Del Duca urges Ford, Trudeau to provide ‘urgent financial support’ to municipalities hit by COVID-19

Thestar.com
May 5, 2020
Robert Benzie

As provincial and federal government amass huge deficits to tackle the fallout of COVID-19, cash-starved municipalities are struggling because they are not allowed to run red ink.

That’s why Ontario Liberal Leader Steven Del Duca is urging Premier Doug Ford’s Progressive Conservatives and Prime Minister Justin Trudeau’s federal Liberals to immediately help municipal governments.

In a letter to Ford on Monday, Del Duca calls for the creation of the “Ontario Emergency Municipal Support Fund” to provide at least $4 billion to the province’s cities and towns.

“In order to stave off a crisis, they will need both the provincial and federal governments to step in and provide significant and urgent financial support,” the Liberal leader wrote.

“As you know, they are not permitted to run budgetary deficits and the shortfall that many are facing cannot be made up by property tax increases,” he said.

Toronto Mayor John Tory warned last month the coronavirus is costing Canada’s largest city $65 million a week and could mean $1.5 billion in lost revenue this year.

Tory said that tally could climb to $2.7 billion if the current lockdown lasts for nine months.

Del Duca, a former transportation minister, is also recommending doubling the funding earmarked for cities through the provincial gas tax program so “those communities with local public transit have the support needed to continue operating their systems without fare increases.”

The Toronto Transit Commission has said it is losing about $23.5 million a week due to dramatically reduced ridership because commuters are working from home or their workplaces are closed.

As well, the Liberal leader is imploring Ford to “expedite provincial infrastructure funding to already-approved and viable projects that municipalities have previously budgeted for as a form of important local and regional economic stimulus.”

“When Ontario fully reopens, we will need to do everything we can to get the economy going. But our 444 municipalities cannot wait -- they need your help now,” he wrote.

Ford, who has consulted with Del Duca and other opposition leaders during the state of emergency, has welcomed input from rival parties since COVID-19 shut down the province in mid-March.

The premier has followed the Liberal leader’s advice to raise wages for personal support workers in long-term-care homes and to liberalize alcohol sales.

Asked in April if he would allowed municipalities to run deficits to cope with the aftermath of the pandemic, Ford said Finance Minister Rod Phillips has “been working on a plan.”

“I’ve had this discussion with Mayor Tory,” the premier said, adding Municipal Affairs Minister Steve Clark is working with civic leaders as well.

“I know they’re struggling, but all levels of government right now are struggling financially based on COVID-19 and we’re going to do whatever it takes.”