Between June 21 and July 16, 2021, the Authority consulted on proposed changes to the Municipal Funding Allocation Model (MFAM). The Authority considered all feedback received during the consultation to finalize changes to the MFAM. Read the consultation report.
Based on the positive feedback, the Authority approved the proposed changes for immediate implementation for the 2022 funding year. The 2022 funding allocation is anticipated to be determined and communicated to municipalities and First Nation communities later this winter.
The changes to the MFAM were approved in order to simplify the model to better support the Blue Box Program’s transition to Ontario’s new producer responsibility regulatory framework. The amended MFAM will now use a fixed percentage approach that gives all programs the same percent funding of their reported net cost. The fixed percentage will be based on the steward funding obligation divided by reported net costs for the year.
Background
The MFAM is used to distribute funding from blue box stewards to municipalities and First Nation communities that operate programs under Stewardship Ontario’s Blue Box Program Plan.
The Authority, in collaboration with stakeholders, reviewed the MFAM to determine if and how the model needed to be adjusted in order to allocate funding to programs throughout the transition of the Blue Box Program to the new producer responsibility framework (July 1, 2023 to December 31, 2025).
This review was undertaken because several factors on which the MFAM is based are no longer applicable during transition. For example, the MFAM was designed to promote program efficiencies by grouping programs for benchmarking. As programs transition, these groupings will no longer be applicable. The existing MFAM also relies on the use of certain best practices which may not be reflective of the transition priorities.
In February 2021, the Municipal 3Rs Collaborative (M3RC) held a consultation to review possible approaches to adjust the MFAM. Feedback received from municipalities was shared with the Authority.
Based on its review of the MFAM and comments received during M3Rc’s consultation, the Authority proposed changes to the MFAM and sought stakeholder feedback. This proposal outlines the Authority’s proposed changes, as well as key considerations for the new approach.
Stakeholders were asked to submit their feedback by email to consultations@rpra.ca.