H
Hydrogen
Guest
The province alluded to the idea that the entire who-does-what fiasco was to be revenue neutral.
That never came to be.
First non-moderator with a thousand posts. Whoopee!
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The province alluded to the idea that the entire who-does-what fiasco was to be revenue neutral.
That never came to be.
First non-moderator with a thousand posts. Whoopee!
Admiral Beez
Superstar
That's Hydrogen for ya...abundant, tasteless and highly flammable.
H
Hydrogen
Guest
Tastless?
Are you trying to hurt my feewings?
Are you trying to hurt my feewings?
Junglab
New Member
Toronto isn't alone...
Hamilton's budget shortfall hits $40m
TheStar.com - News - Hamilton's budget shortfall hits $40m
August 22, 2007
Nicole Macintyre
The Hamilton Spectator
Start pinching your pennies -- Hamilton's tax man will be raiding your piggy bank again.
The city is staring at a $40-million shortfall -- equal to an 8 per cent tax hike -- heading into next year's budget. Residents will ultimately pay for the cash crunch, whether in taxes or service cuts, unless other levels of government step up with more funding, said Mayor Fred Eisenberger.
"We can't continue to cut and slash," he said, pointing to the financial crisis down the road in Toronto. "It's going to be a significant challenge this year."
Council has already approved two top budget pressures -- expanded ambulance services and improved waste management. To make matters worse, the city will likely have zero assessment growth to offset increased costs.
New residential and commercial growth has not been strong enough to counter losses in the city's industry sector.
"It's going to be a challenging budget," said finance manager Joe Rinaldo.
But Hamilton has been here before. Shortfalls of $40 million or more have been the norm since amalgamation. Council and staff have become masters at the budget shell game, using reserves and switching around funding to lower tax increases.
Even in 2004 when the shortfall hit a staggering $83 million, the tax increase was eventually chipped down to 5.7 per cent. The stress of last year's budget, however, nearly brought the new council to its knees with bickering and power struggles.
The city is already dusting off its knee pads to once again ask the province for extra funding for social services.
Premier Dalton McGuinty announced Monday that the province is picking up the tab for disability support and welfare drug benefits. The move could save Hamilton up to $47 million over the next four years, but finance staff are cautious about seeing any real savings until the province calculates the funding formulas.
Hamilton's budget shortfall hits $40m
TheStar.com - News - Hamilton's budget shortfall hits $40m
August 22, 2007
Nicole Macintyre
The Hamilton Spectator
Start pinching your pennies -- Hamilton's tax man will be raiding your piggy bank again.
The city is staring at a $40-million shortfall -- equal to an 8 per cent tax hike -- heading into next year's budget. Residents will ultimately pay for the cash crunch, whether in taxes or service cuts, unless other levels of government step up with more funding, said Mayor Fred Eisenberger.
"We can't continue to cut and slash," he said, pointing to the financial crisis down the road in Toronto. "It's going to be a significant challenge this year."
Council has already approved two top budget pressures -- expanded ambulance services and improved waste management. To make matters worse, the city will likely have zero assessment growth to offset increased costs.
New residential and commercial growth has not been strong enough to counter losses in the city's industry sector.
"It's going to be a challenging budget," said finance manager Joe Rinaldo.
But Hamilton has been here before. Shortfalls of $40 million or more have been the norm since amalgamation. Council and staff have become masters at the budget shell game, using reserves and switching around funding to lower tax increases.
Even in 2004 when the shortfall hit a staggering $83 million, the tax increase was eventually chipped down to 5.7 per cent. The stress of last year's budget, however, nearly brought the new council to its knees with bickering and power struggles.
The city is already dusting off its knee pads to once again ask the province for extra funding for social services.
Premier Dalton McGuinty announced Monday that the province is picking up the tab for disability support and welfare drug benefits. The move could save Hamilton up to $47 million over the next four years, but finance staff are cautious about seeing any real savings until the province calculates the funding formulas.
