Introduction
The Ontario Community Infrastructure Fund (OCIF) provides crucial support for small, rural, and northern communities across Ontario, aiding in the renewal and rehabilitation of critical infrastructure. The allocation of these funds, reaching approximately $400 million for 425 communities in 2023, is based on a fair and transparent formula that takes into account the different infrastructure needs and economic conditions of each community.
In this report, we delve into the workings of the OCIF and analyze the trends in grant allocation for Northern and Southern Ontario from 2015 to 2023. We examine both the total grant funds received each year and the year-over-year changes, aiming to shed light on the funding patterns and potential influencing factors.
See data here. We utilized machine learning algorithms to determine whether a community was located in Northern or Southern Ontario.
The OCIF Formula-Based Grants
Under the OCIF's formula-based component, eligible recipients receive annual allocation notices specifying OCIF funding for the calendar year. They may accumulate annual formula-based grants for up to five years to address larger infrastructure projects and are guaranteed to receive a minimum of $100,000 per year.
Small municipalities (those with populations less than 100,000), northern municipalities, and rural municipalities are eligible for OCIF grants. The Ministry of Infrastructure updates program eligibility to reflect the latest Census of Population data, with 2021 census data determining eligibility for 2023 grants.
Analysis and Findings
Based on our analysis, we found that both Northern and Southern Ontario have seen an overall increase in OCIF grants from 2015 to 2023, as indicated by the upward trend in the total grant funds received each year (Appendix A). However, Southern Ontario consistently received more funds than Northern Ontario in absolute terms, which could be partially attributed to its larger population size.
Interestingly, the rate of increase in grant funds was not uniform year over year for either region. There were years where both regions saw significant increases in grant funds, such as 2017 and 2022. In 2017, Northern Ontario had a higher percentage increase compared to Southern Ontario (92.46% vs 86.58%). Conversely, in 2022, Southern Ontario had a higher percentage increase compared to Northern Ontario (107.77% vs 89.42%).
In 2020, both regions saw a slight decrease in grant funds compared to the previous year. This could be due to a variety of factors, such as changes in the funding allocation process, changes in the number or nature of projects requiring funding, or broader economic or political factors.
The scatter plot of the year-over-year changes (Appendix B) further highlights the variability in these changes over time. The trend lines indicate a general increase in the year-over-year changes for both regions, suggesting that the allocation of funds is not solely based on population size but likely involves other considerations.
Conclusion
In summary, while the OCIF grants for both Northern and Southern Ontario have generally increased over the years, the rates of increase have varied year over year and between the two regions. Understanding the exact factors influencing these trends would require a deeper dive into the specific projects funded, the funding allocation process, and the socio-economic conditions of the communities in each region.
Appendices
Appendix A: Line Plot - Trend of OCIF Grants for Northern and Southern Ontario (2015-2023)
Appendix B: ScatterPlot - Year-Over-Year Changes in OCIF Grants for Northern and Southern Ontario (2016-2023)
