Toronto launches proposed 2024 Budget and calls on Federal Government to fund its responsibilities

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Today, the City of Toronto launched the proposed 2024 Budget. We heard loud and clear from residents during pre-budget consultations in November 2023 that you want to protect City services, particularly transit, housing, and safety. 

In short, the proposed 2024 Budget includes:

  • An opening shortfall of $1.8B, with $620M in cost savings and efficiencies found through review (in a typical year, this review results in $400M in cost savings)

  • A proposed Operating Property Tax increase of 9% (an average increase of $321/year)

  • A proposed City Building Levy increase of 1.5% (an average increase of $53/year)

  • $250M in expenditures that fall under the jurisdiction of the Federal Government (e.g. emergency housing for Federal refugees)

  • A proposed Federal Impacts Levy of 6% if the Federal Government does not step up to the table

As many know, Toronto is facing an unprecedented financial shortfall which, if left unaddressed, compromises our ability to deliver services, invest in housing and transit, and build a safe and affordable city for everyone. This reality is already impacting people across our city – we know that 1 in 10 people are relying on food banks, that over 80,000 households are on the waitlist for affordable housing, and hundreds are turned away from our shelter system each night. Together, we must take action to put Toronto on a better financial path so we can provide hope for Torontonians and provide the services that we all rely on.

The need for critical investments did not emerge overnight or as a result of the COVID-19 global pandemic. Over a decade of austerity budgets have impacted Toronto’s ability to deliver essential services and supports to ensure that our communities can thrive - access to childcare, public health programs, libraries, transit, housing and more. Toronto has been doing more for less, and looking for efficiencies for a long time. Torontonians pay some of the lowest property taxes in the province. In a 2020 report Toronto After a Decade of Austerity: The Good, the Bad, and the Ugly, Social Planning Toronto highlighted that over the past decade, Toronto City Council has made the choice to keep property taxes low — the lowest rate in the GTA, Hamilton, and Ottawa. That choice has come at a cost to our city.

We’ve worked hard with City staff to find efficiencies in the City Budget, while protecting and investing in your priorities.

Our city has experienced significant growth and development over the past decade, bringing with it both opportunities and challenges. As we strive to support resilient and thriving communities, it is essential to consider the financial foundation that sustains our public services and infrastructure. Raising property taxes is a difficult decision, and I understand the concerns it may raise. However, this action is crucial for several reasons that directly impact the well-being of our city and its residents:

  • Protecting public services: Our commitment to providing high-quality public services, such as transit, housing, road maintenance, childcare, libraries, public health, student nutrition programs, and more, relies on adequate funding. By raising taxes responsibly, we can safeguard and improve these services, contributing to the overall health and well-being of our communities.

  • Investing in infrastructure: Toronto's infrastructure, including roads, bridges, and public transportation, requires substantial maintenance and upgrades to meet the demands of a growing population and ensure a state of good repair. Increased funding will allow us to address these critical needs, ensuring a safer and more efficient city for everyone.

  • Investing in transit and safety: In response to the priorities you shared with us, this budget ensures that all Torontonians have access to a reliable and safe transit system without issuing a fare increase, and supports the expansion of our City’s emergency response services – including funding for new paramedics and firefighters and the City-wide expansion of the Toronto Community Crisis Service.

  • Supporting economic development: A well-maintained and efficiently functioning city attracts businesses and encourages economic growth. By protecting essential services and infrastructure, we create an environment that fosters prosperity and job opportunities for residents.

  • Addressing climate change: Toronto is taking significant steps to combat climate change through our commitments to TransformTO Net Zero Strategy. Increased revenue will enable us to invest in sustainable initiatives, promoting a greener and more environmentally conscious city for future generations.

We started this Budget with a $1.8B shortfall. In an average year, the City of Toronto’s Budget process works to save approximately $400M in each annual budget. Through deep financial analysis and rigorous consultation and review from every single City division, over the course of many months, we have worked hard to find cost savings of $620M.

Toronto urgently needs the Federal Government’s support.

The City's shortfall is partly a result of an outdated way cities get financed, largely through property taxes and not enough from other orders of government. This results in a structural deficit that can only be addressed through intergovernmental collaboration. The Toronto region contributes approximately 20% of Canada’s GDP, and a significant portion leaves the city through income taxes. When Toronto thrives, so does the region, province and country.

In December 2023, Mayor Chow negotiated a historic New Deal for Toronto with the Provincial Government. In total, the deal commits over $1.2B in operating funding over 3 years and over $3B in capital funding over the next 10 years. While we need this urgent relief, the agreement also commits the City and Province to an Ontario Toronto Review – an ongoing conversation about the City’s long-term financial sustainability. The new agreement will see the Province upload the Gardiner Expressway and Don Valley Parkway and immediately take on the capital and operating expenses of these highways, commit $758 million in funding for new subway cars, and provide $1.2 billion in operating dollars for transit and shelter services. This was an important first step to addressing the long-term financial sustainability of Toronto.

We need the Federal Government to step up immediately to deliver the funding support we need in key areas of Federal responsibility, including emergency shelter for refugees, transit, and housing. Their contribution is critical. Hundreds of millions of dollars that have been committed by the Provincial government are contingent on the Federal Government matching that funding.

I encourage you to contact your Federal representative, MP James Maloney, to ask for his support to move this work forward and deliver the funding we need. You can reach MP Maloney’s office by phone (416-251-5510) or email ([email protected]).

I encourage you to get involved in the City’s ongoing Budget review.

This proposed budget is the beginning of an ongoing discussion with residents. I encourage you to engage in this discussion to share your thoughts and concerns. Together, we can work towards building a stronger and more prosperous Toronto for all. 

I strongly encourage you to share your feedback in a public forum, on the record, by deputing at the January 23rd Budget Subcommittee meeting. A deputation is a short five-minute speech where you can share your comments directly with Budget Committee members.

  • When: There will be two sessions on January 23rd, one from 1:30–4:30pm and another from 6–9pm.

  • Where: These meetings will be hybrid meetings, held in the Etobicoke Civic Centre Council Chamber (399 The West Mall) and online (WebEx).

  • How to register: To register to speak email [email protected] or call 416-392-4666. Please choose a preferred timeslot and register to speak before 4:30 p.m., January 19. Registered speakers will be provided with instructions about how to join the meeting.

If you cannot attend in person to make a deputation, you can submit a written deputation to the Budget Committee by email to [email protected], fax 416-392-2980 or mail to Toronto City Hall, 100 Queen St. W., 10th floor, West Tower, Toronto, ON M5H 2N2.

Learn more about the City’s budget and engagement opportunities here, and take a deep dive into the proposed 2024 Budget here.

Toronto is home to more than 2.9 million people whose diversity and experiences make this great city Canada’s leading economic engine and one of the most diverse cities in the world. We need to invest in the people, places and communities that make our city great and to ensure that Toronto is a thriving, sustainable and liveable city for the future.

Thank you for your continued trust and support.

Yours in community service,

 Councillor Amber Morley
Ward 3, Etobicoke-Lakeshore


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