Abstract

ABSTRACT:The amalgamation and de-amalgamation period in Montreal (2001–2005) led to the creation of a city in 2006 with 19 decentralized boroughs integrated in a multi-tier metropolitan governance structure. Most recent work on Montreal municipal issues has focused on describing its complex governance structures. Very little attention has been given to the new fiscal relations between the City and its boroughs. Because of the extent of its fiscal decentralization process, the case of Montreal raises the question of how far can it go? Using information collected during meetings with elected officials and public services directors in 2012 and fiscal data analysis, we draw some conclusions on the right level of sub-local decentralization for Montreal. Based on efficiency considerations, the evidence suggests that some responsibilities need to be rescaled leading to more centralization. On the other hand, fiscal autonomy, which enhances accountability at the sub-local level, is also a crucial factor that makes fiscal decentralization work.

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