34 percent more Ontario cash flows to Sault, Orazietti says

NEWS RELEASE

DAVID ORAZIETTI, MPP

************************* Orazietti announces $28,835,600 in provincial funding for municipal services in 2008

McGuinty government enhances support for communities through the Ontario Municipal Partnership Fund

SAULT STE. MARIE, ON - The Ontario government is providing Sault Ste. Marie with $28,835,600, an increase of $2,431,700 for 2008, under the Ontario Municipal Partnership Fund (OMPF) David Orazietti, MPP announced today.

“Our government recognizes the escalating costs of providing vital municipal services and has responded with record levels of investment in Sault Ste. Marie,” said Orazietti. “The new provincial funding program for municipalities, implemented during the past four years, has significantly improved the financial support for services such as policing, fire protection, road improvements and snow removal.” Under the previous government’s poorly devised CRF formula the City of Sault Ste. Marie received $21,448,000 for 2004.

Under the McGuinty government’s OMPF the city has received an additional $7,387,600 for a total of $28,835,600 for 2008, a remarkable 34 percent increase in only four years.

“Stable OMPF funding, combined with the reduction in municipal social program costs, are part of a larger government commitment to strengthen Ontario communities,” said Ontario Finance Minister Dwight Duncan.

The province is providing $870 million in OMPF funding to 393 municipalities in 2008.

This represents an increase of $252 million over the funding provided in 2004 under the previous government’s program.

By 2011, the province will have increased ongoing annual operating support to municipalities by over $1.7 billion, or more than 160 per cent, compared to 2003.

The McGuinty Government’s OMPF:

- Assists municipalities with their share of social program costs.

- Supports areas with limited property assessment.

- Addresses challenges faced by northern and rural communities.

"The OMPF and the unprecedented upload of Ontario Drug Benefit and Ontario Disability Support Program costs are part of a larger McGuinty government commitment to provide ongoing support to our municipal partners," said Municipal Affairs and Housing Minister Jim Watson.

As of January 2008, the province is fully responsible for Ontario Drug Benefit (ODB) program costs, removing this burden from the municipal property tax base.

As a result, municipal social program costs will fall.

Despite these lower costs, the province has ensured that 2008 OMPF funding would not be reduced.

As the premier announced in August 2007, the province will also be fully responsible for Ontario Disability Support Program (ODSP) costs by 2011.

The OMPF is part of a larger government commitment to strengthen Ontario communities.

Other McGuinty Government initiatives include:

- 90 percent funding for construction of new Sault Area Hospital.

- $17 million for road improvements.

- $7.8 million for Donald Doucet Youth Centre.

- $5.6 million for Carmen’s Way/ truck traffic route.

- $4.7 million for Steelback Centre.

- $3.8 million for Gas Tax Program.

- $2.7 million in COMRIF funding for water treatment plant.

- Over $1 million for eight new City Police officers hired at full cost to the province. First time funded at full cost to the province

- $1 million for waterfront walkway.

- $178,000 for fire service training – first direct funding in 20 years.

“As a former city councillor, I understand the financial challenges at the municipal level and I will continue to work with our government to help ensure that the needs of our community are being met,” said Orazietti.

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