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Manitoba Government Spending Rising Rapidly

With provincial government expenditures rising far in excess of inflation since 1999, Manitoba does not have a case for raising any of its taxes, which are among the highest in Canada. The province clearly has a spending problem, not a lack of revenue problem, and simply needs to manage spending in more innovative and smarter ways.


Visit the Frontier Centre's Local Government Performance Index website at www.lgpi.ca. This interactive website contains comparative financial statistics from the financial statements of up to 250 municipalities from across Canada. Its interactive format allows you to sort and compare the municipalities' data to better understand their comparative financial dimensions. The site also allows users to add, challenge or change its data so long as they can provide a source. If you don't see your municipalities data available yet, you have the possibility of adding to it.

The highlight of speech given by Jack Dalgliesh, former civil servant on collapse of the Crocus Fund.

~1 min 

May 8, 2013 — The Crocus Story – Short Version
Jack Dalgliesh, now retired, shared his story for the first time in a presentation to a live public audience as a Civil Servant Whistleblower on the now defunct, Crocus Fund. He maintains that the Manitoba government ignored advice of departmental financial experts and collaborated with the Crocus Investment Fund to keep the Fund afloat. This, even though, government knew the Fund was becoming illiquid and was not operating in accordance with its prospectus which could lead to its collapse with severe consequences to investors and Manitoba taxpayers. From Breakfast on the Frontier, April 30, 2013 in Winnipeg.

~67 min 

May 6, 2013 — The Crocus Story – An Insider’s Perspective (Jack Dalgliesh)
Alison Redford says she's not worried about lagging popularity numbers. Devin Heroux reports.

~2 min 

April 22, 2013 — PC Leader's Dinner (CBC Calgary)
It’s budget season, both in Ottawa and in many provinces, including the prairies! The word  Austerity  is top of mind as Alberta, Saskatchewan and Manitoba prepared their budgets this year. With a new debt crisis in the tiny Mediterranean nation of Cyprus, governments across the world are cutting spending. (~2 min.)

~2 min 

March 22, 2013 — Provincial Budget Season
Budgets will be tabled in Ottawa and several provincial capitals over the next month or so. With the exceptions of Saskatchewan and Newfoundland, the bottom line will be a deficit in the hundreds of millions of dollars. What is the alternative when economic growth is not generating enough tax revenue to balance the books? (~2 min.)

~2 min 

February 22, 2013 — Frugal Public Management Can Fix Provincial Finances
Many Canadians are traveling to visit friends and family right now – but perhaps less so than last year in parts of the prairies. Many communities have lost inter-city bus service. In Manitoba, the provincial government is ending subsidies to Greyhound, and Alberta is de-regulating inter-city bus services, resulting in fewer routes and higher fares. There is a case to be made for subsidizing rural routes that are not financially viable.  (~2 min.)

~2 min 

December 28, 2012 — Balancing the Needs of Rural and Urban Inter-City Bus Riders
Winnipeg sees itself as a leader among prairie cities in taking advantage of P3’s. Mayor Sam Katz was in Ottawa this week, appearing before the Commons Committee on Government Operations and Estimates. P3 stands for Private Public Partnerships. Katz says two major projects in Winnipeg are good examples of the effective levering of using federal dollars for infrastructure. (~2 min.)

~2 min 

October 26, 2012 — Public-Private Partnerships a Valuable Tool for Upgrading Canada's Infrastructure
Marco Navarro-Genie joins Rob Breakenridge to discuss governments role in funding 'Culture'. (~10 min.)

~10 min 

October 3, 2012 — Does Government Play a Part in a Cities Culture? (QR77)
Manitoba Liberal Leader Jon Gerrard outlines his forward-looking strategy for the province, and describes why it is an effective way to provide a new and more positive position for the Keystone Province.

