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Globe: Ontario offloading deal expected soon

AlvinofDiaspar

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From the Globe:

Ontario offloading deal expected soon
But economic woes dampen expectations
From Thursday's Globe and Mail

October 2, 2008 at 5:06 AM EDT

A deal that could relieve local taxpayers from the costs of provincial welfare and other programs offloaded a decade ago will be complete by Oct. 31 at the latest, Ontario Minister of Municipal Affairs and Housing Jim Watson pledged yesterday, even as he tried to lower expectations.

"We are within weeks of being able to sign a deal with our municipal partners," Mr. Watson told a breakfast briefing on the federal election sponsored by Global Public Affairs, a lobbying firm.

An exact date has not been nailed down but an announcement is expected after the Oct. 22 economic statement by Ontario Finance Minister Dwight Duncan, who is also dampening expectations.

Earlier this week, he hinted the government will have to trim spending as it copes with lower revenue. "Whatever restraint is necessary ... it will be fairly modest in the beginning," he told reporters.

Mr. Watson praised the "historic discussions" with the City of Toronto and the Association of Municipalities of Ontario to reverse some of the costs offloaded to municipalities by the former Mike Harris government in the mid-1990s.

But like the Finance Minister, Mr. Watson was quick to caution against a speedy timetable.

"All the partners around the table understand we have to live within our means and the economy is changing, literally by the day," he said.

Later he told reporters "we are not going to get everything we want out of the deal and the cities are not going to get everything they want.

"But at the end of the day, it is going to be a very good deal for the taxpayers," he added.

Toronto Mayor David Miller, like Mr. Watson, was tight-lipped about the elements of the deal, saying: "We are working toward a consensus and I am confident we will reach that consensus."

In 2006, the province and municipal leaders agreed to review who does what and look for ways to streamline the delivery of services. The "consensus" report, set for release last spring, has been delayed several times.

*****

Big-ticket items

-Issues are on the table in a long-awaited review of fiscal relations between the province and municipalities include:

-Uploading of welfare benefits (now split 80-20 between the province and municipalities, respectively) and social service administration costs (split 50-50). The province has capped its contributions, effectively funding only 30 per cent of administrative costs in Toronto, leaving the city to cover the difference. Municipalities want the province, as elsewhere in Canada, to pay 100 per cent of the tab.

-Uploading provincial court security. When the province opens a new court, the municipality pays for providing police and other security.

-Identifying the full cost of municipal infrastructure needs, the first such detailed assessment in years. Jennifer Lewington

http://www.theglobeandmail.com/servlet/story/RTGAM.20081002.wupload02/BNStory/National/Ontario/

AoD
 
So is this finally going to stop Toronto from paying more in taxes to the province than it receives? As of now, 905 transit riders get about twice the subsidy that TTC riders do. I hope it deals with this sort of thing.
 
So is this finally going to stop Toronto from paying more in taxes to the province than it receives? As of now, 905 transit riders get about twice the subsidy that TTC riders do.

Are you talking about capital costs or operating costs? Municipal contribution or provincial? Any way you put it, the 905 systems gets far less subsidies than the TTC does.

Approximate operating subsidy 2008

TTC: $376 million

MT: $32 million

Approximate provincial gas tax revenue per year

TTC: $150 million

MT: $15 million

I am not sure how you calculated that the 905 transit riders get twice the subsidy of 416 riders (especially complicated since 416 riders also use the 905 systems), so please enlighten us.
 
So is this finally going to stop Toronto from paying more in taxes to the province than it receives?

If you think that is only the case for Toronto, I would love to see how you came up with your figures.
 
-Uploading of welfare benefits (now split 80-20 between the province and municipalities, respectively) and social service administration costs (split 50-50). The province has capped its contributions, effectively funding only 30 per cent of administrative costs in Toronto, leaving the city to cover the difference. Municipalities want the province, as elsewhere in Canada, to pay 100 per cent of the tab.

Sounds like the province has been trying to force the city to rein in its administrative costs with that cap on funding. I guess that they're giving up.

Welfare benefits should be 100% provincially funded as soon as possible.
 

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