From today's
Star...
Ontario won't bail out city
As Toronto announces more grim details of cuts, Ontario finds wad of cash and tells city not to expect `rescue'
August 18, 2007
Robert Benzie
Rob Ferguson
Queen's Park Bureau
The provincial government is awash in cash heading into the fall election, but Finance Minister Greg Sorbara insists there's no bail-out for Toronto.
"We are not designing a rescue plan for the city of Toronto," he said yesterday after disclosing the treasury had a surprise $2.3 billion surplus last year – after first projecting a $1.4 billion deficit – and is expected to forecast a $750 million surplus this fiscal year, which began April 1.
Sorbara emphasized that the Liberals, who hold 17 of the 22 seats in the city, have increased funding to Toronto "by some 500 per cent" since taking power in 2003.
"I wish we could say that for every municipality, but we acknowledge the circumstances of the city of Toronto are unique," he told a Queen's Park news conference.
The city is facing a $575 million budget shortfall next year, and Mayor David Miller has announced service cuts of $34 million this year and $83 million next year.
He did it because city council deferred until Oct. 22 his plan to introduce a land transfer tax and vehicle registration fee that together would have raised $356 million.
City councillors yesterday demanded the province give Toronto the help it needs.
"Mr. Sorbara needs to get a crowbar, open his wallet, and give Toronto the resources it needs to be successful,'' Councillor Denzil Minnan-Wong said.
The provincial announcement came on the same day city officials detailed how the cuts will impact neighbourhoods.
Sorbara said the province is "in the midst of a comprehensive review of service delivery between the province and municipalities" that is due early next year.
That review would address problems caused by the previous Progressive Conservative government's downloading of social and health services onto cities and towns.
His comments come as the Liberals have made a flurry of pre-election spending announcements that the Progressive Conservatives have tallied at $25 billion since June. Election day is Oct. 10.
Progressive Conservative Leader John Tory charged that Premier Dalton McGuinty's "orgy of pre-election spending" proves there is money for other priorities.
"Why is it these announcements are coming now? Are they just cynical attempts to rent votes?" Tory told reporters.
"They would never think that maybe that could finally answer the question of how you can give some money back to the taxpayers," he said.
NDP Leader Howard Hampton, who blasted McGuinty for trying "to bribe people with their own money before an election," said his party would improve the lot of Torontonians and all Ontarians.
"We'll deliver balanced budgets, fair taxes and investments that make a difference for people," he said.
"Like the fair deal for municipalities we announced this week that will mean lower property taxes, a two-year transit fare freeze and an end to service cuts," said Hampton.
"Mr. McGuinty got it wrong. New Democrats will make it right," he said.
Sorbara also said the state of Ontario's finances is good, helped in no small part by $400 million in higher-than-expected revenues in the first quarter, but it can't afford to eliminate the annual health tax of up to $900 a person.
"We don't have the money," the finance minister said, attacking Tory's promise to scrap the tax, which brings in $2.5 billion annually, as "easy politics".
"We were elected on a mandate that said we want better public services ... the fact is, that's what we've delivered," he said, adding he will review in 2009 whether to continue the health tax.
As for the city of Toronto's woes, last week McGuinty reminded Ontarians that he empowered Mayor David Miller and city councillors with new taxing authority.
"When we came to power, they said they wanted three things from us: respect, power, and money.
"I've always given them respect and I continue to have a good positive constructive working relationship especially with Mayor Miller," he said on Aug. 10.
"They wanted new powers, I gave them new powers.
"They wanted money, I've increased their level of support fivefold from the Tories. We've been able to do a lot together.
"Not as much as the council would like and in some ways not as much as I would like, but ... I've got to work within the realm of the possible."