by Erin Knight
Currently, Manitoba is one of only two provinces in Canada that utilizes Tax Increment Financing (TIF) as a means for financing community revitalization projects in municipalities, although it has a long history of use in the United States. In a TIF financing scheme, the base property tax of a targeted development property or district is frozen, and the anticipated increase in the property tax that is to result from redevelopment – that is, the increment – is used to finance the development project. The TIF scheme eventually expires, at which time the property taxes begin to flow to the municipality.
In 2009, Manitoba passed the Community Revitalization and Tax Increment Financing Act, largely to spur development in Winnipeg’s downtown, and this past spring the City and Province announced a new partnership with CentreVenture, a Winnipeg downtown development corporation. The partnership will make TIF available for the development of what they termed a Sports, Hospitality and Entertainment District (SHED) in the 11 block area between the MTS Centre and the Winnipeg Convention Centre. Projects include the 20-storey ALT Hotel currently planned for construction on the northwest corner of Portage and Donald St. Its developer, Longboat Development Corporation, has a $75 million redevelopment plan for the entire city block north of the MTS Centre.
by Errol Black
Manitoba’s NDP government recently announced the appointment of William Neville as the Independent Allowance Commissioner under the Elections Finances Act.
Neville’s mandate is to establish a public funding process for registered political parties, to replace the previous per-vote subsidy. Legislation established in 2007 provided for a party per-vote subsidy of $1.25 per vote based on election results. Political parties were required to apply for the subsidy. Only the Liberal Party applied. The PC Party denounced the subsidy as a voter tax which caused the NDP to also back away for fear that the PCs would use it against them in the 2011 election.
A formula that would result in an automatic payout would resolve this dilemma. Contrary to the position taken by the PCs and others, including the Winnipeg Free Press, an expanded subsidy system would be pro rather than anti-democratic.
NDP’s Dix ponders repeal of B.C.’s balanced budget law
NDP’s Dix ponders repeal of B.C.’s balanced buget law,
In a recent blog post we asked the question – Is It Time To Repeal Balanced-budget Legislation In Manitoba? We are pleased to hear that the NDP in B.C. is asking a similar question.
In a recent article in the Vancouver Sun, B.C NDP leader Adrian Dix questions the merit of balanced budget legislation, stating that while his government would aim to balance the books, “governments need to consider revenues, which can fluctuate drastically.”
The chief economist of B.C.s Central 1 Credit Union, is quoted in the Sun article as affirming the limits of balanced budget legislation. He states “A balanced budget (law), I suppose, imposes some discipline on [fiscal management]. But I still think it comes down to more fundamental questions that have to be asked as to the nature and the role of government in the economy and society.”
A provincial election in B. C. is scheduled for May 14, 2013. Recent polling shows the NDP to have a significant lead. Should they be elected we will watch closely to see what Dix’s government will do about balanced budget legislation.
And we’ll watch even more closely to see if Manitoba follows their lead.
by Kirsten Bernas
[Ed. Note: In this Fast Facts, Kirsten presents a do-able strategy for improving the lives of those living on EIA in Manitoba. This strategy has the support of 115 Manitoba organizations.]This week, as we think about homelessness in our communities, let us commit ourselves to solutions. Real solutions. Beyond the spontaneous generosity of bus drivers or the fundraising of CEOs who will be sleeping out downtown. While these actions bring attention to homelessness, they do not address systemic issues that only public policy can resolve.
The causes of homelessness and poverty are complex. Yet, some parts of the solution are quite simple – for people to not be homeless, they must be able to afford a home, and housing must be available.
Rents continue to rise, low cost housing in the private market is scarce, and waitlists for social housing are long. The result is that those without the means to pay market rents simply do not get housed.
By Errol Black and Shauna MacKinnon
In a recent report on income inequality in Manitoba (Income Inequality in Canada: How does Manitoba compare? Can we do better?) we noted that the new PQ government in Quebec had pledged to reduce income inequality by adding two new income tax brackets for people earning $130,000 plus and $250,000 plus per year. Globe and Mail reported yesterday that the PQ had established the new brackets and applied them retroactively. As well, the PQ indicated that it was considering higher tax rates for capital gains and dividends. According to the story the opposition parties “denounced the plan but admitted they would not oppose it in a confidence vote…” Their lack of enthusiasm for a vote presumably reflects the fact there is wide spread support for greater income equality across the country.
In our February 12, 2009 report “Manitobans are committed to poverty reduction. Is the Manitoba government?” we presented the results of polling by Environics Research for CCPA. These results showed that for Manitobans: 87% agreed that if other countries can reduce poverty so can Canada; 86% agree that if governments take concrete action, poverty in Canada can be greatly reduced; 87% said they would be proud if their Premier took the lead on poverty reduction; 86% say that Canada should try to distinguish itself in the world as a country where no one lives in poverty; and 80% called on provincial governments to bring in a concrete strategy to reduce poverty at least 25% over the next five years. In that piece we concluded that Manitobans want inspired leadership in addressing poverty and income inequality. We asked: Is the Manitoba government able to provide that leadership?
Here we are, more than three and a half years later and the question now is: Quebec has taken the lead; does Manitoba dare to follow?
by Errol Black and Shauna MacKinnon
In a recent review of income inequality in Manitoba, we compared Manitoba to Canada. The comparison showed that in 2010 “Manitoba was the most equal province before taxes and the third most equal after taxes.” In sum, Manitoba compared favourably with Canada as a whole and also other provinces.
That said, we argued that in the interests of improving economic and social conditions the federal government needed to take steps to reduce income inequality, including measures to strengthen trade unions, expanding the Canada Pension and Employment Insurance plans to provide greater income protection for retirees and unemployed workers, and establishing a national program to create improved labour market outcomes for Aboriginal peoples.
by Errol Black and Shauna MacKinnon
The Canadian Centre for Policy Alternatives has been documenting the rise in inequality in Canada since 2006. More recently, the Conference Board of Canada and the OECD have confirmed this trend. These organizations also report that inequality in Canada is now increasing faster than is the case in many other countries. In their highly acclaimed 2009 book The Spirit Level: Why More Equal Societies Almost Always Do Better, Wilkinson and Pickett showed the impact of inequality on a variety of measures such as levels of crime, teenage pregnancies, life expectancy and educational achievement (to name a few). The study concluded that countries that are most equal do best.
If Canada wants to measure up to more equal countries, the growing gap between rich and poor will need to be addressed. While we know that the federal government is the key player, provincial governments also have a responsibility.
by Lynne Fernandez
News of the racist posters taped throughout downtown have outraged Winnipeggers, and rightly so. The hateful message these posters contained have no place in our society. Insidious and inherently violent, they inflict damage on more than one level.
The first sickening blow is felt by the individuals and communities these acts target – sickening because of the degree of ignorance and intolerance they contain. The violent impact of the message is such that it shakes Winnipeggers of all faiths and ethnic backgrounds. But the second blow, although less violent, is also troubling.
When a group of strong-willed and compassionate women join forces to work for social justice in their North End community in Winnipeg, good things get done because together, they have clout.
In 2010, the CCPA-MB produced a video called “Together We Have CLOUT”, which looks at a coalition of 9 community based organizations that provide services for inner-city individuals and families. Due to popular demand, it’s now available online!
[youtube=http://www.youtube.com/watch?v=rSmn7X2-Glw&feature=plcp]
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