The province wants to help large municipalities and school boards find savings.
It wants cities and school boards to do a line-by-line review of their budgets, looking for savings of four cents for every dollar spent.
The province is putting up $7.35-million for the review through the Audit and Accountability Fund.
Premier Doug Ford made the announcement during a luncheon of the Greater Oshawa Chamber of Commerce, the Whitby Chamber of Commerce and the Ajax-Pickering Board of Trade.
Cities and school boards have warned that provincial cuts will result in layoffs and service reductions but Premier Ford says the province is tackling an $11.7-billion deficit.
In Ontario, over 90% of provincial spending goes towards funding school boards, hospitals, municipalities and other organizations.
— With files from The Canadian Press