Junglab
New Member
Debunking the myths of Toronto's fiscal woes
TheStar.com - Columnist - Debunking the myths of Toronto's fiscal woes
August 22, 2007
Royson James
Toronto has been in a fiscal hole for so long, many myths have sprouted to explain its budget mess. Here's a closer look – and a reality check – at some of the common "wisdom":
1-Toronto is `fat city' – a municipality drowning in wasteful spending
The truth is that since the 1991 recession, Toronto has been on a cost-containment track. Since June Rowlands was at the inner-city helm and Alan Tonks at the Metro level overseeing the TTC, police and waste, the mantra has been to cut costs and fret over property taxes.
Since 1998, the city workforce has jumped by 7 per cent (3,300 jobs), mostly in the police force, TTC (1,358 due to higher ridership) and mandated provincial programs. Even with a 100,000 population gain, cutbacks are a prominent budget feature.
2-It's all the fault of Mike Harris and the damnable downloading of services
The city's woes actually started before Harris, as Toronto absorbed $278 million in cutbacks from premier Bob Rae and others, filtering down cutbacks from Ottawa.
Then Harris took over and things got worse. The premier's swap of services and costs with the city in 1998 was a devastating event. The upheaval took many years and fiscal contortions to fix. Some of the fixes, like transit funding, are still not permanent and thus a cause for concern at city hall.
Even so, the situation had essentially stabilized by 2002, when Harris handed the top job to Ernie Eves. But in recent years Toronto has been hit by a new set of provincial cost-sharing.
3-Harris has given Toronto nothing but grief
Essentially true. But there are at least two good gifts from the Mike Harris years that no one talks about: Education "tax room" and Toronto Hydro.
As part of the services swap in 1998, the province assumed $565 million in education costs that Toronto used to cover out of property taxes. Instead of having to reduce its tax rate, the city was given the "tax room" to spend the savings on other municipal services. That's still the case today.
The gift of Toronto Hydro has netted enormous benefits. In 1998, Harris restructured the province's electricity business by turning over the distribution arm to municipalities. Suddenly, the $1.6 billion Toronto Hydro became a corporation earning profits for city hall.
In an ingenious paper transaction, the city loaned the utility $1 billion to buy back its assets. The result is Toronto gets to pocket about $100 million a year. Yet no one says, "Thanks, Mike."
4-Torontonians are over-burdened with property taxes
Compared with other Ontario cities, no. Compared with across North America, yes. What irks 905ers is that they pay much higher property taxes than neighbours in the 416 area code. In that sense, Toronto homeowners are not paying as much taxes as they could, leaving the door open for a hike. For Toronto businesses, however, the reality is the direct opposite.
5-Toronto doesn't pay its own way and should stop whining
This is a variation of the same theme. While property taxes are low in Toronto, its residents more than compensate for that by having barrels of the tax dollars they pay federally and provincially sent to other parts of the country.
The net outflow from the city of income tax payments by Torontonians is some $11 billion a year.
6-Toronto's amalgamation is to blame for higher expenditures
The premise about big government costing more than small government may be true, but Toronto is not a good candidate for that argument.
There was big government here already, with almost three-quarters of services amalgamated in Metro Toronto.
Harris's forced marriage was unpopular and poorly executed. The marriage itself didn't make costs skyrocket.
TheStar.com - Columnist - Debunking the myths of Toronto's fiscal woes
August 22, 2007
Royson James
Toronto has been in a fiscal hole for so long, many myths have sprouted to explain its budget mess. Here's a closer look – and a reality check – at some of the common "wisdom":
1-Toronto is `fat city' – a municipality drowning in wasteful spending
The truth is that since the 1991 recession, Toronto has been on a cost-containment track. Since June Rowlands was at the inner-city helm and Alan Tonks at the Metro level overseeing the TTC, police and waste, the mantra has been to cut costs and fret over property taxes.
