Study compares municipal per-person spending

The average Greater Toronto and Hamilton Area (GTHA) municipal government increased per person spending by 7.6 per cent, adjusted for inflation, between 2009 and 2022, a new study published by the Fraser Institute finds.

In 2022, Toronto was the highest spender at $4,873 per person, followed by York Region’s King at $4,153 and Georgina at $3,927. All exceeded the municipal average of $3,452. Milton spent the least at $2,740 per person, the independent, non-partisan Canadian public policy think-tank reports.

Elsewhere in York Region, Aurora spent $3,850 per person in 2022, while East Gwillimbury spent $3,647, Markham spent $3,408, Newmarket spent $3,633, Richmond Hill spent $3,499, Vaughan spent $3,853 and Whitchurch-Stouffville spent $3,692.

“Most GTHA municipal governments have increased their spending per person, after adjusting for inflation, but some have controlled spending better than others,” said Austin Thompson, senior policy analyst at the Fraser Institute and co-author of Comparing per-Person Spending and Revenue in the Greater Toronto and Hamilton Area, 2009–2022.

The study compares the inflation-adjusted per-person municipal spending and revenue for the 26 municipal governments in the GTHA from 2009 to 2022. “These differences show just how decisions made at city hall can have a major impact on how much is spent and ultimately, how much taxpayers are required to pay,” Thompson said.

The municipalities with the largest increases in per person government spending (inflation adjusted) between 2009 and 2022 were: Georgina (29.4 per cent), King (21.8 per cent), Whitchurch-Stouffville (19.1 per cent) and Aurora (18.4 per cent). Markham recorded an increase of 9.3 per cent. The City of Hamilton recorded the largest decrease in per-person inflation-adjusted spending at -9.1 per cent.

Across GTHA municipalities, average per-person revenue was $4,390 in 2022, $580 higher than in 2009 (after adjusting for inflation). Per-person revenue varied widely across GTHA municipalities. In 2022, King had the highest level at $6,657. Toronto ranked fourth, with per-person revenue of $5,496. Brampton had the lowest per-person revenue, at $3,353.

Unsurprisingly, there is a connection between municipal government spending and revenue. “Municipal governments that decide to spend more also need to raise more revenue, which means higher taxes for residents,” said Thompson. “The data in this study can help residents assess whether they’re getting good value for their municipal tax dollars by clarifying how their municipal government’s spending and revenue have changed over time.”