Warning message

Please note that this page is from our archives. There may be more up-to-date content about this topic on our website. Use our search engine to find out.

The cause of the budget crises and municipal infrastructure deficit confronting local governments in Canada is clear. Federal and provincial governments severely cut transfers to local governments starting in the mid-1990s. This caused a funding shortfall that is now about $4 to $7 billion a year. The solution is also very straightforward: federal and provincial governments need to substantially restore their transfers to local governments.