Rapid transit development will top the city's plans for infrastructure construction if Toronto gets some of the federal infrastructure spending being proposed.

The lines are already part of the city's $10-billion transit plan. Some projects have already passed environmental assessments and await funding.

"The Sheppard line, we will have a shovel in the ground next year," Mayor David Miller said Tuesday, on the assumption that such funding is made available as the federal government has suggested. "We will be able to build Eglinton and Finch."

The province had earmarked funds for GTA transit expansion, but there's been no federal cash so far.

Other politicians noted transit expansion would carry other benefits for Torontonians.

"They will be able to get to work more comfortably, reliably and in less time, and that will be good for Toronto," said TTC chair Adam Giambrone. "Less smog and less congestion, which will mean business will run smoother."

Federal funding could also speed up repairs to existing transit infrastructure, such as the subways and streetcars, the TTC said, adding it needs $1 billion just to maintain the status quo.

About $350 million is needed from Ottawa for the Sheppard and Finch LRT projects, and about $850 million for the Sheppard extension.

The Spadina-York University subway extension will proceed because federal funding is in place.

Some critics want to see roads made a higher priority, noting they have a $300-million repair bill backlog.

Capital budget

The mayor's powerful executive committee passed a $1.6-billion capital budget Tuesday.

The budget still needs to be approved by council in December but the executive committee gave the report a stamp of approval after just an hour of debate produced very few changes.

The capital budget, meant to finance one-time projects, will focus on efforts to repair the city's aging infrastructure, revitalize the waterfront and build new community centres.

"We know how much people count on city infrastructure," said budget chief Shelley Carroll in a news release distributed Tuesday. "From transit roads to community centres and libraries -- we're investing in Toronto's continued success.

The budget report also proposes funding a $70-million project to build bike paths throughout the city over the next five years and a $40-million plan to renovate Nathan Phillips Square.

Some councillors are prepared to scrutinize the budget plan next month, saying they are upset that some of their peers on council would consider spending so much money during such troubling economic times.

Coun. Doug Holyday said the city should only be spending money on essential projects instead of borrowing money for these plans.

"If your basement wall's cracked, you have to fix it," Holyday said. "And that's the problem here. Our buildings need maintenance. Our roads need work, our water piping needs work, and if we get extra money, that's where it should go."

Miller said the financial crisis is precisely why the city should try and stimulate the economy with new projects.

"In economies like this, you need to redouble your investments," he told reporters Tuesday. "This is the trend across the world now. When the economy is soft, make sure you keep people working because if you keep people working, they spend their money.

"These kind of projects can't be outsourced somewhere else," he added. "They're made-in-Toronto projects."

In a news release distributed Tuesday, the mayor said the capital budget plan will create almost 300,000 jobs over the next 10 years.

With a report from CTV Toronto's Naomi Parness