INFLATION AS BIG A RISK TO CITY BUDGETS AS COVID CRISIS
Gillingham challenges mayoral rivals to match his pledge: cost & finance all campaign promises
(Winnipeg) - Mayoral candidate Scott Gillingham cautioned Winnipeggers that inflationary
pressure is likely to strain City budgets in 2023 and beyond and suggests that the impacts on
the City of Winnipeg’s bottom line could equal that of the pandemic costs.
“If you examine what’s driving Canadian inflation right now, city budgets are exposed to
inflation on at least four fronts at this time,” said Gillingham.
Gillingham identified the four areas of inflationary pressure as the following:
• Labour costs - City unions will be pushing for wage hikes to keep pace with inflation
• Vehicle prices - City Hall regularly buys or leases vehicles for public works and other
uses. Vehicle prices grew 7% year-over-year in Statistics Canada’s March 2022 data.
• Fuel costs - Winnipeg locked-in long-term fuel discount deals as part of its multi-year
budget strategy, but higher oil prices can also impact input costs for asphalt and
other materials.
• Construction - While materials costs are stabilizing, some project costs may need to be
revised to adjust for big price increases in 2021. Meanwhile, supply chains for inputs
in high demand may delay project timelines, exposing projects to other cost
increases.
Gillingham served as Council’s Finance Chair from late 2016 to early 2022. In that role, he
delivered seven balanced budgets, holding annual spending growth to less than 0.25% higher
than inflation, on average. Gillingham also launched multi-year balanced budgets to lock-in
long-term savings plans, and delivered an emergency Covid-19 financial plan just weeks after
the pandemic began.
Gillingham noted that Covid-19 cost City of Winnipeg budgets $222 million in unexpected
costs and lost revenues from 2020 to 2022. Higher inflation - now at 6.7% - could cause as
much disruption if inflation continues to stay at current rates.
“Rising inflation means mayoral candidates need a clear and credible plan to fund any
ambitious new promises - voters deserve to know whether commitments are financially
realistic,” Gillingham said. “I believe there are at least a few areas where the City needs to
invest more in 2023 and beyond – so I am pledging today that I will have a cost estimate for all
my commitments to voters, with details on how we can pay for each, before advance voting
begins on October 3rd.”
“I challenge every other mayoral candidate to commit to doing the same,” said Gillingham.
Winnipeg is located within Treaty No. 1 Territory, the traditional lands of the
Anishinabe (Ojibway), Ininew (Cree), Oji-Cree, Dene, and Dakota, and is the
Birthplace of the Métis Nation and the Heart of the Métis Nation Homeland.
For more information:
Luc Lewandoski
204-223-6713
