Ho! Ho! Ho! Extra funding from David O!

NEWS RELEASE

DAVID ORAZIETTI, MPP

************************* Orazietti announces Sault Ste. Marie to receive a benefit of $30,683,400 from McGuinty government in 2009

Ontario Municipal Partnership Fund supports and strengthens communities

SAULT STE. MARIE, ON - (December 15) - In 2009, the McGuinty government is providing Sault Ste. Marie with a combined benefit of $30,683,400, an increase of $4,279,500 compared to Sault Ste. Marie’s March 2007 Ontario Municipal Partnership Fund (OMPF) allocation, MPP David Orazietti announced today.

“Our government recognizes the importance of providing vital services such as policing, fire protection, road improvements and snow removal and have responded with record levels of investment in Sault Ste. Marie,” said Orazietti. “Over the past five years we have significantly improved the financial support for services and are continuing to provide our community with increased capacity to address municipal priorities by uploading key social programs including the Ontario Drug Benefit.”

The $30,683,400 benefit to Sault Ste. Marie is derived from $27,883,300 in Ontario Municipal Partnership Fund funding, and $2,800,100 in reduced costs resulting from the upload of Ontario Drug Benefits (ODB) and Ontario Disability Support Program (ODSP) administration.

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 and social service uploads the city has received an additional $9,235,400 in benefits for a total of $30,683,400 for 2009, a remarkable 43 percent increase in only five years.

“In spite of fiscal challenges, the province and its municipal partners are working together to ensure the ongoing delivery of key public services,” said Ontario Finance Minister Dwight Duncan. “The OMPF, combined with the reduction in municipal social program costs, will help Ontario communities in these more challenging times.”

In the consensus report of the Provincial-Municipal Fiscal and Service Delivery Review, tabled October 31, 2008, the Province, the Association of Municipalities of Ontario (AMO) and the City of Toronto agreed to the key principle that the OMPF should remain responsive to changes in municipal circumstances, such as the upload of Ontario Drug Benefits, Ontario Disability Support Program and Ontario Works (OW) benefits.

The OMPF:

- Assists municipalities with their share of social program costs.

- Supports areas with limited property assessment.

- Addresses challenges faced by Northern and rural communities.

- Responds to policing costs in rural communities.

"The Ontario government is proud of its partnership with Ontario’s municipalities. We are uploading $1.5 billion in net costs off the property tax base and will continue to work together to build even stronger communities," said Municipal Affairs and Housing Minister Jim Watson.

Other McGuinty Government initiatives supporting the City of Sault Ste. Marie include:

- $17 million for road improvements.

- $9,235,400 in increased provincial benefits under OMPF to Sault Ste. Marie – 43 percent increase in five years.

- $7,131,173 infrastructure transfer under the Investing in Ontario Act.

- $4,818,753 business education tax reduction when fully implemented.

- $3.8 million for gas tax program since 2004.

- $2.7 million to local conservation authority for source water protection since 2004.

- 50/50 funding for land ambulance from Province – has meant $1,171,137 in municipal savings in 2008.

- Provincial share of public health increased to 75 percent from 50 percent.

- Over $1 million for eight new City Police officers hired for first time at full cost to the Province.

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

Quick facts - The Province is providing combined benefits of almost $949 million to 405 or 91 percent of municipalities in OMPF funding and uploads of ODB and ODSP administration in 2009.

- As a result of the uploads, 202 upper- and single-tier municipalities responsible for social program costs will see an estimated $245 million reduction in those costs.

- The Province is providing $704 million in OMPF funding to 387 municipalities in 2009.

- Combined with the 2009 uploads (ODB and ODSP administration), this is an increase of $330 million – or 53 percent – over the funding provided in 2004 under the previous program.

- This is also an increase of $105 million – or 12 percent – over the March 2007 OMPF allocation.

- By 2018, the province will have increased ongoing annual support to municipalities by over $3.8 billion, an increase of more than $2.7 billion – or over 250 percent – compared to 2003.

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