York Region estimates that the province is forcing more than $77 million onto local taxpayers this year based on a funding shortfall for social service programming.
York Region council is seeking meetings with local MPPs and key provincial ministers to address what it sees as funding shortfalls in programs such as homelessness services, public health, paramedic services, and long-term care.
Between 2022 and 2024, the region estimates that regional taxpayers have covered a cumulative funding shortfall of more than $142.3 million. Combined with a $77 million shortfall projected this year, that would be $219.3 million between 2022 and 2025. Council discussed the gap and how to respond during an April 10 meeting.
This year's shortfall amounts to a roughly five per cent tax burden on local taxpayers, Newmarket Mayor John Taylor said.
“If you take five per cent off people’s taxes, I’m sure that’d be welcome,” he said, later adding that these services are facing growing pressure through population growth. “I continue to worry about the financial viability of municipalities 10, 20, 30 years from now....I hope we can have a really good conversation and get to a better funding balance.”
The calculations are based on how much the province requires municipalities to fund for various human and health programs and services. While the province requires a 50-50 cost share in areas like public health and paramedic services, there are no mandated cost-sharing requirements for homelessness or long-term care programs, though the region provides funding to bolster those services.
One area where the impact of the shortfall is particularly evident is housing and homelessness, with the province not increasing funding to address the rising issue in York Region, the staff report said. The 2025 budget assumes a $24.5 million provincial funding shortfall for homelessness programming.
“Complex challenges require a strong health and community services sector,” acting director of integrated business services Monica Bryce said. “By quantifying the amount of the shortfall and understanding the changing needs in our communities, we are setting the stage for increased advocacy."
Several council members spoke out about how this could mean York Region has to reduce service levels if the province does not step up.
“The residents of York Region, they’re very compassionate and caring, but not at any cost,” Newmarket Deputy Mayor Tom Vegh said.
“If the province is not going to fund us what they really should be funding us for, I’m not sure how we can justify providing a higher level of service and having that rest on the shoulders of taxpayers,” Richmond Hill Mayor David West said.
