Toronto's next mayor will have to oversee cuts to services if other levels of government don't help cover a nearly $1 billion budget shortfall, the deputy mayor said Wednesday, criticizing what she described as Ottawa's lack of support for the city.
"While the federal government wants to focus on growth, they can't leave municipalities that are very much in the state of recovery behind," McKelvie said at city hall.
Toronto's budget, approved by council last month, was balanced on the assumption the province and federal governments would come up with a combined $933 million to bail out the city's 2023 pandemic-related shortfalls, related largely to reduced transit revenues and increased shelter costs.Freeland urges Toronto to ask Ontario for help
There are "legitimate questions" about whether the city has enough of a tax base, she said, adding it would be "highly appropriate" for the city to seek out support from the provincial government, which tabled a budget last week that forecasted surpluses next year and the year after. "Ontario has provided over $2.7 billion in COVID-19 support funding to address Toronto's pandemic-related impacts," Victoria Podbielski wrote in a statement
The city also struck out on its request for the federal government to match the province's $235-million commitment to help cover lingering shortfalls from last year's budget. McKelvie said the city will dip into reserve funds to shore up those costs.
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