The Recorder
MANITOULIN—Ontario municipalities received some very good news in relation to key municipal grants last week.
“Yes, I think it is good,” stated Ken Noland, reeve of Burpee-Mills Township, in response to the provincial government informing municipalities that there will be no cuts to their annual general assistance grants. In 2018, the province, through the Ontario Municipal Partnership Fund (OMPF) provided $150 million to 389 municipalities.
“The province is going to maintain the OMPF funding at last year’s levels,” said Mr. Noland. “It’s better than a decrease.”
Ontario Financial Minister Vic Fedeli informed municipalities in a letter last week, “we heard the concerns of municipalities and that is why we are now providing the certainty they need to begin finalizing their budgets.”
Mr. Fedeli noted that the OMPF funding municipalities receive will remain virtually the same in 2019, while allowing for annual data updates and related adjustments.
“In the coming months, we will continue to consult with municipalities to ensure the OMPF program is sustainable and focused on Northern and rural municipalities that need this funding the most,” the finance minister’s email to municipalities noted.
Mr. Fedeli pointed out municipalities are aware the province has inherited a $15 billion deficit and the rising cost of servicing that debt, if left unchecked, would threaten Ontario’s ability to provide hospitals, schools and other public services. “The province cannot allow that to happen,” he said. “We continue to review government transfer payments, including the OMPF, as we work to put our province back on a sustainable and responsible fiscal path.”
A government spokesperson confirmed the program is under review to ensure it is “sustainable and focused on the Northern and rural municipalities that need this funding the most.”
As well, the letter indicated allocations for 2020 will be announced well in advance of the municipal budget year to allow municipalities adequate time to plan.
Reeve Noland cautioned, “we don’t know what’s going to happen in the future with the OMPF funding. The whole OMPF funding program was to provide relief to municipalities for the province downloading costs on to municipalities. Our DSB and policing costs for instance are going up. Our downloading costs continue to go up every year, but our OMPF funding is not increasing.”
Last year, $149 million went to assessment equalization, $89 million to Northern communities, $150 million to rural communities, $89 million to Northern and rural fiscal circumstances and $33 million for transitional assistance. Transitional assistance helps smooth out annual changes in the OMPF.
Municipalities will receive their individual funding details in mid-March and some funding numbers may change based on annual data updates or related adjustments, Mr. Fedeli cautioned in his letter.
