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Canada's
attitudes and political structure
ensure cities have to beg for funding
By
Michael McMordie
for Headwaters News
A paradox of fiscal conservatism, allied as it usually
is with a populist version of democracy, is extreme reluctance to
trust the people.
Cities have suffered from this as much as any component of the nation.
Despite the theoretical appeal of political devolution and local
financial responsibility, national authorities have devolved costs
but not funding, responsibilities but not the wherewithal to fund
them.
The paradox reaches further: In our rapidly growing region, the
growth -- economic and demographic -- has been city-based. Resource
industries continue to power the Alberta economy, but they are directed
by and overwhelmingly support urban populations. Here and elsewhere
in the region, services and industries in the cities drive provincial
and state economies.
Logic suggests that cities should be the target of
major public, as well as private, investment. Health, education,
social services, fire, police, cultural and recreational facilities
all need to grow to meet the needs of growing populations.
Well-funded cities would compete to offer better environments for
work and families, increasing levels of urban amenity. More should
be leading the way towards sustainable environments. All this demands
higher levels of funding, with potentially great returns on the
investment.
Instead, our cities are strapped for funds. One symptom is the desperate
search for corporate sponsors, for sports facilities, concert halls
and theatres when, in other parts of the world, this would be seen
as demeaning. And of course, when sponsoring corporations fail or
change their advertising strategy, the citizens -- the real owners
and supporters -- are expected to learn a new name. No matter how
tainted (the Talisman Aquatic Centre in Calgary comes to mind) city
councils and the electors must hold their nose and take the money.
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Prime
minister's promises don't sway skeptics
By
Greg Lakes, editor
Headwaters News
Oct. 2, 2002
Alberta's cities depend almost entirely on property
taxes to pay the bills, a
system that has grown ever more inadequate with population and
economic growth.
And while Canadian Prime Minister Jean Chretien promised reforms
more sweeping than any in his administration, details were sparse
and critics abundant.
Alberta mayors have been clamoring for new tax tools: They want
some -- or all -- of the federal taxes collected on gasoline, for
example, or some of the income and other taxes collected by the
federal government.
A recent report by the Canada West Foundation examined American
cities and found
appealing options. The report noted U.S. cities can levy sales
taxes and share in tobacco, fuel and income taxes and lottery revenue,
and the package generates revenue more in proportion to increases
in population and relative wealth.
Edmonton, by contrast, gets 86.4 percent of its revenue from property
tax; Calgary's budget is 83 percent property tax revenue and in
Vancouver, the proportion is as high as 96 percent.
The foundation suggested cities take the first step by cutting property
tax rates in exchange for a share of federal taxes. It's a politically
tough concept, as cities would likely have to borrow to offset a
short-term loss of revenue, but the report says it would pay off
as a long-term investment.
Monday, Chretien's speech thickened
the plot with promises of a 10-year program to fix urban roads,
upgrade sewer and water facilities, and improve mass transit facilities.
His plan also includes pledges of "significant
increases" in help for families on welfare, and in health
care for everyone.
The speech said Canada's Indians suffer most from poverty, and the
plan promised collaboration to help cities with pilot programs aimed
at urban Indians.
But specifics, including the costs and methods of funding, won't
be released until later this year, at the earliest.
Some observers said the reforms are the most ambitious of Chretien's
tenure, but opponents were quick to allege the package consisted
mostly of rehashed and unfulfilled promises.
"Competitive cities and healthy communities are vital to our
individual and national well-being, and to Canada's ability to attract
and retain talent and investment," said Governor-General Adrienne
Clarkson, who read the speech in the Senate chamber.
"There are no details and, in most cases, no plans, no price
tags and a lot of recycled stuff," said critic
and Canadian Alliance Leader Stephen Harper.
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