Budget 2009 receives tepid response from voluntary sector
By Andy Levy-Ajzenkopf
February 2, 2009
"There was extreme disappointment."
Those were the words used by Teri Kirk, VP public policy & regulatory affairs with Imagine Canada, in describing her organization’s reaction to last week’s budget throne speech. And that was the sentiment shared by many in the voluntary sector after the Conservative government threw out the numbers for its "stimulus package" to the nation.
Kirk said Imagine and its scores of sector partners - including such notable organizations as United Way Canada, Salvation Army Canada, the Muttart Foundation, YMCA Canada, and the Boys and Girls Clubs of Canada - had been in consultation with the government to try and impress upon it the great need for economic stimulus. They were left stunned by the final announcement. You can read more about their pre-budget recommendations here (PDF).
"We called on the government to hold the line on grants and contributions, that this was not a time to make cuts, that it was a time to encourage Canadians to give..." |
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"We can be a partner [to the government] during difficult economic times. We had expected that the government would recognize this. An economic downturn of this nature [spikes] demand for charitable services," Kirk said. "We called on the government to hold the line on grants and contributions, that this was not a time to make cuts, that it was a time to encourage Canadians to give...we asked for assurances of that nature and didn’t get them."
Once the actual budget was revealed, Kirk said Imagine Canada became "concerned" about the sector maintaining services, let alone increasing them for the swell of people who may need them during this recession.
Get out the abacus
By now, the overall numbers in the government’s $29 billion economic stimulus package budget are well known (and you can go to the Finance department’s budget home page for more in-depth info). However, Volunteer Alberta kindly broke down the amounts - nearly $15 billion in total - that will impact those in the voluntary sector:
- $2 billion for public housing projects;
- $8.3 billion for skills and training, including $1.5 billion in new cash to retrain workers;
- A two-year, $1-billion Community Adjustment Fund to help communities adjust to economic hardship;
- More than $1.4 billion for Aboriginal schools, health, water, housing, community services, and training.
New spending measures would include:
- $200 million for the Canadian Television Fund to develop Canadian programming
- $30 million for magazines and community newspapers
- A $1.5-million increase in the funding for Special Olympics Canada
- $60 million to support infrastructure-related costs for local and community cultural and heritage institutions
- $28.6 million over the next two years for the Canadian New Media Fund, with $14.3 annually thereafter
- $100 million for marquee festivals and events that promote tourism
- $75 million to upgrade national historic sites, including a number of sites linked to the 200th anniversary of the War of 1812
- $500 million over two years for a Strategic Training and Transition Fund for people who do not qualify for EI training, including the self-employed. There would be $60 million to retrain older workers, $100 million over three years for the Aboriginal Skills and Employment Partnership, and $75 million for a two-year Aboriginal Skills and Training Strategic Investment Fund.
- $1 billion over five years for a Green Infrastructure Fund to support projects such as sustainable energy
It seems like a staggering amount. And some, like the Cooperative Housing Federation of Canada and various arts and sports institutions, lauded the budget. But the overall feeling on the part of some of the sector leaders and think-tanks was one of dejection.
On deaf ears
Don Lapierre, senior manager of programs and voluntary sector relations for Volunteer Canada, told CharityVillage that it’s the budget’s omissions that will have some serious ramifications for Canadians.
"What we would have liked to have seen is recognition of the critical role volunteers play in driving our nation's economy. In the weeks and months ahead, more and more organizations and volunteers will face growing pressures to meet higher demands and provide services to those in need. From soup kitchens to local food banks to large hospitals, Canada needs to embrace volunteerism as part of its social and economic infrastructure," he said. "The Government recognized that a number of important economic sectors are facing challenges. Even though nonprofit and voluntary organizations - most of whom have no paid staff - contribute hundreds of billions of dollars in annual revenue, representing approximately 8% of Canada's GDP, there was no mention at all in this budget of the voluntary sector."
"Any opportunity to work more closely with this government to spotlight the most fundamental act of citizenship and philanthropy in our society - volunteerism - would be welcomed," he added.
It’s a federal blind spot that could cost the country more than it knows.
"I don't think this budget will have much of a positive impact on volunteerism over the next year or two," Lapierre stated and referred to Volunteer Canada’s official response to the budget from last week, a section of which read:
"With the government announcing new funding initiatives to bolster arts and culture, including sport, more volunteers will be called upon to help deliver various programs in their local communities. However, the government needs to recognize that volunteerism doesn't just happen...the process of promoting, recruiting, training, recognizing and mobilizing volunteers to deliver these initiatives will require support and expertise, but the 2009 Budget has overlooked this important aspect by not investing in the voluntary sector."
Looking forward
Though the budget is ostensibly a done deal for this year, both Lapierre and Kirk noted that there is potential for some recompense on the horizon.
With the federal Liberals holding Prime Minister Stephen Harper on a short leash via quarterly threats of non-confidence votes, depending on how reports on the stimulus package are received, both Imagine Canada and Volunteer Canada disclosed that they had also approached opposition parties with their views on budget measures and what they would like to see happen should the Conservatives fall in a new election.
"We have had a dialogue with opposition parties, though not specifically during the current political situation," Lapierre said. "Once Parliament reconvenes, we will be endeavouring to meet with the political parties to bring forward our views and issues."
Over at Imagine, the mood is somewhat sanguine despite the perceived budget lapses.
"We’re at the beginning of a cycle. Anecdotally, and increasingly with data, we’re seeing that demand for services provided by nonprofits...is up. The budget and the opposition do make clear that this is a time we have to be watching out for Canada’s most vulnerable communities," Kirk said. "We did meet with opposition finance critic John McCallum and communicated with [Liberal leader] Michael Ignatieff...and shared our budget brief with opposition parties."
"We appreciated the opportunity to write directly to the prime minister and consult with the government. Now our planning for Budget 2010 starts quickly. We are expected to file those budget briefs within a few months. We don’t give up. We keep educating, pushing, informing, and hoping governments will respond," she said.
Here’s looking to next year.
Andy Levy-Ajzenkopf is president of WordLaunch professional writing services in Toronto. He can be reached at andy@wordlaunch.com.
Next week: Our Leadership in Focus series features Al Hatton, president and CEO of United Way of Canada - Centraide Canada.
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