The Standing Committee on Governance and Economic Development recommends that the government introduce legislation requiring a minimum notification period of one year when the government is planning to reduce funding targeted for specific communities.

The committee also observed that well managed communities might be penalized for good administration. Less well managed communities are given extraordinary funding to balance their budget. Extraordinary funding in these cases does not encourage good municipal management. However communities that live within their means are not given any additional funding. Committee members encouraged the Minister to work with communities to standardize community financing to ensure that the funding process is clear and equitable for all municipal governments. The Minister agreed. The committee understands the review is underway and looks forward to reviewing the report in the fall.

Committee members pointed out that although operational expenditures for non-tax-based communities increased marginally, this proposed increase is more than offset by substantial decreases in proposed capital funding. In addition, as funding continues to be reduced to communities, the community's ability to deliver essential programs and services as well as operate its facilities effectively and safely may be compromised. The committee holds the position that public health should be the top priority in any funding changes or transfers of infrastructure, program or service. In concurrence with recent observations by the Auditor General, a third party accountability framework should also be adopted. This framework will ensure that communities continue to deliver high standards of programs and services, while ensuring economic, effective and efficient community spending.

Self Government

Committee members pointed out to the Minister that while the department has increased funding and its level of participation at self-government talks, reductions in the department's overall capital and operational expenditures are projected to decline. Funding for the department's self-government participation may be better spent on infrastructure or other essential programs or services.

The committee noted that the structure of communities will likely change with the conclusion of self-government talks and reiterated the importance of having an effective third party accountability framework in place. The Minister agreed with the committee and stated that a legislative proposal scheduled for introduction in the fall of 2000 will address this concern. This concludes the committee's report, Mr. Chairman.