Ford government budget cuts expected to cost Peel Region $45 million

Marta Marychuck
May 13, 2019
Thestar.com

Peel faces a $45.1 million shortfall over the next two years, as a result of the provincial budget cuts, costing the average homeowner $68 more each year in taxes, says Norm Lum, director of business and financial planning for the region.

“Council will need to make some very difficult decisions,” Lum said at a meeting last week. “These are incredibly challenging times.”

The Region of Peel is required to provide many cost-shared programs mandated by the province. On April 11, the province released its 2019 budget with additional details in the weeks that followed. A number of announcements have been made, including adjustments to funding models for both 100 per cent funded programs and cost-shared programs.

While the provincial budget spoke to some increases in specific areas of affordable housing and long-term care, a report from Peel Region's finance commissioner Stephen VanOfwegen said there were significant funding reductions for public health and child-care programs.

For example, Early Years and Child Care base funding has been cut by $6.1 million, according to the report. Additionally, VanOfwegen noted, the Provincial Child Care Expansion Plan was cut by $8.3 million, Fee Stabilization Support $4.9 million and Community Homelessness Prevention Initiative $1.3 million.

There have also been reductions in the number of paramedic services, social assistance and employment. At this point, VanOfwegen said there is insufficient information to appropriately assess the financial impact.

Public health will transition from its current cost-sharing formula where the province pays 75 per cent of eligible costs to 70 per cent, starting retroactively to April 1, 2019, and then to 60 per cent on April 1, 2021.

“This is death by a thousand cuts,” said Mississauga Councillor Karen Ras, adding there are a whole host of negative outcomes if the region does not top up the cuts with funding from regional taxes.

Many of the programs that are hardest hit are for vulnerable people, said Caledon Mayor Allan Thompson. “It’s been dumped on us,” he added. “We can’t own this.”

“We have to push back aggressively on this,” said Brampton Mayor Patrick Brown.

“A great example is the provincial cut to the Peel Regional Police prisoner transport,” Brown added. “If we passed on the cut to the police then that means for a month, we would not transfer prisoners from the jail to the court or from the court to the correctional facility. It would essentially mean cases would be thrown out and criminals would get off.”

“Someone down at Queen's Park needs to give their head a shake,” said Brown. “This is ridiculous.”