Since 1998, the city workforce has jumped by 7 per cent (3,300 jobs), mostly in the police force, TTC (1,358 due to higher ridership) and mandated provincial programs. Even with a 100,000 population gain, cutbacks are a prominent budget feature.
2-It's all the fault of Mike Harris and the damnable downloading of services
The city's woes actually started before Harris, as Toronto absorbed $278 million in cutbacks from premier Bob Rae and others, filtering down cutbacks from Ottawa.
Then Harris took over and things got worse. The premier's swap of services and costs with the city in 1998 was a devastating event. The upheaval took many years and fiscal contortions to fix. Some of the fixes, like transit funding, are still not permanent and thus a cause for concern at city hall.
Even so, the situation had essentially stabilized by 2002, when Harris handed the top job to Ernie Eves. But in recent years Toronto has been hit by a new set of provincial cost-sharing.
3-Harris has given Toronto nothing but grief
Essentially true. But there are at least two good gifts from the Mike Harris years that no one talks about: Education "tax room" and Toronto Hydro.
As part of the services swap in 1998, the province assumed $565 million in education costs that Toronto used to cover out of property taxes. Instead of having to reduce its tax rate, the city was given the "tax room" to spend the savings on other municipal services. That's still the case today.
The gift of Toronto Hydro has netted enormous benefits. In 1998, Harris restructured the province's electricity business by turning over the distribution arm to municipalities. Suddenly, the $1.6 billion Toronto Hydro became a corporation earning profits for city hall.
In an ingenious paper transaction, the city loaned the utility $1 billion to buy back its assets. The result is Toronto gets to pocket about $100 million a year. Yet no one says, "Thanks, Mike."
4-Torontonians are over-burdened with property taxes
Compared with other Ontario cities, no. Compared with across North America, yes. What irks 905ers is that they pay much higher property taxes than neighbours in the 416 area code. In that sense, Toronto homeowners are not paying as much taxes as they could, leaving the door open for a hike. For Toronto businesses, however, the reality is the direct opposite.
5-Toronto doesn't pay its own way and should stop whining
This is a variation of the same theme. While property taxes are low in Toronto, its residents more than compensate for that by having barrels of the tax dollars they pay federally and provincially sent to other parts of the country.
The net outflow from the city of income tax payments by Torontonians is some $11 billion a year.
6-Toronto's amalgamation is to blame for higher expenditures
The premise about big government costing more than small government may be true, but Toronto is not a good candidate for that argument.
There was big government here already, with almost three-quarters of services amalgamated in Metro Toronto.
Harris's forced marriage was unpopular and poorly executed. The marriage itself didn't make costs skyrocket.
H
Hydrogen
Guest
Why is the city-level of government covering these programs??
Junglab
New Member
The rationale, as originally conceived, was that the province would upload the education system (to equalize services across the province, because the fact that Toronto's locally-funded services were so much better than those found elsewhere was something of an issue those days...), and the cities would, in turn, take over a (large) chunk of social services funding (which the Tories of the day considered to be the firvolous trappings of the welfare state). I believe that this exchange WAS revenue neutral at the time, or at least became so with the changes made ~1 yr later.
However, the cost of providing social services has grown faster than Toronto's revenue, meaning that the funding gap grows with each passing year.
However, the cost of providing social services has grown faster than Toronto's revenue, meaning that the funding gap grows with each passing year.
unimaginative2
Senior Member
Harris presumably hoped that the municipalities' financial struggles could be alleviated by "allowing" them to cut back on welfare spending.
I think the biggest mistake Toronto has made is trying to go it alone on this fight. It makes uploading look like a simple bailout of Toronto, rather than help for all municipalities in the province. AMO represents 407 of 408 Ontario municipalities making up 80% (and rising) of the total population. It would seem that they would be the people who are likely to get what they want.
