Raising property taxes can’t fill the billion-dollar gap

Toronto has a $1-billion budget hole. Most mayoral candidates haven’t explained how they’ll fill it, May 29

With a projected $1-billion deficit this year, Toronto has run out of money. Is the next step bankruptcy? Those hoping to be mayor should acknowledge this reality and offer viable solutions of how they intend to raise the necessary billions to address a steady source of income needed to keep services intact for the projected $46.5 billion in operating and capital costs over the next 10 years, for the additional $500 million to operate our emergency services and to expand the TTC, and the $250 to $400 million to infrastructure improvements and a state of good repair for our roads.

These needs, including fiscal pressures that could amount to an annual budget more than three times the city’s current budget, are only becoming larger and larger. Relying on property tax will not fill the gap as any money from an annual property tax increase would only be in line with inflation.

At city hall, councillors are claiming that the responsibilities outstrip the financial tools to pay for them. Toronto does not have a municipal funding source. Only other levels of government have the taxation tools to cover the billions of dollars needed. However, we also need a mayor who will negotiate with the federal and provincial government for both, committed relief, and how we can collect our own revenue to sustain ourselves. An option suggested by Coun. Shelley Carroll is to introduce a one per cent municipal sales tax which would provide an annual, sustainable source of funds drawn from residents and regional neighbours that use our city.

Canada’s biggest city is at a crossroad. Will those who want our vote have the courage to stop their schoolyard bickering and talk about how they intend to resolve the “real” reality of our financial situation?

Chris Keating, Toronto