Ontario Government Saving Taxpayers $215 Million Annually Through Public Service Modernization

Ontario Government Saving Taxpayers $215 Million Annually Through Public Service Modernization
Restoring financial sustainability while protecting front-line services

TORONTO — Today, Peter Bethlenfalvy, President of the Treasury Board, announced how Ontario's Government for the People continues to drive long-term savings for taxpayers by managing Ontario's public sector compensation costs to ensure vital services are protected, while avoiding involuntary job losses.

The government's previously-announced Transition Exit Initiative and Voluntary Exit Program will generate ongoing annual savings of around $215 million per year, beginning in 2021-22.

"The cost savings generated through our voluntary exit options are important components of our government's plan to restore fiscal sustainability in the province," said Bethlenfalvy. "Streamlining and modernizing the Ontario Public Service (OPS) builds on our ongoing work to change the culture of government, find efficiencies and ensure we are investing in core programs and services."

Approximately 3,300 applications were submitted by OPS employees between December 2018 and February 2019. From those submissions, around 2,400 were approved. In 2018-19, a one-time investment of $190 million facilitated the voluntary exit of those employees.

"Since being elected, the government has made great strides in setting Ontario on a sustainable path to fiscal balance - while protecting front-line services, and public sector jobs," said Bethlenfalvy. "These measures complement our ongoing work to restore sustainability to the province's finances while protecting critical services that matter most to the people of Ontario - like health care and education. In doing so, we are building a more modern and efficient public service."

In Ontario, public sector compensation represents roughly half of all government expenditures, totaling $72 billion annually. Collectively, provincial public sector organizations employ an estimated 1.2 million workers across multiple sectors.