Jaczek likes Duncan's plan to channel surplus funds to municipalities
By Bill Rea

In anticipation of having lots of money left over at the end of fiscal years, Ontario Finance Minister Dwight Duncan announced plans last week to have some of these funds channeled to municipalities.

And that's fine with Oak Ridges - Markham MPP Dr. Helena Jaczek, while other observers have some questions.

Duncan announced the government is proposing a bill, to be called the Investing in Ontario Act, that would direct a portion of provincial surpluses to municipalities to help address their infrastructure needs, such as improving roads, bridges, transit, social housing, etc. Current legislation requires the government to use all surpluses at the end of the year to reduce the provincial debt.

"I think it's king of a balanced approach," Jaczek commented, pointing out the first $800 million of surplus is to go toward paying off debt, and anything over that will be distributed to municipalities.

She also pointed out municipalities won't be tied to using these funds by the end of the particular fiscal year, so that will offer them some flexibility.

Jaczek added most municipalities would have a lengthy list of priority infrastructure projects waiting to be addressed. "I think that should help them out,' she said.

But York - Simcoe MPP Julia Munro agreed that giving more money to municipalities is viewed as positive, but she wasn't impressed with the way the government proposes to go about it. She commented that municipalities want certainty when it comes to the revenues they are expecting.

"I just don't think it's a demonstration of a government with a plan," Munro added. "People forget that it's actually the taxpayers' money."

Munro also observed a program like this will put pressure on the government to find a surplus, which she said could be a big problem for any organization.

She also said working on infrastructure involves longterm projects. Municipalities don't pay for these items in just one year.

"This opens up a huge issue in terms of planning," she declared. "You can't know you're going to get (the money) until the end."

Munro also charged that budgeting for a surplus means people are being over-taxed. Putting all the surplus toward the debt is more appropriate.

"The proposed Investing in Ontario Act would strike a balance by ensuring that surpluses would go to both debt reduction and to government priorities," Duncan stated last week. "Investing in municipal infrastructure not only addresses the capital needs of our communities, but it also creates more jobs in the short term and prosperity in the long run."

Mayor Margaret Black said she was waiting for more details on how this program is slated to work.

"I don't know how it's going to apply to us," she remarked. "We'll welcome any money that we can get. I guess we're waiting for the details."

She added it would be nice to have information on how much money to expect as soon as possible. Municipalities like to get their infrastructure plans for the year set as soon as possible.