The federal government distributed gas tax revenues to the provinces in 2005, and gave provincial governments discretion over how the monies would be divided. Following discussions with the Association of Manitoba Municipalities, Smith announced that the money would be distributed to different parts of the province on a per capita basis. Representatives from major cities brought forward an alternate proposal, wherein 90% of the funds would be made available on a per capita basis and 10% put directly toward public transit in urban centres.