receiving social assistance in Ontario have been denied the National Child Benefit Supplement through a provincial clawback program;

Whereas the City of Ottawa has consistently endorsed Motions to eliminate this provincial clawback program;

Whereas the new Ontario Child Benefit does not fully restore to people in poverty receiving social assistance the National Child Benefit Supplement;

Therefore be it resolved that the City of Ottawa urge the Government of Ontario to ensure that people living in poverty receiving social assistance see an increase in their assistance equal to the full National Child Benefit Supplement; and that this motion be copied to the Association of Municipalities of Ontario (AMO) and local MPPs.

CARRIED

Moved by A. Cullen

Whereas the Government of Ontario intends to blend the Back to School Allowance and the Winter Clothing Allowance into the monthly payments for a new Ontario Child Benefit;

Whereas such a proposal will not assist families living in poverty receiving social assistance to prepare their children to go back to school each September and to prepare their children for the on-coming winter season, as their ongoing income needs for shelter, food and clothing in Ottawa will preclude their ability to save for back-to-school needs and for winter clothing needs for their children;

Therefore be it resolved that the City of Ottawa urge the Government of Ontario to maintain a separate Back to School Allowance and a separate Winter Clothing Allowance to better assist families living in poverty receiving social assistance; and that this motion be copied to the Association of Municipalities of Ontario (AMO) and local MPPs.