N.B. is changing the way it funds local government — what does it mean for Tantramar?
The provincial government says changes to local government funding will “provide financial stability to local governments and rural districts,” but changes to the law have prompted a backlash.
Bill 120 received Royal Assent on Tuesday, effectively freezing local government funding across the province at its current level of about $76 million for the next five years.
Megan Mitton, the MLA representing Memramcook-Tantramar, said municipal reform will download more responsibility from the province onto local governments without funding them adequately.
“Municipalities want there to be stability, but not stagnation,” Mitton told lawmakers in the provincial capital last week.
Liberal MLAs also criticized the law. Jacques LeBlanc, who represents Shediac-Beaubassin-Cap Pelé, said in the Legislative Assembly on Tuesday it will force municipalities to raise taxes.
Opposition members also criticized the government for rushing the legislation through the Legislative Assembly.
Formula changing
The current formula has been in place since 2013, and includes so-called equalization and core funding.
The equalization system, which dates back to 1967, involves the redistribution of tax revenue across the province so that less prosperous communities can still offer a certain level of services.
Under the new system, equalization payments remain in place, but will be adjusted annually by a maximum of three per cent, through a comparison of local and provincial tax base growth. … Continue