Date:September 18, 1998

To:Community and Neighbourhood Services Committee

From:Commissioner of Community and Neighbourhood Services

Subject:Federal Funds Available Through The Settlement Renewal Initiative

Purpose:

To provide an analysis of recommendations regarding the federal Settlement Renewal Initiative as outlined in a communication to the Chair of the Community and Neighbourhood Services Committee from the Ontario Council of Agencies Serving Immigrants (OCASI) and to propose that the City of Toronto support these recommendations.

Financial Implications:

There are no direct financial implications for the City.

Recommendations:

It is recommended that:

1)The City of Toronto support the Ontario Council of Agencies Serving Immigrants (OCASI) recommendations to the federal government with respect to the federal funds available through the Settlement Renewal Initiative, specifically that:

a) the $54 million, currently available , be allocated directly to the immigrant settlement services sector;

b) a commitment be made to carry over any unspent funds from the 1998/99 fiscal year or a suitable vehicle be identified to ensure that unspent funds are not forfeited to the Federal Consolidated Revenue Fund;

c)the $35.3 million currently available as part of the three-year phase-in of Settlement Renewal be added to the annual base funding of $67 million for settlement services which is allocated to the Province of Ontario and that these funds be dedicated for core funding;

d)a formal, ongoing mechanism be established to allow municipalities and the immigrant settlement services sector to participate directly in discussions on policy, program and practice issues relevant to their areas, as recommended by the Legislative Advisory Group in its report, "Not Just Numbers: A Canadian Framework for Future Immigration";

2)the Chair of the Community and Neighbourhood Services Committee communicate these recommendations to the Minister of Citizenship and Immigration Canada; and

3)the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background:

The Chair of the Community and Neighbourhood Services Committee received a communication, dated September 1, 1998, from Ms. Sharmini Peries, Executive Director, Ontario Council of Agencies Serving Immigrants (OCASI), requesting the opportunity to appear before the Committee with respect to the $54 million in Federal funds available in the 1997/98 fiscal year for settlement services in Ontario as part of the federal Settlement Renewal initiative. This item will be placed on the agenda of the Community and Neighbourhood Services Committee for its meeting on October 8, 1998.

A provincial organization of community-based immigrant serving agencies, OCASI has identified several areas of concern with respect to the proposed allocation of these funds and a mechanism for securing and carrying over unspent dollars from this fiscal year into the next one. OCASI is approaching City Council for support on these issues in their effort to gain approval from the federal government for their proposals. The Advisory Committee on Immigrants and Refugees in Toronto, at its September 10, 1998 meeting, endorsed OCASI's recommendations.

This report provides an analysis by the Community and Neighbourhood Services Department of the recommendations proposed by OCASI to Citizenship and Immigration Canada.

Comments/Discussion:

The Context

The City of Toronto is the key destination for immigrants and refugees coming to Canada. Toronto receives 56 percent of total newcomers to Ontario and 30 percent of the total newcomers to Canada. In addition, approximately 60 percent of refugee claims in Ontario originate in Toronto. Newcomers have been fundamental in shaping the diverse social, cultural, political, and economic landscape of Toronto. Considered to be one of the most multicultural cities in the world, Toronto realizes profound benefits from the ethno-racial communities which now call this city home.

Although Toronto does not have a formal policy role with respect to immigration, it is the municipality most affected by federal and provincial immigration and refugee policies, programs and practices. Toronto must deal with the impact of decisions made by other levels of government which affect the immigration settlement process at the local level.

The new City of Toronto has yet to develop a policy framework on the settlement, adaptation and integration of immigrants and refugees in Toronto. In 1994, the former Metro Council did adopt such a policy which is still relevant today. The primary goals of this policy were to address the specific needs of immigrants and refugees by supporting their settlement, adaptation, and integration into all aspects of community life, to provide appropriate supports to facilitate the community at large in making the necessary adaptations and accommodations and to seek an equitable distribution of resources from other levels of government to Toronto to facilitate the settlement, adaptation and integration of newcomers.

What is Settlement Renewal?

Settlement Renewal is an initiative introduced in 1995 by Citizenship and Immigration Canada (CIC), devolving the management of settlement programs for newcomers. Settlement services include language training for adult newcomers, orientation services, interpretation and translation services and job counselling, services which help newcomers adapt and integrate successfully in Canada. Historically, the federal government has assumed the role of funder and manager for settlement services across the country. The annual base funding for Ontario is set at $67 million.

In March 1996, as part of the Settlement Renewal process, the federal government announced that $35.3 million in additional funds would be made available to Ontario in the 1996/97 fiscal year and in subsequent years until the year 2000. The initial $35.3 million was transferred to Ontario's Central Revenue Fund in acknowledgment of previous federal under funding to the province.

The federal government made another $35.3 million available to Ontario for the 1997/98 fiscal year, this time to be earmarked for settlement services. Consultations were held by Citizenship and Immigration Canada (Ontario Region) to generate a list of projects for funding. Of these funds, a total of $16 million was spent. The remaining $19 million was "re-profiled," or carried over, into 1998/99. A request for proposal process was undertaken to select one-time only projects to be supported through this fund as it is not clear whether the funds will be available in the future.

At this time, the total amount available for settlement programs in Ontario for this 1998/99 fiscal year for Settlement Renewal is $54 million ($35.3 million plus the $19 million carried over from the previous year.)

