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Class of March 30 Presentation on Ontario budget of March 25 Careers in the public service (continued) Public service human resource management issues.

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Presentation on theme: "Class of March 30 Presentation on Ontario budget of March 25 Careers in the public service (continued) Public service human resource management issues."— Presentation transcript:

1 Class of March 30 Presentation on Ontario budget of March 25 Careers in the public service (continued) Public service human resource management issues Concluding comments

2 2008 Ontario Budget ($B) Item2007-082008-092009-102010-11 Revenue96.696.9100.6103.8 Program8787.390.693.4 Interest98.999.1 Surplus--000 Reserve--.811.2 Debt109

3 2010 Ontario Budget $ billions2009-20102010-112011-122012-13 Total Revenue96.4106.9107.7112 Programs109116113114 Interest9101113 Total Expense118126124127 Reserve.711 (Deficit)(21)(20)(17)(16) Total Debt134154172189

4 Min. of Finance Assumptions Item2010201120122013 ON real GPP growth 2.7 %3.2 % 3 % US real GDP growth 3.1 %3 %3.4 %3.2 % ON unemploy.9.1 %8.5 %7.6 %6.8 % CPI increase1.9 %2.1 %2 % Cdn $/US $.961.975.98

5 New Spending Priorities $310M for 20,000 new spaces in post-secondary education $200M in 2010-11 and $300M in 2011-12 for full-day learning for 4 and 5 year olds $150M/year to subsidize industrial energy rates by 2 cents/kwh in northern Ontario $15M/year for 3 years for skills training for Aboriginals and northerners for mining development projects

6 Budget Cuts Delay Metrolinx projects (Scarborough, Eglinton, Finch, Sheppard RT lines, VIVA buses) to save $ 4B over 5 years Delay office space investments, Toronto west courthouse (savings of $ 1.5 billion) Eliminate Ontario bus replacement program Freeze OPS at 69,000 and reduce by 5 % in 2 years Freeze compensation for non-bargained OPS and broader public sector employees for 2 years, pressure on bargained OPS and broader public sector salaries for 2 years, to say $ 750M

7 Controlling Health Spending Base funding increase for hospitals of only 1.5 % in 2010-11 Push for lower generic drug prices Legislation to make health care providers and executives more accountable for improving patient care More consultation with the health care community

8 Comparison to Simulation Overall, budget less aggressive (no user fee increases, no privatization, no cuts to LHINs, no rationalization of schools) => pre-election Budget tougher on infrastructure => delays for Metrolinx projects Budget tougher on public sector compensation Similar stance on reduction of administrative cost

9 Elite Recruitment Common practice (Imperial China, UK, India, Singapore, Japan, France, SK, ON, CA) Identification and recruitment Civil service colleges Rotation and on-the-job training Support for advanced university degrees Fast track to senior positions Are these programs the best way to identify talent? Do they conflict with the merit principle?

10 Competing with the Private Sector Professions in high demand (IT specialists) Competitive pay at entry level Senior public servants paid less than private sector counterparts Money versus impact on society

11 Managing Diversity Public sector attempts to be a model employer, helps in recruiting talent Public sector as representative of a diverse society Importance of providing service to all Respecting differences in the work force (holidays, clothing)

12 Public Service Post-recession Employment prospects for entry-level positions Negative factors: Attrition: positions not being filled Limits on pay Possible reduction in pension benefits Positive factors: Ultimately, must replace retiring boomers Recent graduates have better IT skills: use of social media, technical skills including web design Entry level salaries < salaries of retirees

13 Main Themes of Blakeney-Borins Book Importance of teamwork (ministers as judges as well as advocates, senior public servants as administrative leaders) Policies and programs that are responsive to the public: important to encourage and listen to feedback (social media now) Organizational structures to encourage creativity (e.g. state of the nation, secretariats for policy development) Build an excellent public service (elite recruitment, training and management development, show appreciation)

14 Main Themes of Blakeney-Borins Book Accountability for performance (no to upward delegation, yes to detailed political platforms, yes to management by results) Get the timing right (make budget cuts early in the mandate, implement new programs early in the mandate, balance budget by end of mandate) Keep talking about these values (keep giving “the speech”)

15 Take-aways for You Government is a large and important organization in society. Deepen your understanding – as citizens – of how it works, especially interplay between politics and management. Public sector or political careers as an important alternative to private sector.

16 Final Exams, Grades, Evaluation Faculty evaluation online Final Exam, Monday, April 19, 7 – 10 pm, H215 I will be available by email, phone (416-386-0440) or appointment. Study lecture notes on website first, then readings All material required but emphasis on material after mid-term Mix of short answer and essay questions Closed book Good luck!


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