Halton Region facing growing funding shortfall, senior services strained

By Yubin Yeon, Local Journalism Initiative Reporter, The Milton Reporter

Halton Region is struggling to maintain critical services amid a growing shortfall. The gap in contributions for cost-shared programs has risen from $14.7 million in 2024 to $16.8 million this year.

Senior care services are experiencing a significant shortfall of $11.5 million—an increase of $4 million since 2023—highlighting the region’s growing financial strain in providing quality healthcare for an aging population.

The shortfall reflects how federal support is not keeping pace with rising costs and the expanding needs of senior residents.

The Town of Halton Hills is working to shield residents from the impact of provincial funding cuts by using local taxpayer dollars to cover shortfalls in health programs that have lost support.

Subsidizing health services at about $6 million to $7 million annually continues to strain the town’s municipal budget.

“One major issue is healthcare infrastructure. We’ve received approval for a new hospital, but progress has stalled,” said Halton Hills Ward 1 and 2 Regional Coun. Clark Somerville.

The town is required to fund about 10 per cent of the hospital’s construction costs, including equipment and furnishings. In 2023, Halton Hills contributed about $2.6 million to Halton Healthcare Services, supporting facilities at Georgetown Hospital.

Somerville added that shortfalls are also affecting mental health supports and senior care programs.

“Beyond healthcare, we lack adequate funding for transportation infrastructure, parks, recreation and road networks. Development charges don’t cover the full costs, so taxpayers carry the burden,” he said.

He added that seniors have become the first to feel the effects of reduced government funding, calling them one of society’s most socially disadvantaged groups.

Infrastructure funding a concern

The budget shortfall has also severely limited infrastructure development and maintenance.

“We also face challenges with aging infrastructure,” said Somerville.

Municipalities operate on just 8 to 9 cents of every tax dollar. The Town of Halton Hills must maintain and manage its facilities without running a deficit to balance its budget.

“Halton Hills alone has a $60-million infrastructure deficit—more than our entire annual budget. This includes town facilities, roads, sewers, recreational amenities like pickleball courts and cricket fields, and libraries. Regionally, the deficit is much higher,” said Somerville.

Looking ahead, officials say long-term strategies are needed to ensure sustainable funding for critical services. One proposal involves allocating one cent of the federal HST directly to municipalities.

“That would allow us to plan properly,” Somerville said. “We already receive the Federal Community Building Fund—formerly the Gas Tax Fund—which gives Halton Region about $37 million a year. It’s been crucial for kickstarting programs and freeing up other tax dollars for health and other services. A dedicated share of HST from both federal and provincial governments would be transformative.”

Without a federal funding plan, Halton Region officials say further service cuts may be unavoidable. They are urging immediate action to prevent growing inequities and to ensure that all residents—especially seniors—receive the support and dignity they deserve.