KPMG’s Manitoba Fiscal Performance Review

For those of us who value a Manitoba built on a foundation of compassion and social and economic fairness, the recently released Manitoba Fiscal Performance Review is deeply troubling.  If implemented by the Pallister government, the $740,000 KPMG Report will have far reaching, and in some cases irreversible implications for Manitoba.  The report’s recommendations include job cuts, selling-off social housing, reducing access to services for disabled adults, including those with intellectual disabilities, cuts to post-secondary education tuitions hikes, elimination of interest free student loans, and references to a host of yet to be determined “cost savings”.

Manitoban’s should be very concerned with what is sure to be the Pallister Government’s playbook going forward.  There is a lot to unpack as we sift through the multi volume report. Here are a few highlights that give us an indication of what we are up against.

The Review describes 6 areas of opportunity: Reduction of Select Tax Credits, Rationalization from Reorganization, Procurement Modernization, Real Estate Rationalization, Reducing Direct Support to Businesses, School and Post-Secondary Funding (initial phase focused on post-secondary funding).  The Report identifies 6 “transformational areas” with opportunity for “cost improvement” including:  School and Post-Secondary Funding, Families: Organizational and Process Transformation, Asset Management Planning and Rationalization, Justice System Reform, Capital Project Management and Delivery, and Review of Agencies, Boards and Commissions.

After laying out a vague series of cost cutting recommendations that lay the groundwork for privatization,  the report provides a “Summary of Advice for Consideration” that includes “Key Communication Points.” This advice makes clear the serious limitations of a review that focuses solely on finances with no regard for the public good. KPMG describes being tasked with conducting “a Fiscal Performance Review to identify potential areas of opportunity for efficiency and cost improvement in all departments with the exception of Health to “gain better control over the growth in core government spending, with better value for money and allocation of fiscal resources without adversely impacting front line services. It notes $7.3 billion of “in-scope” spending for the review.  The report describes a collaborative process including KPMG, Treasury Board Secretariat and central agencies, with input from departments.

It is notable that KPMG points to a short timeframe for its  assessment, leading to the immediate focus on identifying significant short-term cost improvement opportunities, as well as other material long term opportunities which should be considered going forward. This is a big red flag.  It tells us that KPMG is proposing significant short-term cost savings with no regard for long term impact.

In the report, KPMG describes a Fiscal Performance Review Framework intended to provide a consistent, systemic framework (principles, guidelines, criteria) for looking at spending and evaluating initiatives and programs across departments and branches. It speaks to the need for a results-based approach with a better focus on results and value for taxpayer dollars, yet it makes cost-cutting recommendations without indicating how results have or will be assessed.

The Report boasts of finding several areas of “opportunity” exceeding $50 million in potential cost “improvement” opportunities in 2017/18. It goes on to note a “second-wave”  of cuts in over $50 million.  KPMG, the governments appointed Steering Committee and Manitoba’s Treasury Board have targeted six key areas for immediate action.

Other than a brief mention of “social value” and a few buzzwords like “citizen centric”, “highest value to taxpayers” and a promise for “better care, better education, and a clean, green environment”, the aim of the Review is clearly aligned with Premier Pallister’s mission to dismantle and privatize Manitoba’s public services.

The Manitoba Fiscal Performance Review is narrowly and unabashedly focused on cuts at any cost.  There is no assessment of the long term social and economic impact of the transformational shifts in policy that it recklessly prescribes.

We’ll learn more as we delve deeper into the KPMG report, but this we know for certain. The Manitoba Fiscal Performance Review has little to do with improving Manitoba for Manitobans, and everything to do with Premier Pallister’s ideological mission.

Stay tuned for further posts as we continue to examine Manitoba’s Fiscal Performance Review