November 10, 2016

Today the Ministry of Finance issued 2017 allocation notices from the Ontario Municipal Partnership Fund (OMPF).   The total funding envelope to municipalities will be maintained at $505 million.  

Letters to heads of council and treasurers are being sent at this time.  Allocation notices may also be viewed on the Ministry’s website.  Below are the key aspects of the 2017 funding announcement:
  1. A cut of up to 10% for municipalities in northern Ontario, the same cut experienced in 2016.
  2. A cut of up to 15% for municipalities in southern Ontario, also the same cut experienced in 2016.
  3. A reallocation of $5 million (over 2016) from within the Transition Grant envelope to target rural communities with the highest percentage of farmland (over 70%) using a new Farm Area Measure.
  4. A reallocation of $15 million from within the Transition Grant envelope to target municipalities that are faced with challenging fiscal circumstances (Municipal Fiscal Circumstances Index).  This is an increase of over 20 per cent to the Northern and Rural Fiscal Circumstances Grant.
The chart below illustrates the changes to each of the grant components over time.

Historical OMPF Allocation by Grant (in millions of $)

Historical OMPF Allocation by Grant (in millions of $) Table

The Ministry’s changes for 2017 demonstrate a continued effort to distribute OMPF allocations based on need and the specific fiscal challenges of different types of municipalities.  The remaining transitional and stabilization grants are an integral part of the overall envelope in future years.  There remains an enduring need for a strong equalization program across the province.