November 21, 2006

Municipalities served by the Thunder Bay District Health Unit will be billed almost 39% less for public health levies than they were in 2006.  The 2007 budget passed by the Board of Health for the Thunder Bay District Health Unit shows a decrease of almost $1.5 million dollars from municipalities in exchange for an increase of $1.26 million dollars from the province.  This will result in approximately 2.7% net decrease in funding to deliver public health programs in the District.

“We have managed to accommodate the shortfall by reallocating staff vacancies among programs and shifting our resources,” says Doug Heath, Business Administrator. “Staffing reductions have already been made during 2006 to avoid involuntary lay-offs. We will be challenged to meet the ever-increasing demands and the mandated programs with the capped Provincial contribution.”

The shift is a result of a provincial decision to change the formula for cost-shared programs.  Public Health Units deliver programs outlined in the Ontario Ministry of Health Mandatory Program Guidelines.  The cost to deliver these programs is shared with the municipalities served.  Since 1999, the formula to split costs has been 50/50.  After various public health events resulted in inquiries and reports that recommended the strengthening of public health, the province announced Operation Health Protection and began the process of shifting the funding formula to the province from the municipalities.  For the year 2007, the cost of delivering Mandatory Programs will be shared 75% by the province and 25% by the municipalities.

During the three years of the shift, the province encouraged health units to build capacity to improve their ability to respond to public health issues and to strengthen the overall Provincial system.  Despite a two-year plan to add needed capacity in the Thunder Bay District, the province recently declared an “up-to” 5% growth ceiling.

The move resulted in a $1.3 million shortfall for the Board approved 2006 cost-shared budget and left the 2007 budget with a projected shortfall of $750,000. The province’s Mandatory Program Guidelines are under review and due to be updated in 2007. 

“We are committed to responsibly managing programs and services to maximize public health impact.  We will focus our resources and energy based on risk and need,” states Connie Bryson, Chair of the Board of Health for the Thunder Bay District Health Unit, “Ultimately we may need to look to other sources of funding in order to address the local needs of the Thunder Bay District Health Unit population base.”

The Health Unit also provides programming that is funded 100% by the Province that is not directly impacted by the shift in funding.   There remains the opportunity for the Province to completely fund new priorities, as they did with the Smoke-Free Ontario initiative.

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