The Ontario Public Service Employees Union (OPSEU/SEFPO) is calling today’s projected deficit climb an avoidable and frustrating self-inflicted wound caused partially by privatizing alcohol sales.
In the Fall Economic Update tabled at Queen’s Park today, Finance Minister Bethlenfalvy said the government expects the provincial deficit will climb significantly to 16.9 billion this year – up more than $3 billion since the spring 2026 budget.
“The Ford Government has manufactured and exacerbated this deficit in a one-two punch to Ontario’s public services: simultaneously throwing tax handouts to corporations and slashing public revenues through their privatization of alcohol sales”, said JP Hornick, OPSEU/SEFPO President.
“At the same time, funds for vital community and social services, health care, and education fall far below what’s needed. This government’s priorities are all wrong, and it’s Ontarians who suffer the consequences,” added Hornick.
Projected LCBO revenues this year are half a billion dollars lower than prior to Ford’s fast-tracked privatization of alcohol sales. LCBO workers predicted this loss of revenue years ago, arguing that hundreds of millions of dollars in public revenues that go towards public services were at risk under Ford’s plan.
“The province isn’t investing in workers and their families,” said Laurie Brown, OPSEU/SEFPO First Vice-President/Treasurer.
“The province continues to fall short of housing start projections, their new ‘Ontario Competitiveness Tax Cut’ will benefit business rather than working families, and public service funding across the board is not keeping up with demand.”
The facts are clear: Ontario needs to invest more in health care, education, community and social services and post-secondary education or service levels will continue to drop.
Recent reports from the Financial Accountability Office show that the province’s planned spending for these four sectors will fall $9.9 billion behind what’s needed to sustain services by 2028-2029.
“In this time of economic upheaval, Ontarians need relief from the rising cost of living that directly impact workers and their families. Investing in our social safety net – including health care, social assistance, post-secondary education and training – is how we can weather these times and prepare our province for the post trade-war and tariff economy,” said Hornick.
“Instead of bleeding them of resources, the province should have workforce strategies for these sectors that include accurate data and action plans to address chronic staffing shortage and retention issues across the public sector.”
In contrast, the Minister has told the province to prepare for “efficiencies” and fiscal discipline – terms that often translate into layoffs, service cuts, and growing wait lists.