Underfunding to municipalities needs to be addressed

A recent editorial in the Cape Breton Post (“Cape Breton’s Future: Realistic Renewal,” Nov. 9) opposes Senator Dan Christmas’ reasonable suggestion that given the government’s years of planned underfunding to municipalities in this province it is time to take control over our future, but first it must be seriously studied to determine if it would be economically feasible.

The editorial quickly brings up the amending formula for provincial status - correctly stating that route is extremely unlikely to be successful. I am sure Senator Christmas was aware of that problem. The amending formula has tied up this country in a straightjacket to avoid constitutional change, and I would describe it as constitutional constipation.

Maintaining the status quo, however, still doesn’t quell the growing discontent when most municipalities are left economically struggling to survive (some have not) because federal transfers intended to address that issue are politically manipulated to ensure that Halifax Regional Municipality (HRM) thrives. Government sponsored studies were done simply to reinforce that ongoing policy.

The editorial, in part, states: “But Ottawa doesn’t want equalization to be an incentive to spin off smaller provinces …”

Yet Ottawa, year after year, provides its calculation of approximately 26 per cent or $460 million of the total equalization payments again this year of $1.77 billion. It does this because of the fiscal weakness of municipalities to raise sufficient revenues from their tax base to provide for reasonably comparable public services at reasonably comparable levels of taxation, but this constitutional requirement is not being complied with.

And when, year after year, that federal allocation of municipally generated equalization funding ($460 million) is not used to address that identified municipal fiscal deficiency, what other reaction were both the federal and provincial governments expecting?

Looking at this issue from a different perspective: Can the municipalities outside the HRM realistically afford to keep HRM economically afloat while they are being robbed of their federal constitutionally provided equalization funding?

Do the editorial authors consider the provincial program of $32 million “realistic” and sufficient to begin to reverse the economic underdeveloped municipal problems that have gotten only worse after so many years of planned underfunding - considering the federal government calculated this required $460 million or so each year? Charles W. Sampson Sydney Forks