August 2020
Backgrounder
Municipal Implications

The Ontario Municipal Partnership Fund (OMPF) provides unconditional operating support from the Province to municipal governments. It uses an equalization approach to address challenges in rural and northern communities, with funding based on various community fiscal health indicators.

In 2020, the total funding envelope was decreased by $5 million to $500 million. This reduction will come from the Transition and Stabilization Grant component in keeping with recent practice.  Allocations to all other grant components remain as they were in 2019.

AMO will continue to advocate for stable OMPF funding envelope and allocations to recipient municipalities which reflect local economic and fiscal circumstances.

Background

OMPF funding supports local front line services in 389 municipalities across Ontario. OMPF reductions can have a big impact on local property tax rates or service levels. For example, a 1% property tax increase raises just $50,000 for almost half of Ontario’s municipal governments.

The Ministry of Finance continues to hold annual meetings with municipal treasurers to discuss the future of the Fund, its design, and ongoing evolution. These deliberations have helped to inform some of the Province’s funding decisions.

Historical OMPF Allocation (in millions of $)
 
Component 2012 2013 2014 2015 2016 2017 2018 2019 2020
Social Services Grant 25 0 0 0 0 0 0 0 0
Policing Grant 94 0 0 0 0 0 0 0 0
Farmland and Managed Forests Grant 46 0 0 0 0 0 0 0 0
Assessment Equalization Grant 147 0 149 149 149 149 149 149 149
Northern Communities Grant 86 0 79 79 84 84 89 89 89
Rural Communities Grant 162 0 138 138 143 148 150 150 150
Northern and Rural Fiscal Circumstances Grant 0 0 50 55  67 82 89 89 89
Transitional and Stabilization Grants 38 0 134 94 61 41 33 28 23
TOTAL OMPF 598 575 550 515 505 505 510 505 500