Gas Tax Funds

Year
2020
Number
EB36
Sponsor(s)
Capital RD

Whereas the federal government distributes gas tax funds to municipalities and electoral areas throughout Canada based on population; And whereas the provincial government allows gas tax funds to be used as a municipal or electoral area contribution towards some provincial grant applications: Therefore be it resolved that UBCM advocate with the provincial and federal governments that gas tax funds should not be considered stacking under all federal and provincial grant programs.

Provincial Response

Ministry of Municipal Affairs The Province is aware of the issues local governments have raised with the current infrastructure grant funding model, including the stacking of federal gas tax funds under federal and provincial grant programs. The Ministry of Municipal Affairs Ministry appreciates the value that the federal gas tax revenues provide to local government infrastructure sustainability and services. The Ministry notes that the policy for the federal stacking rules resides with the bilateral funding programs and not within the Federal Gas Tax Fund. The Ministry welcomes feedback on the current infrastructure grant funding model. Program staff analyse the feedback and advance applicable proposals during the appropriate periods negotiations and reviews. The Ministry is currently managing a diverse portfolio of grant funding programs and is operating under bilateral agreement with the federal government for the Investing in Canada Infrastructure Program. The Province will continue to work with UBCM to identify future opportunities with the federal government to continue providing valuable funding support to local governments.

Convention Decision
Endorsed