March 18, 2025
Fredericton, N.B – The Union of Municipalities of New Brunswick (UMNB) and l’Association Francophone des Municipalités du Nouveau-Brunswick (AFMNB) welcome the first step today by the Government of New Brunswick to fund a new fiscal framework, but much more remains to be done to address the $200-million annual funding gap for communities. After more than 30 years of advocacy, municipalities need firm commitments, engagement, and a clear action plan to ensure the province follows through on its promise.
“We are pleased to see the provincial government begin fiscal reform, however today’s budget leaves many unanswered questions about how municipalities will be funded as they prepare their 2026 budgets,” said Brittany Merrifield, President of UMNB. “Fiscal reform is more critical than ever, especially as we tackle the economic impact that US tariffs will have in our communities. A modernized framework is key to the resilience of our communities and the affordability of life for New Brunswickers. Meanwhile, local governments are being pushed to invest in non-traditional municipal services such as housing, healthcare, and homelessness, without the necessary resources to do so.”
The 2022 municipal reform increased the population of people living in local government by 38%, yet funding mechanisms have not been updated accordingly. Many municipalities now serve more residents and take on new responsibilities without the financial tools needed to address growing challenges. For example, the associations are particularly concerned about the growing infrastructure gap which has been measured at $2.5 Billion. Research conducted by independent experts suggests that at least $120 million annually would be needed over the next two decades just to close the infrastructure gap.
“The urgency to have a fully funded fiscal framework is clear,” added Yvon Godin, President of the AFMNB. “Municipalities had hoped for temporary measures to be put in place until fiscal reform is fully implemented, but budget 2025-26 provides no new funding for local governments until the 2026 fiscal year. Any phase-in or continued shortfalls will impact our ability to renew and replace essential infrastructure – roads, water and wastewater systems, recreational infrastructure and much more. These are the very services that underpin quality of life and support the provincial government’s priorities in housing, economic development, and affordability. Our members need to know how the Government of New Brunswick plans to fulfill its commitment to municipalities.” concluded Godin.
UMNB and AFMNB remain committed to working in partnership with the government to drive meaningful fiscal reform that empowers municipalities as vital contributors to New Brunswick’s future.
About the UMNB: The Union of Municipalities of New Brunswick (UMNB) is a bilingual association of 60 local governments of all sizes, representing over 80% of New Brunswick’s population. Together, our members tackle local challenges and share solutions to make life better for their citizens.
About the AFMNB: The AFMNB brings together 30 French-speaking and bilingual municipalities, spread across six major regions stretching from the northwest to the southeast of the province. Our member municipalities represent nearly 389,000 people, or almost half of the population of New Brunswick.
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Media Contact:
Briana Cowie | External Relations Manager
Briana.cowie@umnb.ca
(506) 444-2285
Michelle Barclay
(506) 542-2622 ext. 2447