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Livio - keep up the good work in posting on Ontario finances and health care.

And a post on infrastructure spending would be very helpful. Last summer or fall, the Ontario Infrastructure Minister stated infrastructure spending was a "disgrace" for it has never been lower. Yet I seem to recall a post by Stephen Gordon showing infrastructure spending as percentage of GDP had bottomed out during the 1995-1997 federal govt downsizing and that it has recovered since to around the long term average of 4% of GDP.

Finally, may I suggest a post on municipal revenues in Ontario. Last week, I took a quick peak at City of Ottawa 2009 when some of us were fighting the public subsidization of the private shopping mall being developed at Lansdowne "Park" (30 year lease for 10 acres of prime land at 1$ a year).

City of Ottawa revenues in 2009 were approx $2.2 Billion I recall for a city of about 900,000 people.

However, 2014 audited financials of city show annual revenues of almost $4 Billion.

This is a neat trick as the Mayor promised to cap tax increases at 2% per annum

To my admittedly simple mind, 2% x 5 years = 10% ignoring annual compounding

And 10% on $2.2 Billion suggests an increase in revenues around 1/4 billion more on a base of $2.2 B for total revenues of around $2.5 B.

But revenues almost doubled in 5 years in a low inflation, low tax increase environment to $4 B.

Thanks Ian. Interesting point on municipal finances - municipalities across the province are in budget season. In my locale, we are looking at a 6 percent increase in taxes and a 10 percent increase in water/sewer charges this year. Municipal property tax revenues here since 2009 grew from 144 to 166 million dollars in 2014 - an increase of 15 percent. Municipal financial statements are particularly byzantine documents and lump in operating and capital together. A good thing would be to look at only taxation revenues for Ottawa to see how they have performed. Cheers. Livio.

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