Debates of February 28, 2022 (day 98)
Member’s Statement 962-19(2): Municipal Funding Gap
Thank you, Mr. Speaker. Mr. Speaker, on the final day of the 18th Assembly, the government quietly tabled a study. The study was a strategic response to the municipal funding gap. It contained some dire findings. Specifically, it showed that from 2014 to 2019, despite increased GNWT funding of over $8 million, the municipal funding gap was basically unchanged at $40 million. Communities' cost to maintain and replace infrastructure grew faster than the GNWT's funding. And that study showed that from 2014 to 2019, community infrastructure costs increased by an average of $2.7 million per year.
In comparison, in the 19th Assembly the government has the mandate commitment to increase community government funding by $5 million over four years. That's an average of only $1.25 million per year. It's clear that the government is not actually reducing the municipal funding gap. While the mandate commitment for $5 million is a lot of money, it's not keeping up with rising costs. Mr. Speaker, it's not even keeping up with the rate of inflation today.
The persistence of the funding gap is disappointing and has real costs on people's lives. Aging water infrastructure in Behchoko is case in point. Residents have brown water and frozen waterlines. Even the school has had to close, Mr. Speaker.
Addressing the gap is also an opportunity. According to the Conference Board of Canada, closing the funding gap would create an additional 220 jobs in infrastructure, construction, environmental services, municipal government services, and infrastructure repair. This kind of investment creates jobs, generates economic activity, and supports the overall health and wellness of Northerners.
I want to conclude by returning to an exchange I had with the Premier on the floor of this house. At the very beginning of this Assembly when we were choosing our Premier and Members could ask questions, I asked two. The first was about holding leadership accountable. And the second was about the plan to address the municipal funding gap.
In the Premier's response, one remark stood out. She said, and I quote: It might not be a popular thing within government but I think that at some point we're going to have to redo that study and see where we stand.