The Association of Municipalities of Ontario is advocating for a more favorable financial arrangement between cities and the province.
With costs on the rise, municipalities are struggling to provide services in a cost-effective and sustainable way.
During discussions with a legislative committee in pre-budget talks, AMO’s Executive Director Lindsay Jones emphasized that raising property taxes isn’t a viable long-term solution.
“Ontario property owners are overburdened, and they continue to pay the second-highest property taxes per capita in Canada at $2,104 a head,” says Jones.
“This is 34% higher than the Canadian median of $1,569.”
Jones points out that provincial funding for municipalities on a per capita basis ranks among the lowest nationwide.
She adds that support from the province for infrastructure projects isn’t keeping up with inflation or growth.
“We know we need to do things differently. We can’t continue on the way that we are, but we need to work together to figure out how to move forward,” says Jones.
Jones argues that the province should fully fund public health and social services, which were shifted onto municipalities years ago.
AMO estimates that municipalities will spend $5.4 billion more than they receive from provincial funding in 2024 to provide services that are typically provincial responsibilities elsewhere.
“Every one of the $5.4 billion that municipalities are spending on health and social services that should be funded by the province is a dollar away from core municipal responsibilities like police costs, like infrastructure,” says Jones.
AMO is also calling for provincial action regarding the homelessness issue.
A recent study revealed that 85,000 people were considered homeless last year, an increase of 5,000 compared to the previous year.
This number rose by 37% in northern Ontario and 30% in rural areas.
Jones adds that provincial grants for infrastructure projects aren’t keeping pace with inflation or growth either.
Randy Thoms is a veteran news broadcaster with over 40 years’ experience. He is based in Fort Frances and covers stories across northwestern Ontario. Contact Randy at thoms. randy@radioabl. ca.
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