Skip to content
Facebook Twitter LinkedIn Youtube
Ontario chamber of commerce logo.
  • Advocacy
    • Campaign Trail & Advocacy Updates – 2025 Federal Election
    • Ontario Competes
    • Our Publications
    • Ontario Economic Report
    • Ontario’s Mining Future 2030
    • Artificial Intelligence Hub
    • Economic Reconciliation Initiative
    • Housing Affordability Initiative
    • Policy Brief Series
  • Councils
  • Events
    • Advocacy Day
    • Annual General Meeting
    • Ontario Business Achievement Awards
    • Ontario Business Advisory Council
    • Ontario Economic Summit
    • Smart Growth Symposium
    • Webinars
  • Programs
    • Seeding Digital Skills
    • Skills Bridge
    • Talent Opportunities Program
    • Export and Trade
  • Membership
    • Affinity Programs
  • News
    • Media Releases
    • Policy Updates
    • Blogs
  • About
    • Contact
    • Board of Directors
    • Staff
    • Employment
    • Strategic Plan
A magnifying glass icon on a white background.
x
x
  • Advocacy
    • Campaign Trail & Advocacy Updates – 2025 Federal Election
    • Ontario Competes
    • Our Publications
    • Ontario Economic Report
    • Ontario’s Mining Future 2030
    • Artificial Intelligence Hub
    • Economic Reconciliation Initiative
    • Housing Affordability Initiative
    • Policy Brief Series
  • Councils
  • Events
    • Advocacy Day
    • Annual General Meeting
    • Ontario Business Achievement Awards
    • Ontario Business Advisory Council
    • Ontario Economic Summit
    • Smart Growth Symposium
    • Webinars
  • Programs
    • Seeding Digital Skills
    • Skills Bridge
    • Talent Opportunities Program
    • Export and Trade
  • Membership
    • Affinity Programs
  • News
    • Media Releases
    • Policy Updates
    • Blogs
  • About
    • Contact
    • Board of Directors
    • Staff
    • Employment
    • Strategic Plan
A man is riding a bike on a hill.

Municipal Fiscal Autonomy Key to Unlocking Ontario’s Competitiveness

Ontario Chamber Report: Province & Municipalities Must Improve Local Resilience to Budget Pressures

COVID-19 Information Tariff Resources
Navigating U.S. Tariffs
Become a Member
Become a Member >
Facebook Twitter LinkedIn Youtube

Media Release

Municipal Fiscal Autonomy Key to Unlocking Ontario’s Competitiveness

July 21, 2021

(Toronto – July 21, 2021) – While COVID-19 has created a uniquely difficult situation for Ontario’s municipalities, it has also exposed areas to improve municipal fiscal governance. Local governments do not have the fiscal autonomy they need to make them competitive and maintaining the status quo could be devastating for communities in a post-COVID economic recovery.  The impact of the virus and the resultant public health measures have meant that most municipalities are seeing a decline in revenue and increase in expenditures.

Today, as all levels of government look to balance debt and deficits while protecting the well-being of our communities, the Ontario Chamber of Commerce (OCC) released its latest report, Better Budgets: Bolstering the Fiscal Resilience of Ontario’s Municipalities. This policy brief identifies 14 recommendations for both the Province and municipalities which can bring immediate and long-term relief to communities across Ontario.

“Municipalities in Ontario are facing a triple threat this year: an ongoing pandemic that has been devastating to local economies, reduced revenue from closed or limited services, and increased spending on public health and human services. The Financial Accountability Office estimates the pandemic will collectively cost municipalities $2.7 billion in 2021, on top of the expected $4.1 billion impact of 2020,[i]” said Rocco Rossi, President and CEO of the OCC. “In Budget 2021, the Government of Ontario committed to a long‐term economic growth plan. It is imperative public policymakers do everything they can do to ensure our communities do not get left behind in recovery.”

“Ontario’s post-pandemic recovery and long-term success will depend heavily on unleashing the economic potential of our municipalities,” said Claudia Dessanti, Senior Manager, Policy of the OCC. “Given that local governments in Ontario cannot run budget deficits, their current options for fiscal sustainability are limited to tax increases, service cuts, and the use of reserves. Now is the time for municipalities and the Province to explore alternative means of achieving fiscal sustainability.”

