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York Region says Ontario underfunds its community services by $450 million annually

Articles
September 27, 2026

Posted On: September 27, 2026, Posted By: CBC News, Arrthy Thayaparan, Original Article.

Community services in York Region are facing a “significant shortfall” due to receiving less funding from the Ontario government compared to other large municipalities in recent years, according to a new report commissioned by the region.

While the Ontario government says it has made “record” investments in the region, the report says York’s funding shortfall is is around $450 million annually, or $369 per resident. The region and regional non-profits commissioned research firm Blueprint ADE to conduct the report.

“This longstanding shortfall was not created by any one government or by any single policy, but it has persisted,” the report said. 

Stretching north of Toronto to Lake Simcoe, the region is rapidly growing. Statistics Canada listed East Gwillimbury in York Region as the fastest-growing municipality in the country in 2022.

It has an accordingly growing need for community services, said Monica Bryce, director of strategies and health services at York Region.

“What we’re trying to do is raise our voice together with the community that we work with to deliver service, because no one can do this work alone,” she said. 

The region and nonprofit partners are calling on the province to fund the shortfall, as well as to find a sustainable, longterm solution to the issue, Bryce said. 

While the region has received provincial and federal funding over the years, those funding models are based on the old makeup of the community and not the one that it has grown into in recent years, she said.

“It’s a real opportunity to work together,” she said. “We’ve got a lot of great people in place, we have a lot of expertise so it’s a matter of bringing everyone together so we can galvanize that.” 

The report was commissioned following a similar analysis of the Peel region, which also found “higher than anticipated” underfunding.

York Region no longer ‘sleepy, little suburb’: advocate

People are moving from Toronto to outer suburbs in the GTA due to rising housing prices, but community services in those places aren’t “being built around them,” said Sean Meagher, coordinator of Ontario For All, a non-profit coalition advocating for better public policy.

The report quantifies how far behind the region is, Meagher said, adding that he hopes it shows the province that York is not a “sleepy, little suburb” but a large urban centre.

A lack of funding affects nearly everyone in the community, he said, from young families to people experiencing homelessness. In particular there is an acute shortage of affordable housing, long-term care and childcare services in the region. 

“The province is funding using funding formulas that were built for the 1970s, and it’s just not the 1970s anymore in York Region,” he said. 

Decreased funding put pressure on “already stretched municipal finances,” the report said. Local residents are paying $125 million more in property taxes to help municipalities offset the gap in services, Meagher added.

Debbie Schatia, CEO of emergency housing provider Blue Door, said her organization is spending a lot on crisis responses, which could be reduced if there were funding for proactive service solutions. 

“In York region, what we see is that shelters are bursting at the seams,” she said.

Blue Door staff have also seen an increased impact on hospitals, childcare waitlists and housing needs. 

“Because of the underfunding, we’re just not able to keep up with the need and people are waiting longer for services,” Schatia said.

She hopes the province is willing to partner with the region for a new funding formula that will save money in the future by giving people the support they need. 

‘Record’ investments from province

Michael Minzak, spokesperson for Ontario’s Ministry of Housing, said the province has increased support for municipalities by over 60 per cent over the past three years. 

That includes $37 million this year for shelters and supportive housing in York Region, he said. 

Lily Barnes, spokesperson for the Ministry of Health, said the government has made “record” investments in the region, including for a new mental health centre. 

The province has increased funding to York Region’s health department by more than 32 per cent since 2018, she said.