It has been disappointing for most municipal officials to see the disdain for local governments exhibited by the federal government over the introduction and implementation of the new era in Canada of using marijuana for recreational purposes.

The initial proposal of sharing all the cannabis excise tax revenues 50-50 with the provinces totally ignored municipalities. It was a non-starter, but again showed how little the feds understand and appreciate the important contributions of municipalities to this quite new and different community situation.

The revised revenue-sharing formula of 25% to the feds and 75% to the provinces and territories, some of which is to be shared with municipalities, creates a very challenging situation for municipal leaders. And for Indigenous leaders.

It seems likely that different provinces will come up with different formulas for sharing this new pot of money. Big questions remain on whether a population-based formula, a size formula (ie. Large cities get more money because they have greater problems—or do they?) or some other sprinkling of money will evolve.

What is very clear is that once again municipalities will be the key. It is on their streets and in their neighbourhoods that this new federal legislation will play out. Everything from zoning to signage, and from new local health, school and police policies, will need to be created and implemented. It will be an enormous amount of work for local governments.

If there was ever a time for the federal government to step forward and make the revenue sharing a 1/3, 1/3, 1/3 formula, then this was it. It would have been simple and clean, and respected the equal contributions of local governments.

Instead we will most likely end up with a patchwork of formulas and revenue sharing. It would be lovely to think that all provinces will split their largesse evenly—which ironically would result in municipalities getting 37.5% of the new tax revenue—or even the bulk of it going to cities, but call me sceptical.

Maybe the earth will stop moving, the sun will rise in the west and the Expos will come back to win the World Series, but provinces and territories could step forward and acknowledge that towns and cities have tremendous amounts of work to be done because of this new cannabis legislation, and no money with which to do it.

We have to put a stop to municipalities getting stuck with huge new costs because of legislation passed from another order of government.

It is in our towns and cities that the shocks and collisions will truly be felt. There will most definitely be big impacts for social agencies, the health care system, local law enforcement, bylaw officers, planning and zoning regulations, and so much more. As Nolan Crouse pointed out in his essay, schools have been pretty much ignored in this debate but they too will have significant adjustments to make. Where will that money come from?

This entire messy situation is also reflective of the greater issue—and that is changing the way municipalities are financed. The old property-tax-based system is broken and can’t be fixed. We need innovative thinking from all six orders of government in Canada to develop a modern new system of financing our local governments.

That is another discussion for another day. Let’s just hope the provinces and territories don’t get greedy and keep the bulk of this new tax money for themselves. It is the local governments in every province and territory that need—and deserve—the lion’s share of this new revenue.

It might be a billion dollars a year. This is a fight worth fighting for municipalities.

GORD HUME