Municipalities Newfoundland and Labrador reacts to provincial budget

For Immediate Release
May 31, 2021

Municipalities Newfoundland and Labrador (MNL) is pleased with the Government of Newfoundland and Labrador’s commitment to supporting the municipal sector in the province.

Budget 2021 does not implement any changes to municipal operating grants (MOGs), which most of the municipalities in the province rely upon for operational support. MOG amounts will remain at $22 million.

There are no marked changes to funding for municipal infrastructure, apart from the doubling of the federal Canada Community – Building Fund (formerly the Gas Tax Fund), announced in March.

The budget speech provides a clear signal that regionalization is a priority for the province. References to effective, efficient and equitable service delivery, better planning capacity and access to regional economic development opportunities as benefits to regionalization are consistent with those identified by MNL.

“Our sector is doing things to become more effective and efficient. MNL has been advocating for regionalization for quite some time. We have also been working with the provincial government on new municipal legislation to empower municipalities. We are happy to see that this budget maintains the basic supports that municipalities will need as they work through these and other changes.” Amy Coady-Davis, MNL President.

Municipal fiscal stability, innovative infrastructure, and regionalization are all advocacy priorities of MNL’s municipal solutions platform. Read more about the solutions platform here.

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Dr. Deatra Walsh
Director of Advocacy and Communications
Municipalities Newfoundland and Labrador