The McGuinty government presented its first budget since being re-elected last fall, and aimed much of its energy at skills training and infrastructure, while also purporting to balance the budget and increase business competitiveness.

Among the highlights:

•    $1 billion in 2007-08 in new municipal infrastructure, which includes:
$400 million for roads and bridges in communities outside Toronto.

•    $100 million to rehabilitate social housing units, including energy-efficient improvements of which 1.9 million will be allocated to Simcoe County.

•     $1.5-billion, three-year Skills to Jobs Action Plan will get more Ontarians into well-paying jobs and into long-term training for new job opportunities.

•     $355 million over three years for a Second Career Strategy that will help 20,000 unemployed workers make the transition to new careers and well-paying jobs in growing areas of the economy.

•     Enhancing post-secondary student aid and investing in capital expansion and renewal. 

•    $750 million over four years in proposed new business tax relief that includes:
Eliminating the Capital Tax retroactive to January 1, 2007 for manufacturing and resource firms, which would entitle them to $190 million in rebates

•    A 10-year Ontario income tax exemption for new corporations that commercialize intellectual property developed by qualifying Canadian universities, colleges or research institutes.

•    An extension of an accelerated Capital Cost Allowance rate for manufacturing and processing machinery and equipment investments made before 2012.

•    The Budget proposes the new Property Tax Grant for Senior Homeowners, which would provide $1 billion over five years to help low- and moderate-income seniors.

•    Early action on the McGuinty government’s poverty strategy:
 $135 million over three years to provide better dental care to low-income families

•    $32 million over three years to double funding for the Student Nutrition Program

•    Two-per-cent increase in social assistance benefits in 2008-09.

•    $40.4 billion in health sector spending in 2008-09, a six-per-cent increase, which includes:
More than $500 million over three years, in addition to other investments, to move towards hiring 9,000 nurses by 2011-12 (2,000 of those will be hired in Long Term Care Homes)

•    Increasing spending in education to $18.8 billion, Grants for Student Needs, in the 2008-09 school year to improve literacy and numeracy, increase graduation rates and decrease class sizes.

Other education investments include:

•    Supporting a $750-million investment to build new schools and repair school facilities.

•    There are no tax increases in this budget.