Local Governance Hub Policy Briefs

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Local communities and regions all have unique assets, capabilities and development ambitions. For over 20 years, the Local Governance Hub (formerly the Local Government Institute) has collaborated with local and regional governments, First Nations governments and organisations, community organisations and a wide range of professionals to support their capacity building and development goals. Our LGH Policy Briefs Series shares research and practice on local governance.

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    Fiscal Limitations to Government Crisis Response: The Municipal Experience in Responding to Infrastructure Failure
    (Local Governance Hub, 2025-01-27) Stewart, Veronika
    Key messages • Government response to crises is limited by structural factors, including imperfect economic forecasting, preference for status quo, and short-term political cycles. • Municipalities face significant financial constraints in crisis management due to limited revenue sources, reliance on regressive property taxes, and restrictions on borrowing. • Local governments heavily depend on intergovernmental transfers, which can be unreliable and restrictive for crisis prevention and management. • The infrastructure crisis in Canada, exemplified by Prince Rupert's water system failure, highlights the fiscal limitations of local governments in addressing predictable crises. • Recommendations to improve municipal crisis response include broadening taxation powers, increasing intergovernmental transfers, and granting more financial flexibility to local governments.
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    Canada’s Wildfire Challenge: Building Financial Resilience in a Changing Climate
    (2025-01-27) Swail, Jason
    Key messages ● Climate driven forest fires are increasingly straining Canada’s public finance systems. ● Municipalities and Indigenous communities face the greatest financial challenges. ● Proactive budgeting can improve financial resilience. ● Investing in prevention strategies reduces long term costs. ● Intergovernmental cooperation can ensure effective responses to wildfire crises. Introduction