Toronto’s deputy mayor renews plea for federal, provincial governments to bail out city

Thestar.com
March 7, 2023

Deputy Mayor Jennifer McKelvie is picking up where John Tory left off, urging the federal and provincial governments to bail out Toronto’s pandemic-ravaged finances to the tune of more than $1.2 billion.

The pleas are in letters to Deputy Prime Minister Chrystia Freeland and Ontario Finance Minister Peter Bethlenfalvy released Monday by McKelvie, who has acted as head of city council since Tory’s shock resignation took effect Feb. 17.

Tory had increasingly warned, since last fall, that residents of Canada’s biggest city face major cuts to services and huge tax hikes unless other governments bail out finances hit by an ongoing drop in TTC fare revenues, plus extra city COVID-19 costs for public health, seniors home staffing and more.

McKelvie said she hopes 2023 provincial and federal budgets deliver on past commitments to “support our city through the pandemic, to build housing, and to support newcomers, by committing more funding for Toronto, the country’s economic engine.

“The asks in these letters will ensure we can build adequate housing for vulnerable residents, increase housing supply across our city, continue to provide wraparound supports and shelter to newcomers and refugees, and ensure city services and infrastructure do not suffer.”

McKelvie seeks a total of $658 million from the federal government and more than $523 million from the province this year to remedy the pandemic “hangover” plus extra costs to shelter refugees, increasing housing stock and more.

McKelvie also tells the ministers that big cities such as Toronto need a new fiscal framework that makes them financially sustainable and resilient to unexpected shocks such as a global pandemic.

Before he resigned over an improper relationship with a woman that started when she was a junior staff member in his city hall office, Tory had vowed to lead Canadian cities in a campaign to get a slice of either sales or income taxes.

McKelvie asks Ottawa for $235 million
From Freeland, the University-Rosedale MP, McKelvie asks for $235 million -- a one-third share of the gap in Toronto’s budget for last year -- and $423 million to cost share, with the city and province, the expected budget hole for this year.

Toronto is grateful for confirmation that Ottawa will give the city $40 million to cover housing costs for a surge of newcomers and refugees, McKelvie wrote, but “more is needed” since the city spent $74 million on refugee claimant accommodation last year and expects to face a $97-million bill this year.

“I believe residents across Toronto -- in all 25 ridings represented by MPs in your government -- want to see our two governments build on our strong partnership through the pandemic, and deliver on our collective goals on promoting affordability, building more housing, expanding transit and creating a lower-carbon economy,” McKelvie wrote to Freeland.

McKelvie thanked the Ontario government for $235 million transferred to Toronto to help cover 2022 pandemic costs but says the city desperately needs another $423 million for this year’s budget hole plus another $87 million for Toronto Public Health costs.

Toronto needs Queen’s Park funds for housing plan
Toronto also needs $48 million for “wraparound services for 2,000 vulnerable residents in supportive homes,” opening this year, McKelvie wrote, and a big boost in provincial funds to help affordable housing creation.

While Toronto has seen an injection of new supportive housing units in recent years, it hasn’t been enough to fill the need.

As of late September, there were 24,085 people waiting for mental health and addictions supportive housing across Toronto, with 341 people moved from the wait-list into housing in the last fiscal year while 3,094 new names were added to the list.

At Toronto’s Centre for Addiction and Mental Health, many patients who no longer have acute medical need are stuck waiting in hospital for months -- in some cases, even years -- until they can access supportive housing. In 2018, researchers found that having such patients in hospital cost anywhere from $51,000 to $58,000 more per year, per person, than offering them the highest level of supportive housing units.

According to the city, the province’s share of the HousingTO plan to get 40,000 affordable homes built by 2030 -- including 18,000 supportive homes -- is about $8.6 billion. To date, the province has committed only about $695 million.

“I believe that this historic Housing Action Plan will be a model for other municipalities -- especially those which have been reluctant to change zoning laws for fear of upsetting NIMBYs by changing neighbourhood character,” McKelvie wrote to Bethlenfalvy.

Later Monday, the federal and provincial governments echoed past statements made to Tory, with no guarantees of any bailout money for 2023.