The Ford government has a mega health-care infrastructure expansion in mind too—$60 billion worth. Municipal leaders across Ontario are worried about the substantial financial burden this will place on municipalities. The funding formula was originally established in 2006 under the Dalton McGuinty government. It mandates that hospitals pay 10 percent of the construction costs and assume all costs for new equipment, furniture and fixtures. For new hospitals, the province only pays roughly 30 percent of total costs. Consequently, cities and towns are left scrambling to figure out how to fund this remaining 30 percent.
Recent analysis shows that local governments are already being incredibly pinched financially. This reality is underscored by the hospital funding requests in the queue from Brampton, Hamilton, Niagara Region, Muskoka District, and Mississauga—totaling close to $1.2 billion. Municipality of Muskoka, Muskoka Lakes is now being asked to chip in $77.3 million. These funds will go directly towards the construction of two new hospitals in the region. Peel Memorial Hospital in City of Brampton will be given a major infusion. A recently passed property tax levy will pay for a $125 million expansion of its facilities.
The city council in nearby Mississauga has supported a proposal for a hospital levy. This levy would raise property tax bills by an additional one percent on average. This new initiative would provide the public and private capital needed to build the still-proposed Peter Gilgan Mississauga Hospital. The hospital’s final cost is an astonishing $14 billion! All of those comments aside, the city does seem committed to making that project successful. The province will only commit funding if the local share is guaranteed.
The Association of Municipalities of Ontario (AMO) recently reported grave news about a trend that needs to be reversed. Municipalities often pay substantial burdens for hospital capital projects beyond their jurisdiction that they’re unable to prevent.
David Amborski, a public policy expert, expressed concern over this dynamic:
“Essentially, local governments should only have financial responsibility to fund services for which they determine what is provided.”
Municipalities have moved over $415 million from their operations to prop up provincial hospitals already from 2009-2020. As they prepare to spend those dollars on health care initiatives, they must balance those decisions against investments in other, equally important services. Alicia Neufeld, another public policy analyst, noted:
“Mississauga agreeing to this funding via the property tax is a bit of (a) slippery slope, both in terms of other municipalities being asked to make similar contributions, or for cities like Mississauga being asked to fund or contribute to other services outside their responsibility.”
This urgency of these, largely small dollar funding requests, shows just how immediate the need is for more health care facilities in quickly growing communities. Frank Jaglowitz, a local stakeholder, emphasized the lack of negotiation regarding these financial commitments:
“When municipalities are spending money on things like hospitals and health care, it means they’re not spending money on things like roads and recreation and local municipal infrastructure that’s really their core mandate.”
Mayor Carolyn Parrish of Mississauga acknowledged the monumental decision to sign over $390 million in tax dollars:
“If you want a hospital, you come up with that money. There’s no negotiation.”
Even with the restrictive handcuffs these funding requirements create, some local officials expressed encouragement from the collaborations being built. Priyanka Nasta, a project leader involved in the hospital initiative, stated:
“Scariest thing I’ve ever done is sign over $390 million tax dollars. And if I get unelected after this, we have a hospital.”
Not everyone shares the same enthusiasm. Gage Haubrich questioned the justification for placing such financial demands on property taxpayers when provincial resources could be tapped:
“This revised plan reflects the strong partnership and shared commitment of all our partners. We are deeply grateful to the province of Ontario and the City of Mississauga for their leadership and historic investment in this once-in-a-generation health care project.”
Sylvia Jones, Ontario’s Minister of Health, expressed support for Mississauga’s move to cover its local share while reaffirming the province’s commitment to public health funding. She noted:
“I think it’s very difficult to justify putting this onto property taxpayers, versus the huge resources that the provincial government has.”
Today’s municipalities are continuing to face severe financial strain and obligations. There are real dangers in creating a chasm between community-building priorities and the fiscal needs of local leaders. Patrick Brown, Mayor of Brampton, voiced his concerns regarding the weight of these costs on local taxpayers:
“I’m obviously very pleased that the leadership under Mayor Carolyn Parrish has moved forward on the local share, because this is a game changer for Mississauga and the Region of Peel.”
The Ford government’s infrastructure initiative aims to improve healthcare access across Ontario but raises pressing questions about fiscal responsibility and sustainability at the municipal level. Doug Ford, Ontario’s Premier, expressed excitement about the ongoing developments:
“With the province already covering 90 percent of the costs of this multi-billion-dollar project, we will not assume any portion of the local contribution, consistent with our approach for every other project across the province.”
As municipalities grapple with these financial obligations, they may face challenges in balancing their budgets while addressing critical community needs. Patrick Brown, Mayor of Brampton, voiced his concerns regarding the weight of these costs on local taxpayers:
“This is an extraordinary cost for property taxpayers to cover, but we didn’t want to risk our second hospital being delayed so Brampton stepped up.”
The Ford government’s infrastructure initiative aims to improve healthcare access across Ontario but raises pressing questions about fiscal responsibility and sustainability at the municipal level. Doug Ford, Ontario’s Premier, expressed excitement about the ongoing developments:
“No matter where you go in Ontario, you’re either getting an addition to a hospital or brand new hospital. I’m just so excited to get the shovels in the ground.”