~54 min 

September 25, 2012 — A Forward Looking Economic Plan for Manitoba (Gerrard)
Buying a new home in Manitoba has become a growing tax grab for the provincial government. The NDP government of Greg Selinger imposes a levy that punishes first time home buyers. It’s called a land transfer tax. In 2011, the average sale price of a home in Manitoba was $249,000, which meant a transfer tax to the province of $2,630. (~2 min)

~2 min 

June 8, 2012 — Manitoba Land Tax Punishes Home Buyers
Saskatchewan's Minister of Crown Investments Tim McMillan offers thoughts on how governments can increase freedom and deliver better outcomes.  From Lunch on the Frontier speech in Winnipeg, April 26, 2012. (~60 min)

~60 min 

May 21, 2012 — Less is More: Small Governments Expand Freedom (Tim McMillan)
Prairie Director of the Canadian Taxpayers Federation Colin Craig discusses the troubling finances of Manitoba's provincial government.  From Breakfast on the Frontier speech in Winnipeg, February 24, 2012. (~42 min)

~41 min 

May 17, 2012 — Unsustainitoba (Colin Craig)

Latest Publications

Manitoba Government Spending Rising Rapidly

— May 13, 2013

With provincial government expenditures rising far in excess of inflation since 1999, Manitoba does not have a case for raising any of its taxes, which are among the highest in Canada. The province clearly has a spending problem, not a lack of revenue problem, and simply needs to manage spending in more innovative and smarter ways.



A Taste of Reality for Alberta’s Public Sector

— April 1, 2013

There are more than a few politicians in Canada delighting in what’s happening in Alberta these days. For years, provincial leaders have been driven mad by the often obscene deals that Alberta has struck with its public-sector employees, making everyone from doctors to teachers the best paid in the country. Not surprisingly, those same professions in other provinces have used these wage benchmarks as targets of their own during contract negotiations.



Media Release - Will Increasing the Number of Police Officers Yield Less Crime?

— March 11, 2013

This backgrounder calls into question the common assumption that an increased police presence would reduce crime levels in Canadian cities



Losing Sight Of The Issues

— December 21, 2012

Councillors have also spent time debating and voting on matters they have no power to actually address, whether it be banning shark-fin soup, opposing the Iraq War, or ending the NHL lockout -- just this week, a Vancouver city councillor put forward a motion to write a letter to the NHL and the players' association urging them to end the standoff (it passed).



Calgarians Deserve Details on Swollen Project Prices

— December 21, 2012

Whatever the process for tallying up a $1.4-billion bill, the West LRT still ranks as an insanely costly project, at $190 million per kilometre of track, or $42,000 and change per estimated daily rider according to a review done by the Frontier Centre for Public Policy.



Media Release - Empower Local Voters to Increase Government Accountability and Efficiency

— November 15, 2012

This study proses a way to develop greater spending transparency by way of enhancing fiscal autonomy for the provinces and municipalities




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2013-05-08 – The Crocus Story – Short Version

2013-05-06 – The Crocus Story – An Insider’s Perspective (Jack Dalgliesh)

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Feedback @ Frontier
RE: Education Faculties Should Disappear — January 30, 2012

I’d like to make some comments pertaining to your current article on the value of Faculties of Education.

I agree entirely that the enterprise of education would benefit from the winding down of Faculties of Education, but I would present a slightly different emphasis. Bad methodology is indeed relevant (I taught my own children to read at age three using Dr. Seuss and they were reading newspapers by the time they started school.) but my emphasis is more on teacher’s knowledge of content. I note that the references that you provided showed that this was not a major contributor to teaching effectiveness, but I suspect that with regard the narrower area of the sciences at the high school level it is. Some observations.

Read entire Feedback

RE: Local Government Performance Index — December 13, 2010

I applaud your performance index initiative.THANK YOU!

Can you tell me why you have not included Whistler BC?  If there was ever an example of lack of transparency and accountability they would be at the top pf the list.

Also what can frustrated taxpayers do to affect change at a municipal level?

