2011-2012 Proposed Resolution: Re-examining How the Government of Manitoba Shares VLT Revenue with Municipalities

Mar 25, 2011 | Chamber News

Preamble:   While municipalities welcome and benefit from some federal and provincial funding supports, including the distribution of video lottery terminal (VLT) revenues, we believe it is worth examining the revenue share received by municipalities.  The provincial government distributes a share of the income it receives from Video Lottery Terminals, but the current method of funding is based solely on a municipality’s population and does not take into account the VLT revenue generated to the provincial government within a municipality.  

Resolution: That the Government of Manitoba, in partnership with municipal governments, immediately initiate an examination of the existing formula which establishes the principles and mechanisms for the Government of Manitoba’s engagement in municipal VLT funding with a view to establishing a formula based on VLT revenue generated within a municipality, rather than only the municipality’s population. 

Argument: Governments and communities across Canada face growing challenges in maintaining existing public services, and financing urban infrastructure.  Yet these investments are critical for the future.  Of the three levels of government in Canada, municipalities face the highest level of restriction in generating local revenues to provide and maintain municipal services with a limited tax base.  

During the past year, the Government of Manitoba has said it is considering entering the world of on-line gambling –  perhaps to run its own on-line gambling site, or partner with other Canadian provinces to produce a common site that would service much of Canada.   Now is therefore a good time for the province to review its current and potential income from all forms of gambling and the ways in which the income is shared with municipalities. 

Submitted by the Thompson Chamber of Commerce

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