Yukon municipalities will be receiving increases in grant funding from the territorial government for the first time in 16 years.

Glenn Hart, Minister for Community Services, said at a press conference this morning Comprehensive Municipal Grant (CMG) funding for Yukon municipalities will increase more than 30 per cent by 2012.

'The funding increase will begin on April 1, 2008. It will be phased in over five years.

'Given the support of this government, management board has approved a 32 per cent increase in the CMG from the current level of $12.5 million to $16.5 million by 2012,' Hart said.

The CMG is grant funding to Whitehorse and other incorporated communities, which is used to supplement municipal budgets.

Hart said the funding increases were decided after reviewing the Consumer Price Index, which measures inflation, as a guide.

Under the formula, incorporated municipalities are estimated to receive varying funding increases by 2012.

Estimated increases include:

Carmacks by $740,000;

Dawson City by $1.1 million;

Faro by $826,000;

Haines Junction by $816,000;

Mayo by $748,000;

Teslin by $740,000;

Watson Lake by $1 million; and

Whitehorse by $6 million.

Unincorporated communities, Hart added, will also be receiving increases.

Most Yukon communities have not seen an increase in the CMG since 1992.

During the same period, transfers to the territorial government from Ottawa have risen from $240 million in the 1992-93 pre-devolution budget, to $543.5 million in the 2007-08 post-devolution budget.

Whitehorse, Watson Lake and Dawson City received the same or less money in 2005 than they did in 1995.

In 2005, Whitehorse received $5,130,411 compared with the $5,100,708 it received in 1995.

Dawson City received $1,157,599 in 2005 and $1,186,363 in 1995.

Watson Lake received $1,247,213 in 2005 compared to the $1,265,757 payment it was given in 1995.

Hart said tying the CMG to the Consumer Price Index in the future is a possibility.

Association of Yukon Communities (AYC) president Doug Graham said this morning he welcomed the increase.

'I can tell you that AYC is pleased with the increase, it definitely will assist us in meeting our budgetary problems over the next few years.

'We're very happy that someone has finally seen that Yukon communities do have a problem as far as budgets go. We not only have a problem with infrastructure, but our operating budgets are also in problems,' he said.

'This is the first government in 16 years that has actually recognized this and made a substantial increase to the grants.'

Graham said the 32 per cent increase was on the lower end of what the AYC had been calculating.

'This was one of the yard sticks we used, I have to tell you, it was the absolute lowest of the yardsticks we used.'

Whitehorse mayor Bev Buckway said she was also happy with the funding increase, and Hart's commitment to continue working with Yukon municipalities on their funding concerns.

'We're really delighted with what we're seeing here.

'This is s good news story for us.'