LONDON – The Western Ontario Wardens Caucus (WOWC) has joined the Association of Municipalities of Ontario (AMO) in calling on the province to commit to reviewing the provincial/municipal fiscal framework as part of the upcoming provincial budget.
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 more than $60 billion annually in communities, states a Feb. 13 press release from the WOWC.
“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,” the release states.
WOWC officials state the caucus is joining AMO in “calling on Premier Ford to do what taxpayers expect – work together with municipal governments to modernize this partnership and build a solid foundation for economic and social prosperity that is fair and affordable for taxpayers.”
“We support and amplify the call by AMO for a review of the provincial-municipal fiscal framework. This review is critical to address the outdated financial arrangements burdening municipalities, ensure fairness for taxpayers, and enable crucial investments in infrastructure and social services, not just in Western Ontario but province-wide,” said WOWC chair Glen McNeil.
“It’s time for meaningful change, one that supports the well-being and prosperity of our municipalities and all Ontarians, requiring collaborative efforts between local governments and the province for its achievement.”
Last adjusted in 2008, a review of provincial-municipal financial arrangements is “long overdue,” according to the WOWC. The organization contends 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.
The WOWC says Ontario’s property taxes are already the second highest in the country, while provincial spending per capita is the lowest in Canada, officials state.
Property taxpayers, including small business owners and seniors on fixed incomes, can’t afford to keep paying provincial costs.
As Ontario grows, major investment in essential municipal infrastructure is required to achieve the province’s ambitious target of building 1.5 million new homes by 2031, the press release states.
However, the WOWC says Bill 23 created a $1 billion annual hole in municipalities’ ability to fund this foundational new infrastructure that will help our province grow.
“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,” said AMO president Colin Best.
The release states the WOWC 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.”
15 municipalities
The WOWC is a not-for-profit organization representing 15 upper and single-tier municipalities in Southwestern Ontario, representing more than 1.5 million residents.
