As municipalities across Canada continue to suffer from declining revenues and without the ability to run any deficits, the municipal sector nationally is facing a financial crisis. On April 17^th, 2020 FCM released its report titled “Protecting Vital Municipal Services” and called on the Federal Government to provide emergency operating funding to help keep essential services active and running for communities across Canada.
The Key Recommendations from this Report include:

1. Deliver at least $10 billion in targeted emergency operating funding to all local governments as direct allocations—with a new hybrid formula modelled on both the proven federal Gas Tax Fund (GTF) and a ridership-based allocation for municipalities that operate transit systems.
    
2. Deliver additional emergency operating funding to individual local governments facing unique financial pressures related to COVID-19 that are not fully met by the hybrid formula above.
    
3. Commit to revisit the need for additional operating funding within four months.
    
4. Provide local governments with the ability to transfer unused allocations to the federal Gas Tax Fund program for capital expenditures as part of Canada’s COVID-19 economic recovery plan.

It is not surprising that AMCTO strongly supports this call from FCM as it sustains the fiscal health and viability of municipalities in Ontario (and nationally) by allowing them to deliver essential services during this unprecedented period. This standing position on fiscal sustainability is reflected in AMCTO pre-budget submissions over recent years and has become even more pressing during the COVID19 pandemic.