Operating Budget — 2019–2020 Fiscal Year Revenue and Expenditures
The AGCO receives its annual budget from the Ministry of the Attorney General’s Printed Estimates, as approved by the Legislature. The AGCO’s budget is made up of 30% base funding from government and recovers most of its regulatory costs, 70%, directly from the industries it regulates.
The AGCO’s mandate expanded in 2018–2019 to include the regulation of private cannabis retail. On December 12, 2019, the Government of Ontario announced its move towards an open market for cannabis.
TABLE 23 – 2019–20 Fiscal Year Revenues and Expenditures
|
Revenues |
2018–19 |
2019–20 |
Increase |
|---|---|---|---|
|
Fees and Levies |
$31,430,776 |
$29,181,864 |
($2,248,912) |
|
Total |
$31,430,776 |
$29,181,864 |
($2,248,912) |
|
Expenditures Salaries and Benefits Other Direct Operating Expenses |
$70,289,183 $12,841,017 |
$73,373,461 $12,460,389 |
$3,084,278 ($380,628) |
|
Total Program Expenditures |
$83,130,200 |
$85,833,850 |
$2,703,650 |
|
Less Recoveries |
($49,927,865) |
(48,490,961) |
($1,436,904) |
|
Total |
$33,202,335 |
$37,342,889 |
$4,140,554 |
The decrease in Fees and Levies relates to the elimination of the Break Open Ticket (BOT) Provincial Fee effective June 1, 2019, and less money collected from the second Expression of Interest Lottery for a Cannabis Retail Store Authorization. The decrease was slightly offset by additional Grocery Store Authorizations issued to sell beer, wine and/or cider in their stores.
The overall increase in Expenditures is mainly due to additional cannabis spending (Cannabis Eligibility Assessment costs increased in 2019–2020 due to open market for cannabis) and an increase in the cost of employee benefits. These costs were offset by lower spending on other services contracts and a reduction in spending on telecommunications, postage, and travel.
One million dollars of the reduction in recoveries are due to credits to the Services Providers/OLG as a result of the COVID-19 pandemic.