Mayor calls on province to balance books

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This article was published 05/03/2020 (2207 days ago), so information in it may no longer be current.

Winnipeg Mayor Brian Bowman is challenging the Manitoba government to balance its budget this year.

As the city prepares to unveil its own balanced preliminary 2020-2023 budget on Friday, the mayor said he believes the province should also be able to avoid any deficit.

“In light of significant additional transfers from the federal government to the provincial government, I’m asking them to balance their budget this year, like we are doing for four years going forward. As a taxpayer and as someone who leads a council of the largest municipal government in Manitoba, we want to see the (province balance its) books,” said Bowman.

Government of Canada finance documents show the Manitoba government will receive $4.576 billion in major federal transfers in 2020-2021, up from $4.258 billion this year.

The mayor also challenged the province to impose a debt ceiling upon itself and give Winnipeg advance notice of the city’s provincial funding for 2021, 2022 and 2023, the final years of the city’s multi-year budget.

The mayor said the province has provided notice of its operating support for the city in 2020.

“Regardless of what the amount is, knowing in advance will allow us to better plan and have greater certainty on our end,” said Bowman.

On Tuesday, the province said it expects to end the current fiscal year, which ends March 31, with a deficit of $325 million. Manitoba is set to unveil its preliminary budget to detail the 2020/21 year on March 11.

In an interview, Manitoba Municipal Relations Minister Rochelle Squires did not directly answer if it’s possible for the province to balance its budget this year, or if it would add a debt ceiling.

“I know that the mayor … has a budget that is, in his own words, challenging, so I would recommend that the mayor focus on his task at hand,” said Squires.

The minister stressed her government is making significant progress on reducing its deficit. Manitoba has promised to balance its books before the next provincial election, which is expected in 2023.

Meanwhile, Squires said a one-point provincial sales tax reduction made last July and another one-point PST cut announced Thursday will each save the city about $2.5 million per year.

“We are committed to balancing the budget … We’re also committed to making life more affordable here in Manitoba (by) reducing taxes,” she said.

When asked about the mayor’s call for more financial commitments from the province up to 2023, Squires said her government has shared plenty of financial data with the city in recent weeks.

Joyanne.pursaga@freepress.mb.ca