The LMDA and the LMPA
Differences

There are a few critical differences between the LMDA and LMPA:

• where the money’s coming from:
  
  The LMDA money comes from the EI account; the LMPA comes from the Consolidated Revenue Fund (CRF). Clients need to qualify for EI to access services funded through the LMDA, but there is no such requirement in the LMPA. Therefore, employment and training services offered through the LMPA can be a lot more flexible in accessibility requirements LMDA services.
  
  
• what’s being transferred:
  
  The LMDA is not simply a transfer of money. It actually transfers programs and services with their associated funding (to get technical, the LMDA transfers the Employment Benefits and Support Measures under Part II of the EI Act).
  
  In comparison, the LMPA is transfer of dollars, not programs. Some money will be invested in existing programs/organizations at federal/provincial level in Ontario, but there is also a commitment to create new programs/organizations (“instruments”) to address priority areas.
  
  
• who’s in charge:
  
  The LMPA will be jointly managed by the province and the federal government. The two governments will work together to determine priority spending areas, requirements, implementation, and monitoring and evaluation.
  
  The LMDA fully devolves responsibility and money from the federal government to the province. This doesn’t mean that the federal government is not involved: the federal government is working closely with the provincial government in implementation of the LMDA. Also, the federal government defined the LMDA parameters of the programs, eligibility and evaluation in the agreement, so the province is bound by terms set federally.
  
  
• whether the agreement will be honoured:
  
  The LMDA is well on its way to being implemented January 1, 2007.
  
  On the other hand, the federal government has not released any funds associated with the LMPA, and at this point, we are unsure whether the federal government plans to honour the agreement.