Equalization

They say those who cannot describe with words use examples. The Family is always a good one for Canada.

I lived in my parent's basement for a long time after high school- through undergrad, the summers of grad school, my first year of law school. When I finally moved out, I took my dad out for a beer and paid.

That is what Ontario feels like right now. Like my Dad did in 2000.

Newfoundland, Saskatchewan and Nova Scotia feel like the kid who got his first job at the Denny's and kicks into the family pot. That kid's Dad is still paying the mortgage, however.

Quebec has always gotten some. I think Quebec is like the Mom. She works, but doesn't make as much as the dad. She kicks into to pot, but takes out way more than she puts in. Its ok, she is part of the family.

But always threatening to leave. But not right now.

Since the beginning of time, Ontario has paid into the equalization formula. Since its inception, Ontario has always paid more than it received back.

That is STILL the case. Under the current formula, we now receive a modest stipend of 347 Million. What is not reported is the fact that the money for federal programs is still, more than any two provinces combined, paid for by Ontario tax payers. Yes, under the formula, when the "remainder" monies are doled out, we receive $347 Million more for those specific programs than we are "allocated" - that doesn't mean we get all of our money back. Journalists are lazy that way.

There are BOOKS written about the funding formula. Let me assure you it is not "You pay X, you get X plus 347 million."

What also isn't reported is the multiple BILLIONS of dollars that Ontario has paid in historically. That 347 doesn't even cover the INTEREST that accrued on the last four years of payments we have made into the family pot.

I like to think of 2008 equalization as a pension.

Ontario still pays more into the federal coffers than any other province. By a lot.

And, so what if we get an equalization payment. Its about friggin' time. From a financial standpoint, this is the first "dividend" on the longest investment cycle in the history of investment cycles. I hope they keep coming - because it means everyone else is FINALLY building on the billions Ontario has given out over the past four decades.