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Fiscal cloud could be Miller's silver lining
August 20, 2007
by Royson James
http://www.thestar.com/News/article/247893
As crazy as this sounds, Mayor David Miller today is in a better position than ever to achieve a permanent fix for Toronto's fiscal mess.
For the first time since becoming mayor in 2003, Miller has everyone's attention on the budget – closing community centres and libraries has a way of accomplishing what endless talk fails to do. Miller's next "ask" must be for exactly what the City of Toronto needs, nothing less.
Yes, the city's budget is nearly $600 million in the hole for next year. Yes, debt has soared past $2 billion. Yes, the mayor has been announcing service cuts that have further angered residents. And, yes, he has no apparent plan in place to deliver a favourable council vote in October that would restore the nearly $350 million in new taxes deferred last month.
But the mayor has an enormous, historic opportunity. He must seize it by making a bold and risky play for higher property taxes, for new revenue sources not tied to property, and for help from Ottawa and Queen's Park. This three-pronged approach should lace his every speech and strategic manoeuvre.
To ask citizens for anything less than what's needed to build a great city – anything less than a revolutionary financing plan – is to blow this chance.
To pretend that the deferred taxes come close to fixing Toronto's fiscal mess is a mistake. They don't.
Nor can new money from Queen's Park, an essential part of a rescue plan, provide the kind of investment capital required to rebuild the city's infrastructure. Even the 1 cent of GST revenues that Miller wants from the federal government would not be enough to deliver us a shining city on Lake Ontario.
To survive, in fact, Toronto needs all three. And beyond that, if the city is to thrive and become robust and innovative to compete against well-financed world cities, its ratepayers must be persuaded to shoulder slightly higher taxes – with designation of the extra revenues tied to an identifiable renaissance effort.
Miller must know the budget controversy already has residents on edge, attuned to his words and pronouncements about money. He must spell out the situation in bloody, stark terms – using charts and graphics to sell the message to audiences large and small, grassroots and business elite.
He cannot, must not, return to the people with another set of pleas next year and the following year. He must give citizens the full road map now, projected over several years, or lose all credibility.
A few months back, during the 2007 budget deliberations, the city's chief financial officer, Joe Pennachetti, and city manager Shirley Hoy warned that Toronto was headed for financial disaster. Few batted an eyelash. We'd heard the warnings for more than a decade.
"We've never pillaged the parks department or laid off firefighters and I guess until that happens, the average citizen won't get it," Pennachetti said.
The cuts have started. Citizens are beginning to "get it." Many still need to be convinced. But to stop here is to squander this new awareness.
Don't spend time blaming Councillor Denzil Minnan-Wong and others for the cuts. Turn the deferral setback into an advantage.
Tell citizens the entire, ugly story. Challenge them to help make Toronto great despite the obstacles.
Lead, mayor. And don't blow it being cautious.
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