The City of Winnipeg’s Budget 2025 is evidence that elected officials and finance officials are scratching about for pennies to fund critical, core services, MHCA President & CEO Chris Lorenc told Executive Policy Committee January 22.
Lorenc, addressing EPC on Budget 2025, said the MHCA supports the financial plan, but stresses the current focus on pinching pennies hobbles the city’s ability to invest strategically in economic growth, to move Winnipeg from good to great.
“Raising taxes by 2.45% (net) is frankly a commendable demonstration of restraint, given the challenges that have been compounding each year. It is, however, staving off undoubtedly harder decisions to come,” Lorenc said.
“And flowing from that, this budget – our collective conundrum – illustrates the undeniable need for a fundamental change in the revenue streams to which the city has access, to enable its ability to sustainably fund the delivery of critical core municipal services – think New Fiscal Deal.”
Lorenc agreed with Mayor Scott Gillingham’s observation that any new fiscal deal with the provincial government that addresses funding issues must also ensure that when the city invests in growth, it needs to see an immediate return, revenue-wise, on its economic investments.
A new fiscal deal discussion with the provincial government should address the municipality’s disproportionate reliance on property taxes for city revenues, and look to tying revenue generation to growth taxes, Lorenc said.
“For the City to approach those discussions from a position of strength, it needs to show compelling evidence Winnipeg is putting its foot forward, with a determined focus on economic growth across government, to shift from “business as usual” (simply managing) to a culture of growth (harnessing potential).”
Lorenc said MHCA’s recommendations are:
- Appoint a Chief Economic Development Officer to evidence the City is invested in and focusing on growing the economy, spinning off ROI to Winnipeg and Manitoba.
- Press Manitoba to launch a joint, blank sheet review and redefinition of program service delivery responsibility as between the two orders of government, with appropriately identified funding revenue streams;
- Concurrently harness existing public support and press the province to engage in New Fiscal Deal discussions which should reimagine sources of revenue generation. Scan jurisdictions in and beyond North America for more progressive and robust sources of revenue generation, including those tied to economic activity and/or personal and business income taxes.
