Olivia Chow, recently re-elected as Toronto's mayor, has identified securing a new funding deal with the provincial government as a top priority. However, Ontario Premier Doug Ford has expressed a reluctance to provide any additional financial support for the city. After previously allocating billions during Chow's initial term, Ford has stated that there will be no new funding agreement this time.
“We have to find a path forward for a structural financial solution because not being able to sustain it in the long term is always a problem,” Chow remarked during an announcement on a separate issue. In 2023, Chow managed to secure significant financial support from the province, receiving $7.6 billion for capital funding and $1.2 billion for transit and shelter operations. This funding was crucial in stabilizing Toronto's finances, which had been severely impacted by the COVID-19 pandemic. However, the provincial support will expire in March, leaving the city in a precarious financial position.
Ford highlighted the previous support his government provided the city, stating, “We’ve given Toronto $9 billion, with a B, $9 billion dollars. They have to be responsible for their own budget.” He emphasized that while his government uploaded the Gardiner Expressway and the Don Valley Parkway (DVP) to aid Toronto, the city cannot continually depend on the province for financial relief. Ford remarked, “We’re in tough times right now, really tough times,” reinforcing his stance against extending a new funding deal.
Chow faces the challenge of managing a municipal budget during a time when revenue tools are limited, especially with her campaign promise to keep property tax increases in line with inflation. She expressed confidence in maintaining this promise, saying, “I believe so,” while indicating that discussions with both provincial and federal governments would continue. Chow aims to communicate with other levels of government to secure funding, arguing, “If you want the city to be successful, if you want to keep life affordable for folks in Toronto and keep the city moving and keep it safe, you have to invest in this city.”
Despite Ford’s refusal to extend a new deal, he appears to expect that Chow will uphold her commitment to property taxes. He remarked, “I don’t believe in raising taxes, never have, never will, right mayor?” Ford acknowledged a positive rapport with Chow, stating, “I love the mayor by the way, and everyone knows it; we get along very, very well.”
In response to the financial challenges, Chow announced plans to implement a hiring freeze at City Hall while continuing to prioritize frontline staff. “We are continuing to hire all frontline people, however, anything that is not frontline, we have a freeze in place so that we can, like last year, do a line-by-line review to find the savings,” she stated. This indicates Chow’s proactive approach to managing the city's budget amid a projected billion-dollar shortfall.
While the absence of a new funding deal signifies challenges ahead, Ford has shown some willingness to consider providing financial support for specific city priorities. Discussions on these matters are anticipated to take place in the coming weeks after Chow is officially sworn in for her second term, suggesting that Toronto may still receive some financial assistance tailored to pressing municipal needs.
