Tell the Province What You Think...

(March 9, 2001)--The Government Of Nova Scotia intends to establish an Equalization Fund for municipalities. The overall effect of the Fund will be to give property tax dollars raised in better-resourced municipalities to the lesser-resourced municipal units. If implemented in its present form, Halifax Regional Municipality will be forced to raise property taxes or reduce services next year.

HRM recognizes that some municipal units are experiencing difficult financial times, but believes that the Province's delicate financial situation is an unacceptable reason for downloading its fiscal responsibilities to the municipal taxpayer. Every other province in Canada lives up to its responsibilities to municipalities and uses income tax dollars-not property taxes-for equalization. Why not Nova Scotia?

HRM believes that the only appropriate way to resolve this matter is through a clearly-defined governance structure. There must be clear delineation to ensure that all parties-including the property taxpayer-- know what services the Province will be providing; and what services will be the responsibility of the municipal units

Mayor Peter Kelly and Members of Halifax Regional Council believe that it is fundamentally wrong to use property tax dollars for Equalization payments. HRM believes there is a fairer way to resolve this issue and it is prepared to work with the Government of Nova Scotia and other municipalities to help find a mutually acceptable solution to this difficulty.

To find out more about the Government of Nova Scotia's Equalization Fund for municipalities, citizens are urged to contact their MLA.