Hamilton officials were all smiles this week after the provincial government unveiled a budget that will chart a sunny course for the city's future.

"This is a very positive direction for Hamilton," said Mayor Fred Eisenberger.

The city received its much anticipated $12 million in social services funding from the Liberals for the fifth year in a row.

And while Mr. Eisenberger was grateful for the money, he was more enthusiastic about the $3 million earmarked for a James Street North GO/Via Station Gateway to Niagara.

"It may be small in stature, but the impact for the area will be significant," said Mr. Eisenberger.

The funding was part of the province's $497 funding for Metrolinx projects across the region including track improvements for GO trains and new bus rapid transit programs.

The money is expected to pay for a new platform, and parking at LIUNA.

Mr. Eisenberger envisions the GO/VIA station at LIUNA "dramatically" changing the whole northern area of the community, which will connect the heart of downtown with the waterfront.

"This is a great kick start to re-urbanize the area," he said.

He said GO is "on-board" with the project, and he expects the station to be operational by next year.

Hamilton is also expected to benefit from more infrastructure funding the provincial government announced, but that is tied to the amount of surplus the province has each year.

Finance Minister Dwight Duncan suggested the province's actual budget surplus for the fiscal year ending March 31 will be more than the projected $600 million. If it's more than $800 million, municipalities will share a minimum of $200 million under the Investing in Ontario Act that Mr. Duncan proposed earlier this month.

Although no surpluses are built into the next three years, Mr. Duncan has built-in financial reserves of $800 million in 2008, $1 billion in 2009 and $1.2 billion 2010. Any money given to municipalities would be based upon population.

"This is a prudent budget," said Ancaster-Dundas-Flamborough-Westdale Liberal MPP and cabinet minister Ted McMeekin.

He also pointed out the province is providing $150 million in new tourism money, and $1.1 billion for the agriculture community.

"Poverty in rural areas is just as significant as poverty in urban areas," he said.

Mr. McMeekin dismissed the repeated calls from federal Finance Minister Jim Flaherty to cut taxes and creating a better business climate, saying the Liberals are instead looking at investing in the province and building partnerships.

And besides, he said, there are about $745 million in tax cuts for businesses, which are "targeted" and "strategic.

"Strategic investment and innovation is the key words," he said.

MaryLynn West-Moyes, president of Mohawk College applauded the Liberals for finally tackling the dire needs to re-train workers.

The budget promises $200 million for maintenance and renewal projects for universities and colleagues, and $1.5 billion for its Skills to Jobs Action.

"It is the first time in 25 years it will give something to sustain them," she said.

Earlier this year the provincial government announced a $16.5 million McMaster/Mohawk College B-Tech program.

"We've got to raise (Hamilton's) tax base," she said. "If not, we will not be able to sustain (the community)."

"This is about making sure we have the right work force and the correct strategy," she said.

But Niagara West-Glanbrook Progressive Conservative MPP Tim Hudak countered while it is "nice" to provide training for out-of-work people, what do you train them for?

"There has been 77,000 jobs that have left Ontario," he said. "Re-train them for what jobs?"

Darryl Skidmore, chief executive officer for the Burlington and Greater Hamilton United Way, was pleased the province saw the need to provide funding for affordable housing, particular for seniors.

Hamilton is expected to receive about $5.6 million to refurbish social housing units, part of a $100-million province-wide program.

"I was encouraged by the budget," he said. "There is a need to support youth and seniors. This is a first step."

He pointed out that one in four seniors are living at or below the poverty line in Hamilton.

Hamilton Chamber of Commerce President Tyler McLeod also joined in the clapping for the budget.

But he did point out some rain clouds on the horizon that could mar the Liberal's clear economic forecast.

Even though the budget did little to assist business through tax cuts, as Canada is facing a possible financial downturn, Mr. McLeod focused on the positives in the document.

He talked highly of the province's decision to phase out the capital taxes for manufacturers and resources firms starting Jan. 1, 2007 instead of 2008.

He also was "pleased" with the new infrastructure money for Hamilton, and the public transit cash.

But there "wasn't a lot of direct help for manufacturers," he said.

"On the business side there are some items that are missing."

Statistic Canada has reported that 77,000 Ontario manufacturing jobs have been lost from 2001 to 2006.

Despite the fears of a further economic problems developing in Canada from the U.S caused by the sub-prime mortgage fiasco, Mr. Duncan is forecasting economic growth for 2.8 per cent in 2010 from a low this year of 1.1 per cent.

Mr. McLeod said the business community remains afraid that Canada will be sucked into the financial problems that are creating turmoil in the United States. Ontario, which contributes 40 per cent of the country's Gross Domestic Product and Hamilton, which has lost thousands of jobs, are vulnerable to a possible recession.

Mr. McMeekin, though, refused to even mention "recession" during a budget presentation this week he held with Hamilton Mountain MPP Sophia Aggelonitis to the city's business leaders.

His 'r' word instead is recovery.

"We are being prudent," he said. "We are investing in Ontario and building a stronger economy from the ground up.

"We've got a handle on what we can control, not the ones we can't control."

Hamilton Centre NDP MPP Andrea Horwath called the budget "underwhelming" for the city.

Hamilton politicians are still forced to go cap-in-hand to the government for social services funding, there is no direct help for the city's failing manufacturing sector and little assistance to reduce the city's 20 per cent poverty rate.

"It shameful to have a $600 million surplus, and to say 'sorry no goodies this year'," she said.

"There is no effect on the manufacturing crisis, no transit improvement and nothing about long-term health care."

Mr. Hudak was equally critical of the budget.

The provincial government, he said, is ignoring the flight of manufacturing jobs out of Ontario as they land in more accommodating provinces.

"We used to be the leader in jobs growth, now we are last," he said. "This is just old fashioned tax and spend Dalton McGuinty. They are continuing to increase spending without cutting taxes."

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