If we compare operating spending by municipalities to GDP, which is a broad measure
of ability to pay, it remains within historical averages
of close to 3 %
of GDP.  In 2012, operating spending by all municipalities in Canada amounted to just 3.1 %
of GDP, the same that it was twenty
years ago, and down from the 3.3 % reached in 2009 during the depths
of the recession.  This ratio was higher during the recession because GDP had dropped and governments sensibly embarked on stimulus spending to prevent a depression. This was
before their misguided adventures in
austerity (which presumably the CFIB supports, but have caused devastation to small businesses in countries elsewhere).