In letter to Chow, Freeland puts Toronto budget bailout on province's shoulders
TORONTO — Deputy Prime Minister Chrystia Freeland says it's the Ontario government's responsibility to help backstop Toronto's pandemic-ravaged finances, offering no new federal dollars in a letter responding to Mayor Olivia Chow's request for help.
The two-page letter from Freeland to Chow says the province has the constitutional responsibility and fiscal capacity to support the city.
Freeland, who is also the federal finance minister, says it's the federal government's "firm expectation" that the province will do so.
The letter to the Chow comes as the newly-elected mayor inherits a nearly $1-billion-dollar pandemic-related shortfall in this year's budget, in large part tied to decreased transit revenues and increased shelter costs.
City staff have pegged the shortfall in next year's budget, absent further support, at up to an estimated $927 million.
Freeland says federal spending is "not infinite."
The Financial Accountability Office of Ontario has projected a provincial budget surplus of $10.6 billion by the 2025-2026 fiscal year, more than the government-forecasted $4.4-billion surplus.
"Mayor Chow, our government has been – and will continue to be – a committed partner for the City of Toronto," Freeland wrote in the letter Monday.
"However, the ability of our federal government is not infinite – and the emergency support we provided during the pandemic led directly to the excellent fiscal position that the Province of Ontario currently enjoys."
Freeland's letter says the federal government is slated to provide the city with $1.86 billion this fiscal year through various programs, such as funding for public transit, infrastructure and addictions programs.
This report by The Canadian Press was first published July 24, 2023.
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