Whitby Council has approved a motion calling on the province to fix Ontario’s broken provincial-municipal funding system, according to Mayor Elizabeth Roy.
“Across Ontario, municipalities are being forced to use property taxes to cover billions of dollars in provincial responsibilities. This outdated system is putting immense strain on municipal budgets including here in Whitby and making it increasingly difficult to deliver the services residents rely on while keeping property taxes affordable.” she added.
The mayor said Whitby is doing its part. They’re working to find efficiencies through a core services review that is currently underway. Mayor Roy also mentioned that the 2026 budget included $2 million in reductions across departments, no new hires and the introduction of new revenue sources.
“With the provincial budget expected to be released later this month, it’s critical that we advocate strongly for Whitby’s priorities and for a modern funding framework that reflects the realities municipalities face today.” said Mayor Roy.
Pressure On Local Taxes
The motion endorsed by council calls on the province to address the $4 billion annual shortfall caused by municipalities funding provincial responsibilities through property taxes, and the $1.5 billion burden of social housing costs placed on municipalities.
It also asks the province to re-evaluate the requirement for municipalities to contribute 10 per cent of hospital capital costs, share housing-related revenues like Land Transfer Tax and HST with municipalities, and create a predictable municipal revenue stream tied to housing growth.
“These are practical, common-sense solutions that would help protect property taxpayers and ensuring municipalities have the resources they need to support growing communities.” Mayor Roy concluded
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