The Union of Municipalities of New Brunswick (UMNB) has revealed a report showing a minimum yearly funding gap of $200 million for New Brunswick’s local governments.
A report recently commissioned by UMNB and penned by Dr. Craig Brett, an Economics Professor at Mount Allison University, has brought to light several critical issues.
Among these are a $2.5 billion infrastructure deficit, a $40 million drop in municipal grants, and a heightened dependence on residential property taxes for local governments.
Andrew Black, the president of the UMNB, stated Dr. Brett’s report lays out what municipal leaders have long suspected.
“A sizeable gap in municipal funding has developed over the last 20 years, with the upcoming provincial election, UMNB is reiterating its call for the parties to close the gap and ensure our communities are funded adequately and sustainably over the long term,” said Black.
The Towards a New Fiscal Framework for New Brunswick Municipalities considers two key options for closing the funding gap.
One important proposal the report highlights is transferring one percentage point of the HST to municipalities to address operational hurdles and infrastructure needs, such agreements have already been reached between provincial governments and municipal associations in Quebec and Saskatchewan.
Black stated that this report has been distributed to all political parties and the government of New Brunswick to aid in the ongoing fiscal reform efforts that are integral to the municipal reform initiative that started in 2022.
“The transfer of one point of the HST is a preferred option because it helps municipalities take the pressure off residential taxpayers and diversifies our revenue
streams like other orders of government,” added Black.
“Our members increasingly rely on residential property taxes to fund the key services and infrastructure our citizens depend on. By receiving a portion of the HST, we could stabilize property tax rates and address the gap and reduce the burden on ratepayers.”
