2024 Fall Economic Statement

This afternoon, the province released its 2024 Fall Economic Statement. The statement included the following announcements impacting municipalities: 

• A $100 million increase in the Ontario Municipal Partnership Fund (OMPF) over the next two fiscal years. AMO welcomes this OMPF enhancement as an important step in addressing municipal fiscal sustainability, including rural and Northern communities who will benefit from this increase. 2025 OMPF allocations, totaling $550 million, and supporting materials have been posted online.
   
• Supporting consolidation of municipal electricity utilities (MEUs) by extending and expanding transfer tax breaks. AMO welcomes this measure to ease the financial burden when local decisions are made to merge utilities.
   
• While the provincial property tax review is ongoing, property tax reassessments will continue to be deferred. The province is also undertaking work to permit municipalities to reduce municipal tax rates on affordable rental housing properties, explore property tax changes for student housing, and improve information and data sharing between the Municipal Property Assessment Corporation (MPAC) and municipalities. AMO looks forward to continued engagement on the property tax review, and these specific measures to ensure that the property tax system continues to work for municipalities. 
   
• Scope expansion on Bill 212: Fighting Gridlock, Saving You Time Act. It now proposes to give the province power to remove existing bike lanes. AMO’s recent policy update on the Bill highlights how the province’s overreach into municipal planning is ineffective and counterproductive. AMO will oppose this in its comments to standing committee. 

The province has included stronger revenue and economic growth projections than were included in the 2024 Budget. The provincial fiscal foundations are in place for meaningful partnership with municipalities on a Social and Economic Prosperity Review. 

On behalf of municipalities, AMO is calling on the provincial government to make investments that will improve the quality of life of Ontarians in communities across the province. Municipalities need a provincial partner that will: 

• Sustainably invest in public infrastructure to support growth, improve transportation, and prepare for the impacts of climate change.
• Reduce the province's $4 billion reliance on municipal revenues to fund provincial programs, like health and social services, so municipal tax dollars can go toward supporting thriving communities.
• Take action on the root causes of homelessness through investments in mental health and addictions programming and improved income security that allows people to keep a roof over their heads.