Mississauga councillors exploring options for campaign financing

Mississauga.com
Oct. 5, 2016
Rachael Williams

Mississauga councillors are requesting an amendment to the Federal Income Tax Act for election campaign donations.

The move comes in the wake of the provincial government banning the collection of corporate and union donations during municipal elections. The amendment would allow contributions made to local campaigns to appear as tax rebates on a donors’ Income Tax filing.

“Our council feels strongly that while the idea of eliminating corporate and union donations is worth further debate, there needs to be an additional discussion about how municipal campaigns will be financed,” stated Mayor Bonnie Crombie.

According to her campaign contributions statements, Crombie received $248,089 from union and corporate sponsors during the 2014 municipal election. The total amount of all her contributions was $517,507.

Since the provincial ban was announced back in May, municipalities have been trying to find ways to make up for the loss in funding. Crombie penned a letter to Premier Kathleen Wynne in June asking for a review of the Municipal Elections Modernization Act, which banned corporate and union contributions after it was revealed that developer donations were influencing local election outcomes.

In response, Minister of Municipal Affairs Bill Mauro encouraged the municipality to explore tools such as a contribution rebate program to make up for the loss in union and corporate sponsors.

A contribution rebate program would enable a municipality to reimburse campaign donations through the property tax base.

“I do not think the property taxes should be used to fund or incent campaigns,” said governance committee chair and Ward 9 Coun. Pat Saito.

Based on 2014 election statistics, the cost to implement a rebate program would be $750,000, including $688,000 paid out for rebates and another $107,000 for staffing and supplies.

“I could think of a lot of other priorities to spend that money on,” said Ward 2 Coun. Karen Ras.

Depending on the formula selected, rebate programs would apply to donations of $100 minimum. Fifty per cent of contributions exceeding that threshold would be paid back to the donor.

The hope is to encourage greater participation in municipal politics by reducing the financial burden placed on candidates and donors. Pundits have criticized the program on the basis that all taxpayers subsidize individuals who contribute to any candidate’s campaign.

Toronto, Oakville, Ajax, Whitby, Markham and Vaughan have implemented a rebate program, with mixed results on whether or not there was an increase in electoral participation.

“It will not increase voter participation at all and in fact will make it so only people who are wealthy and can afford to self fund a large campaign will have a chance at being elected,” said Saito. “It is a perfect example of the government making rash decisions with no consultation with municipalities.”

Crombie told The News she prefers the province raise donation limits instead of recommending the implementation of an “expensive taxpayer funded donation subsidy program.”

The report will come before council on October 12.