Mayor Rob Ford has unveiled a city budget that curbs spending and boosts revenues with a combination of layoffs, service cuts, fee increase and a property tax hike.
Under Mr. Ford’s plan, the city would balance its books by shedding 2,300 workers, jacking TTC fares by 10 cents and pulling $83-million from reserve funds – all resulting in a budget that’s anticipated to come in $52-million lower than last year’s $9.4-billion.
“For the first time ever, folks, we will spend less next year than we did this year,” Mr. Ford said during a morning press conference. “That is unheard of.”
City staff did not offer a full list of the $225-million in service cuts they have carved from the 2012 budget outlook released earlier this year, which anticipated a budget deficit as high as $774-million. Instead they opted to provide reporters with a few examples:
– defer hiring of 340 emergency workers;
– cut 7 per cent cut from the Toronto Public Library’s budget for open hours and collections;
– reduce hours at arenas;
– terminate recreational programs at some share-use TDSB schools;
– shutter 5 wading pools and 2 outdoor pools;
– end WinterCity outdoor programming;
– close three shelters;
– and trim road cleaning by $4.2-million.
Councillors opposed to the mayor’s cost-cutting agenda immediately called out Mr. Ford for a budget document that counters his campaign pledge to par down the budget without affecting city services.
“Remember this is the mayor that promised no service cuts,” said Councillor Janet Davis. “And now we’re seeing 2,300 layoffs.”
Late last week, the Toronto Transit Commission pre-empted one of the most glaring of those service cuts, announcing reduced service on dozens of routes.
“You think this is a good budget, Mr. Mayor?” said Councillor Joe Mihevc. “Tell that to the people who are going to be waiting an extra five, 10, 15 minutes at the bus stop. Tell that to the kids who are losing their wading pool. Tell that to the people who want their parks trimmed more frequently.”
Mr. Ford preferred to put the diminished service in a different light.
“Through our core service review, service efficiencies and modest service adjustments we found $355-million in savings this year,” he said. “That’s 10 per cent of our 2011 net budget.”
Many of the cuts reflect Mr. Ford’s demand for 10-per-cent cuts across most city departments. City Manager Joe Pennachetti admitted Monday morning that several departments missed the targets. He said Fire and EMS only managed a three per cent trim and Parks, Forest & Recreation managed a six per cent reduction.
On the revenue side, the TTC fare hike will yard in an extra $30-million and a 2.5 per cent property tax hike will yield $57-million.
“We feel it is an inflationary tax increase,” said Mr. Pennachetti.
Staff also released a proposed capital budget that slices $1.1-billion from planned TTC projects over the coming nine years, including purchases of subway cars, streetcars and platform edge barriers at subway stations.
Budget chief Mike Del Grande hailed the document, telling the budget committee: “It's too bad the rest of the world doesn't have the courage to do what we are doing today.”
The morning’s presentation of the budget was interrupted by hecklers. Two men were expelled from the council room and the meeting relocated to a smaller room.
Monday simply marks the launch of the budget process. The document will filter through a series of public budget committee meetings in December before going to council on Jan. 17.
Herewith, a few of the budget adjustments that will have the largest impact.
