Nov 03, 2008 - 04:00 PM

By Reka Szekely

DURHAM -- The long-awaited balancing of the books between the Province and its municipalities may mean big savings for local governments eventually, but it's going to take a long time to get there.

The Province announced Friday it will assume the full cost of Ontario Works (OW), previously known as welfare, benefits and court security and prisoner transportation costs. As it stands, municipal property taxpayers pay 20 per cent of the OW benefits and the full cost of court security. In Durham, there are two courts in Whitby and three in Oshawa.

When the uploads are complete in 2018, the Ontario government says municipalities will see a $1.5-billion benefit. Locally, Durham will see $56 million in savings.

Durham Regional Chairman Roger Anderson, who was president of the Association of Municipalities of Ontario (AMO) when the Province began the Provincial-Municipal Fiscal and Service Delivery Review, is a member of the negotiating team that reached the deal. The government's announcement is a huge step in the right direction, he said.

"It's going to take a while for the Province to catch up, but at the end of the 10 years it's going to take, the municipalities in Ontario are going to be a lot better off," he said

In 2012, the first year the uploading of court security kicks in, the Province will shoulder only 14 per cent of the cost, moving up to 100 per cent by 2018. Similarly, the Province will start with just three per cent of the municipal portion of OW benefits in 2010.

This year, Durham property taxpayers are expected to contribute $11.4 million for the Region's portion of OW benefits. The cost of administering OW will still be partially funded by the municipal governments, even after the upload.

Still, Mr. Anderson said the savings will allow municipalities to spend the money saved in other areas where it's much needed.

"I would certainly hope that we'll be catching up on the infrastructure we haven't been dealing with as result of having to pay these other bills."

As to what it means for property taxpayers, Mr. Anderson cautioned that it's a 10-year process and, in the meantime, the bills will keep coming.

"If you do get tax increases, they won't be nearly as high as they could have been if it weren't for this program," he said.

Overall, said Mr. Anderson, considering the economic times and the fact the Province is facing a deficit, the steps taken were good for all municipalities.

Ajax-Pickering Liberal MPP Joe Dickson also applauded the announcement.

"Through our partnerships with municipalities, we are uploading social assistance costs, building on our poverty agenda, at an affordable pace," he said in a prepared statement. "This agreement represents the success we can achieve by working together while recognizing Ontario's fiscal challenges in the current global economic environment."

This isn't the first time the Province has taken back costs downloaded under Mike Harris's Progressive Conservative government. The Ontario Drug Benefits program, which provides free medication to social assistance recipients, was uploaded this year. Starting in 2009 through 2011, the Province is taking back the municipalities' portion of the Ontario Disability Support Program. Like OW, property taxpayers cover a fifth of that.

As well, the Ontario government has taken up half the cost of land ambulance in recent years and increased its share of public health funding to 75 from 50 per cent.

Beyond the fiscal review, Mr. Anderson said he looks forward to discussing the issue of social housing with all three levels of government -- municipal, federal and provincial -- as the economy improves.

"It would be more than appropriate for all three levels of government to share the cost and help make sure there aren't people who don't have a roof over their heads."