Faced with $40-M deficit, city looks at reducing grants

The City of Winnipeg expects to provide $1.3 million in each of the next three years for community and neighbourhood grants, a substantial cut from the $3.4 million provided this year.

A new proposed process to apply for the grants is set to be paired with less overall funding, starting in 2025, which has triggered concerns smaller organizations could struggle to fill funding gaps.

Coun. Russ Wyatt was highly critical of the changes.

MIKE DEAL / FREE PRESS FILES Coun. Russ Wyatt (Transcona) was highly critical of the proposed changes.

MIKE DEAL / FREE PRESS FILES

Coun. Russ Wyatt (Transcona) was highly critical of the proposed changes.

“You’re going after groups and organizations that help build community. The networks in our community that help maintain civil society. I just find it somewhat ruthless to be honest with you … It’s just a mean-spirited, ruthless, sneaky way of doing things that I don’t ever recall (before),” said Wyatt.

The Transcona councillor said he doesn’t believe groups have been warned whether their funding could be at risk, noting exact reductions aren’t part of the proposal.

He alleged the move also lacks transparency since it wasn’t highlighted during the 2024 budget process.

“I think it was done in an unfair manner that was not open and transparent,” said Wyatt.

City budgets have so far included a full list of the community and neighbourhood grants, but future ones will only note the lump sum of $1.31 million, if council approves the plan as is.

Coun. Cindy Gilroy fears the lower budget would hinder inner-city organizations’ efforts to prevent crime, revitalize neighbourhoods and fight poverty.

“This is going to be a huge cut and it’s really going to impact the inner-city communities the most, that really need this funding… We’re struggling as is and cutting these programs right now will have devastating effects for these communities,” said Gilroy (Daniel McIntyre).

The report includes a list of grants for 2024 that the city says would now compete for more limited funding. The list includes the Broadway Neighbourhood Centre, Downtown Community Safety Partnership, End Homelessness Winnipeg, Main Street Project, North End Community Renewal Corp. and dozens of others.

Gilroy called it “alarming” that grants would no longer be approved by council as part of the budget process. She said that will limit opportunities for councillors to fight for key programs and reduce public feedback on the decisions, since budget approvals are spread over multiple public meetings.

“It doesn’t allow for those community members to really come and look at this as a budget ask… It’s more of a secretive way of dealing with our budget,” she said.

Under the current grant process, grant applications are submitted to the city clerk’s office to be considered as part of the budget process, which city council votes on.

The new process would see a community and neighbourhood grant evaluation committee review applications and evaluate them based on criteria meant to match council’s strategic priorities.

The city’s chief administrative officer would be granted the authority to approve grants based on the committee’s recommendations.

Each grant applicant would be required to demonstrate how their grant aligns with a set city funding stream, such as environmental/green, recreation, community well-being, arts and culture, or other.

Mayor Scott Gillingham said the city only has so much money, which is forcing it to reassess which grants it provides.

“We’re looking at (an) almost $40-million deficit (that) we’re projecting for the end of 2024 … We are a city that is facing financial challenges. It may be that some of (the organizations receiving grants) are even beyond the scope of the services that the City of Winnipeg provides. So, difficult decisions have to be made,” said Gillingham.

The mayor stressed information about the grant changes is publicly available in the new report.

He said councillors could also use their own discretionary funds to replace grants that don’t make the cut.

“The city cannot afford to continue its ‘scope creep’ in the work we do. It’s not sustainable to keep adding, adding, adding,” said Gillingham.

The changes would require city council approval.

joyanne.pursaga@freepress.mb.ca

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Joyanne Pursaga

Joyanne Pursaga
Reporter

Joyanne is city hall reporter for the Winnipeg Free Press. A reporter since 2004, she began covering politics exclusively in 2012, writing on city hall and the Manitoba Legislature for the Winnipeg Sun before joining the Free Press in early 2020. Read more about Joyanne.

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