Niagara is getting $6.5M in gas tax revenue from the Ontario government.
The funding supports the expansion and improvement of public transit services across the province.
"Our government knows that municipal transit systems are essential to the success of our local communities, connecting people and families to jobs, housing and wherever they need to go," said Sam Oosterhoff, MPP for Niagara West.
$2.5M of the funds will go to the Region, Niagara Falls will get $1.1M, St. Catharines will receive just shy of $2M, and Welland will get $536,000.
Now that transit has amalgamated in Niagara, future gas tax funding will go to the Region to support the Niagara Transit Commission.
The commission says this latest round of funding was accounted for in its 2023 budget, and they will have to distribute funds accordingly.
"The lower tiers are eligible for 9 months and they will be given their allocations directly. For a few local area municipalities (who budgeted the full year within their 2022 operating budget) we will be working with them to allocate their remaining 3 months (the formula will be determined later). The NTC/ Regional Finance will calculate the amount they are eligible for and arrangements will be made to issue that portion. "
Funding for the gas tax program is determined by the number of litres of gasoline sold in the province during the previous year, with 2 cents per litre of provincial gas tax revenue collected.
Gas tax funding can be used to extend service hours, buy transit vehicles, add routes, improve accessibility or upgrade local infrastructure.
Welland Mayor Frank Campion made a motion last night to use $4M in Gas Tax dollars to chip away at the Regional Budget, which was eventually approved with a 7.5 per cent increase.
The motion was eventually defeated with some councillors saying the funding should not be spent on operating costs of Niagara's transit system.