I think the biggest mistake Toronto has made is trying to go it alone on this fight. It makes uploading look like a simple bailout of Toronto, rather than help for all municipalities in the province. AMO represents 407 of 408 Ontario municipalities making up 80% (and rising) of the total population. It would seem that they would be the people who are likely to get what they want.
ShonTron
Moderator
Member Bio
- Joined
- Apr 24, 2007
- Messages
- 12,417
- Reaction score
- 9,113
- Location
- Ward 13 - Toronto Centre
Yeah, but the AMO really didn't care about Toronto - consider that at the time, the biggest 905 Toronto Basher (no, not Hazel, but Roger Anderson) at the time was the lead. I remember this being a key reason why Toronto pulled an Eric Cartman and said "screw you guys, I'm going home".
JasonParis
Moderator
McGuinty’s upload of bull
By MIKE SMITH
Before David Miller's foes declared that lobbying the province was the only ethical alternative to new taxes, it was that lobbying itself that they decried. Miller needed a Plan B, they said.
Plan B has proved an eminently useful abstraction for the mayor's opponents, being primarily whatever Miller wasn't doing at the time.
Well, could someone call them in, please? Plan B has arrived. Premier Dalton McGuinty announced this week $217 million in uploading for Toronto over the next four years, starting with $38 million in 2008.
For a while now the city has been bracing for a $575 mil shortfall next year. Thus the recent $83 in emergency cuts when the land transfer tax was deferred by council. Even with the Liberal election trinket, a $356 million land transfer tax (hopefully to be adopted in October) and a modest property tax hike of 3 per cent (bringing in about $97 million), the city would face an $84 million shortfall. Those cuts are still needed.
And this is the heart of the matter: maintaining those painful service cuts is the balancer.
In other words, McGuinty, awash in literally billions, has offered "help'' that simply makes those cuts the new precarious status quo.
It took me about three minutes, by the way, to find and crunch – vigorously squeeze, really – those numbers. One wonders about all the councillors who passed on taxes.
But one also wonders what's in David Miller's head in terms of a strategy to restore those lost services.
Has he just given up and assumed they are gone for all time? Has all this recent drama set the stage for a strategy to sell a larger-than-usual property tax hike? Is there a hint, or just hope, that McGuinty's holding onto something more substantial until closer to election day? Or is this simply a vacuum waiting for the mayor's warrior instinct to be aroused – which, we all hope, we'll now get to see.
One can't imagine a better time for the gloves to come off. We're nowhere near square. The budget might balance, as shown above, but service improvements – as in, for example, the $80 million potentially needed next year for the TTC to keep up with ridership growth – won't happen. The transit death spiral looms.
The headlines may have read, "McGuinty eases city's tax burden," but that's sort of like saying that a bout of gangrene eases one's leg burden. McGuinty eased McGuinty's political burden, on our dime.
The preem acknowledges the complaint but not the problem. He's like the proverbial generous dad dealing with his money-dumb kids whining about their paltry allowance, pressing a few bills in their hands. "All right, here you go," he says with a patient smirk, "but you'd better learn how to spend it this time. Now get on with ya!"
Here is a government sitting on a surplus created by the downloading plunder of their supposed enemies, the Harris Tories, that has learned to enjoy the sight of mayors taking the fall for raising taxes.
Not only do cities subsidize the province, but they also subsidize Liberal careers by serving as political buffers.
Harris looms over Ontario's social services like nuclear winter, and the Liberals celebrate his legacy as the gift that keeps on giving. Disgusting.
Other cities are now discovering that Toronto may well be the symbol of their own future as they grow, especially when concerns about sprawl dry the udder of the Development Charge cash cow, as is more or less happening in Mississauga.
McGuinty's assumption – government's assumption – is always that people aren't ready to talk about taxes and what they actually mean.
But if T.O. shows some leadership, sooner or later McGuinty or some remarkably similar rich white bloke will have to learn the lesson Toronto is wading through now: quite simply, you get what you pay for.
news@nowtoronto.com
By MIKE SMITH
Before David Miller's foes declared that lobbying the province was the only ethical alternative to new taxes, it was that lobbying itself that they decried. Miller needed a Plan B, they said.
