Toronto calls for 'immediate funding' to help prevent service cuts and layoffs

Ontario Premier Doug Ford, listens to Toronto Mayor John Tory during a joint press conference inside Queen’s Park in Toronto, Monday, June 27, 2022. THE CANADIAN PRESS/Cole Burston

Toronto Mayor John Tory is calling for an “immediate funding commitment” from the federal and provincial governments to help the city get out of the red; warning of service cuts and layoffs if they don’t get any additional cash.

Council approved a 2022 operating budget back in February with a $1.4 billion deficit under the assumption that it would receive additional funding from other levels of government.

In a letter, which was sent to both Ontario Premier Doug Ford and Minister of Finance Chrystia Freeland on Wednesday, Tory says the deficit is now about $815 million. He stressed the shortfall is “directly and only as a result of the impacts of COVID-19.”

This includes lost TTC revenue, an increase in the number of shelters in the city, and a loss of revenue due to travel restrictions and a drop in in-person working.

Tory warned if Ford and Freeland don’t step up, “deep cuts to services” may be necessary.

“I am writing today to re-iterate our request for continued assistance from the Government of Canada and the Province of Ontario, to address the continued impacts COVID-19 is having on our city’s finances, so that we do not have to make deep cuts to services our residents require, impose massive tax increases they cannot afford, or implement reductions to our capital budget which will eliminate thousands of jobs and threaten our economic recovery,” the letter reads.

“The entirety of the amounts requested are as a direct result of the pandemic and the necessary measures taken to deal with the consequences of the pandemic.”

The city has already received about $483 million in federal and provincial funding this year to address shortages related to transit, but Tory stressed that Toronto’s deficit is “far in excess of this amount.”

Despite this, Tory has maintained his pledge to keep property taxes below inflation, with a 2.9 per cent increase in 2022.

During the municipal election, the mayor said the budget would instead be balanced thanks to “prudent financial management,” revenue from the TTC and partnership with other governments. However, in the letter, it appears as though the mayor was banking on a significant contribution from those partnerships to make up the shortfall.

“Given our limited options to raise revenue and our inability to run budget deficits, we do not have the fiscal capacity to absorb these massive shocks to our system and thus we are required to turn to the governments with greater financial capacity and flexibility,” Tory wrote, while also promising to continue to “find efficiencies and offsets” to address budget challenges in the future.

Tory is asking that Ford and Freeland provide an “immediate funding commitment” for both 2022 and 2023 by the end of the month.

CTV News Toronto has reached out to the Ford and Freeland’s offices for comment.