Recent changes to the provincial-municipal relationship in Ontario have transferred certain service and financial responsibilities to the local level of government, in return for the province removing one half of the costs of education from the property tax base. LSR has brought about fundamental changes to provincial and municipal roles and responsibilities. First announced in 1997, LSR was a major step toward more efficient and cost-effective government in Ontario. LSR changes reflect many longstanding recommendations for how the province and Ontario's municipal governments manage and fund key public services in Ontario. The LSR reforms are built on a number of goals shared between the provincial government and municipalities in every part of the province.
Municipalities also have new fire prevention responsibilities.
Municipalities have more and more responsibility for social and community health services. They are taking steps to make sure that these important services are provided effectively and efficiently. The provincial government still provides funding support for certain public health and welfare service delivery. The changes mean that provincial subsidies for municipal transit, GO Transit and local airports have ended, except for funding some remote airports in Northern Ontario. The province is no longer involved in the delivery of these local services.