Police funding refers to how policing costs are shared between municipalities and provincial governments. Arrangements vary significantly across provinces. Some provide direct grants covering portions of municipal police costs, while others provide minimal provincial contribution, leaving municipalities to fund policing primarily through property taxes. RCMP contract policing involves specific cost-sharing formulas between federal, provincial, and municipal governments. Police funding is often contentious, with municipalities arguing they bear excessive shares of a service with provincial dimensions. Provincial police funding decisions directly affect municipal budgets and tax rates, making funding formulas important intergovernmental issues.