Taxpayers Federation to Present 2002 Pre-Budget Brief to EPC

Submission

WINNIPEG: The Canadian Taxpayers Federation today presents its recommendations on the 2002 Budget Estimates to the City of Winnipeg's Executive Policy Committee. The 2002 Budget represents the last of a three-year budget process and sets the stage for the next year's civic election campaign.

The CTF's pre-budget brief highlights the positive impact of past property tax relief and spending restraint but sounds the alarm on the city's enthusiasm for new government spending and sluggish efforts to cut taxes.

"The draft budget shows that after a few years of cost cutting the spending taps have been thrown open," said Victor Vrsnik, CTF Manitoba director. "Council should rein the temptation to ratchet up spending by $12 million and saddle up to a new schedule of property tax cuts."

The CTF will present these main recommendations to EPC:

• Apply the city's growing revenue stream to offset greater property tax cuts (at least a 4% property tax cut) and bring the city's property tax rates in line with other major urban centers.
• Phase out the business tax through a rate cut or a business tax exemption or a combination of both. Business tax cuts can be realized through continued growth in business tax revenues and through expenditure controls.
• To finance high priority public safety measures, the city should reduce spending in low priority budget envelopes to a comparable extent.
• Given the choice, the city should take a pass on subsidizing street festivals, an unviable arena and a convention centre, and concentrate its efforts on debt relief and accelerated tax cuts instead.

The Canadian Taxpayers Federation is scheduled to present to EPC on Monday, October 15th after 10am at the City Council Building, second floor.