Halton Region plays a critical role in delivering essential services to residents, including public health, paramedic services, employment and social services, and services for seniors. These programs operate under a cost-sharing agreement between the Province and the Region. However, Provincial contributions have failed to keep pace with rising costs and population growth, forcing the Region to cover the funding shortfall in order to maintain service levels and respond to community need.

In Halton Region’s 2025 Budget, the amount the Region is subsidizing the Province increased by $2.1 million, bringing the total to $16.8 million. This growing financial gap is funded by municipal property taxes, placing an increasing burden on Halton residents.

The growing cost of Provincial underfunding

Over the past three years, Halton Region has shouldered an increasing share of the costs for essential programs and services.

This growing shortfall diverts municipal funds from other critical priorities, including regional roads and policing services, and threatens the long-term sustainability of Halton’s budget.

The need for a new municipal fiscal framework

Despite these funding pressures, Halton has continued to demonstrate fiscal responsibility, maintaining a AAA/Aaa credit rating. However, municipalities across Ontario cannot continue to subsidize Provincial responsibilities indefinitely.

A review of the municipal fiscal framework is essential to ensure municipalities can continue delivering critical services and responding to community needs. Halton Region supports:

• The Federation of Canadian Municipalities’ (FCM) call for a New Municipal Growth Framework (external link) to realign funding responsibilities between levels of government.
• The Association of Municipalities of Ontario’s (AMO) call for a comprehensive social and economic prosperity review (external link) to ensure municipalities can sustain essential services.

How the Province can support Halton

To alleviate the financial burden on municipal taxpayers, the Provincial Government must take immediate action by:

• Addressing the $16.8 million funding shortfall for cost-shared health and social services programs in the 2025 budget.
• Ensuring cost-sharing programs keep pace with inflation and population growth.
• Engaging in meaningful discussions with FCM and AMO to develop a long-term framework for sustainable municipal funding.

The time for action is now

Without immediate Provincial intervention, Halton Region and other municipalities across Ontario will continue to struggle with unsustainable funding gaps. Addressing these Provincial shortfalls is not only about maintaining service levels—it is about ensuring the long-term stability and affordability of our communities.

Learn more about Halton Region’s advocacy priorities and make an informed decision this Provincial election.