Politicians divided after non-profits urge council to keep two grant programs off the budget chopping block

An undated image of London city hall. (Daryl Newcombe/CTV News London)

Months before budget deliberations might change a pair of municipal grant programs, local non-profit organizations attended city hall on Thursday hoping to quash the proposal now.

On Thursday, the Strategic Priorities and Policy Committee (SPPC) heard from delegations concerned about a recommendation to suspend some of the funding to the Neighbourhood Decision Making Program ($250,000/year) and Community Capital Grants ($500,000/year) for the next three years in order to reduce future property tax increases.

A compromise motion by Coun. Corrine Rahman would cut each of the two grant programs in half, and fund them from a council reserve fund when it has a year-end balance of at least $1 million.

However, representatives of several agencies urged the committee to reject any reductions.

“Londoners are not in a position to make up any shortfall that will be caused by the city's disinvestment,” said Maureen Cassidy, Executive Director of Pillar Nonprofit Network. “Donation rates have seen a year over year decline.”

Andrew Fleet of Growing Chefs! Ontario added, “When you start to take [the grant programs] apart, it affects how those dollars can be leveraged and it affects the return on the investment that the city gets.”

Mayor Josh Morgan emphasized that no changes are being made right now—the recommendation would simply prepare a business case for future consideration in the 2025 budget update this fall.

However, Coun. Hadleigh McAlister felt the proposal should be a non-starter.

“The services that are provided are so important, and I cannot cut out the knees of organizations that do this good work-- I won't do it,” McAlister said. “I will strongly oppose this because I see the value.”

Deputy Mayor Shawn Lewis said while a comprehensive review of the municipal grant programs is undertaken, “I'm prepared to continue some funding at a lower level through the Community Investment Reserve Fund while the program is under review, but I'm not prepared to continue to do it at the full amount.”

The committee supported (9-5) the motion to prepare a business case to reduce the amount of funding for Community Capital Grants in 2025, 2026, and 2027.

However, the committee was deadlocked (7-7) regarding the preparation of a similar budget business case for to reduce Neighbourhood Decision Making over the same three years.

The deadlock might be broken when a final decision is made by council on July 23.