Comments on the Funding of Cities and Towns based on a Year-End Surplus (Thornhill Liberal March 15th, 2008)
Regional News
Mar 15, 2008 02:57 PM
By: David Fleischer, Staff Writer
If the province stays in the black, York Region and other municipalities could see much-needed money flowing to infrastructure projects.
This week, Finance Minister Dwight Duncan unveiled the Investing in Ontario Act which pledges any budget surplus over $800 million to provincial infrastructure.
That money could be used for anything from roads and public transit to social housing.
?The proposed Investing in Ontario Act would strike a balance by ensuring that surpluses would go to both debt reduction and to government priorities,? Mr. Duncan said.
All surpluses are now directed towards paying off the province?s debt and, if the surplus hits $800 million, the first $600 million would continue to go to that end.
The surplus in last year?s budget was $2.3 billion.
Because the money will be distributed on the basis of population, York Region?s 1 million residents would get about 8 per cent of any funding.
Using last year?s numbers, an estimated $1.7 billion would have gone to municipal infrastructure projects and York Region would conceivably receive about $140 million.
York Region commissioner of finance and treasurer Lloyd Russell welcomes the funding, but is hopeful for long-term commitments.
?Across the whole sector there?s such a built up demand for infrastructure that every bit helps us. It?s not ideal, but it?s better than what they?ve historically been giving us,? Mr. Russell said.
While the funding isn?t something large infrastructure projects such as the subway extension are based on, the cash coming York?s way could help with projects such as fixing bridges or upgrading arenas, Mr. Russell said.
The plan honours the pledge to help towns and cities with rising costs, Richmond Hill MPP Reza Moridi said.
?We all know that in the province our transit system needs money, so anywhere we can find bits and pieces will help,? Mr. Moridi said, adding the funding announcement gives cities and towns a free hand to finish road and bridge projects.
Although some applaud the decision, Newmarket-Aurora MPP Frank Klees blasted the strategy.
?To base infrastructure funding on a crap shoot is basically an insult,? Mr. Klees said. ?A surplus is over taxation. You end up with a surplus, because you?ve over-taxed the people for services; governments don?t make a profit.?
Thornhill MPP Peter Shurman also said the strategy fell short.
?It?s so totally Dalton McGuinty, it?s unreal,? said Mr. Shurman. ?Municipalities need a long-term source of stable funding.?
Instead, cities will be forced to wonder each year if they will get money ?like dogs? with their tongues hanging out,? he said.
The Association of Municipalities of Ontario, which has been working with the province on a ?who pays what? review, called the plan significant.
The province?s fall economic statement projected a surplus for this year of $750 million, and if that holds true, there would be no money coming right now.
The Liberals? March 25 budget will include details of the plan.
? with files from Caroline Grech and Sean Pearce