Quote:
Originally Posted by matt602
And in some municipalities such as Hamilton, we find loopholes so that we can still use it on roads anyway
|
How? It's pretty irontight. Among other things it includes a clause that prevents municipalities from using it to cut their municipal subsidy.
It was introduced in 2004. The province took the average municipal subsidy from the 2001, 2002, and 2003 budgets (all three years averaged) of its transit agency, and declared that to be the agency's "baseline municipal funding." This amount, adjusted for inflation every year, is the minimum amount a municipality has to spend on transit to be allowed to quality for ANY provincial grant program.
In other words, municipalities can't allow their municipal subsidy for transit to fall below what it was at the time the gas tax transfer was introduced. If they do, not only do they lose the gas tax money, they disqualify themselves for all provincial grants for everything.
It forced all municipalities to use the money to actually improve transit rather than just cut their municipal funding for it.