close
close

Le-verdict

News with a Local Lens

KLEIN: More taxes – Elected officials must make cuts
minsta

KLEIN: More taxes – Elected officials must make cuts

Article content

Mayor Scott Gillingham once again says Winnipeg is short of funds. As finance chairman and mayor, Gillingham raised property taxes by more than 25%, raised water rates every year except one, raised frontage fees, and siphoned off profits from the water and utilities department. waste.

Advertisement 2

Article content

Despite these actions, he did not support the zero-based budget revision that I introduced repeatedly as a city councilman. Many municipal councilors voted against the zero-based budget. They have made no cuts to the civil service, and Gillingham and local councilors continue to receive annual pay rises. He is now considering introducing new taxes: a tax on alcohol, vehicles, online deliveries and much more. What if we made cuts? Cut the fat?

I have often written about the benefits of zero-based budgeting in the pages of Winnipeg Sunshine. This time, let’s focus on the salaries and benefits enjoyed by these elected officials who can’t seem to manage a budget.

Mayor Scott Gillingham earns $213,328 a year, more than the Premier of Manitoba. Meanwhile, municipal councilors earn $114,609 each year, more than the salary of a member of the Legislative Assembly, who earns $106,603. Some councilors, like Janice Lukes, receive additional bonuses for positions such as deputy mayor and public works chair, boosting their income. Others, including Evan Duncan, Jeff Browaty, Sherri Rollins and Vivian Santos, receive similar bonuses for their positions within the mayor’s inner circle.

Article content

Advertisement 3

Article content

Not only do these individuals enjoy salaries and roles that offer additional pay, but they also have higher expense accounts. Travel, events and meals are covered by funds supported by Winnipeg taxpayers. It is worth noting that Mayor Gillingham himself recently approved an additional $800,000 per year to cover councilors’ expenses. This is in addition to the automatic salary increases that city council members receive each year.

All of this comes at a time when the mayor is publicly bemoaning Winnipeg’s revenue woes. The mayor’s message is that the city does not have enough revenue and must therefore seek new financial arrangements with the province. However, when we look at these calls for provincial assistance, we must ask: what has this council done to reduce costs? To the naked eye, very little. We have seen reduced grants to various groups and services, but nothing to reduce the pay of the board members themselves. Each councilor happily accepted the raises.

Advertisement 4

Article content

It’s both surprising and disappointing that elected officials are comfortable with annual raises and enhanced benefits, especially when the city is grappling with budget constraints. A certain perspective is required. During the pandemic, Manitoba’s Progressive Conservative ministers had a percentage of their salaries withheld, which was only paid if they met budget targets. Recently, these funds have not been released because the government has not been up to the task. To many, this system may seem reasonable and fair, as it links pay to performance. In the private sector, senior managers and executives are often compensated with high salaries in bonuses. Shareholders and owners demand results, and incentives are only offered if those results are achieved.

Advertisement 5

Article content

Why, then, should the government not act in the same way? The salaries of elected officials should be directly linked to performance indicators. If civil servants meet budget targets while maintaining essential services, they receive a performance bonus. If they fail to meet these targets, they should forgo the raises altogether.

To some, these ideas may seem radical, even impractical, but the need for reform is urgent. The current compensation model for elected officials goes well beyond what many Canadians would consider reasonable. At a time when citizens are repeatedly asked to make financial sacrifices, it is clear that elected officials should lead by example and not reap the benefits of uncontrolled pay raises and benefits. Yet we hear no calls from our elected officials to freeze their salaries or reduce their spending until public finances are stabilized.

Advertisement 6

Article content

It is also a fact that, for many public servants, this is the highest salary they will ever earn in their professional lives, and this trend is repeated at all levels of government. Last year, MPs received a pay rise, but not a single MP objected or suggested a freeze or cut until the country got back on its financial footing. This insensitivity erodes public trust and raises questions about the motivations of those in power. Shouldn’t elected officials be the first to make sacrifices when they ask the same thing of their voters?

So what could we do? One suggestion is to set a base salary cap of $100,000 for elected officials, with bonuses contingent on their ability to achieve clearly defined goals, such as staying on budget or increasing efficiency. I am realistic enough to know that such measures will encounter resistance. I encountered a similar mindset when I first entered politics. Proposing that elected officials be paid less or held financially accountable for their performance doesn’t win you many friends in political circles.

Advertisement 7

Article content

This does not change the reality that Canada spends far too much money on salaries, benefits, staff, offices, travel and other expenses associated with elected officials. Our public funds should be directed toward essential services, infrastructure and resources that provide tangible benefits to communities, not excessive salaries and benefits for politicians.

It is time for a radical change. Taxpayers deserve a government that values ​​fiscal responsibility, a government that views public service not as a lucrative career but as an opportunity to serve. Elected officials must lead by example, making personal sacrifices when necessary and putting the needs of citizens ahead of personal financial gain.

Imagine if we made these changes and started viewing government as a body of public servants accountable to those they serve. The impact would be profound, establishing a standard of integrity that could inspire confidence in government and encourage accountability.

It is a fundamental truth that the greatest honor of public office is the opportunity to serve, not the opportunity to profit. While this position may be unpopular in political circles, we should never hesitate to call for fairness and transparency. This city and this country deserve nothing less.

— Kevin Klein is a former Conservative cabinet minister, former city councilor and president and CEO of Klein Group Ltd.

Do you have any thoughts on what’s happening in Winnipeg, Manitoba, Canada or the world? Send us a letter to the editor at [email protected]

Article content