The municipal funding gap refers to the mismatch between municipal responsibilities and revenue sources, with municipalities arguing they lack adequate funding to meet service demands and infrastructure needs. This gap has grown as senior governments downloaded responsibilities without corresponding revenues, infrastructure aged beyond available replacement funding, and service expectations increased. Municipalities rely heavily on property taxes, which grow slowly compared to income-based taxes that senior governments collect. Municipal associations advocate for new revenue tools, increased transfers, or federal and provincial assumption of costs. Addressing the funding gap is a persistent theme in intergovernmental relations and municipal policy discussions.