$4B announced in municipal funding
The federal and provincial government announced a one-time injection of $4 billion for Ontario’s more than 400 municipalities on July 27.
The funding includes $2 billion to be directed toward public transit, and can be used to maintain critical local services. Details on specific allocations will be provided in the coming weeks.
"By working together, we have united the country in the face of the immense challenges brought on by COVID-19 and secured a historic deal with the federal government to ensure a strong recovery for Ontario and for Canada," said Premier Doug Ford. "I want to thank Ontario's 444 local leaders who supported us through our negotiations with the federal government and through each stage of reopening. We will continue to be a champion for our municipal partners as they safely reopen their communities and ensure people can get back to work."
Municipalities have been hard hit by the COVID-19 pandemic. User fees for services such as transit have all been wiped out this year, and with local governments unable to run deficits, the governments are short on solutions to balance their books.
Toronto Mayor John Tory says his city is forecasting a budget shortfall of $1.3 billion by year’s end; Ottawa faces a deficit of $192 million.
The Association of Municipalities of Ontario has called for the senior levels of government to provide funding swiftly. It said the funding represents an “important investment in communities in every part of our province, and in Ontario’s economic recovery.”
AMO president Jamie McGarvey has also called for the money to be using a formula-based allocation.
“Today’s announcement reflects support for a broad array of costs, and it may call for multiple approaches to allocating the funding,” McGarvey said.
The funding announcement from the federal and provincial governments sees Ontario contribute $1.22 billion, and Ottawa $777 million. The provincial amount includes the previously announced $350 million for social services and $100 million in public health funding.
The governments will share the $2 billion that is being allocated to public transit.
"Transit operators across Ontario have done an incredible job ensuring that people who need to get around, including our frontline workers, have safe and reliable transit service during the outbreak," said Transportation Minister Caroline Mulroney. "This funding will help ensure transit services continue to be there so people can get where they need to go as our province reopens and people return to work."