MORRISBURG – A change to the federal gas tax program will see a short term dip, followed by gradual increases to funding over the next five years.
Changes put in place by the federal government last year mean that all municipalities within Ontario except for Toronto have to pass new funding agreements with the federal government for what was known as the federal gas tax program. That program began nearly 20 years ago under then-Prime Minister Paul Martin. The revamped program is now called the Canada Community Building Fund. Like the previous program, it is funded through the federal portion of fuel taxes at the gas pump, and is used primarily for road and bridge infrastructure.
South Dundas saw $358,500 in funding in 2023 under the old program. The new CCBF agreement before South Dundas council at their August 14 meeting shows the next five years of funding for South Dundas.
In 2024, the new CCBF will drop to $347,225 – or by 3.2 per cent. That amount will increase by 4.5 per cent to $362,700 for 2025 and 2026. A further 3.7 per cent increase for 2027 and 2028 will see South Dundas gain $376,200 from the feds.
The cut to CCBF followed by increases after year one of the new program is in line with other municipalities in the region. SDG Counties will receive $2.11 million in 2024, followed by and increase to $2.2 million in 2025. North Dundas’ CCBF allocation dropped to $370,400 this year, and will increase to $385,900 in 2025.
No explanation from the federal government was given for the decrease during the program transition.