The Status of Settlement Renewal

The federal government is clear in its choice of the provinces as their preferred partner with respect to the implementation of Settlement Renewal. The Province of Ontario, however, is willing to discuss the devolution of the administration of settlement services only as part of broader negotiations on a bilateral agreement on immigration. Settlement Renewal was originally intended to allow the withdrawal of CIC from the direct administration and delivery of federal settlement programs by March 31, 1997. This time frame has been extended in Ontario as, to date, a federal-provincial agreement has not been reached. The federal government, through C.I.C. (Ontario Region) continues to have responsibility for allocating the Settlement Renewal funding, with input from the provincial government.

The Allocation of Current Settlement Funds

Citizenship and Immigration Canada (Ontario Region) has consulted with community organizations and municipalities on how to spend the $54 million currently available. A finalized funding formula and request for proposal process are scheduled for the end of September 1998. In recognition of the fundamental role the community-based sector plays in delivering settlement services, OCASI stressed the need for these funds to remain in the sector. This has become increasingly critical for this sector as it struggles to provide core services in the context of reduced budgets, project based government funding, major staff cutbacks and organizational restructuring. A 1996 report, "Profile of a Changing World," a joint study of the former Metro Community Services, the former City of Toronto and the Social Planning Council of Metropolitan Toronto, determined that the immigrant and refugee sector has lost the most in terms of its ability to provide services because of funding cuts over the past two years.

It is essential that Toronto has a solid infrastructure in place to provide appropriate supports to the newcomer community with respect to settlement, adaptation and integration. The City does respond to the needs of some immigrants and refugees through the provision of social assistance, hostel accommodation, employment preparation programs, community development support and grants to non-profit organizations for anti-racist and community development initiatives, post-settlement adaptation and integration services. However, it is the community-based sector which provides the vast majority of settlement services to newcomers. It is therefore, in the City's best interest to support directions aimed at strengthening and sustaining this sector.

Enhancing the Base Funding of Settlement Services

The federal government currently provides $67 million in annual base funding for settlement services in Ontario. In addition, as part of the Settlement Renewal process, they have made $35.3 million available to Ontario for each of the 1996/97 to 1999/2000 fiscal year cycles.

OCASI is recommending that the $35.3 million be rolled into the annual base funding to ensure sufficient core funding is available for community-based settlement services. Currently, as these dollars are seen as additional funds, they have been used for project as opposed to core funding. Community-based immigrant services are struggling to survive in the face of funding cuts and require stable core funding to maintain, strengthen and enhance the quality services and supports they provide.

Securing the Settlement Funds

Federal requirements state that the $54 million currently available (this year's 35.3 million plus the $19 million carried over from last year) must be spent by March 1999. Projects to receive funding under the $19 million from last year have been selected however, not all of the contracts have been negotiated. The CIC has conducted consultations over the summer on funding priorities for this year's additional $35.3 million allocation. A request for proposals should be released by the end of September. However, similar to the situation faced last year, OCASI is concerned that CIC will be unable to spend these funds by March 1999. There is a serious risk that any unspent funds will be returned to the Federal Consolidated Revenue Fund and will therefore be lost to the settlement services sector. In preparation for this likelihood, OCASI is recommending the establishment of a trust fund to safeguard the funds. This would also allow an opportunity for CIC and the settlement sector to have more time to carry out comprehensive planning to ensure responsible spending.

Establishing a trust fund is one option for securing the funds, however, implementing a system which may involve additional administration costs may not be the best use of the available dollars. Nevertheless, in light of the critical role community-based settlement services play in providing services for newcomers to Toronto, it is in the City's best interest to urge the federal government to make a commitment to carry over any unspent funds into the 1999/2000 fiscal year or to identify another suitable vehicle to ensure the funds are not forfeited.

The Need for Ongoing Consultations

Citizenship and Immigration Canada (Ontario Region) has consulted with community organizations, including OCASI, and with municipalities in their capacity as a funder on how these settlement dollars should be spent. OCASI is calling for the establishment of an ongoing consultation process to keep the lines of communication open between the various stakeholders.

The City does not have a direct line of communication with the federal government as the Province has been identified as their preferred negotiating partner on Settlement Renewal. However, as the municipality most affected by federal immigration policies, programs and practices, Toronto has a strong stake in the decisions made at this level. Historically, municipalities have been excluded from the table when policy and program decisions are being made by senior levels of government. An established consultation process could provide an opportunity for Toronto to have critical input on relevant policy issues at the decision making level. Toronto could also redress the issue of equitable resource allocations to municipalities which more accurately reflect local demand for immigrant settlement and assistance services. There seems to be support for setting up this type of process as it was recommended by the Legislative Advisory Group in their report, "Not Just Numbers: A Canadian Framework for Future Immigration."

Clearly, encouraging the federal government to establish a formal, ongoing mechanism to enable municipalities and the immigrant settlement services sector to participate directly in discussions on policy, program and practice issues relevant to their areas would be beneficial to all parties.

Conclusion:

Newcomers have been fundamental in shaping the diverse social, cultural, political and economic landscape of Toronto. As one of the most multi-cultural cities in the world, Toronto realizes profound benefits from the ethno-racial communities which now call this city home.

As the major immigrant settlement centre in Canada, Toronto needs comprehensive immigration and settlement services for newcomers. Toward that goal, Toronto has an investment in ensuring the settlement services sector has stable core funding to maintain, strengthen and enhance the quality services and supports they provide to newcomers in our city.

Contact Name:

Susan Shepherd

phone: 392-5398/ fax: 392-8492

Commissioner of Community and Neighbourhood Services