The OMPF assists municipalities with their share of social program costs, includes equalization measures for areas with limited property assessment, addresses challenges faced by northern and rural communities, and responds to policing costs in rural communities.
On October 31st, 2008, the Province along with the Association of Municipalities of Ontario (AMO) and the City of Toronto, released the consensus Report of the Provincial-Municipal Fiscal and Service Delivery Review (PMFSDR), “Facing the Future Together”. As a result of the report:
The Province agreed in 2007 as an early outcome of the review to fully fund the Ontario Disability Support Program (ODSP) and the Ontario Drug Benefit (ODB) program, with a shift now under way and full phase-in by 2011.
Starting in 2010, the Province will upload the municipal costs of Ontario Works (OW) benefits (income and employment assistance) over nine years.
Starting in 2012, the Province will upload the costs of court security over seven years by providing funding to municipalities to a maximum of $125 million annually at maturity.
The Review partners agreed to the key principle that the OMPF should remain responsive to changes in municipal circumstances, such as the upload of ODB, ODSP and OW benefits. Therefore, consistent with the normal operation of the OMPF, the social programs grants will be adjusted to reflect the reduction in municipal costs for these programs as the uploads are phased in.
In 2009, the government will provide $949 million to 405, or 91 per cent of municipalities, through the combined benefit of OMPF grants and the uploads of ODB and ODSP administration. This combined benefit represents a $105 million or a 12 per cent increase over the Announced March 2007 OMPF and a $330 million or a 53 per cent increase over the funding provided in 2004.