1. March 2011 www.nsef.ca Equalization Fairness What it Means to the People of Nova Scotia

2. A grassroots organization not affiliated with any political party Everyday people dedicated to ending a grave injustice in Nova Scotia

3. Federal Equalization “Parliament and the government of Canada are committed to the principle of making equalization payments to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.” ―Canada Constitution Act (Section 36.2) Federal Equalization Transfer to Nova Scotia 2010-2011 $ 1,571 million

4. Nova Scotia Public Service Expenditures † † Historical average

5. Provincial Distribution 2009-2010 The provincial government distributed less than 1% of the $1,571,000,000 federal transfer to the 42 communities in Nova Scotia entitled to Equalization payments. † † Note: The provincial government supplemented this amount ($15,050,000) with NSPI’s $17,000,000 Grant in Lieu of Taxes, to bring its total “equalization” distribution to $32,050,000.

6. Municipal Indicators † HRM vs. CBRM † Source: Service Nova Scotia and Municipal Relations – Municipal Indicators

8. Tax per $100 Assessment CBRM vs. HRM Location ResidentialCommercial CBRMHRMDifferential Discount † CBRMHRMDifferential Discount † Dominion (Suburban) 1.991.20+ 67.0%-40%4.313.683+ 17%-14.5% Glace Bay (Urban) 2.011.30+ 55.0%-35%4.313.713+ 16.1%-14% Louisbourg (Suburban) 1.941.20+ 62.0%-38%4.313.683+ 17%-14.5% New Waterford (Urban) 2.001.30+ 54.0%-35%4.313.713+ 16.1%-14% North Sydney (Urban) 2.031.30+ 56.0%-36%4.313.713+ 16.1%-14% Sydney Mines (Urban) 1.911.30+ 47.0%-31.7%4.313.713+ 16.1%-14% Sydney (Urban) 2.191.30+ 69.0%-40.5%4.893.713+ 32.7%-24.6% † Discount to CBRM taxpayers if tax rates were equal to those in HRM

9. 0.96

10. 2.09

12. Residential Tax Savings (if CBRM tax rates were equal to the rates in HRM) LocationAnnual Tax Savings † Sydney$882 Glace Bay$711 North Sydney$721 New Waterford$698 Sydney Mines$608 Louisbourg$737 Dominion$787 CBRM Rural$221 † For $100,000 assessment

13. Provincial Distribution of “Equalization” to Eligible Municipalities (2010/2011) † Eligible municipalities are entitled to all of the remaining 86% ($1.549 B), as improved, provincially-funded services.

14. CBRM “Equalization” Grant 2010/2011

15. RegionReceived ‡ Entitlement CBRM$ 16,228,901$ 117,029,039 Inverness459,2973,312,060 Port Hawkesbury 271,0631,954,676 Victoria8,53561,547 “Equalization” Received † vs. Entitlement Cape Breton ‡ Source – Service Nova Scotia and Municipal Relations Equalization Calculator 2009-10 † Note: To each of the 42 municipalities in Nova Scotia eligible for federal equalization transfer payments, the provincial government distributed less than one-seventh of the amount which they were entitled to receive to cover the public services they are required to provide.

16. “Equalization” Received vs. Entitlement Mainland Nova Scotia † Source – Service Nova Scotia and Municipal Relations Equalization Calculator 2010-11

17. CBRM Entitlement vs. Amount Required to Reduce Taxes to HRM level A balance of $99,970,961 would remain for CBRM to provide improved services.

18. Federal Equalization “Parliament and the government of Canada are committed to the principle of making equalization payments to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.” ―Canada Constitution Act (Section 36.2)

19. ... Equality Rights §15 (1) Every individual is equal before and under the Law and has the right to the equal protection and equal benefit of the law without discrimination.... The Canadian Charter of Rights and Freedoms

20. Call to Action Members of the Nova Scotia Legislative Assembly must require the provincial government to direct 100% of the federal equalization transfer to the purpose specified in the Constitution.

21. Federal Support to Nova Scotia 2009-10 Major Transfers Equalization Transfer$ 1,571,000,000 Canada Health Transfer$ 700,000,000 Canada Social Transfer$ 304,000,000 Direct Targeted Support Labour Market Training Funding$ 14,000,000 Wait Times Reduction$ 7,000,000 Transition Adjustment$ 74,000,000 Trust Funds Clean Air and Climate Change Trust$ 14,000,000 Patient Wait Times Guarantee Trust$ 8,000,000 HPV Immunization Trust$ 3,000,000 Community Development Trust$ 12,000,000 Public Transit Capital Trust 2008$ 7,000,000 Police Officers Recruitment Fund$ 2,000,000 Total Federal Support$ 2,837,000,000

22. Conclusions Section 36.2 of the Constitution represents the supreme law of the land. No persons, including legislators, may pick and choose which laws they will ignore. In misappropriating federal Equalization funds, the Nova Scotia government is violating the Charter rights of the citizens of the poorest communities in Canada. This amounts to constructive theft of their money, through higher taxation, and of public services they are due but are not being provided.

23. Questions? nsef.ca@gmail.com www.nsef.ca