NIAGARA FALLS, Ont. - Premier Dalton McGuinty says Ontarians are better off today than they were when the Liberals took office three years ago.

In a speech kicking off the Liberal party's weekend convention Friday night in Niagara Falls, McGuinty told the party faithful that more people in Ontario are working and the province is in a good position to compete on the global stage.

But McGuinty says the province has to figure out how to better educate more of its residents and how its health care system can cope with an aging population.

Testing out some key messages Liberals will likely use in the coming provincial election, McGuinty says Ontario's next government will have to move the economy forward while improving the environment.

The Liberals are meeting this weekend to strategize about October's provincewide election after only winning one of three southern Ontario byelections.

The Liberals won a seat in Markham but lost the Toronto riding of York South-Weston to the NDP while the Conservatives held onto their seat in Burlington.