Plan B has proved an eminently useful abstraction for the mayor's opponents, being primarily whatever Miller wasn't doing at the time.
Well, could someone call them in, please? Plan B has arrived. Premier Dalton McGuinty announced this week $217 million in uploading for Toronto over the next four years, starting with $38 million in 2008.
For a while now the city has been bracing for a $575 mil shortfall next year. Thus the recent $83 in emergency cuts when the land transfer tax was deferred by council. Even with the Liberal election trinket, a $356 million land transfer tax (hopefully to be adopted in October) and a modest property tax hike of 3 per cent (bringing in about $97 million), the city would face an $84 million shortfall. Those cuts are still needed.
And this is the heart of the matter: maintaining those painful service cuts is the balancer.
In other words, McGuinty, awash in literally billions, has offered "help'' that simply makes those cuts the new precarious status quo.
It took me about three minutes, by the way, to find and crunch – vigorously squeeze, really – those numbers. One wonders about all the councillors who passed on taxes.
But one also wonders what's in David Miller's head in terms of a strategy to restore those lost services.
Has he just given up and assumed they are gone for all time? Has all this recent drama set the stage for a strategy to sell a larger-than-usual property tax hike? Is there a hint, or just hope, that McGuinty's holding onto something more substantial until closer to election day? Or is this simply a vacuum waiting for the mayor's warrior instinct to be aroused – which, we all hope, we'll now get to see.
One can't imagine a better time for the gloves to come off. We're nowhere near square. The budget might balance, as shown above, but service improvements – as in, for example, the $80 million potentially needed next year for the TTC to keep up with ridership growth – won't happen. The transit death spiral looms.
The headlines may have read, "McGuinty eases city's tax burden," but that's sort of like saying that a bout of gangrene eases one's leg burden. McGuinty eased McGuinty's political burden, on our dime.
The preem acknowledges the complaint but not the problem. He's like the proverbial generous dad dealing with his money-dumb kids whining about their paltry allowance, pressing a few bills in their hands. "All right, here you go," he says with a patient smirk, "but you'd better learn how to spend it this time. Now get on with ya!"
Here is a government sitting on a surplus created by the downloading plunder of their supposed enemies, the Harris Tories, that has learned to enjoy the sight of mayors taking the fall for raising taxes.
Not only do cities subsidize the province, but they also subsidize Liberal careers by serving as political buffers.
Harris looms over Ontario's social services like nuclear winter, and the Liberals celebrate his legacy as the gift that keeps on giving. Disgusting.
Other cities are now discovering that Toronto may well be the symbol of their own future as they grow, especially when concerns about sprawl dry the udder of the Development Charge cash cow, as is more or less happening in Mississauga.
McGuinty's assumption – government's assumption – is always that people aren't ready to talk about taxes and what they actually mean.
But if T.O. shows some leadership, sooner or later McGuinty or some remarkably similar rich white bloke will have to learn the lesson Toronto is wading through now: quite simply, you get what you pay for.
news@nowtoronto.com
TrickyRicky
Senior Member
I think the one article says it best we need all of budget cuts, uploading and increased revenues in the form of tax and user fee increases to move the city forward. I would add to that list labour reform but for the sake of not polluting the dialogue just accept that as my opinion.
unimaginative2
Senior Member
Miller's critics say books show community centres don't have to shut down
JEFF GRAY
From Tuesday's Globe and Mail
September 18, 2007 at 4:25 AM EDT
New figures from the city detailing this year's projected budget surplus prompted renewed accusations yesterday from critics of Mayor David Miller that the cancelling of city programs at 130 community centres every Monday - starting yesterday - is unnecessary and designed to provoke the public.
"The lights are on, the pools are heated ... the staff are at their desks - and the doors are locked," Councillor Denzil Minnan-Wong said. "It's an excellent example of how the city is not working."
