An Overview of the Local Jurisdiction Option

Differences between the LJO concept and the application in the model

There are some unresolved issues regarding the Local Jurisdiction Option in the spreadsheet model:

OSR Floor: This option is silent regarding which government will be providing additional funding in the event that a First Nation has own source revenue below the per capita OSR floor. If a First Nation has own source revenue below the OSR floor, then the gross funding amount subtracts OSR. The resulting net funding amount is then larger than the gross funding amount. One option is that this additional funding could be subject to a cost sharing arrangement, however, such an arrangement does not currently exist in the spreadsheet model.

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