The following table compares and contrasts some of the key characteristics of the fiscal options:
Table 1 - Summary of Fiscal Options

	Local Jurisdiction Option		Flexible Fiscal Option		Incremental Jurisdiction Option
First Nation Revenue Raising Authority		First Nation Sales Tax		Fed. Per. Income Tax		Fed. Per. Income Tax
		Property tax (local member, local non-member)		First Nation Sales Tax		First Nation Sales Tax
				Property tax (local and school member, local non-member)		Property Tax (local and school, member and non-member)

Own Source Revenue		No streams excluded		No streams excluded		Some streams included.
		Per capita OSR ceiling and floor		Basic and per capita exemption		Some streams excluded.
		Credit for tax paid by First Nation corporation		Phase-in period		Property Tax (local and school, member and non-member)
		OSR from resources on TSL are net of costs
		Phase-in period

Funding Responsibility		After 5 years, the First Nation assumes sole financial responsibility over “local” programs and services.		Shared funding responsibility for Agreed-Upon Programs and Services.		As it generates sufficient revenue, First Nation uses included revenues to assume financial responsibility over selected Agreed-Upon Programs and Services.
		If above the per capita OSR ceiling,, the First Nation also shares funding responsibility over all other programs and services.				Excluded revenues used to fund Not-Agreed-Upon Programs and Services.

Revenue Stabilization		Per capita OSR floor maintained through transfers from other levels of gov’t.		OSR contribution determined annually – transfer adjusts accordingly.		Annual contributions to revenue stabilization fund.

Restrictions on Revenue Sharing		No		Possible reduction in sharing after FNGST exceeds threshold.		No

Property Tax Regime		First Nation solely responsible for Local Services and Land Management.		‘Net’ property tax revenues subject to OSR inclusion rates.		All revenue ‘excluded’
						Local services separated

Determination of Transfer Entitlement		Negotiated based on existing levels of funding and local comparability		Negotiated amount taking into account factors such as existing funding levels and comparability of access		Program standard
		No funding for Local Services and Land Management		Floor on transfer		Formula

The following sections provide flowcharts that attempt to describe the flow of funds in the three fiscal options (Incremental Jurisdiction Flowchart, Flexible Fiscal Option Flowchart, Local Jurisdiction Option Flowchart). The conceptual development of the fiscal options occurred before they were incorporated into the spreadsheet model. In some cases several iterations of the options were required. Simplifications were made due to time constraints, data limitations, and modeling complexity. These simplifications should not be considered changes to the option, but rather limitations of the analysis.

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