Councillor Doug Holyday, who attended a noon-hour protest at the Olympium swimming complex in his Etobicoke ward, said he believes the closings were meant to turn up the heat on the mayor's opponents who voted against his two proposed new taxes.
"I think it's totally unfair that those people are used as pawns in this political game that the mayor's playing to try to get councillors to support his tax increases," Mr. Holyday said, adding that the city should instead find a way to reduce the wages it pays its unionized work force.
Mr. Minnan-Wong (Ward 34, Don Valley East) seized on figures released yesterday by the city budget chief that showed surpluses in several departments over and above the $30-million the city has so far saved through its cost-cutting measures.
He argued the city could have easily used that money - projected to be about $7.2-million by year's end - to keep the community centres open. The city says the closings will save $480,000 in part-time wages for instructors and pool lifeguards.
The city's budget chief, Shelley Carroll dismissed the argument, saying the city always ends up running a surplus - it is forbidden by law to run a deficit - and that the cost-cutting measures were meant from the beginning to boost it as the city stares down a gaping hole in next year's budget.
"A councillor who makes that assumption just hasn't been reading the budget report every year; he just hasn't," Ms. Carroll said.
Next year, she said, the city faces a $575-million budget shortfall, which will have to be filled by this year's surplus and cost cutting, along with property tax increases, new money from Queen's Park, and possibly further budget cuts of up to $140-million, which may include layoffs - unless council approves the mayor's two new controversial proposed taxes.
The mayor and his supporters argued that the two taxes - an up-to-2-per-cent levy on land transfers and a $60 fee on vehicle registrations - are needed to shore up the city's books. But council voted to defer consideration of the taxes until Oct. 22, after the provincial election.
Ms. Carroll also denied that the community centre closings are a political ploy to increase the pressure on councillors who opposed the taxes.
For instance, she said, 70 per cent of the cost-cutting measures - which will add up to $83-million in next year's budget, are things that citizens won't notice directly, such as delays in replacing departing workers.
City spokesman Brad Ross said the Monday community centre closings would reduce the hours worked by about 2,000 part-time staff. But unionized full-time staff, including administrators and custodians, would continue to work in the buildings, as per their collective agreements.
Also, outside (mostly non-profit) groups using facilities with permits - for example, renting out a city gym - are being allowed to continue as usual, even on Mondays.
The Monday layoffs of part-time workers come just ahead of the beginning of fall programs next week. City officials may be contemplating cuts in full-time unionized staff as part of the 2008 budget process, but any savings from layoffs would be slow to appear.
The city's collective agreements with its unions include complicated notice provisions and require "bumping" - essentially the termination of temporary, part-time and junior positions first.
Mr. Ross said for these reasons, laying off permanent city workers would not have actually saved the city any money in 2007. But Ms. Carroll said yesterday that layoffs could become necessary next year if the city's finances do not improve with new revenue from new taxes or other governments.
The current budget crisis, which has also prompted transit fare increases and other measures, came after council voted to defer the mayor's proposed taxes in July.
A move by Mr. Miller to call an emergency council meeting to reopen the decision on the taxes and discuss the budget cuts this week looked likely to fall short of the required votes yesterday.
"It's disappointing," deputy mayor Joe Pantalone said late yesterday. "We thought the people of Toronto wanted city councillors to get together and sort it out."
The mayor's office came close to the 30 signatures required to reopen a debate on the mayor's tax proposals before the Oct. 22 council vote.
Meanwhile, the issue of Monday closings goes to the Sept. 26 council meeting for debate.
With a report from Jennifer Lewington; Unnati Gandhi
By the numbers
225 Number of full-time recreation staff, not including custodians, whose hours are unaffected by Monday closings.
2,000 Number of part-time staff whose hours have been cut.
$145-million Annual budget for community centres, of which $45-million is offset by user fees.
