Municipal Finance and COVID-19 in Canada: What Comes Next?
The COVID-19 pandemic has had a significant impact on municipal finance in Canada. Across the country, increased expenditures and decreased revenues have resulted in large municipal deficits that, under provincial legislation, would need to be balanced in 2021 budgets. Municipalities with transit systems have been particularly hard hit by substantial drops in fare revenues.
The recent announcement of federal and provincial funding for municipalities and transit providers will help address the short-term budget gaps. However, municipalities are predicting continued budget pressures in 2021, particularly if a second wave occurs and the economic recovery progresses slowly.
In this video, a panel examines the continued impact of COVID-19 on municipal finance. How are municipalities preparing for their 2021 budgets? What impacts are they anticipating from COVID-19? What steps are needed at the municipal, provincial, and federal levels to safeguard the fiscal health of municipalities?
This was the first of two IMFG panels exploring the effects of COVID-19 on municipal finance. Details of the second panel are available here.