Bruce County joins the Association of Municipalities of Ontario (AMO) in calling on the province to commit to reviewing the provincial-municipal fiscal framework at the upcoming AMO conference in August.
In early January, AMO, a non-profit organization representing almost all of Ontario’s 444 municipal governments, highlighted the need for a Social and Economic Prosperity Review as part of its Pre-Budget Submission to the Standing Committee on Finance and Economic Affairs.
Municipalities provide infrastructure and critical services that are central to Ontario’s economic prosperity and quality of life, investing nearly $65 billion annually in communities. The fiscal framework that municipalities rely on to deliver infrastructure and services is broken – failing residents, small businesses and major industries. Unlike the province, municipal revenues do not grow with the economy or inflation.
New realities, including the pressures of growth, economic factors like inflation and interest rates, social challenges, and provincial policy decisions are pushing municipalities to the brink.
Bruce County welcomes the opportunity to partner with AMO and Premier Ford – we can work together to get it done for Ontarians. We urge your government to commit to this review at the upcoming AMO conference.
“A recent report to Council showed that Bruce County contributes over $37 Million to areas of traditional provincial responsibilities like housing, childcare, and long-term care. This has put pressure on Bruce County. We support AMO’s call for a review of the provincial-municipal fiscal framework. Doing so will ensure the long-term health of our municipalities,” said Warden Peabody.
Last adjusted in 2008, a review of provincial-municipal financial arrangements is long overdue. Municipalities continue to subsidize the provincial treasury by almost $4 billion each year by paying for provincial responsibilities such as social housing, long-term care, public health, childcare and social services. Ontario’s property taxes are already the second highest in the country, while provincial spending per capita is the lowest in Canada. Property taxpayers, including small business owners and seniors on fixed incomes, can’t afford to keep paying provincial costs.
Ontario’s provincial and municipal governments have a strong history of collaboration. Bruce County and AMO believe the time is right for a province-wide conversation where municipalities and the province come together to promote the stability and sustainability of municipal finances province-wide.
Quote from AMO President Colin Best:
“Ontarians expect governments to work together and respect tax dollars. Local governments need help to address affordability, invest in infrastructure and the economy, and tackle social challenges like increasing homelessness. Working together, AMO believes that the province and municipalities can build a better Ontario.”
