Ottawa, ON - The Federation of Canadian Municipalities (FCM) welcomes the focus on solving the housing and homelessness crises, including through investments in housing enabling infrastructure, offered in Budget 2024. These investments are a promising step toward addressing immediate challenges, however, more will need to be done to address the country’s rapid and significant growth for the longer term. Cities and communities will redouble efforts to advance an intergovernmental conversation on a new funding model for municipalities to make life better for the Canadians who call them home.
The significant new investments contained in Budget 2024 – such as the $1 billion for urgent community infrastructure, including water and wastewater management – signal the federal government is responding directly to FCM’s ongoing advocacy. It is also an acknowledgement that we cannot address the housing crisis without investing in local infrastructure. Municipalities from coast to coast to coast identified the need for these investments and signaled that Ottawa must address both the short-term and long-term challenges Canadians face.
“FCM has been clear that for every new home built, there must be a corresponding investment in infrastructure. Ottawa has heard us on this front. We will work in collaboration with the federal government to discuss the details of the funding and how we can deliver these important immediate investments to Canadians in parallel with fixing our funding model for the long term,” said FCM President Scott Pearce.
In addition, FCM welcomes the new Canada Rental Protection Fund and the Canada’s Housing Plan announced over the last two weeks.
Following the announcement of the $6-billion Canada Housing Infrastructure Fund, Budget 2024 includes an additional $500 million over five years for municipal community, culture and recreation facilities through the Green and Inclusive Buildings Program.
FCM also welcomes commitments in Budget 2024 to provide incentives for health-care professionals to practice in rural communities, double the volunteer firefighter tax credit and provide additional resources to municipalities to combat the opioid crisis. Budget 2024 also takes additional steps to address the rise of auto thefts, a critical issue that impacts Canadians.
The positive steps taken by Budget 2024 to address current challenges shows meaningful progress but should not overshadow the pressing need for a national conversation on modernizing the funding model for Canadian municipalities. As Canada continues to grow, in order to ensure Canadians have the local services and infrastructure they need, FCM urges the federal government to bring together all orders of government to discuss a new Municipal Growth Framework that would provide more effective long-term support for communities, especially considering a proposed three-year freeze on development charges in certain municipalities proposed under the new $6-billion Canada Housing Infrastructure Fund.
FCM is committed to engaging all orders of government, while also collaborating with its members and partners, to advocate for a commitment to negotiate a new Municipal Growth Framework.
“Municipalities own and maintain most of the infrastructure that Canadians rely on every day, from local roads to water systems to mental health services. Yet the current funding model for municipalities hasn’t evolved since 1867, back when the horse and buggy were the primary mode of transportation. It is imperative to adopt a modernized funding model to maintain and enhance the vital services and infrastructure that municipalities provide, ensuring the stability and quality of life that Canadians rely on,” insisted President Pearce.
The Mayor of Halifax Regional Municipality and Chair of Big City Mayors’ Caucus Mike Savage intends to build on this success and continue the efforts to adapt the municipal funding model to the realities of the 21st century.
“We are undergoing tremendous growth and are excited about the future. The investments in Budget 2024 will help narrow an immediate funding gap in the municipal infrastructure required to improve the quality of life in communities, though a serious gap remains. Municipalities are hubs for critical services and infrastructure: receiving 8 to 12 cents for every tax dollar just isn’t cutting it. We need new funding tools so that we can continue supporting necessary growth,” said Mayor Savage.
The Mayor of Halifax Regional Municipality also noted that missing from this budget are additional investments in the Disaster Mitigation and Adaptation Fund which helps municipalities protect Canadians severely impacted by the rising effects of climate changes.
FCM will continue working closely with the federal government to design and implement all the new and expanded programs announced in Budget 2024, which will support the best outcomes for municipalities.
The Federation of Canadian Municipalities is the national voice of municipal governments, with over 2,100 members representing more than 92 per cent of the Canadian population.
For more information please contact:
FCM Media Relations, (613) 907-6395, media@fcm.ca