Province Eases Financial Pressures on City of London and Property Taxpayers
McGuinty Government to Upload Social Assistance Benefit Costs from Municipalities
October 31, 2008
LONDON – Today, MPP Deb Matthews, London North Centre announced that the provincial government will pay for the costs of Ontario Works benefits (welfare) and court security when the elements in a new report are fully implemented in 2018.
Currently, municipalities pay for certain social assistance benefit program costs, including a portion of Ontario Works benefits, from property taxes. This will no longer be the case as a result of an agreement reached by the McGuinty government, the Association of Municipalities of Ontario and the City of Toronto.
Once fully implemented, the uploads agreed to in the report will result in a net annual benefit to municipalities of more than $1.5 billion compared to 2007. Projected total annual support to municipalities, including other provincial initiatives, will be $3.8 billion in 2018 — an increase of $2.7 billion or about 250 per cent since the McGuinty government took office in 2003.
For London, this means in increased annual benefit of over 52,000,000 by the time of the upload is complete in 2018.
The uploads will mean the City of London can build and repair more infrastructure, such as roads, bridges, libraries, recreation centres, sewer systems and water plants.
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“This is great news for property taxpayers in London,” said Deb Matthews MPP for London North Centre. “By uploading social assistance and court security costs, we’re building on our poverty agenda and allowing the City of London to spend more money on projects that are important to our community."
“This is a milestone in our partnership with municipal governments and all Ontarians will benefit from the spirit of collaboration of the Review,” said Municipal Affairs and Housing Minister Jim Watson.
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