The Goderich Signal-Star, 1976-09-30, Page 2•DP,RICH SIGNAL -STAR, THURSDAY, SEPTEMBER 3,0, I976
ck's
Treasurer . Darcy
McKeough, at a special
meeting of the Provincial
Municipal • Liaisen's Com-
mittee. outlined the total'
financial transfers that would
be available to local
Government's • from. the
Province in 1977.
In 1976 Provincial revenue
are expected to grow by 19.9;
percent. This -is ah unusually
high growth rate that' "results
from ta,x cuts to stimulatethe
economy ,in 1975 followed by
tax%nireases . in the 1976
budgets, These tax increases
were required to, reduce the.
cash requirements and to
maintain the Province's
credit rating and financial
integrity. - -
It is . ,anticipated that
budgetary revenues will grow
by ,8 percent in 1977 -while
receipts will remain static to
produce an overall growth
rate in Provincial revenues of
7.7 percent for next year.
The best estimate at this
date for, the Province's. 1977-
1978 revenue growth which is
shared with local govern-.
ments under the Edmonton
Commitment is only 8 per-
cent. The 8 percent forecast
incorporates $120 million in
additional sales tax revenue
• reflecting the termination of
the exemption for production
machinery. This exemption is
scheduled . to expire as ' of
December 31st, 1976.. .
Applying the 8 percent
growth rate to the 1.976-1977
commitment level,., provides
,.an • amount for total
Provincial transfers of $3,426
million, in 1977-78. Relating.
this to the $3,096. rriillibn
which the' Government ex-
pects to transfer during the
current year. This compares
with an increase of $221
million or 7.7 percent for the
current year, •
Should the. Provinc&-s
revenue outlook 'further
deteriorate between now and
the 1977 19udget, the transfers
for the next year -will be held
at the. $3;426 million. By the
same token' should revenue
move the other way, the..same
holds true. In either case
•'.adjustment ill be made in
the following year.
The following ace •some of
the highlights of • thei•
distribution .of transfers for
• 1977-78.
The Province decided to
allocate 50 percent of the new
funds to school boards. Such
an increase was critical on
account of the continuing cost
pressures in the educational `
system. Whrle local • gover-.
nment'is'pleased to receive 50
percent of -the increase, there
was still .concern _about •
education receiving . 50 per-
cent with less children at-.
tending -s chool . .
Grants from the.Ministry of
Transportation ' and Com-
munications wit I be- increased
by $49 million or 10.7 pertent.
Because • • of • lower
requirements for the Toronto
`Fl•subrowayr--in the current year,
this increase' will, permit the
Minister of Transportation'.
'and Coinrn•unication•s to
. emphasize thehigh priority
• he sees for greater assistance
towards local • roads. - The
latter will be increased by 13
percerTt. , . -
Provision for 'transfers
from the Ministry of'.. Com-
. h -unity • and Social Services
will be increased b.y more
than 11 percent to •$364
million. •An. additional $10
' million is allocated to Homes
• for the. Aged while the •
allocation for. Children's Aid
Societies was raised by. $.6
million,
The government decided to
greatly increase its allocation
for the • regional priorities
- • program. Funds for. this
• transfer progr'an were in-
creased from $27 million`°to -
$43 million next year. It is a
prograin to shore .u -p the
economic • potential of
developing communities -and
to build the infra structure to
draw industrial developmaint,•
• Grants from the Ministry of
Culture and Recreation have
been enriched significantly.
• The Minister of Culttire and
Recreation requested and
received approval -for $8
million in extra' funds in 1976-
77. . for his Community
' Recreation Centres program.
This became necessarsy to
assist the many communities r.
with' unsafe arenas to un
dertake the required repa��i s'
or to build new arenas. For
ife:trt ,year this program was.
further enriched as not nearly
all . these pToblerns will be
solvedthis year. . •
All the other changes, are
• fairly ,straighfforward. The
onIy'a cception to this is the
unconditional 'grants
J�tti.D9s..
9g, Lack Nlddell 4luroa-MifidleSgr MP,P
prog'ra'm. The Province over
the past few years has in-
creased. the emphasis on
unconditional grants in its
assistance to municipalities.
In this way Municipalities
will gradually gain greater
freedom to make their own
choices and set their own
priorities. They can use these
funds toincrease activities
already otherwise supported
with. conditional•g.rants or for
•
eompietely different funC-
tions. They can be used to
reduce millrates.
• For next year the Ontario
Government has decidedto.
boost unconditional grants
significantly. They will be
increased by $65 million. or
17.5 percent. This enrichment
will, raise the proportionof
unconditional grants to total
municipal • grants . from 26•.9..
-percent' _ this ._- yeas, .. to _ .2-8:2
percent in 1977-78.. •
The last time the Gover-
nment- increased the per
capita grant towards policing
costs was in. the 1975 budget.
Recognizing . them differential
cost ' pressures in com-
munities that incur policing
expendituties the. Ontario
Government decided to
crease this special per capita
grant by 25 per -pent: Thi4s will
raise the $8. rate to $10 per
capita . and the $12 rate to
:1$.00 per capita. -A total;cost
of this enrichment will be $l9
million next year.
Unconditional ,grants for
regional ,policing are paid in
nine areas. There is a dif-
ferential in rates of this grant
for 1977.of $5.00 per capita in
favour of regional govern-
ments with a regional force.
It , is incumbent • upon • the •
regional governments to
ensure that they *do, adopt.
region wide policing of their
own. The Solicitor 9eneral
expects to cease providing
regional policing by the
Ontario- Provincial Police.
after March 31, 1977,
Finally the Province will
increase all general per
capita grants by $1.00 per
capita at a cost of about $8.5
million. This 'will raise the
grants • from $9. „to $10 in.
regional government areas.
For non . regidnalize
municipalities the per capita
grrntc schedule will start at
(continued onpage .4A)
•
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Announcing
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}
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444
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