No major COVID bailout for cash-strapped Toronto in Ontario budget
Toronto has been left in the lurch by Queen’s Park after the 2023 Ontario budget revealed little in the way of a financial rescue for the cash-strapped city.
Ontario’s biggest municipality had called on the province to help supplement its massive 2023 shortfall, asking for $510 million in so-called COVID-19 hangover costs.
But the government did not relieve the city’s current pandemic pressure, indicating instead that it was waiting to see how Ottawa responds to a similar request from Toronto at the federal budget unveiling next week.
It did provide $48 million in funding for Toronto’s supportive housing costs, fulfilling one of the three asks Deputy Mayor Jennifer McKelvie made of Finance Minister Peter Bethlenfalvy in a letter sent earlier this month.
The city’s 2023 budget, however, will still have a nearly $1 billion shortfall without additional funding from Queen’s Park and Ottawa.
“Toronto’s number one ask was more money, $48 million, for supportive housing to help those who are homeless and we stepped up with the full ask, “ Bethlenfalvy insisted during an interview with CP24 on Thursday. “That was their number one ask.”
Toronto officials were also hoping that the province would cover the cost of the development charges the city would no longer receive as a result of Bill 23, which slashed the fees in order to spur the construction of more housing.
City staff had counted on that revenue to fund the infrastructure and services needed to support the growth, and pegged the loss at more than $200 million a year.
The government reiterated Thursday that it would be conducting an audit of select municipalities to establish a baseline of municipal reserves and development charges, and would determine after that how it would supplement any shortfalls connected to Bill 23.
Bethlenfalvy also told CP24 that discussions would continue about funding to offset lost revenue as a result of the pandemic.
In a statement following the release of the budget, Deputy Mayor Jennifer McKelvie thanked the province for helping to fund wrap-around services for 2,000 vulnerable residents in supportive homes, noting that these kinds of supports “are the most effective, dignified, and cost-effective solution to chronic homelessness.”
McKelvie did not address the lack of funding for COVID-19 costs in her statement, only stating that her advocacy for “further financial support” would continue.
She also said that the city “expects the province to honour its commitment to keep the City whole when it comes to development charges.”
Some critics, however, are warning that the lack of investment in Toronto could force the city to make some difficult decisions.
“Transit fares could go up, property taxes could go up even higher than they’ve already been raised,” Liberal municipal affairs critic Stephen Blais told CTV News. “You’re going to see potentially a decrease in services if the city can’t cover those costs.”
“Because the Conservatives are not stepping up, Torontonians are going to be seeing a big property tax hike and service cuts,” NDP housing critic Jessica Bell said.
“Conservatives have turned their back on municipalities.”
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Maple Leafs fall to Bruins in Game 3, trail series 2-1
Brad Marchand scored twice, including the winner in the third period, and added an assist as the Boston Bruins downed the Toronto Maple Leafs 4-2 to take a 2-1 lead in their first-round playoff series Wednesday
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
New Indigenous loan guarantee program a 'really big deal,' Freeland says at Toronto conference
Canada's Deputy Prime Minister Chrystia Freeland was among the 1,700 delegates attending the two-day First Nations Major Projects Coalition (FNMPC) conference that concluded Tuesday in Toronto.
'Life was not fair to him': Daughter of N.B. man exonerated of murder remembers him as a kind soul
The daughter of a New Brunswick man recently exonerated from murder, is remembering her father as somebody who, despite a wrongful conviction, never became bitter or angry.