Ontario Construction News Staff Writer
The City of Quinte West is spearheading a call for a review of the provincial-municipal fiscal framework ahead of the impending provincial budget.
An announcement came after the Association of Municipalities of Ontario (AMO) described the necessity for a ‘social and economic prosperity review’ in its recent pre-budget submission to the province.
As the province sets targets to build 1.5 million new homes by 2031, substantial investment in essential municipal infrastructure is imperative. However, Bill 23 has created a $1 billion annual deficit in municipalities’ ability to fund crucial new infrastructure projects vital for the province’s growth.
Quinte West, alongside AMO, is urging Premier Ford to collaborate with municipal governments to modernize the provincial-municipal fiscal partnership, establishing a robust foundation for economic and social prosperity that remains fair and affordable for taxpayers. Despite the challenges, both levels of government have a history of successful collaboration, and Quinte West and AMO believe that now is the opportune time for a province-wide conversation to ensure the stability and sustainability of municipal finances throughout Ontario.
According to a growing number of municipalities, the existing fiscal framework is inadequate, putting a strain on residents, small businesses, and major industries that is worsened by growth pressures, economic fluctuations, social issues, and provincial policy decisions.
“The City of Quinte West is experiencing many of the same financial pressures and challenges as all of Ontario’s municipalities,” said Mayor Jim Harrison. “It is important for Quinte West to join AMO’s efforts to encourage a provincial review of how to better align the provincial-municipal fiscal framework with core service responsibilities to meet the needs of our communities.”
Fiscal arrangements were last adjusted in 2008.