$480,000 Estimated savings in 2007 from fall Monday closings.
$34.10 Hourly rate paid by the city of Toronto for a part-time Pilates instructor or tai chi instructor at a community centre in Scarborough.
$19.01 Minimum hourly rate paid by the city of Toronto for a part-time Pilates instructor or tai chi instructor at a community centre in Toronto or East York.
$8.80 Minimum hourly rate for a March Break children's program worker.
A family's story
For Abdi Mohamoud's six children, the closing of the Lawrence Heights Community Centre has thrown their daily routine completely off.
Instead of using the centre's computer room every day after school for homework, playing sports with friends at the centre, and then shooting hoops for hours afterward, the kids tried to find ways to occupy themselves at home.
"The kids were outside, with nothing to do. They were bored and so they were kind of hyper," eldest daughter Shukri Mohamed, 21, said last night of her three younger siblings.
She noticed the change in the neighbourhood as well. On her way home from the subway station, she usually sees the community centre packed with youths.
"Today was different," she said. "The guys were sitting on the bench, and you saw the cop cruisers driving by. It just changed the whole vibe of the area."
Unnati Gandhi
JEFF GRAY
From Tuesday's Globe and Mail
September 18, 2007 at 4:25 AM EDT
New figures from the city detailing this year's projected budget surplus prompted renewed accusations yesterday from critics of Mayor David Miller that the cancelling of city programs at 130 community centres every Monday - starting yesterday - is unnecessary and designed to provoke the public.
"The lights are on, the pools are heated ... the staff are at their desks - and the doors are locked," Councillor Denzil Minnan-Wong said. "It's an excellent example of how the city is not working."
Councillor Doug Holyday, who attended a noon-hour protest at the Olympium swimming complex in his Etobicoke ward, said he believes the closings were meant to turn up the heat on the mayor's opponents who voted against his two proposed new taxes.
"I think it's totally unfair that those people are used as pawns in this political game that the mayor's playing to try to get councillors to support his tax increases," Mr. Holyday said, adding that the city should instead find a way to reduce the wages it pays its unionized work force.
Mr. Minnan-Wong (Ward 34, Don Valley East) seized on figures released yesterday by the city budget chief that showed surpluses in several departments over and above the $30-million the city has so far saved through its cost-cutting measures.
He argued the city could have easily used that money - projected to be about $7.2-million by year's end - to keep the community centres open. The city says the closings will save $480,000 in part-time wages for instructors and pool lifeguards.
The city's budget chief, Shelley Carroll dismissed the argument, saying the city always ends up running a surplus - it is forbidden by law to run a deficit - and that the cost-cutting measures were meant from the beginning to boost it as the city stares down a gaping hole in next year's budget.
"A councillor who makes that assumption just hasn't been reading the budget report every year; he just hasn't," Ms. Carroll said.
Next year, she said, the city faces a $575-million budget shortfall, which will have to be filled by this year's surplus and cost cutting, along with property tax increases, new money from Queen's Park, and possibly further budget cuts of up to $140-million, which may include layoffs - unless council approves the mayor's two new controversial proposed taxes.
The mayor and his supporters argued that the two taxes - an up-to-2-per-cent levy on land transfers and a $60 fee on vehicle registrations - are needed to shore up the city's books. But council voted to defer consideration of the taxes until Oct. 22, after the provincial election.
Ms. Carroll also denied that the community centre closings are a political ploy to increase the pressure on councillors who opposed the taxes.
For instance, she said, 70 per cent of the cost-cutting measures - which will add up to $83-million in next year's budget, are things that citizens won't notice directly, such as delays in replacing departing workers.
City spokesman Brad Ross said the Monday community centre closings would reduce the hours worked by about 2,000 part-time staff. But unionized full-time staff, including administrators and custodians, would continue to work in the buildings, as per their collective agreements.
Also, outside (mostly non-profit) groups using facilities with permits - for example, renting out a city gym - are being allowed to continue as usual, even on Mondays.
