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GO Transit calls premier's bluff
Passes 10-year expansion budget, but will only pay this year
Municipalities object to raising property taxes for service
Apr. 14, 2006. 01:00 AM
KEVIN MCGRAN
TRANSPORTATION REPORTER
In a power play designed to get the attention of Premier Dalton McGuinty, municipal politicians who hold a majority on GO Transit's board passed a $1.7 billion, 10-year expansion budget while saying they won't pay for it beyond 2007.
It's a little game of dare that Mississauga Mayor Hazel McCallion, Halton Region Chair Joyce Savoline, Durham Region Chair Roger Anderson and Toronto Mayor David Miller are playing to get the province to either pay all of GO's bills, or give the municipalities new taxing power.
"If something doesn't happen today, we are going to be in a real crisis," Savoline told the board yesterday.
The municipalities are on the hook for $98 million to fund infrastructure work in 2006-07. Provincial officials have warned the municipalities — which include Toronto; York, Durham, Peel and Halton regions; and Hamilton — that they risk giving up gas-tax money if they refuse to pay their share of GO's bills.
"That's a bunch of crap," Anderson said.
The root of the problem goes back to a provincial decision a decade ago to "download" GO's costs onto municipalities. The province then backtracked a few years later and "uploaded" the costs. But in the meantime — in 2001 — the municipalities agreed to a cost-sharing arrangement on expansion projects through the now-defunct Greater Toronto Services Board.
They now want out of that deal.
"We shouldn't be in this situation," Miller said. "This is a provincial service that should be funded by the province."
Under terms of the 2001 deal, Ottawa and Queen's Park each agreed to pay one-third of the cost, while municipalities would pool resources to pay their one-third share of GO's 10-year capital expansion plan. Municipalities in the 905 regions decided to pay their share through development charges on new residential, commercial and industrial growth.
But they soon ran into problems that left them short of cash: The province refused to give municipalities the ability to raise development charges, developers fought even the small charges they faced and the costs of the 10-year plan kept rising.
That forced municipalities to pay for GO expansion through the property-tax base.
"Property taxpayers should not be forced to pay for growth," Savoline said.
The municipalities have agreed to pay for their 2006 share, but none will commit beyond that. Anderson said the 2006 commitment will force a tax hike in Durham.
"There's absolutely going to be an increase for the residents of Durham," he said. "It's not what we were anticipating.... Until the province addresses the issue, it's ironic that budgets by a body outside the Region of Durham can increase taxes."
GO chair Peter Smith said he will ask to meet with McGuinty. He hopes a $44 million surplus in GO's capital budget can help offset regional costs.
The municipalities also called on the province to end social pooling costs with Toronto and to change the Development Act so they can raise taxes.
"It's such a convoluted arrangement, nobody understands it and the taxpayers get frustrated," McCallion said.
Miller said he was hopeful McGuinty would upload the costs of GO, as well as social housing and welfare.
"The property tax isn't designed to pay for these kind of services," he said. "Premier McGuinty is the first premier to acknowledge the province needs to upload services."
_________
GO Transit calls premier's bluff
Passes 10-year expansion budget, but will only pay this year
Municipalities object to raising property taxes for service
Apr. 14, 2006. 01:00 AM
KEVIN MCGRAN
TRANSPORTATION REPORTER
In a power play designed to get the attention of Premier Dalton McGuinty, municipal politicians who hold a majority on GO Transit's board passed a $1.7 billion, 10-year expansion budget while saying they won't pay for it beyond 2007.
It's a little game of dare that Mississauga Mayor Hazel McCallion, Halton Region Chair Joyce Savoline, Durham Region Chair Roger Anderson and Toronto Mayor David Miller are playing to get the province to either pay all of GO's bills, or give the municipalities new taxing power.
"If something doesn't happen today, we are going to be in a real crisis," Savoline told the board yesterday.
The municipalities are on the hook for $98 million to fund infrastructure work in 2006-07. Provincial officials have warned the municipalities — which include Toronto; York, Durham, Peel and Halton regions; and Hamilton — that they risk giving up gas-tax money if they refuse to pay their share of GO's bills.
"That's a bunch of crap," Anderson said.
The root of the problem goes back to a provincial decision a decade ago to "download" GO's costs onto municipalities. The province then backtracked a few years later and "uploaded" the costs. But in the meantime — in 2001 — the municipalities agreed to a cost-sharing arrangement on expansion projects through the now-defunct Greater Toronto Services Board.
They now want out of that deal.
"We shouldn't be in this situation," Miller said. "This is a provincial service that should be funded by the province."
Under terms of the 2001 deal, Ottawa and Queen's Park each agreed to pay one-third of the cost, while municipalities would pool resources to pay their one-third share of GO's 10-year capital expansion plan. Municipalities in the 905 regions decided to pay their share through development charges on new residential, commercial and industrial growth.
But they soon ran into problems that left them short of cash: The province refused to give municipalities the ability to raise development charges, developers fought even the small charges they faced and the costs of the 10-year plan kept rising.
That forced municipalities to pay for GO expansion through the property-tax base.
"Property taxpayers should not be forced to pay for growth," Savoline said.
The municipalities have agreed to pay for their 2006 share, but none will commit beyond that. Anderson said the 2006 commitment will force a tax hike in Durham.
"There's absolutely going to be an increase for the residents of Durham," he said. "It's not what we were anticipating.... Until the province addresses the issue, it's ironic that budgets by a body outside the Region of Durham can increase taxes."
GO chair Peter Smith said he will ask to meet with McGuinty. He hopes a $44 million surplus in GO's capital budget can help offset regional costs.
The municipalities also called on the province to end social pooling costs with Toronto and to change the Development Act so they can raise taxes.
"It's such a convoluted arrangement, nobody understands it and the taxpayers get frustrated," McCallion said.
Miller said he was hopeful McGuinty would upload the costs of GO, as well as social housing and welfare.
"The property tax isn't designed to pay for these kind of services," he said. "Premier McGuinty is the first premier to acknowledge the province needs to upload services."