“Ontario’s municipalities are engines of economic growth, driving entrepreneurship, innovation, and job creation,” said Stephen Beatty, Chairman, Global Cities Centre of Excellence, KPMG in Canada, which developed the KPMG City Competitiveness Index that analyzes 62 cities in 12 countries on over 300 metrics. “Municipal fiscal sustainability was a concern for Ontario businesses before the pandemic. Now, the situation is dire. Both municipalities and business are struggling to cover costs. Municipalities require much more diverse tax bases and revenue sources to provide the kind of services and infrastructure that’s needed to make communities places where people can and want to live and play.”

Key recommendations outlined in the report include:

  • Undertake a comprehensive and forward-looking review of Ontario’s property tax system to ensure the system is more equitable, efficient, and predictable for businesses.
  • Adhere to the ‘pay-for-say principle’ to ensure that all responsibilities are accompanied by adequate funding.
  • Enhance and incentivize regional collaboration across municipalities.

Enormous thanks to our partner KPMG Canada and the report’s authors for their collaboration on this important report. Read the report.

-30-

About the Ontario Chamber of Commerce
For more than a century, the Ontario Chamber of Commerce (OCC) has been the independent, non-partisan, indispensable partner of Ontario business. The OCC’s mission is to support economic growth in Ontario by defending business priorities at Queen’s Park on behalf of its network’s diverse 60,000 members.

For more information, please contact:
Ceara Copps – Edwards
Manager, Public Affairs
cearacoppsedwards@occ.ca | Mobile: (647) 936-6734

[i] FAO, 2020.

Previous

Guelph and Ontario Chambers Encourage Collaborative Approach to Implement Canada-Wide Child Care System

Next

A Long Road Ahead for Small Business

Follow Us

Facebook Twitter LinkedIn Youtube

Site Nav

  • Advocacy
  • Events
  • Programs
  • Membership
  • News
  • About
  • Contact

Receive Updates

Subscribe to our mailing list and stay up to date on everything with the Ontario Chamber of Commerce

Subscribe Now
PREMIER MEMBERS
A purple and green logo on a black background. Atkins reals logo on a white background. A green logo on a black background. A teal color with a white background. A blue and green logo with a cross in the middle. A blue bell logo on a white background. Rbc bank of canada logo. A blue and white logo with a black background. A blue and gray logo with a blue and gray background. Chambers of commerce group insurance plan logo. Rr america logo on a black background. The cn logo on a black background. Canadian fuels association logo. A logo with a red, orange, and yellow background. Mccarthy tetrault logo on an orange background. The meridian logo on a black background. A black and white photo of a man and a woman. A blue and red logo with the word mcdonald's. Bruce power innovation at work logo. The logo for the ontario medical association. The power corporation of canada logo. The lily logo on a black background. Fresh intelligence logo on a black background. A colorful logo with the word mcdonald's on it. A black and yellow logo with a yellow arrow. Waste Connections of Canada A blue logo with the word cogeco on it. A blue and orange logo with the number 5 on it. The canadian maple leaf logo on a black background. A logo with an orange and black background. Imperial Oil logo A logo with a red and gray background. GSK's logo The university of cleveland college of business and economics logo. The logo for luna feel the power. A red and black logo on a black background. Tln media group logo. 404 etr express rail route logo. The logo for astrezeca. Biomarin logo on a black background. The logo for the board of canadian registered safety professionals. A green, blue, and yellow logo. A blue and white logo with a blue background. Magna logo on a black background. Pfizer logo Servicenow logo on a black background. Canada life logo on a black background. Northbridge insurance logo on a black background. A green logo with the word mnp. Tc energy logo on a white background. Destination northern ontario logo. The interac logo with a hand on it. A thin red line on a black background. The cadillac fairview logo. Meta logo. Beer canada logo on a white background. Cibc logo with a canadian maple leaf. The logo for port montreal. The federation of rental housing providers of ontario logo. The logo for bennett jones. Kpmg logo on a white background. Agnico eagle logo. The logo for colleges colleges ontario. Leger 360

Ontario Chamber of Commerce © 2025 | Privacy Policy | Service Standard | Employment Opportunities
The OCC is an accredited chamber of commerce