What Should Be Included?
How Should OSR be Applied to the Transfer?
When Should OSR be phased in?

What Should Be Included

BRITISH COLUMBIA
	First Nations governments should contribute to the costs of running their own governments in a manner that is comparable to other governments; and
	Fiscal arrangements should be designed to be neutral to the way First Nation governments choose to organize their affairs, e.g., they should not create incentives to distribute settlement assets or structure commercial enterprises to avoid taxation.
CANADA
	All First Nation revenue streams should be included in OSR, with agreed-upon exceptions, (e.g., capital transfer). Fiscal arrangements should create a neutral decision-making environment, (i.e., avoid creating incentives for the migration of people or capital, or the generation of certain revenue streams over others).
FIRST NATION
	First Nations want some revenue streams (e.g., business income) to be excluded from OSR consideration;
	First Nations want OSR arrangements to be sensitive to narrowing the comparability gap between First Nation citizens and other Canadians, “catch up”;
	First Nations wish to avoid distorting public sector vs. private sector decisions.

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How Should OSR be Applied to the Transfer?

BRITISH COLUMBIA
	OSR should be taken into account when determining transfers from other governments, but should not unreasonably reduce the incentive to raise revenues.
CANADA
	Transfers from other governments offset by some portion of First Nation OSR – but should not unreasonably reduce the incentive of the FN government to raise revenues; and
	Both of these funding sources (transfers from other governments and some portion of First Nation OSR), applied jointly to fund all agreed-upon programs and services.
FIRST NATIONS
	OSR used to fund a specific bundle of programs and services for which First Nation government has exclusive responsibility and authority. Transfers used to fund remaining programs and services; and
	Clear separation between programs and services funded by First Nation OSR and those funded by transfers, in order to increase First Nation control over chosen programs and services and to increase clarity of fiscal accountability for programs and services.

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When Should OSR be phased in?

BRITISH COLUMBIA
	The transition to OSR should allow time for the First Nation to adjust to using their own revenue sources to fund government activities
CANADA
	Agrees that there should be a phase in period for consideration of OSR, but does not agree to link OSR phase in to measurement of socio-economic indicators.
FIRST NATIONS
	First Nations do not want transfers to be offset by OSR until some measure of socio-economic comparability has been reached.

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