Municipal organizations and the official oppositions are calling on the government to move forward with financial reform as municipalities struggle to fund expanded services.
WATCH: An organization representing municipalities, along with the official Opposition in New Brunswick, are calling for financial reform. Municipalities have been tasked with bigger mandates by the provincial government but argue that they haven’t seen the funding to match. Nathalie Sturgeon reports.Back in 2021, the Higgs government overhauled the local governance structure, merging many areas and increasing mandated services for municipalities.
“It seems to be there is an understanding from the provincial government that reform is done,” he said in an interview Monday. “Reform has been completed, but in reality, if the fiscal part of reform isn’t completed, then reform isn’t finished.”A municipality’s main source of funding comes from the taxation of its assessment base, but it only gets a portion of that money. It also gets equalization grants, and many municipalities have said it is hard to ascertain how that money is decided.
He said there is no doubt municipalities are choosing between services, projects and just keeping the lights on. In September, the department of local government and local governance reform abruptly cancelled a finance summit scheduled with the municipal associations to discuss several aspects of reform.
Global News reached out to the department with several questions about the ongoing issues municipalities are facing and is awaiting a response.Liberal local government critic Jacques LeBlanc said he has heard from many municipalities concerned about the financial situation.
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