The OMPF assists municipalities with their social program costs, includes equalization measures, addresses challenges faced by northern and rural communities, and responds to policing costs in rural communities.
In 2010, the government will provide $1.2 billion to 406 municipalities through the combined benefit of the OMPF plus reduced costs from the uploads of the Ontario Drug Benefit Program (ODB), Ontario Disability Support Program (ODSP) administration and the phased upload of ODSP and Ontario Works (OW) benefits. This combined benefit represents a 26 per cent increase over the combined benefit announced for 2009 and a 93 per cent increase over the funding provided in 2004 under the previous program, the Community Reinvestment Fund (CRF).
|CRF/OMPF||$618 million||$704 million||$625 million|
|Uploaded Social Assistance Benefit Program Costs||$245 million||$570 million|
|Total Combined Benefit||$618 million||$949 million||$1,195 million|
|Year-over-Year Increase||–||$79 million
|Increase Since 2004||–||$331 million
The increase in the 2010 combined benefit reflects the first phase of the upload of municipal costs for ODSP and OW benefits. This builds on previous uploads of ODB in 2008 and the administration component of ODSP in 2009.
|Program||2010 Upload Benefit|
|ODSP Administration||$86 million|
|ODSP Benefits (50% uploaded in 2010)||$303 million|
|OW Benefits (3% uploaded in 2010)||$13 million|
|Total 2010 Upload Benefit||$570 million|
When all of the uploads are fully implemented, including up to $125 million in court security costs, the net benefit to municipalities will be approximately $1.5 billion annually. Together with other provincial initiatives, we will have increased ongoing annual support to municipalities to more than $3.8 billion by 2018, an increase of over 250 per cent compared to 2003.
The OMPF continues to remain responsive to changing municipal circumstances such as updates in assessment, households or policing costs. Consistent with this key principle, the 2010 OMPF social programs grants have been adjusted to reflect the reduction in municipal costs from the uploads of the ODB, ODSP administration, and the phased upload of ODSP and OW benefits that resulted from the Provincial-Municipal Fiscal and Service Delivery Review (PMFSDR).
For further information on the PMFSDR report, see:
$25 million in targeted transitional assistance will be provided in 2010 only. This assistance is designed to ensure that eligible municipalities receive a guaranteed level of support based on the combined benefit of both OMPF and provincial uploads received in 2009. The assistance is targeted so that the guarantee for municipalities in the north is set at a higher level.