Infrastructure key to Winnipeg pandemic financial management plan
A financial management plan released by the City of Winnipeg this week sets out infrastructure capital investment as a key element to protecting the economy.
“It is gratifying to see that the city recognizes the huge value in infrastructure investment for stabilizing an economy during an extraordinary shutdown of business that also is pummeling the general revenues of governments,” MHCA President Chris Lorenc said. “Strategic investment in infrastructure is critical to economic recovery, growing the GDP by at least $1.30 for every $1 invested. This is one of the fastest, most effective ways a government can mitigate the damage and protect its finances.”
The City estimates that the COVID-19 shutdown is cutting its revenues by $12 million per month. To manage the impact, administration has drawn up a Crisis Cash Flow Management Plan, which maintains the City’s 2020 capital program, an investment of $369 million in capital projects.
“This investment will assist to stimulate the struggling local economy and is estimated to provide over 2,300 jobs,” Coun. Scott Gillingham, Chair of the Finance Committee, said in a news release. “To make significant cuts to the 2020 capital budget would further exacerbate the challenges our local economy is currently facing.”
The analysis of the potential economic impacts of the pandemic is being presented to the Finance Committee April 27. MHCA intends to speak to the committee, in support of the report. The report is available here.
