Summary
This paper suggest a needs-based approach to equalization, including a realistic evaluation of the differences in the cost of providing public services across jurisdictions. This would result in a system focused on what each jurisdiction actually needs in effective revenues to deliver a given package of services, rather than focusing on unadjusted levels of absolute revenues between provinces, which can vary wildly based on economic cycles, the price of natural resources and other factors largely irrelevant to the question of ensuring each province has what it needs to provide a reasonable level of public services.
