Quebec is slashing $300 million from its municipal budgets in 2015 as part of the government's plan to return to a balanced budget.
Premier Philippe Couillard also announced Wednesday a redistribution of powers for the municipalities to give them more autonomy.
Montreal is set to lose $75 million in the plan – a quarter of the of $300 million that municipalities are losing overall.
Couillard made the announcement in Quebec City alongside the Minister of Municipal Affairs Pierre Moreau and surrounded by the mayors of various municipalities.
This fiscal pact was negotiated with the Union of Quebec Municipalities as a 'transitional' arrangement.
It is being described as the municipal world's way of doing its part to help Quebec get its public finances in order.
Nevertheless, UMQ President Suzanne Roy said the cuts will hurt, and the impact will obviously vary depending on the size and financial situation of each municipality.
Montreal Mayor Denis Coderre said he wants to reassure Montrealers his administration won't raise taxes or cut services as a result of this new arrangement with Quebec.
He said instead, the city will be forced to look at ways of “reshaping” the way it delivers services.
“If we want to assume our role as a metropolis, if we want to be a full partner with the government of Quebec, we have to deliver too. We have to say when they are some grievances, when there are some problems, we have to say, “Okay, we understand and we will work together.’ In return, that kind of partnership builds some trust, and when we’re building some trust, it means that can have an impact on every region of the province,” said the mayor.
The Union of Quebec Municipalities said municipalities are doing the responsible thing by accepting this arrangement, but they want the government to stick to a commitment -- that it won't impose any additional cuts in 2016.