E-mail from Janet Hart Crumley

RE: Good Local Government. What is it? — January 16, 2009
There is an old saying in management circles that "if you don't measure it, you are not managing it." I think this statement applies to local government (and other government) operations. - E-mail from Manitoba
RE: Winnipeg's History of Money Bylaws — April 24, 2006
Thank you for your article. Your website was also very helpful with both the adapted report version and the listing of bylaws from 1899 to 1968. E-mail from Gary McEwen, Winnipeg
RE: Phoenix Rising in Calgary? — March 28, 2006
I read your article in the Calgary Herald and was impressed with the explanation of ideas which could work in Calgary. We often ask what is a defining feature of Canadians. I think one is that whenever good ideas are put forward in Canada there seems to be a primeval need to show all the reasons why the idea wouldn't work, or ignore it totally. Email from Calgary
RE: High Performance Winnipeg? — October 27, 2006

Peter Holle urged Winnipeggers to envision our city in 2011 as one operating on a "competitive model", relying on "advanced measurement techniques" and "eliminating bureaucracy". Coupled with performance bonuses, customer service surveys and public-private partnerships, Holle's vision is a dream for free-market policy wonks who live for technocratic efficiency. Sadly, his vision would be a dystopia for regular Winnipeggers.

What Holle doesn't spell out is that his ideas would further widen the gap between the rich and poor in our city. Privatizing municipal services and contracting out would further weaken the quality of services we receive while simultaneously eroding the living standards of unionized workers. Performance bonuses for police would increase the ruthlessness of a service already plagued by criticisms of abuse of power and racism. An ethic of care and community would be replaced by one of self-serving egoism and "devil-take-the-hindmost". Maybe instead of having one in four Winnipeg children grow up in poverty, we could aim for one in two. Finally, instead of ideas of participatory municipal citizenship, Holle offers up an emaciated view of Winnipeggers as consumers shopping for services from an administrative "board of directors" (i.e. city hall).

It may be a "confident and cool" city for those with the cash, but for many it would simply be perilous and cold. Sorry, Mr. Holle, but your high-performance Winnipeg sends shivers down my spine. E-mail from PATRICK MCGUIRE in Winnipeg

RE: Phoenix Rising in Calgary? — March 20, 2006

Your article is wonderful in its clarity of how things work and the devastation such preferences can create. Not all of Calgary’s aldermanic candidates are like the one we know. I have had some pretty creative talks with others and come away enlightened and unburdened. However, unfortunately, they do not represent the area I live in.

I would also like to thank you for being so up front with your information. In this day and age one hears about being “politically correct,” which is really just a means of shutting up anyone in disagreement and who openly opposes what is being proposed. E-mail from Calgary

RE: Phoenix Rising in Calgary? — March 19, 2006

May I offer you my hearty congratulations on producing such a superbly-written article, which I have just read in today’s Calgary Herald. It hits just about every nail fairly and squarely right on the head.

What would not work here in Calgary, however, is the notion of a “no-layoff” policy, as the levels of Municipal employment here are already way above any acceptable figures. Substantial City employee “surgery” would be necessary here, right from square one. E-mail from Calgary

RE: 10 Years of Toronto Amalgamation — July 22, 2007

Interesting analysis on the amalgamation of the cities in Toronto. I have observed this trend time and time again when the urge to merge is imposed on municipal councils and school boards. The cost of harmonizing union agreements grossly exceeds any potential administrative cost savings.

In addition, the elected Government becomes even more distant from their elected citizens and feel they can pursue policies that are not supported by typical residents.

Within Manitoba, we can observe the folly of this process as well. The Provincial Government encouraged and came close to forcing the amalgamation of school divisions across the province. These new mega divisions have experienced increased costs while the small school divisions that stayed out of the process have continued to provide leading results in educational outcomes and cost-effectiveness. Email from Manitoba

