The budget did offer a limited response to concerns about inadequate day care spaces by reversing proposed cuts and finding funding for 300 new subsidized spaces, but this hardly makes a dent in the waiting list of 18,000 children. Some funding for new shelter beds is included in the budget, but there is also a proposed $1.47 million cut to front line staff by not replacing the jobs of 12 staff who work directly with shelter clients and help people find permanent housing.
The budget does make a modest effort to address the city’s revenue needs. It provides for a tax on hotel accommodations (projected to yield over $5 million this year) and it harmonizes the municipal and provincial land transfer taxes, to raise $77 million. There are also increases in transit fares and recreation program costs, criticized for unfairly burdening low income and vulnerable residents who rely on these services. The residential property tax increase was held to 2%, just under the rate of inflation. The budget was balanced with over $80 million in “bridging strategies” which the city manager described as kicking the can down the road. The strategies again included drawing millions from reserves, in a move that staff described as unsustainable.
An example of this shortsighted approach arose as the budget neared approval late on February 16. Council unexpectedly voted against reducing the funds for street sweeping, which meant that $2 million more in revenues were need to rebalance the budget. Money was taken from a rainy-day fund to close the gap, and the budget was passed on a vote of 27-16.
The Excessive Criticism of the Budget
The criticisms voiced by Mammoliti and Ford are almost comical in their wild exaggerations and outrageous assertions. Thus, we have Mammoliti explaining the need for his public consultation on the budget for “people who actually work for a living,” as if the only ones who appeared before the city’s budget committee were deadbeats looking for city hall handouts. He complains about the ludicrous spending at city hall and the cash grabs that need to be stopped. Even more unhinged are the remarks of Doug Ford who claims that Mayor Tory was wasting millions of dollars while “recklessly taxing everything he can get his hands on.”
Reality Check
Returning now from this Toronto version of alternate facts, the reality is that Doug Ford’s brother Rob was unable to find much gravy to cut when he was mayor nor did he avoid tax increases as was commonly asserted. Toronto city council has been far too hesitant to use the enhanced revenue raising powers that they were granted in special legislation in 2006. It also continues to maintain by far the lowest property taxes in the GTA even as critics like Mammoliti and Ford fulminate. The proposed 2% increase in this year’s budget will amount to $90 more on an average homeowner. Using our coffee cup measurement cited in an earlier blog, this amounts to $1.70 a week, the cost of a medium double-double at Timmy’s.
It is most unfortunate that when Mayor Tory finally decided to introduce tolls on the Gardiner and Don Valley, the provincial government reversed its stance and refused to authorize their use – a cowardly cop-out by the provincial Liberals. Not only would the tolls have raised much-needed revenues but also they are one means of addressing the increasing traffic congestion that threatens to strangle Toronto and restrict its runaway growth. While Toronto’s council is not responsible for the provincial failure, it alone is guilty of again avoiding tough decisions about its need for revenues. Being timid doesn’t appease the tax-averse fringe, so it is a pity that councillors didn’t show more courage.