The government has released the 2025 Ontario Economic Outlook and Fiscal Review: A Plan to Protect Ontario, known as the Fall Economic Statement (FES). They have also introduced Bill 68, Plan to Protect Ontario Act (Budget Measures), 2025 (No.2) that makes the corresponding legislative changes. The FES is focused on protecting workers and businesses from economic uncertainty and building a competitive economy.
In the FES, the Province discusses property taxation and assessment, noting some new initiatives such as the ability for municipalities to reduce municipal tax rates on affordable housing beginning in 2026. However, there is no information regarding timing of the next assessment. Instead, the FES simply states that the government “continues to consider additional initiatives to ensure the property assessment and taxation system is working effectively for Ontario businesses and families.”
Items of note for AMCTO members include:
- Investing an additional $1.6 billion through the Municipal Housing Infrastructure Program, bringing the total investment to $4 billion. Municipalities can also access up to $1 billion in loans through Infrastructure Ontario's Loan Program Housing-Enabling Water Infrastructure lending stream.
- Increasing funding for the Ontario Municipal Partnership Fund by $50 million, bringing the total funding to $600 million for 2026. This increase was initially announced in the 2024 Fall Economic Statement.
Increasing annual funding for the Connecting Links program from $30 million to $45 million. - Municipalities are also eligible to access programs meant to help communities and businesses impacted by tariffs, including $40 million in funding through the Trade-Impacted Communities Program and financing for eligible projects through the Building Ontario Fund.
- Investing $400 million in the Ontario Community Infrastructure Program to support 423 small, rural and northern communities, and increasing the minimum grant for municipalities from $100,000 to $125,000.
- A new provincial fund to help municipalities affected by the Province’s cancellation of ASE programs to implement alternative transportation safety measures such as speed bumps and roundabouts. Details of this fund have not yet been announced.
Also of interest to our members, the Province noted it is working to engage with rideshare operators, the taxi sector and municipalities to explore the standardization of rideshare guidelines across the province.
Included in legislation corresponding with the FES, is a proposal to amend section 257.11 of the Education Act with respect to the calculation of instalment payments for the taxes municipalities collect for school purposes and remit to school boards. Municipalities will also be required to provide information returns to the Minister of Finance with respect to the instalments and payments in lieu of taxes for school purposes. A consequential amendment is also proposed to the Assessment Act.
Ontario’s 2025-2026 deficit is projected to be $13.5 billion, an improvement of $1.1 billion from the outlook published in the 2025 budget. The government is forecasting a deficit of $7.8 billion in 2026-2027 and a surplus of $0.2 billion in 2027-2028. Ontario’s real GDP is projected to rise 0.8% in 2025 and 0.9% in 2026, consistent with the 2025 budget projection.
Read the Full Statement & 2025 Fiscal Review
OMERS Review Update
As you will recall, we participated in the 2025 Governance Review of the Ontario Municipal Employees’ Retirement System (OMERS). In June, we took part in a stakeholder consultation meeting and provided Special Advisor Robert Poirier with a submission advocating for more representation for management/non-union plan members, among other things.
The government has now released the special advisor's final report. Through Bill 68, the government has also introduced some initial changes to the governance structure of OMERS. While it will take some time to understand the implications of all the proposed changes, at first glance, we are hopeful that the proposed changes may bring more representation for management/non-union plan members. This includes proposing adding five non-voting members to the Sponsors Council, formerly Sponsors Corporation, from organizations that would be prescribed in regulation.
While the proposed regulation is not yet posted, in the report, it is recommended that one of these members be collectively appointed from AMCTO, the Ontario Municipal Human Resources Association (OMHRA), and the City of Toronto Administrative, Professional, Supervisory Association (COTAPSA).
As an Association, we are pleased to see the special advisor acknowledge the need for greater transparency for management/non-union plan members. We will continue to monitor these governance changes and take time to understand the implications for our members.
For more information or to questions, please contact us.