Federal cash could stanch potential Winnipeg cuts: Bowman

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This article was published 23/04/2020 (2048 days ago), so information in it may no longer be current.

Mayor Brian Bowman is hoping a lobby for federal cash to help municipalities cope with the COVID-19 pandemic will include enough money for Winnipeg to avoid last-resort cuts.

On Thursday, the Federation of Canadian Municipalities called on Ottawa to provide at least $10 billion to address pandemic shortfalls, including $7.6 billion in direct funding (with no matching provincial funds required) and $2.4 billion for cities with public transit systems.

FCM said financial support is critical to ensuring essential city services can continue. It estimates municipalities could lose $10 billion-$15 billion, if physical-distancing directives were to persist for six months.

“The longer the pandemic goes and the longer the public health orders are in effect, the squeeze on municipal government will increase with each passing month,” Bowman said Thursday.

The mayor said he’s not sure exactly how much funding the City of Winnipeg could get, if the FCM request is granted.

“At this stage, every dollar that they can provide is going to help,” he said.

The city recently revealed several actions it could take to address the local financial fallout from COVID-19, including significant Winnipeg Transit cuts.

In its worst-case scenario, the city said it could reduce capital spending, seek temporary wage reductions for all employees, and pursue more widespread service reductions and/or layoffs, among other measures.

Bowman said he’s hopeful federal funding could be enough to avoid those drastic cuts.

“The possibility of direct funding for operating budgets for municipalities could go a long way to mitigating some of those layoffs and those decisions down the road,” he said.

However, the mayor said it’s “unlikely” any such funds could arrive in time to avoid the planned switch to an enhanced Saturday service schedule for Transit on weekdays or a related layoff of 253 bus drivers.

During a media call, Prime Minister Justin Trudeau indicated he’s open to working with municipalities to ensure essential services continue.

“We will continue to work with the provinces, but we’ll also continue to work directly with municipalities to make sure that Canadians get the services they need, get the support they need,” said Trudeau.

In an interview, deputy prime Minister Chrystia Freeland said the federal government does consider the cities to be in urgent need of financial support.

“We are very aware of the urgency of the situation that municipalities across the country face. They are providing essential services and, at the same time, they have seen their revenues fall precipitously through no fault of their own,” said Freeland.

— with files from Dylan Robertson

joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga