Richmond Hill
February 20, 2009, 2008 By: David Fleisher www.yorkregion.com
Hospital Levy Here to Stay
The devil may be in the details but the decision is done: York Region taxpayers will step into the hospital funding void left by the province.
After months of discussion and several rounds of debate, council approved a $12 million reserve fund for local hospitals' capital projects in a crucial 15-2 vote.
While health care is a provincial responsibility, it does not fund the entirety of hospital capital costs. Queen's Park provides 90 per cent of hospital building costs but once equipment, furniture and other accoutrements are factored in, the total is closer to 65 per cent.
That means York's three hospitals, plus the proposed Vaughan hospital, need to raise one third of the $2.2 billion they expect to need over the next 18 years.
Meanwhile, the $12 million is an increase from the $7.3 million taxpayers have given to the hospitals each year since 2001. The $4.7 million difference will come from reserves and other non-program funds and is not an addition to the tax rolls for this year.
Council also endorsed a series of principles for turning the fund into long-term solution to our hospitals' funding woes.
The contribution will grow along with tax assessments and between now and 2031 the region expects to give nearly $350 million to the hospitals, despite unanimous agreement by councillors that funding hospitals is a provincial responsibility.
"We need to support this," Markham Mayor Frank Scarpitti said. "Hospital expansions are needed in our communities, throughout the region."
Every councillor who spoke on the issue admonished the province, but most acknowledged the reality that the region needs to provide money or residents will suffer in the long run.
Newmarket Regional Councillor John Taylor and East Gwillimbury Mayor Jamie Young were the two voices of dissent.
"This is essentially voluntary downloading," Mr. Taylor said. He spoke passionately about how the province should be picking up the slack and said local taxpayers are the ones will now bear the burden.
"When we spend taxpayers' money, it impacts them," he said.
East Gwillimbury Mayor Jamie Young agreed, expressing concerns about the lack of an exit strategy.
A second council vote was held on a set of principles to be used for negotiating a memorandum of understanding between the hospitals and the region.
That outline of how sustained funding will work is expected in June.
That vote on that motion was closer, passing by an 11-6 margin.
While agreeing to provide the $12 million now, several councilors expressed concerns similar to Mr. Young about locking in to something long term.
Long an opponent of providing funding, Georgina Mayor Robert Grossi said the issue had given him sleepless nights, and he was one of those who supported the first motion but not the second.
There is serious work to be done securing long-term funding from the upper levels of government, he said.
Similarly conflicted was Richmond Hill Regional Councillor Brenda Hogg, sounding exasperated by the no-win scenario council faced.
"It's a very difficult situation. We're in deep and it's getting deeper," she said.
Local municipalities have so far failed in their efforts to get the province to let them use growth-linked development charges for hospital construction, as they were allowed to do until the 1990s.
Premier Dalton McGuinty announced only a few months ago that no changes were planned for development charges.
Nonetheless, Mr. Fisch said things do change over time and York Region, along with the hospitals and other regional municipalities need to continue to make their voices heard so there is no question the next time the province revisits the issue.
While Mr. Taylor and others said the province would see the region's contribution as proof there is no need for them to fill a gap Mr. Fisch said that's not how things work.
The province wants to see communities ready to contribute and when municipalities such as Durham took a stand against funding hospitals it simply found itself left behind while renovations went forward at York's tax-supported hospitals.
"If we had that attitude in 2001 we wouldn't be getting ready to open a cancer centre at Southlake," agreed Newmarket Mayor Tony Van Bynen.
Despite the disparate, passionate views on display no one was wrong, Mr. Fisch said.
"Every one of you is right. It's just a question of dealing with this in a practical way."
HOW THEY VOTED:
Recommendation 1: Increasing annual funding from $7.3 million to $12 million to be placed in a reserve fund.
FOR: Barrow, Black, Emmerson, Frustaglio, Grossi. Heath, Hogg, Jones, Morris, Landon, Rosati, Scarpitti, Spatafora,Wheeler
AGAINST: Taylor, Young
Recommendation 2: Staff draft a memorandum of understanding with the hospitals based on principles including a pledge to lobby the province so the region can spend less and to continue funding to as late as 2031 if necessary.
FOR: Barrow, Black, Emmerson, Frustaglio, Heath, Jones, Landon, Rosati, Scarpitti, Wheeler
AGAINST: Grossi, Hogg, Morris, Spatafora, Taylor, Young
WHAT THE HOSPITALS NEED:
The biggest share of funds, are earmarked for Vaughan's as-yet-nonexistent hospital. It is in the midst of a planning process that will soon outline possible locations and what needs it will serve. It is budgeted at $1.2 billion, plus the cost of acquiring land.
Markham-Stouffville hospital is nearly ready to roll on a long-delayed $400 million expansion. It will nearly double the hospital's size, quadruple the ER, and create an integrated campus with facilities such as a library and swimming pool to be shared with the community.
Southlake Regional Health Care Centre is already well along on a massive expansion, the biggest part of which is the cancer centre.
This summer York Central Hospital completes the first phase of their expansion. The second phase includes plans for 10 new operating rooms and expanded ambulatory care.
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