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Originally Posted by Bunk
So with the Federal budget allowing cities to apply for infrastructure money (same thing with the Building Canada fund) do you think the City of Calgary will push for funding of the SELRT and Stephen Avenue Subway?
Apparently there is to be a 1/3 municipal, 1/3 provincial, 1/3 federal split for projects. In some cases the federal government will consider covering 50% of projects if the province comes forward with 50% (in cases the municipality cannot contribute their share).
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I'm disappointed but not surprised by this cost-sharing approach.
First off, municipal and provincial governments aren't exactly flush with cash. Either they won't be able to access these funds or they'll be forced to increase taxes or debt to finance their share and access the federal funds.
Secondly, it looks as thought there is an application and approval process to access funds. This will slow down implementation of projects. My understanding of the budget document is that most infrastructure funds have to be spent in 2009 and 2010. Bureaucratic delays will affect how many infrastructure projects are started and completed.
Thirdly, the Federal government ends up having the final say over what projects are financed or not-financed in Calgary and Alberta. Surely local governments are better able to prioritize infrastructure projects than the feds.
Lastly, the infrastructure funds in the budget aren't allocated on a regional basis. Will Calgary and Alberta receive its fair share?