[homeles_ot-l] Fed. Budget - homelessness & housing

Wed Feb 27 10:02:47 EST 2008

Hello all,

After three budgets, the Conservatives now “own” the homelessness crisis,
but as Michael notes below there’s “There’s not a penny for new truly
affordable homes in federal budget 2008, even though all three national
housing and homelessness programs are due to expire in fiscal 2008 (that’s
March 2009).”  

They didn’t completely ignore the issue adding 110 million to the Mental
Health Commission of Canada in the budget. Those funds seem to be dedicated
to projects in Vancouver, Winnipeg, Toronto, Montreal and Moncton. 

Lynne

Lynne Browne 
Coordinator, Alliance to End Homelessness 
147 Besserer Street, Ottawa ON  K1N 6A7 
613-241-7913 x 205, lbrowne at ysb.on.ca 
www.endhomelessnessottawa.ca 

   _____  

From: Michael Shapcott [mailto:Michael at wellesleyinstitute.com] 
Sent: February 26, 2008 7:06 PM
To: nhhn-can at povnet.org; hhno-on at povnet.org
Subject: [nhhn-can] WI budget scan: Billion dollar housing / homelessness
gap looming

Wellesley Institute federal budget scan:

Healthy corporate profits – healthy communities???

Minister Flaherty federal budget fails to offer funding;

Billion-dollar housing / homelessness gap is looming

Just five days before federal Finance Minister James Flaherty rose in the
House of Commons earlier today (February 26) to deliver the 2008 national
budget, Statistics Canada reported that corporate profits reached their
highest level ever in 2007. “Canadian corporations earned record high
operating profits of $262.5 billion in 2007,” reported Canada’s national
statistical agency on February 21. 

“Canadians want a healthy environment,” said Minister Flaherty in his budget
speech. “They also want healthy, safe communities.” The national budget is
the place where the government sets out its fiscal plan of strategic
investments so that the top priorities of Canadians can be met.

Put the two together (record-high corporate profits and an urgent need for
healthy communities), and you’d expect that the 2008 federal budget would
include a sensible plan for increased strategic investments in Canada’s
fraying economic and social infrastructure paid with a fair share of those
record-high corporate profits. 

That didn’t happen. In fact, profitable corporations will continue to
benefit from billions in corporate tax cuts announced in the past two years.

There’s not a penny for new truly affordable homes in federal budget 2008,
even though all three national housing and homelessness programs are due to
expire in fiscal 2008. 

Minister Flaherty missed the opportunity to announce plans to renew and
enhance those programs in his budget speech. If the federal government
doesn’t renew these programs within the next 12 months, then there will be
an annual billion-dollar hole in funding for new affordable homes,
transitional housing and supports / services for the homeless. 

That’s the amount of money that will be lost each year from a failure to
renew federal affordable housing spending, along with funding for the
federal housing rehabilitation program and the national homelessness
strategy. 

Officially, 1.5 million households (about 4.2 million women, men and
children) are in “core housing need” and perhaps 300,000 Canadians will
experience homelessness over the course of the year. Housing insecurity has
a large personal cost, leading directly to increased illness and premature
death. It also disrupts communities and puts a brake on economic
competitiveness, according to a growing number of business organizations. 

Homelessness – the most visible sign of housing insecurity – also carries a
high cost for taxpayers. One recent study estimated that homelessness costs
Canadians between $4.5 and $6 billion annually – more than triple the
dwindling amount that the federal government pays for affordable homes.

In his budget speech, Minister Flaherty said: “Even in good economic times,
there are those at risk of being left behind. But Canadians are guided by
the values of compassion, kindness and generosity. That’s why the Mental
Health Commission of Canada was struck last year. Under the leadership of
the Honourable Michael Kirby, the Commission has recommended the Government
proceed with five pilot projects across the country. These will help
increase our knowledge of those who are homeless and suffering from mental
illness.”

Increasing knowledge is critically important, but so too is building
affordable homes with the appropriate supports for people with mental health
concerns. And the money to do that is absent from the 2008 federal budget
except for a handful of pilot projects in just five communities (Vancouver,
Winnipeg, Toronto, Montreal and Moncton). 

These projects, while worthy, will at best prove the very same lessons that
Canada’s supportive housing providers have demonstrated time and again over
the past two decades in previous pilot projects: Safe and affordable homes
combined with accessible and appropriate services are the most fundamental
needs for people suffering mental health issues.

There was some new spending in federal budget 2008, including an additional:

- $122 million for prisons;

- $400 million to recruit new police officers; and

- $43 million for the super-secret Communications Security Establishment
(Canada’s electronic snoopers).

“The fundamentals underpinning the Canadian economy remain strong,” says the
2008 federal budget plan at p.29 in what is the traditional message of
finance ministers. But Canada’s housing fundamentals are extremely shaky:

- housing affordability is deteriorating for homeowners across the country;

- average market rents have outpaced the household incomes of more than half
of Canada’s renter households; and

- homelessness and housing insecurity remains deep and persistent in urban,
rural, remote and Northern communities.

- Michael Shapcott

PS – The Wellesley Institute’s federal pre-budget backgrounder, with more
details, is available at HYPERLINK
"http://www.wellesleyinstitute.com/"www.wellesleyinstitute.com

PPS – John Stapleton’s quick scan of social policy issues in federal budget
2008 is attached.

* * *

Michael Shapcott 

Director of Community Engagement 

The Wellesley Institute

45 Charles Street East, #101

Toronto, ON, Canada M4Y 1S2

Tel. - 416-972-1010, x231

Mobile - 416-605-8316

Fax - 416-921-7228

www.wellesleyinstitute.com

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