On Thursday, March 26, Minister Bethlenfalvy introduced the 2026 Ontario Budget: A Plan to Protect Ontario. As part of the budget package, through Bill 97: Plan to Protect Ontario (Budget Measures) Act, 2026, the Province has introduced changes to the Municipal Freedom of Information and Protection of Privacy Act, 1990 (MFIPPA).
MFIPPA Updates
The budget package outlines several proposed updates that will impact how MFIPPA is administered. These changes include:
- Using business days instead of calendar days to calculate various timelines;
- Extending the timeline to provide records or notice that a record will not be given from 30 days to 45 days;
- Updating the definition of a record to include electronic records and records stored in digital formats;
- Allowing the head of an institution to respond to requests for access to records by proposing a plan for providing access in stages under certain circumstances;
- Providing for a second extension under certain circumstances; and
- Introducing new privacy provisions including requirements for privacy impact assessments, privacy breach safeguards, and reporting requirements.
As an Association, we commend the Province for responding to calls from our members to modernize MFIPPA legislation. We look forward to working with the government to ensure any updates to the legislation meet the needs of municipal administrators. This includes ensuring that municipalities receive adequate timelines and the resources needed to implement these changes regardless of the current maturity of their privacy and information program.
Our 2024 submission built on successive years of advocating for a modernized MFIPPA and called for the Act to be brought into the 21st century. Among other recommendations, we called on the Province to comprehensively review this 36-year-old legislation. In our submission, we shared 20 recommendations with the Province with the goal of modernizing MFIPPA and freedom of information (FOI) processes and enhancing privacy protections.
While we are pleased to see the Province implement some of our recommendations, we will continue to push for a comprehensive review of the legislation to provide much-needed clarity on top issues our members have identified, such as third-party notification, councillor records and the application of the frivolous and vexatious exemption, and guidance on applicability of the Act to new and emerging trends such as artificial intelligence.
Modern legislation, combined with more support and guidance, will help municipalities continue to be the most open level of government with accountability and transparency at the core of operations. We look forward to continuing to advocate on your behalf to ensure municipal administrators have the tools needed to run efficient and effective information management programs.
We will be deep diving into the bill and will have more to share next week. In the meantime, if you have comments about the proposed changes, please reach out to our advocacy team.
Budget Overview
With respect to other items introduced through the budget, we have provided our analysis below.
In our pre-budget submission, we recommended that the Province:
- Commit to the Association of Municipalities of Ontario (AMO)’s call for a social and economic prosperity review, with the goal of ensuring that municipalities have revenue streams appropriate for the services they are expected to deliver;
- Complete the Property Tax and Assessment System Review and ensure that the next assessment cycle starts as soon as possible; and
- Modernize the legislative and regulatory environment to improve local service delivery.
The 2026 budget speech included similar themes from both the 2025 budget and Fall Economic Statement, with most of the “big ticket” measures aimed at ensuring Ontario’s economic competitiveness with initiatives that support the business community. It also continues to signal the Province's desire for municipalities to reduce development charges.
It also referenced announcements made during the Fall Economic Statement, as well as those made in the last few weeks. As we know, the budget for the current fiscal year already funds these initiatives.
There was also some good news for municipalities as it relates to our Issue Profile priorities, with the budget document itself touting investments in infrastructure:
- An additional $300 million over six years through the Community Sport and Recreation Infrastructure Fund for repairs or upgrades to existing sports and recreation facilities or to build new facilities.
- An additional $15 million for an extended Northern Ontario Resource Development Support Fund for core assets such as roads and bridges.
The budget document also announces plans for future legislation to streamline Municipal Education Property Tax Remittances by changing how the Education Property Tax (EPT) is collected as a measure to reduce administrative burden. The proposal would see the funding remitted through provincial payments beginning in 2028 if the legislation were to pass.
While there is good news, we remain concerned about proposals which contain tight implementation timelines for municipalities and their staff, particularly in an election year. Municipal staff need adequate timelines for implementation, and there must be extensive and comprehensive consultation with the sector on how proposals are executed when they impact municipal operations.
Overall financial outlook
Ontario’s deficit grew from $7.8 billion to $13.8 billion, which was higher than projected. In the current fiscal year, Ontario is projecting a deficit of $12.3 billion, with deficit projections at $13.8 billion for 2026–27 and $6.1 billion for 2027–28. There is a planned surplus of $0.6 billion in 2028–29.
Given the tough economic conditions facing the province as a result of ongoing U.S. tariffs, global turmoil, and the uncertainty surrounding the upcoming review of the Canada-U.S.-Mexico Agreement (CUSMA), the Province is projecting the unemployment rate will increase to 7.4% in 2026, forecasting a drop to 6.4% by 2028.
Budget Bill
The budget bill, Bill 97: Plan to Protect Ontario (Budget Measures) Act, 2026, actions some of the previously announced Provincial measures. This includes the amalgamation of conservation authorities and setting out transition rules for this process, including new authority for the Minister of the Environment to issue direction to transition to a regional watershed-based framework for authorities.
It also includes changes to the Retail Business Holiday Act. The Province had previously announced proposed changes to allow retail businesses the option of remaining open, with particular reference to Family Day and Victoria Day. The bill would repeal Victoria Day from the definition of holiday, with further amendments proposed for the City of Toronto Act and Municipal Act including new limits on municipal ability to require closures on Family Day and Victoria Day. Should the bill pass, municipalities may need to revisit any bylaws with respect to retail business to ensure consistency.
We will continue to monitor the budget bill as it progresses through the Legislative Assembly for potential impacts to our members.
For more information or questions, please contact our policy and advocacy team and subscribe to our policy blog for regular policy updates.