Premier Doug Ford is shutting down any talk of a new funding deal for the City of Toronto, suggesting Ontario’s $16.9 billion deficit has left the province facing “tough times” with less room to support municipal budgets.
The initial three-year, $1.2 billion new deal was ironed out in November 2023 after Olivia Chow was first elected mayor.
As part of the agreement, the province agreed to fund new transit vehicles, upload both the Gardiner Expressway and the Don Valley Parkway, and gave the city $353 million for operation and maintenance until the upload is complete.
As the city crafts its latest budget, hopes for a revised funding deal remained high.
Under repeated questioning from Global News, however, the finance minister, municipal affairs minister and premier said the government doesn’t have plans for a new deal 2.0.
“There’s no 2.0, to answer your question directly,” Ford said during a news conference at Queen’s Park on Wednesday.
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“Keep in mind with collaboration with the federal and the provincial government, we’ve given Toronto $9 billion — with a ‘B’. They have to be responsible for their own budget.”
While the premier said he was willing to look at “certain priorities” such as crime reduction and public safety on subways, he also suggested the province might be tapped out of cash to help municipal governments.
“You can’t always rely on the province. We’re in tough times right now, really tough times. So we’re going to be prudent fiscal managers, respecting the taxpayer,” Ford said.
The comments come after the Ford government tabled the fall economic statement, which included $36 billion in deficits over the next three years and once again delayed the province’s path to balancing the budget.
Critics say the government overleveraged on capital construction during its early years, leaving the province with little capacity to help.
“You know, we have cost overruns at the Ottawa Hospital, the Ontario Line, the Eglinton Crosstown, the Scarborough subway. We’re spending billions of dollars on things that we build, but the stuff that happens inside, it’s not working,” said interim Liberal leader John Fraser.
“What’s the point in building a hospital or a school if the stuff happens inside isn’t working for people? And this government needs to start to focus on that.”
Green Party leader Mike Schreiner warned municipalities may face tough choices, if they don’t receive more from Queen’s Park.
“If the municipalities don’t get a new fiscal deal, we’re likely going to see double-digit property tax increases. I’ve been telling mayors they should call it the Doug Ford property tax increase,” Schreiner said.
“Homelessness is also only going to get worse. Municipalities cannot solve this crisis. They don’t have the fiscal resources to do it. We need the province to step up.”
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