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Surprise! Budget Cuts 2006

By Andy Levy-Ajzenkopf
October 2, 2006

Canadians working in the nonprofit sector may come to know September 25, 2006 as their own "Black Monday". That's when the Conservative government revealed plans to trim about $1 billion in federal spending over the next two years on programs they believe aren't achieving "good value-for-money", "efficiency", are "non-core programs", or are recouped from "unused funds" belonging to organizations that have already "achieved their mandates". A good chunk of the cuts impact programs in the voluntary sector. One example, the Canadian Volunteerism Initiative (CVI), run by Volunteer Canada and Imagine Canada, lost close to $10 million, effectively terminating the program. But that is far from the only casualty. Needless to say, nonprofits across the nation are stunned.

Shock and bewilderment

Marlene Deboisbriand, president of Volunteer Canada is still trying to come to grips with the ramifications of the cuts. "We found out about the cuts like everyone else, with the press release. There was no consultation, no advance notice, no transition planning," she says. "Those are the kind of things the government could put in place. In cases where they choose to make a decision like they just did, whether we like it or not, at least there'd be a sense of preparation." According to Deboisbriand, job losses and uncertainty of service provision are now real concerns. Others share the same tenuous existence.

In Alberta, the Calgary Chamber of Voluntary Organizations (CCVO) is trying to mobilize in response to the news. Andrea McManus, board chair of CCVO, faces the uncertainty. "We can't yet fully assess the impact on our sector. We and our members are waiting to find out more details about what specific programs will be affected," she admits. "The cuts will affect many vital programs in the community. Things like adult literacy services, youth employment programs, and environmental research." She too is left shaking her head at the seemingly callous way the news was broken to the sector.

"The voluntary sector has worked really closely with the government and they made this announcement without any consultation that we know of in the sector," McManus says. "Not only have they missed an opportunity to understand the nature of these programs, but we have to question how they determined value-for-money without consultations." It's a question without many obvious answers.

'Responsible spending' run amok?

According to the official press release by the Treasury Board of Canada Secretariat's website, the cuts fully serve the needs of the populace. They have called this budget a common-sense approach to responsible spending going forward. "Canadians want to know their hard-earned tax dollars are invested responsibly in effective programs that meet their priorities. Responsible spending is a cornerstone of accountable government," states the release. Calls to the government to clarify these priorities and the reasons behind the lack of consultation with the voluntary sector were not returned.

But ask almost anyone in the sector about the concepts of responsibility and accountability and their perception is very different than the rigid fiscal views outlined in the government's press release.

"One of the pillars of the government's new plan is responsibility and accountability. Well, all 160,000 organizations in this sector are governed by volunteers. It's the one thing we have in common. And those volunteers accept personal responsibility and accountability for the actions of the sector," asserts Deboisbriand, fresh from meetings in Toronto where she is urgently trying to drum up support from the corporate sector. What's more, she disagrees vehemently with the government's implication that the sector lacks proper economic management.

"We're superstars in this regard!" she proclaims. "When you think of how we're able to deliver programs and services with the absence of core funding, for the most part, across the sector...we've developed it into a fine art." Nerves are frayed and people in the sector are on edge. Still, many are choosing to view the cuts as an opportunity to dialogue with government on new terms and perhaps minimize the damage.

Turning lemons into lemonade

Over in Ottawa, Georgina Steinsky-Schwartz, president and CEO of Imagine Canada, is trying to keep perspective on the situation. "I'm a former deputy minister in the government so I understand that when a new government comes in they have a right to change things. That's why they were elected, for change. So I respect that," she says. Steinsky-Schwartz urges all organizations to try and contact their program officers in government to work with them and open up channels of communication instead of reacting blindly. In her case, she asserts that Imagine Canada's contacts in the Heritage Department have been nothing but helpful since the announcement last week. Despite this levelheaded approach, she admits there is no getting around the blow from the news.

"We were surprised not that the program was cut, but rather by the implication that the [CVI] had no merit; that this has just been a waste of money and 'cutting fat'. We were saddened by that," she says. "Most of [the CVI funding] didn't stick with Imagine Canada. Most of it fell out into the community. Over 60% fell out across the country into smaller nonprofit organizations to develop tools to help them around volunteering." Though there is sadness on one side, others have welcomed the news.

Praising the decision

The Canadian Taxpayers Federation (CTF) has a different take on the cuts. In a release posted on CTF's website, federal director John Williamson had this to say: "The spending cuts are welcome, but more reductions are necessary. A $1-billion trim is approximately half of one per cent of Ottawa's program spending... Still, it is encouraging that [Finance Minister Jim Flaherty] and [Federal Treasury Board president John Baird] have taken steps to reduce funding to special interest groups and cut programs out of whack with the priorities of the new government." However, this has so far been an uncommon reaction.

Staying firm, flexible and optimistic

In a press release addressing the $3 million cut from her program, Sharon Manson Singer, president of the Canadian Policy Research Networks (CPRN), is resolute. "While we are very disappointed with this decision, we want to reassure all CPRN stakeholders that we will be working hard to ensure that CPRN continues to provide high quality, relevant research. We deeply appreciate the support… you have demonstrated in our first ten years, and want to assure you we are going to be here, working for you, for the next decade as well." She also iterates that CPRN will continue to work with government to ensure this happens. As will others.

Steinsky-Schwartz will now try and position Imagine Canada to cooperate with the government's fiscal direction. "The position we're taking is that Imagine Canada will take a very measured approach; because this government is trying to do some things to address the sector." Her partners over at Volunteer Canada are taking the same path.

Deboisbriand is also busy trying to set up meetings with government decision-makers. She remains optimistic that government just needs to be reminded how important it is to fund the sector. "We think this government actually does want to support volunteering because they know how important it is. And fair enough, if the CVI is not the mechanism they choose to invest in, we still want to protect the investment and ask how we can work with [them] to design a new program that would still meet the needs of volunteering in Canada, but might align with objectives of the federal government?

"Volunteer Canada existed before the CVI and it will exist after, there's no question about that. Our mission and mandate are just way too important," she declares defiantly. And if the attitudes and resiliency above are reflected across the sector, there is hope yet for it to bounce back from this shock to the system.

Fast facts on major cuts to programs:

Canadian Heritage
- $1.1 million in saving through operating/program efficiencies
- $4.6 million reduction to Museums Assistance Program
- Elimination of support for the Canada Volunteerism Initiative
- $5 million reduction in funding to Status of Women Canada

Human Resources and Skill Development
- $13 million reduction in low priority grants and contributions related to Social Development Partnership Program
- $17.7 million cut in investments for Adult Learning and Literacy Skills Program
- $55.4 million cut for youth employment programs
- $17.6 cut for the Workplace Skills Strategy

Environment
- $7.6 million reduction in low priority grants and contributions

A complete list of cuts to programs can be found at www.tbs-sct.gc.ca/media/nr-cp/2006/0925_e.asp

Andy Levy-Ajzenkopf is president of WordLaunch professional writing services in Toronto. He can be reached at andy@wordlaunch.com

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