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
Indian envoy warns of 'big red line,' days after charges laid in Nijjar case
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
With Donald Trump sitting just feet away, Stormy Daniels testified Tuesday at the former president's hush money trial about a sexual encounter the porn actor says they had in 2006 that resulted in her being paid to keep silent during the presidential race 10 years later.
U.S. paused bomb shipment to Israel to signal concerns over Rafah invasion, official says
The U.S. paused a shipment of bombs to Israel last week over concerns that Israel was approaching a decision on launching a full-scale assault on the southern Gaza city of Rafah against the wishes of the U.S.
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Northern Ont. woman makes 'eggstraordinary' find
A chicken farmer near Mattawa made an 'eggstraordinary' find Friday morning when she discovered one of her hens laid an egg close to three times the size of an average large chicken egg.
Susan Buckner, who played spirited cheerleader Patty Simcox in 'Grease,' dead at 72
Susan Buckner, best known for playing peppy Rydell High School cheerleader Patty Simcox in the 1978 classic movie musical 'Grease,' has died. She was 72.
Jeremy Skibicki has 'uphill battle' to prove he's not criminally responsible in Winnipeg killings: legal analysts
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Alcohol believed to be a factor in boating incident after 2 men die: N.S. RCMP
Two Nova Scotia men are dead after a boat they were travelling in sank in the Annapolis River in Granville Centre, N.S., on Monday.