Province, UNSM Sign Funding Memorandum

Guy Brown, Minister of Housing and Municipal Affairs, and Walter Fitzgerald, president of the Union of Nova Scotia Municipalities, signed a memorandum of understanding today that will provide municipalities with a phase-out of social services funding and restoration of a fully funded equalization program.

In addition, the province will agree to retain responsibility for local bridges. The package is worth about $10.2 million.

"I am delighted that, working with the UNSM, we were able to develop a plan that will provide immediate financial relief to Nova Scotia's 55 municipalities," said Mr. Brown. "My department is working now to prepare the documentation for individual municipalities so that they can use the information to help set tax rates."

The minister said the information packages should be available within the week.

The agreement is the result of a process launched late last fall by Premier Russell MacLellan to review a number of long-standing concerns.

"The major outcome of this process is the commitment by the province to phase out municipal contributions to community services," said Mr. Fitzgerald, Mayor of Halifax Regional Municipality. "This will be welcome news to all municipal leaders. What is missing, however, is discussion on education issues."

The memorandum of understanding commits the province and the UNSM to launching a review of major roles and responsibilities so that Nova Scotia's municipalities will be better prepared to meet the many challenges ahead. The phase-out of social services funding will be tied to the progress made in the review. A maximum of five years is provided for the full phase-out.

"I look forward to the outcome of the review," said Premier MacLellan. "We know that the province must work in closer partnership with its municipalities if we are to serve the taxpayers, and this process will help us achieve that goal."

The review is expected to begin by the end of June and will take about one year to complete.