On March 24th, the Honourable Peter Bethlenfalvy, Ontario’s Minister of Finance tabled Ontario’s Action Plan: Protecting People’s Health and Our Economy. Priorities for the 2021 Budget include investing in health care and the economy, providing direct support to Ontarians and improving cash flow for businesses. See below for budget highlights that will affect municipalities:
To support Ontario’s 444 municipalities, the province’s key partners in the fight against COVID‐19, the government is providing almost $1 billion in additional financial relief in 2021 to help preserve vital public services and support economic recovery. This builds on the $4 billion in federal–provincial support provided to communities across the province under the historic Safe Restart Agreement. Ontario joins municipalities in our continued calls for the federal government to step up and provide, at minimum, a matching amount of federal funding to these important new provincial investments. The funding includes:
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- $500 million in additional provincial funding to support municipal operating pressures and recovery in 2021;
- $255 million in new provincial funding through the Social Services Relief Fund to support municipal service managers and Indigenous program administrators in immediately responding to rising COVID‐19 caseloads in shelter settings. This builds on the $510 million provided through the Social Services Relief Fund in 2020–21 that ensured the continuity of critical supports for vulnerable people based on local need; and
- $150 million in additional provincial funding to support municipal transit systems in 2021, including expanded eligibility for municipal–provincial priorities such as fare and service integration and on‐demand microtransit.
“This additional $500 million for 2021 builds on a record of provincial government support…. It will help offset the impact of COVID‐19 on 2021 municipal budgets in every part of Ontario. By protecting the municipal services people and business rely on most, and preventing delays in capital projects, this funding is an important investment in Ontario’s economic recovery.” Graydon Smith, President Association of Municipalities of Ontario.
The government is reviewing the Ontario Municipal Partnership Fund in consultation with municipalities, to ensure the program meets the needs of local communities, particularly small, Northern and rural municipalities. Discussions with municipal partners will continue, understanding that stability remains an important priority for municipalities.
The government has been conducting a Property Assessment and Taxation Review to explore opportunities to:
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- Enhance the accuracy and stability of property assessments;
- Support a competitive business environment; and
- Strengthen the governance and accountability of the Municipal Property Assessment Corporation (MPAC).
- Input is being sought from municipalities, taxpayers, industry associations and other interested stakeholders. The outcomes from this consultation will be communicated in fall 2021.
Ontario is also developing a new digital portal that will enable secure, convenient access to online information and services for apprentices without the need for calling or visiting the local office. The online solution will also simplify processes for all parties making it easier to navigate the system.