September 17, 2024
Fredericton, NB – The Union of Municipalities of New Brunswick (UMNB) released an expert report that identifies a funding gap of at least $200 Million per year for local governments in New Brunswick. A recent report was commissioned by UMNB and authored by Mount Allison University Economics Professor, Dr. Craig Brett. Among the key findings include a $2.5 billion infrastructure deficit, a $40 million reduction in municipal grants, and increased dependence on residential property taxes for municipalities.
“Dr. Brett’s report lays out what municipal leaders have long suspected. A sizeable gap in municipal funding has developed over the last 20 years. With the upcoming provincial election, UMNB is reiterating its call for the parties to close the gap and ensure our communities are funded adequately and sustainably over the long term” said Andrew Black, President of the UMNB.
Towards a New Fiscal Framework for New Brunswick Municipalities considers two key options for closing the funding gap. One key recommendation is a transfer of one point of the HST to municipalities to address operational issues and infrastructure deficits. Similar agreements have been negotiated between provincial governments and municipal associations in Quebec and Saskatchewan.
“The transfer of one point of the HST is a preferred option because it helps municipalities take the pressure off residential taxpayers and diversifies our revenue streams like other orders of government. Our members increasingly rely on residential property taxes to fund the key services and infrastructure our citizens depend on. By receiving a portion of the HST, we could stabilize property tax rates and address the gap and reduce the burden on ratepayers” said Andrew Black, President of the UMNB.
This report has been shared with each political party as well as the Government of New Brunswick to help inform the ongoing fiscal reform process that’s part of municipal reform which began in 2022.
To read the full report, click here.
About UMNB
The Union of Municipalities of New Brunswick is a bilingual association of fifty-six local governments of all sizes, representing almost 80% of New Brunswick’s population. Together, our members tackle local challenges and share solutions to make life better for their citizens.
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Media Contact:
UMNB
Vanessa Pettersson
Vanessa.pettersson@umnb.ca
506-444-2285