WATERLOO REGION - Waterloo Region has already lost millions in provincial funding due to policy changes under Ontario's new leadership, and more is at risk.

"The government has moved quickly in a variety of areas," said Coun. Sean Strickland, chair of the region's administration and finance committee.

"We have lost a few million already. What is really concerning is the future of these other projects and what that may mean to our operating and capital budgets."

Strickland said Premier Doug Ford's Progressive Conservatives were elected on a platform of finding $6 billion worth of "efficiencies," and that's going to mean a hit to the region's bottom line.

Waterloo Region receives almost $270 million annually in operating grants and subsidies from the province and relies on a number of capital infrastructure programs that are provincially cost-shared, according to a report going to council on Tuesday.

"It's definitely going to have an impact on municipalities," Strickland said.

Four grant programs available to municipalities have been cancelled with the cap-and-trade program that funded the infrastructure programs: the Ontario Municipal Commuter Cycling Fund, Social Housing Apartment Improvement Program, GreenOn Fund and Municipal Green House Gas Challenge Fund.

The region was expecting $2.2 million for retrofitting social housing units to reduce greenhouse gas emissions.

"That's gone," Strickland said.

Also gone is about the same amount in further funding for new bike lanes and cycling infrastructure. An application in March to GreenOn for greenhouse-gas reducing retrofits to small social housing apartment buildings was scrapped with the program cancellation, as well as applications for two green initiatives through the challenge fund.

Other infrastructure funding shared with the federal government is unclear, including dollars earmarked for public transit and green infrastructure. The region has seven major public transit projects planned, including bus replacements and additions, Northfield Drive bus storage and a pedestrian bridge over Highway 7/8.

Strickland said the province's plan to reduce taxes on gasoline will also result in reduced revenues and possibly transfers to municipalities. The region gets about $11 million annually.

The previous Liberal government announced a three per cent increase to Ontario Works and Ontario Disability Support Program benefits that would have come into effect this fall. Instead, benefits will rise by only 1.5 per cent.

Both programs are also under review as the government looks to revamp social assistance.

"We don't know what's going to happen there," Strickland said.

Provincial funding for the region has grown from $212 million in 2015 to about $269 million in 2018 - an increase of 27 per cent.

Now there's much uncertainty. Strickland said council, including the one elected in October, will have to deal with the new fiscal reality.

"It's concerning," he said.

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jweidner@therecord.com

Twitter: @WeidnerRecord