Paul Martin’s promises to the cities were confirmed in today’s budget.

They immediately get full rebate of GST rather than a 57% rebate. This will cost the feds $580 million in 2004-05 and $605 million in 2005-06.

The $1-billion municipal-rural infrastructure program for municipalities announced in the 2003 budget is accelerated with the money to be spent over five years rather than 10 years. Most will be spent in the latter years, however, because of the time required to get the projects off the ground. Only an additional $25 million will be spent in the fiscal year ending March 31 while $50 million will be spent in 2005-06, so total spending in those two years will be $125 million and $150 million.

The Throne Speech promised the municipalities a portion of the gasoline tax revenues. This is confirmed in the budget but no starting date is mentioned. Nor are the dollar amounts included in the revenue assumptions. The budget only says that the government will launch discussions with the provincial and territorial governments “to share with the municipalities a portion of gas tax revenues or determine other fiscal mechanisms to achieve the same goal.”

The budget also promises a “stronger voice for municipalities in federal decisions that affect them.” The municipalities will be consulted during the negotiations on the sharing of gas revenues.

The budget also commits funds — to the tune of $4 billion over 10 years — to clean up federal contaminated sites: $25 billion on federal lands and $500 million on sites for which the federal government “shares some responsibility such as the Sydney tar points.”

Another initiative is $200 million to support the development and commercialization of new environmental technologies.

There are additional funds for aboriginals in cities and language training for immigrants.