2025 Ontario Pre-Budget Submission

Annually, MFOA submits comments to the Province of Ontario's budget consultations to outline recommendations related to the needs of municipalities and their fiscal sustainability. Due to the upcoming February 27, 2025 provincial election, the 2025 budget consultations have been postponed. MFOA has developed a document that conveys the current issues facing municipalities, some opportunities for improvement, and the risks if we don't act now. The following document will form the basis of our submission when budget consultations begin again.

Our recommendations are as follows:

1. Commit to the Association of Municipalities of Ontario’s Call to Action for a Social and Economic Prosperity Review. Encourage the federal government to commit to FCM’s call for a new Municipal Growth Framework
2. Commit to a review of municipal infrastructure funding programs and tools. Such a review should be comprehensive in considering whether current funding programs are meeting urgent needs, and if not, whether new funding programs should be developed or new revenue tools should be made available. The review should consider existing and growth-related infrastructure needs
   1. Municipalities need permanent, stable funding. Make permanent the temporary doubling of OCIF, and commit to indexing government transfers to inflation going forward
   2. Municipalities need funds for growth-related infrastructure to increase Ontario’s housing supply
   3. Municipalities need capital funding programs aimed at addressing the municipal infrastructure backlog
   4. Launch a review of municipal revenue options and align municipal revenue tools available under the Municipal Act, 2001 and the City of Toronto Act, 2006 
3. Work with municipalities to support ongoing efforts to address homelessness and to develop solutions meeting the increased needs for mental health services and shelter services
4. Complete the Property Tax and Assessment System Review in 2025 and commence the next assessment cycle as soon as possible
5. Commit to meaningful consultation with municipalities and other stakeholders on issues impacting municipal finances