Peel mayors warn Ford government cuts will have ‘dramatic impact’

Thestar.com
August 22, 2019
Steve Cornwell and Hailey Montgomery

Following the Ford government’s announcement of new funding ratios for municipalities, Peel Region is bracing for a considerable financial impact.

Municipalities across Ontario will have to pay at least 30 per cent of the cost of public health services and 20 per cent of the cost of creating new child-care spaces in 2020.

Premier Doug Ford announced changes to funding for municipalities at the Association of Municipalities of Ontario conference this week while a spokesperson from the premier’s office detailed the ratio changes in an email.

Mississauga Mayor Bonnie Crombie, who also sits on Peel regional council, said the region is hopeful that the province reconsiders the funding changes. Peel previously anticipated a $36.4 million shortfall.

The region is anticipating revised funding letters from the province soon, and even if the shortfall is less than expected, Crombie said the funding changes would have a “very dramatic impact.”

“We would have to look seriously at what cuts could be implemented and what level of tax increases would have to be made,” she said.

In a statement to the Brampton Guardian, Brampton mayor and Peel council member Patrick Brown said the unconfirmed hit to the region’s budget would be approximately $32 million.

He said that while the 20 per cent requirement for new child-care spaces does not impact Peel’s 2020 budget, he said the funding changes were “still significant provincial downloading.”

With the cost-sharing ratios, Ontario pledged to fund municipalities where the changes would lead to an over 10 per cent increase in public health costs.

Ford said the investments announced, which included no structural changes to the province’s municipal partnership fund in 2020, were critical.

“It’s no secret that the province inherited a massive, massive debt (and) a massive deficit from the previous government,” Ford said. “But not only did we inherit a massive deficit, we inherited broken systems.”

Crombie said dealing with the province’s finances is up to the Ontario government, but that the solution was not to “download the problem” onto municipalities.

We’re the ones who have to run balanced budgets and at the end of the day, they’re causing us to increase our taxes or cut our services to our residents.”

Despite the reversal of previously announced retroactive funding cuts in May after municipal pressure, the Peel Region said in July their programming has been impacted.

Peel announced in July provincial funding changes would result in a $36.4 million shortfall for their 2020 budget, with $11.1 million due to changes in the cost-share formulas between the province and Peel.

Peel Regional Chair Nando Iannicca said Friday that the new announcement is a positive step in working with municipalities on funding allocations for 2020 and beyond.

“We are looking forward to continuing our collaboration with the province to provide excellent service to Peel residents,” he said.