2026 Pre-Budget Submission, Consultations on Light Vehicle Procurement and Construction Policies

Top Insights 

• AMO published its 2026 Pre-Budget Submission today. AMO continues to call on the province to review the municipal fiscal framework, and to take immediate actions on funding municipal infrastructure, health and social services, and homelessness needs.
   
• The Standing Committee on Finance and Economic Affairs conducted pre-budget consultations across the province, to inform Budget 2026 priorities and funding. AMO made oral presentations at public hearings in Brockville (January 13,  President Robin Jones) and London (January 21, Executive Director Lindsay Jones)
   
• The province’s proposed “Buy Ontario” procurement policy responds to AMO’s advocacy calling for a framework that balances protecting Ontario jobs with ensuring municipal procurement is on-time and on-budget. 

AMO 2026 Pre-Budget Submission 

AMO’s 2026 Pre-Budget Submission continues to call on the province to sit down with municipalities to update the fiscal arrangements that make Ontario’s communities safe, affordable, healthy, and prosperous. We also ask the province to take immediate action in funding municipal infrastructure, health and social services, and homelessness needs. Our specific asks are:  

Request 1: Provide long-term municipal infrastructure funding for housing and the economy  

• This includes extending the Building Faster Fund beyond 2026. 

Request 2: Fully funding health and social services that are provincial responsibilities 

• Including revisiting local share hospital requirements, moving forward with the public health funding review, and implementing a provincial physician recruitment system. 

Request 3: Bringing together municipal and federal partners to address the homelessness crisis 

• Including investing $11 billion for homelessness prevention and deeply affordable and supportive housing, providing operating dollars to unlock Build Canada Homes capital funding, and working with the federal government to secure a renewed National Housing Strategy. 

The key supporting evidence that forms the basis of our requests are:   

The municipal fiscal environment  

• At $2,104 per person, Ontario had the second highest property taxes per capita in Canada, in 2024. Property taxes accounted for 50% of municipal revenue in 2024. 
• Municipal share of government revenue (for all three orders of government) continues to decline and stood at 10.2% in 2024. 

Infrastructure spending  

• Municipalities continue to fund 80% of infrastructure costs as provincial and federal contributions have remained largely unchanged since 2018. 
• One dollar invested in infrastructure generates an additional $6 in economic activity.  

Health and social services spending  

• Municipal funding of provincial responsibilities in health and social services has increased 1.5 times since 2019, and stood at $5.4 billion in 2024.  
• The province’s transfer payments to municipalities are one of the lowest in Canada, at $6,380 per Ontarian, in 2024.  

State of homelessness and homelessness spending  

• Approximately 85,000 individuals were homeless in 2025, an increase of 8% from the previous year. Without new interventions, Ontario’s homeless population could double in a decade, even under conditions of steady economic growth. 
• Municipalities account for the largest share and fastest growing share of homelessness and housing funding.  

Provincial Consultation on Light Vehicle Procurement and Construction Policies 

The Ministry of Public and Business Service Delivery and Procurement is consulting on proposed procurement requirements that would expand the Buy Ontario Act to apply to municipalities and prioritize “made-in-Ontario” for procurement of light fleet vehicles. This approach reflects feedback from AMO and municipalities including: 

• Allowing municipalities to buy from out of province if Ontario-made vehicles are not available or are cost-prohibitive, ensuring municipalities can procure on time and on budget. 
• Protecting the ability to use local procurement by-laws/policies to get the best value-for-dollar and invest in local businesses. 
• Protecting municipalities from liability under trade agreements like the Canada-European Comprehensive Trade Agree (CETA) by including municipalities under the provincial directive, and requiring vendors to attest that they meet the Ontario-made definition. 

The proposed requirements would also prioritize “Ontario-made” and “Canadian-made” procurement for goods and services used for capital infrastructure and construction projects. AMO will work with MPBSD to understand the potential impact to projects with a focus on mitigating cost and timeline escalation.