Milton Calls on Province to Reform Municipal Funding Model

Milton is asking the Ontario government to review how it funds municipalities, saying that local governments are struggling to cover costs as more responsibilities are shifted onto them.

At the Jan. 27 council meeting, councilors Kristina Tesser-Derksen and Colin Best introduced a motion asking the province to work with the Association of Municipalities of Ontario (AMO) on a full financial review. The motion was approved by council.

“The province has placed restrictions on us and shifted more services onto municipalities, making things very difficult,” said Tesser-Derksen adding that Milton has had to make tough budget decisions due to these funding issues.

Other towns and cities across Ontario are facing similar problems. Best noted that at the recent Rural Ontario Municipalities Association (ROMA) conference, government officials recognized the funding gap but did not commit to fixing it right away.

“They didn’t say no to a review, which is a good sign, but they know the situation,” Best said. “The next decade will bring big challenges, so we need to work together to find a fair solution.”

Why Milton is Concerned

The motion points out several major financial challenges:✅ Inflation and rising interest rates are making everything more expensive.✅ Growing population means more infrastructure is needed.✅ Municipalities are handling social issues like homelessness and mental health—services that used to be the province’s responsibility.

Right now, about one-third of municipal spending in Ontario goes toward services controlled by the province, with costs exceeding provincial contributions by nearly $4 billion every year.

Milton council hopes the province will act on this issue to ensure towns and cities have the funding they need for the future.

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