Manitoba cities, towns to see more money as province ends 6-year municipal funding freeze

Manitoba's Progressive Conservative government is ending a municipal funding freeze that dates back to 2017, the second year of Brian Pallister's time in office.

Premier Heather Stefanson announced Friday the province will hand over $217 million to cities, towns and rural municipalities this year, an increase of $47 million over the funding it provided in 2022.

In each of the the previous six years, the province had not increased this pot of money, prompting mayors and reeves across the province to complain they had to absorb the impact of rising labour and fuel costs, among other sources of inflationary pressure.

Stefanson said the additional funding will be part of a provincial budget that Finance Minister Cliff Cullen will table on March 7.

"We are pleased to provide this much-needed certainty because we know you need it in your communities," Stefanson said, addressing municipal leaders from Winnipeg and Brandon at an announcement at The Leaf, in Assiniboine Park.

The City of Winnipeg will receive the largest funding increase among Manitoba municipalities: $30 million, including a transit grant announced in December.

But on a percentage basis, the Manitoba capital is receiving a smaller increase than other municipalities. Funding for Winnipeg is rising 25 per cent, while most other municipalities will receive hikes closer to the 50, 60 and 70 per cent ranges.

The rural municipality of Cornwallis, which surrounds the city of Brandon, will receive a 78-per-cent funding hike, the largest increase in the province.

Municipal Relations Minister Andrew Smith said the province had to balance the needs of municipalities when it came up with its funding formula, which it did not make public.

Winnipeg city council finance chair Jeff Browaty, who attended the announcement in place of Mayor Scott Gillingham, said he was nonetheless pleased to see more money following a six-year freeze.

"Is the dollar number one we were looking for? Probably not. But I think there's more to come," said Browaty, the councillor for North Kildonan.

Stefanson would not confirm whether more funding increases are coming for municipalities in future years.

Friday's announcement was the latest in a series of PC spending pledges.

A provincial election is slated for Oct. 3.

The Opposition NDP accused the PCs of only coming up with funding for municipalities in an election year.

"Brian Pallister and Heather Stefanson froze municipal funding for seven years. Now they shortchange Winnipeg," NDP MLA Lisa Naylor said in a statement. "Election year promises can't cover up their failures."