Frontier Flashback
Edmonton's Downtown Renaissance
The absence of rent control - abolished 20 years ago -- is also a major consideration. Many new and refurbished residential buildings are rentals; they would not have been built as, or converted to, condominiums --- or would never have existed at all --- if rent control still was in force. While this redevelopment is slow, it seems at last and at least to have a solid base, not being artificially supported beyond a $4,000 one-time per-unit subsidy. Changes to laws and the regulatory regime --- chiefly the reduction of zoning strictures --- have also spurred redevelopment and commercial activity.
People or Frameworks?
The most successful cities thrive despite the uneven quality of elected officials. In those places, the rules typically mandate high levels of transparency in the cost of services, neutrality between in-house and contracted delivery and, most critically, separation of elected officials from interference in daily operations.
2002 Canada Property Tax Comparison
A combination of a broader revenue base, a phase out of school property taxes and best practices operating efficiencies at city hall would boost values further and conceivably provide scope to lower property taxes by 60-75% or more.
High-Performance Cities show Calgary a Better Path
According to Geoffrey Segal, the Director of Government Reform at the Los Angeles-based Reason Foundation, the scope for savings is substantial. A rule of thumb is that half of a city’s spending can be “competed,” which typically produces a 30% saving. Applied to Calgary’s $1.8 billion budget, the competitive policy model should generate $270 million in annual savings, without any reduction in service.
How Government Policy Hamstrings Downtown Revival
Tom Dixon is a self-described dinosaur. Just recently, he replaced his rotary dial phone. He does not bother himself with computers or e-mail. He is also an optimist. Twenty years from now he envisions Winnipeg with a vibrant and exciting downtown, capitalizing on the personality of its people, and heritage ambiance. Presumably, the public policy ills that have stunted a great city will be fixed. Visitors will find a unique architectural treasure, a city second only to Barcelona as a representative site of historic warehouses.
Reassessing Local Government Amalgamation
Provincial governments in Canada have actively promoted municipal amalgamations with the claim that overall costs per capita for taxpayers are lower with larger urban government units. An analysis of US Census data indicates the reverse, that higher expenditures per capita are generally associated with larger municipal units and that consolidated governments are more costly than governments typified by multiple government units.
Tax Me Out to the Ballgame
Although Baltimore offers one of the worst examples of misplaced priorities contributing to catastrophic circumstances for its most vulnerable citizens, it is not alone among the nation’s troubled cities who have undermined their economic well-being in pursuit of professional sports franchises with multi-million dollar bribes of tax payer dollars.
DeSmedt’s Amalgamation Folly
Despite the ongoing flurry of public sector subsidies and investments, Winnipeg’s core is in permanent relative decline for the following reasons. It can’t compete with the shopping experience of the suburban mall, with convenient free parking, lower prices and greater product choice. We live in an increasingly wealthy, “car–centric” society which allows a greater range of living choices, including the exurbs. Working downtown is expensive and awkward compared to the virtual workplace emerging in the home, farm and cottage via the Internet. Manitoba’s uncompetitive taxes have exported downtown head offices to Calgary. Finally, regulatory blockages prevent the natural redevelopment of downtown structures into residential living spaces. The downtown’s future is residential, but that is not possible in Winnipeg.
Pulling Back the Curtain: How Transparent are Regina and Saskatoon?
The municipal governments of Regina and Saskatoon report their performances far less often than do other cities cited in this report. As a rule, neither city discloses its performance as extensively as other cities do. There are exceptions as noted and where due. Regina has measured increased numbers for sporting and cultural activities resulting from its online registration option. Saskatoon measured the increase in fines paid because of its COPE program.

Upcoming Events

Dam-nation: Rolling the Dice on Manitoba’s Future
with Graham Lane
June 5, 2013 — Winnipeg



Upcoming FCPP Appearances

Visionary Conversations: Our Education System: The Good, the Bad, and the Solutions
Speaker: Rodney Clifton, Senior Fellow for Frontier Centre for Public Policy
Date: May 22, 2013
Time: 7:00 pm
Place: Robert B Schultz Theatre, St. John's College, University of Manitoba, Fort Garry Campus

Community Policy Forum
Speaker: Steve Lafleur, FCPP Policy Analyst
Date: May 28, 2013
Time: 7:00 - 9:00 pm
Place: Grant Park McNally Robinson, Winnipeg, Mb


Wed May 22, 2013

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