New funding system for municipalities coming to P.E.I.
Iain Boekhoff | CBC News | Posted: December 6, 2017 8:00 PM | Last Updated: December 6, 2017
Current grant system to be replaced with tax credits, changes to equalization program
P.E.I. is changing the way it funds municipalities with the aim of providing more predictable funding, the provincial government announced Wednesday.
In a written release, Finance Minister Allen Roach said the changes include:
- Tax credits instead of grants.
- An updated equalization program.
- Extending the planning credit to municipalities with an official plan.
- Municipalities receiving a grant of 10 per cent on all eligible capital expenditures.
- No municipality receiving less funding than it does now.
The province spends $23.6 million on funding to municipalities, which will increase by $2 million next year and $1 million in each of the next three years after. By 2022-23, the province expects to spend $30 million on municipalities.
The agreement will be reviewed in five years.
- MORE P.E.I. NEWS | P.E.I. students recreate Halifax in 1917 for explosion's 100th anniversary
- MORE P.E.I. NEWS | Liberals still preferred party despite lowest numbers since 2004: poll