With two upper tier budgets coming down last week, Warden George Bridge is pleased to see a continued commitment to municipal infrastructure funding from both levels.
While there was no new infrastructure funding announced in the federal budget on April 21, Bridge was pleased to see previous initiatives maintained, such as sharing gas tax revenue with municipalities.
“It’s important to keep that going,” he said in a telephone interview with the Advertiser.
“They’ve identified that we can’t do it on property tax. You can’t charge enough property tax. There are just too many things that should be coming out of a gas tax or an income tax that people pay on an overall basis.”
The provincial budget, which came down on April 23, will make $15 billion available for transportation and other priority municipal infrastructure projects outside the GTHA, as well as a planned investment of $11.9 billion in 2015-16 on infrastructure such as roads, bridges, public transit, water systems, hospitals and schools.
The province also announced it will fund a new $15 million Connecting Links program beginning in 2016-17 to help improve local roads that connect to the provincial highway network. The previous Connecting Link program, in place since the 1920s, provided municipalities with up to 90% of the cost of road and bridge repairs on provincial highways passing through built up areas. It was cancelled in 2013.
“The Connecting Link program is coming back. Which is important for us,” said Bridge, noting local communities like Centre Wellington, which has over 100 bridges, can’t afford to pay for the provincial portion of highway infrastructure.
With five of 77 Ontario Connecting Links located in Wellington County, Bridge stated, “it’s really important for us.” He believes lobbying from municipalities played a major role in getting the funding restored.
“I think I’ve talked to four or five ministers on this over the years, so I was really glad when I got that call from the deputy premier, Deb Matthews, and she said, ‘We we’re listening.’ So that’s a big one for us,” Bridge said.
Ontario is projecting a deficit of $8.5 billion in 2015-16 and a return to a balanced budget by 2017-18.
Introduction of beer sales in grocery stores and measures to expand the availability of craft brewery products are countered by a planned three-cent-per-litre tax to be added annually for the next four years.
A controversial measure in the budget is a plan to sell up to 60 per cent of Hydro One, while not allowing any one shareholder to buy more than 10 per cent and with the province retaining control of at least 40 per cent of the utility.
Bridge sees an opportunity in this move for local utilities like Westario or Centre Wellington Hydro to consolidate their territories. Currently local utilities service the urban areas, with customers on rural roads serviced by Hydro One.
“It would be nice if Westario could buy up the areas around their municipalities … I’m hoping that we’ll have a chance to maybe look at that as opportunities to buy into that program if they’re divesting,” said Bridge. “There’s where the synergies and savings could come from.”
Other provincial budget highlights include:
– the Jobs and Prosperity Fund will be increased by a total of $200 million beginning in 2015-16, increasing the fund to $2.7 billion over 10 years and extending eligibility to the forestry sector;
– tackling climate change by moving forward with a cap-and-trade system as a carbon pricing mechanism. The government says proceeds from a cap-and-trade program will be directed towards key priorities that will help lower greenhouse gas emissions; and
– adding an additional $250 million over two years to the Ontario Youth Jobs Strategy (total spending on youth employment programs will be more than $565 million).
Local Conservative MPPs slammed the budget for adding to Ontario’s debt.
“When this Liberal government first took office, the net provincial debt stood at $139 billion,” said Wellington-Halton Hills MPP Ted Arnott. “Under their watch, the debt has ballooned to almost $300 billion. Spending has been out of control for almost 13 years now, and that’s why the debt has more than doubled.”
Perth-Wellington MPP Randy Pettapiece added, “They have no real plan to balance the books, yet they have no problem increasing costs for families and businesses. At the same time, they continue to rack up debt.”
Pettapiece criticized the budget for doing little to address “local priorities,” including energy issues, health care services, transportation challenges and municipal costs. In recent years, many local municipalities have seen their Ontario Municipal Partnership Fund shares slashed and infrastructure programs cancelled, he pointed out.
“While I’m pleased the government has finally promised to restore the Connecting Link program, which the Liberals scrapped without warning, we’re still waiting for details on how the new program will work,” said Pettapiece.
“The cancellation of the Connecting Link program two years ago caused a huge problem for municipalities,” Arnott agreed. “I’m glad that they’ve finally reinstated it.”
Arnott said the budget demonstrates the Liberals don’t know how to grow the economy.
“Last year, this government introduced plans to implement a new Ontario pension plan. This year they announced cap and trade. Their policies are driving up hydro rates. Each year they’re making it more and more expensive to do business here in Ontario. And yet they seem mystified as to why so many jobs are leaving the province,” Arnott stated.
Meanwhile the federal budget announced a Public Transit Fund, which will ultimately invest $1 billion per year in new funding in urban transit projects, but contained no new funding for rural infrastructure support.
However, the Ontario Federation of Agriculture (OFA) notes in a press release that provisions to support Canada’s 150th anniversary activities are expected to fund “renovation, expansion and improvement of existing community infrastructure across the country.” The OFA also points out the government announced changes in taxation that could save Canadian farmers $50 million over the next five years in capital gains taxes.
“This immediate increase to the lifetime capital gains exemption will see an increase from $800,000 to $1 million, and is expected to assist those making farm transfers or selling/acquiring farm assets,” the federation notes.
The OFA also expressed disappointment an investment in risk management tools was left out.
The Federation of Canadian Municipalities is cautiously optimistic the government plans to maintain its annual investments of $1.7 billion for social housing.
“This is a first step; however, with only a four-year commitment and many outstanding details, it is unclear how much pressure will actually be relieved on growing wait lists for affordable housing in municipalities from coast to coast to coast,” states a press release from the federation.
Bridge agreed with the federation’s assessment of the need for continued federal involvement in social housing.
“One thing we have to make sure they concentrate on is housing,” said Bridge.“We have to keep the pressure on the federal government to look at that and make sure they keep that program going – because if they get out of that business we’re in big trouble.”
Wellington-Halton Hills MP Michael Chong called the balanced budget introduced by his Conservative party “a significant achievement” and noted it was accomplished “while significantly reducing federal income taxes.
“Since 2006, the federal government has cut taxes for Canadian families over 160 times. As a result, federal taxation is at its lowest level in 50 years,” said Chong in a statement posted on his website.
“A typical Canadian family of four is now paying $3,400 less every year in federal taxes compared to 2006. These tax reductions have taken place despite the global recession of 2009 and despite a challenging fiscal environment.”
Tax reform measures included in the federal budget include allowing couples to split income between the higher earning and the lower earning spouse, saving up to $2,000 a year in federal taxes and an increase to the Child Care Expenses Deduction of $1,000 per child, for those families with both parents working and utilizing child care.
The government is also increasing the Universal Child Care Benefit retroactive to Jan. 1. Parents will now receive $160 per month per child under the age of six, or $1,920 per year, and a new benefit of $100 per month per child aged six through seventeen, or $720 per year.
Chong said the new measures will provide direct financial support to 34,820 families in Wellington County and 14,580 families in Halton Hills alone.
