Ontario's municipal politicians recently received needed funding they didn't expect from the province, but they remain concerned they didn't get the answer they wanted from the Liberals.

Premier Dalton McGuinty made it clear a few days prior to the Association of Municipalities of Ontario annual conference in Ottawa that the long-awaited service review the Liberals had initiated in 2007 had been delayed yet again until October.

"That's cause for concern," said Hamilton mayor Fred Eisenberger, who attended the conference this week. "It causes more stress and strain on municipalities."

During a news conference in Stoney Creek Mr. McGuinty dismissed any notion there was a growing rift between the province and its municipal partners because of the service review delay. He said the province continues to have good relations with municipal leaders.

"The good news is they are still committed to (municipalities)," said Mr. Eisenberger.

The Provincial Municipal Fiscal and Service Delivery task force, which is examining the various services municipalities and the province provide, had been expected to be released in early 2008 after the municipal election.

Niagara West-Glanbrook Progressive Conservative MPP Tim Hudak suspects the Liberals have delayed the report because the recommendations won't help municipalities.

"This has been delayed three times since its original goal," he said. "I suspect Dalton McGuinty has bad news to deliver, but is afraid to face the music."

Municipal leaders have been urging the province to take back responsibility for a number of services they are unable to pay for, including social services, a critical burden Hamilton has had to bear over the years. Municipal politicians have argued that since the Mike Harris government downloaded a host of services onto municipalities' shoulders, municipalities have had to scramble to pay the extra costs without being able to raise extra revenue to meet their ballooning budgets. By law municipalities are not allowed to carry a deficit. When Mr. Harris downloaded the services, the provincial government assumed responsibility for funding school boards.

Each year Hamilton has received anywhere from $19.5 million to $12 million for a total of about $50 million from the province in extra funding to help the municipal pay for the service. But Hamilton politicians have argued going to Queen's Park every budget cycle cap in hand is ridiculous for the municipality. They have called for sustainable funding to municipalities that will allow them to fend for themselves.

"The best solution (for Hamilton) is we don't need the funding," said Mr. Eisenberger.

Even though local politicians are eager to see the report, they are also wary of what the province will demand in return from municipalities if Ontario takes back certain services.

"That is the question," said Mr. Eisenberger. "What is the offset?"

Over the last few years the Liberal government has taken back a number of services from municipalities, including land ambulance, and the Ontario drug benefit program.

"We want to help out," said Ancaster-Dundas-Flamborough-Westdale Liberal MPP and cabinet minister Ted McMeekin.

"But government can't be everything, every time."

Mr. McMeekin points out since the Liberals were elected to office in 2003, his government has provided more money to Hamilton and uploaded more services from the backs of municipalities any other provincial government.

The Liberals have given money to the steel industry, agriculture, forestry, auto sector and skills training, he said.

"We are working hard on the things we can control," he said.

And the government is "committed" to uploading more services, he said.

Mr. McMeekin said the province and municipalities are working together to forge a new partnership that means consulting with each other on the process.

"We have forged an understanding, he said.