HALIFAX: After announcing a new loan program for municipalities, the province announced it will decide after the Victoria Day weekend whether the school year will continue.
On April 28, Premier Stephen McNeil announced that at-home learning will continue in Nova Scotia until at least May 19.
Following the recommendation of Dr. Robert Strang, Nova Scotia’s chief medical officer of health, all public schools and licensed child care providers will remain closed to prevent the spread of COVID-19. These closures will be reassessed as that date approaches.
During school closures, the province said students and families will continue to have access to e-learning and at-home options that will be assignment and project focused, so they may can continue their education.
Just before that announcement, the province unveiled a new operating loan program to help municipalities with financial losses due to COVID-19.
Last month, the Town of Port Hawkesbury projected losses of $300,000 over the next few months, if current public health measures continue. Because sales and services account for 10 per cent of the town’s budget, the drop in revenue from this sector will have a large impact on the town’s budget, officials noted.
The $380 million loan program, which was developed in collaboration with the Nova Scotia Federation of Municipalities (NSFM) and the Association of Municipal Administrators (AMANS), will be available through the Municipal Finance Corporation.
“During this unprecedented time, municipalities need support to address the financial issues they are facing as a result of lost revenue,” said Municipal Affairs and Housing Minister Chuck Porter. “This program will help to bridge that gap so they can continue to deliver programs and services to Nova Scotians.”
Municipalities interested in accessing a loan will first need to determine their revenue shortfall, then municipal councils will be required to pass a resolution and submit it to the Department of Municipal Affairs and Housing. The department will analyze requests, and if approved, will forward the approval to the Nova Scotia Municipal Finance Corporation. Upon approval by the corporation’s board of directors, it will administer a loan agreement within 24 hours of the agreement being signed.
Municipalities will have six months to begin repayment and three years to fully repay the loan.
According to the NSFM, the loan program will operate as a line of credit to municipalities.
“This funding is the bridge we need to ensure we keep patrolling the streets, collecting the garbage and putting out the fires,” says Mayor Pam Mood, President of NSFM. “As the government closest to the people, municipalities provide essential services to keep our towns and cities operating. Even in a crisis, we must ensure we continue to be up and running.”
The impact of the stalled economy on the ability of businesses and residents to pay their property taxes, coupled with an inability to carry a deficit from year to year, make this an unprecedented time for municipalities facing financial hardship due to less or zero revenue from property taxes and user fees – including public transit, parking and recreation.
The NSFM and AMANS crafted a proposal and presented it to Department of Municipal Affairs and Housing, with a key part of the proposal being that funding that will be rolled out to municipalities regardless of size.
“The impact of the coronavirus has hit the bottom line of all municipalities across the province, and we’re facing a financial crisis that puts all Nova Scotians at risk,” says Mike Dolter, AMANS president. “This financing will make sure that cash flow and liquidity are maintained for municipalities.”