Winnipeg Mayor Scott Gillingham Pushes for New Funding Model from Province, Citing Growing Urgency
October 23, 2024 – Winnipeg Mayor Scott Gillingham has renewed his call for a revised funding model from the provincial government, emphasizing that the city’s financial needs are now more urgent than ever. Speaking at the 2024 Leaders’ Forum on Growing the Economy, held at Canad Inns Polo Park, Gillingham told business leaders that the city is no longer seeking funds for ambitious legacy projects but for essential services like infrastructure and public safety.
A Shift from Legacy Projects to Basic Services
“This time, it’s different,” Gillingham said, underscoring the city’s growing struggle to maintain fundamental services such as water pipes, roads, and police operations. With economic pressures tightening, he explained how the city’s ability to balance its budget has become increasingly strained.
“We’re not talking about bells and whistles anymore—we need funding for the essentials,” he said.
Mayor Advocates for Economic Growth-Linked Revenue
Gillingham is pushing for a new financial framework that aligns Winnipeg’s revenues with economic growth, potentially through a share of provincial sales or gas taxes. While no specific proposals were outlined, he stressed that the city requires revenue streams that grow in tandem with the economy.
“Our current revenue sources are limited to property taxes and some user fees, while senior governments reap the benefits of economic activity much faster,” he said. As an example, he noted that while the province collects immediate taxes from construction activities, Winnipeg must wait for infrastructure to be completed and property values to rise before seeing any return through property taxes.
Discussions Underway with the Provincial NDP
Gillingham acknowledged that conversations with the provincial NDP government have been “open,” but urged the business community to help advocate for meaningful progress. “Now is the time to push for a funding model that secures Winnipeg’s long-term success,” he added.
Province Faces Fiscal Constraints
In response, Municipal Relations Minister Ian Bushie acknowledged Winnipeg’s financial challenges but noted that the province is also grappling with its own fiscal constraints. “We appreciate the challenges municipalities face after years of stagnant funding,” he said, referencing the previous Progressive Conservative government’s freeze on municipal funding.
Bushie explained that the NDP has responded by indexing grants to inflation and providing additional funding for some infrastructure projects. However, with the province still carrying a nearly $2 billion deficit, Bushie emphasized that the government must balance financial assistance to municipalities with its promise to eliminate the deficit by 2027.
Expert Perspective: Marginal Gains Likely for Winnipeg
Paul Thomas, a professor emeritus of political studies at the University of Manitoba, noted that while the NDP may offer some concessions to Winnipeg, major financial relief is unlikely. “There’s more room for negotiation, but any gain will likely be marginal,” Thomas said.
He added that the provincial government faces a balancing act—granting significant funding to Winnipeg could trigger demands from other municipalities across the province. “It’s not just about Winnipeg—other local governments will want fair treatment too.”
With both the city and the province under financial pressure, Gillingham’s call for a new funding model reflects a broader challenge of maintaining essential services while navigating fiscal constraints. As discussions continue, the outcome will have significant implications for Winnipeg’s ability to sustain infrastructure development and public services in the years ahead.
Source : Swifteradio.com