The Monday layoffs of part-time workers come just ahead of the beginning of fall programs next week. City officials may be contemplating cuts in full-time unionized staff as part of the 2008 budget process, but any savings from layoffs would be slow to appear.
The city's collective agreements with its unions include complicated notice provisions and require "bumping" - essentially the termination of temporary, part-time and junior positions first.
Mr. Ross said for these reasons, laying off permanent city workers would not have actually saved the city any money in 2007. But Ms. Carroll said yesterday that layoffs could become necessary next year if the city's finances do not improve with new revenue from new taxes or other governments.
The current budget crisis, which has also prompted transit fare increases and other measures, came after council voted to defer the mayor's proposed taxes in July.
A move by Mr. Miller to call an emergency council meeting to reopen the decision on the taxes and discuss the budget cuts this week looked likely to fall short of the required votes yesterday.
"It's disappointing," deputy mayor Joe Pantalone said late yesterday. "We thought the people of Toronto wanted city councillors to get together and sort it out."
The mayor's office came close to the 30 signatures required to reopen a debate on the mayor's tax proposals before the Oct. 22 council vote.
Meanwhile, the issue of Monday closings goes to the Sept. 26 council meeting for debate.
With a report from Jennifer Lewington; Unnati Gandhi
By the numbers
225 Number of full-time recreation staff, not including custodians, whose hours are unaffected by Monday closings.
2,000 Number of part-time staff whose hours have been cut.
$145-million Annual budget for community centres, of which $45-million is offset by user fees.
$480,000 Estimated savings in 2007 from fall Monday closings.
$34.10 Hourly rate paid by the city of Toronto for a part-time Pilates instructor or tai chi instructor at a community centre in Scarborough.
$19.01 Minimum hourly rate paid by the city of Toronto for a part-time Pilates instructor or tai chi instructor at a community centre in Toronto or East York.
$8.80 Minimum hourly rate for a March Break children's program worker.
A family's story
For Abdi Mohamoud's six children, the closing of the Lawrence Heights Community Centre has thrown their daily routine completely off.
Instead of using the centre's computer room every day after school for homework, playing sports with friends at the centre, and then shooting hoops for hours afterward, the kids tried to find ways to occupy themselves at home.
"The kids were outside, with nothing to do. They were bored and so they were kind of hyper," eldest daughter Shukri Mohamed, 21, said last night of her three younger siblings.
She noticed the change in the neighbourhood as well. On her way home from the subway station, she usually sees the community centre packed with youths.
"Today was different," she said. "The guys were sitting on the bench, and you saw the cop cruisers driving by. It just changed the whole vibe of the area."
Unnati Gandhi
scarberiankhatru
Senior Member
I love how the community centre closings are being portrayed as the first step towards every "youth" joining a Monday night gang and going out on murderous Monday night crime sprees. Maybe this whole municipal funding crisis is a funeral home conspiracy to boost business during the otherwise slow mid-week?
lordmandeep
Banned
however its quite pathetic that Miller goes after something that is important to be cut, while he does not cut other things.
If he cut freebies to councilors, sure it will be a drop in the bucket in a monetary value, but its a very strong symbolic message though.
Really cutting off community centers save 700k out of what 500 million! Just as useless
to save 500 million or even 100 million, wage and employment freezes are necessary.
If he cut freebies to councilors, sure it will be a drop in the bucket in a monetary value, but its a very strong symbolic message though.
Really cutting off community centers save 700k out of what 500 million! Just as useless
to save 500 million or even 100 million, wage and employment freezes are necessary.
H
Hydrogen
Guest
I didn't poke my head around any community centres Monday, but if this is true, then strike another hit against Miller and his piss-poor political abilities.
In essence, he closed a city service to the public in order to pressure other councillors to support a tax increase - all the while keeping that facility lit and staffed. He used the public (the tax payers) to make his point. Dare I say, a page right out of the union handbook.