Ontario Premier Dalton McGuinty warned municipal leaders Monday that billions of dollars previously earmarked for infrastructure projects are no longer available.
The money, pegged to fix the province's aging infrastructure, was promised a number of years ago to jumpstart the Ontario economy and create jobs following the recession.
The money was to be used for projects such as bridge repairs, paving roads, and building new highways.
McGuinty told leaders at the Rural Ontario Municipal Association conference in Toronto that the province's bare coffers led to the cancellation of the infrastructure programs.
"I have to support our economic advantage – the skills and education of our people – and sacrifice the infrastructure fund. That's why we chose not to move forward this year with a new permanent fund for roads and bridges with the federal government," McGuinty said during a speech to association members.
However, the Transportation Minister Bob Chiarelli promised that the sudden change in direction by McGuinty would not compromise public safety.
The province is battling a massive $16-billion deficit, which experts have warned could balloon in the years ahead if the province does not find ways to pare down the cash shortfall.
Earlier this month, economist Don Drummond released a comprehensive report that included some 362 recommendations ranging from bigger class sizes, higher utility bills, new parking fees and higher drug bills in a bid to shave the province's costs.
With a report from CTV's Paul Bliss
