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
BREAKING | Danielle Smith's UCP holds onto power in Alberta
Danielle Smith is still the premier of Alberta, surviving a vigorous campaign and a tight vote Monday against NDP challenger Rachel Notley.

Singh calls for foreign interference rapporteur Johnston to step aside
NDP Leader Jagmeet Singh is pushing for special rapporteur David Johnston to 'step aside' from his role examining the issue of foreign interference before he embarks on public hearings.
New Democrat MP says she is target of foreign interference by China
New Democrat MP Jenny Kwan said Monday that Canada's spy agency has confirmed her long-held belief she is being targeted by the Chinese government, as the prime minister granted the NDP's wish to allow more party members to review top-secret intelligence.
Golden Knights reach 2nd Stanley Cup Final after Game 6 win over Stars
William Karlsson, William Carrier and Jonathan Marchessault are finally getting another chance in the Stanley Cup Final, after the first one that came so quick for the Vegas Golden Knights.
Caleb Martin helps Heat to 103-84 Game 7 win over Celtics and spot in NBA Finals
Eastern Conference finals Most Valuable Player Jimmy Butler scored 28 points, and Caleb Martin had 26 points and 10 rebounds to help the eighth-seeded Miami Heat beat the Celtics 103-84 in Game 7 on Monday night and advance to the NBA Finals for the second time in four seasons.
Canadian parliamentarians condemn Uganda's recently passed anti-homosexuality law
Canadian political leaders and parliamentarians are denouncing a new law passed in Uganda that imposes harsh penalties, including the death penalty, for certain cases involving homosexuality.
Free prescription drugs could reduce overall health-care costs in Canada: study
Overall health-care costs could be reduced in Canada by providing free prescription drugs to patients, according to a new study.
Northern B.C., Alberta and all of Ontario under 'high' to 'extreme' wildfire risk: What to know
There's a heightened risk of wildfires across the country during what has been one of the earliest fire seasons on record. From British Columbia to Nova Scotia, here's where the risk is highest.
Strategic city planning can mitigate 'urban heat island' effect, make cities cooler in summer: study
New research from Penn State University found certain factors can contribute to reducing what’s known as the 'urban heat island' effect, and that climate knowledge can contribute to better city planning and design.