Olivia Chow's first budget funds busway, shuns police -- and sets up $8 million council battle

Unveiled Thursday, the mayor's budget includes a 9.5 per cent property tax increase, smaller than the 10.5 per cent hike recommended by city staff.

Thestar.com
Feb. 2, 2024
Alyshah Hasham

The Scarborough busway, youth programs, drop-in centres and infrastructure repairs won new funding from Mayor Olivia Chow in her first budget. But it will be up to city council to figure out if they might save a popular snow-clearing service or increase the police budget.

Chow said Thursday city council will get $8 million -- a minuscule fraction of the city's $17-billion budget -- to allocate as it sees fit, either for windrow clearing, policing, street festivals, climate change initiatives or in other needed areas.

Chow launched her version of the budget at the Scarborough Centre subway station, touting the full funding of the Scarborough busway, along with investments to protect renters and preserve affordable housing. The long-delayed busway stopgap is meant to ease transit pain for commuters caught between the closure of the Scarborough RT last summer and the 2030 opening of a subway extension.

Her budget includes a 9.5 per cent property tax increase, slightly less that the 10.5 per cent hike proposed by city staff in early January.

She said she will make up for the $42.2 million in property tax revenue with a one-time withdrawal from the tax stabilization reserve fund.

"We have to make tough choices. I'm not willing to cut services any more. I'm not willing to see the city decline. I'm not willing to see potholes everywhere," she said, defending the historic tax increase as amounting to less than a dollar a day for the average homeowner. "We have to invest because if not, the city will be in decline."

Similar to a move made by her predecessor John Tory in the last budget, Chow chose to set aside $8 million for council to decide how to spend in a Feb. 14 special budget meeting.

The windrow clearing program, which serves only some parts of the city, costs $16 million to run. Toronto police have spent weeks intensely lobbying for $12.6 million in addition to the $1.174-billion proposed by city staff to bring their budget in line with their police board-approved request.

"I was surprised the mayor did not include windrows in her budget but I am hopeful council will work together to restore this important service," said Coun. Jennifer McKelvie, who said she's heard from seniors in her ward of Scarborough Rouge-Park who depend on the service to remain in their homes.

McKelvie said the amount needed to continue windrow clearing at least for the last months of 2024 is about $4 million, which could come from the $8-million that is yet to be decided.

She is also hopeful council can find an offset to provide the Toronto Police Service with the budget increase it is seeking.

"In a $17-billion budget we have to be able to find the resources needed to ensure both of these services are protected," she said.

Chow's budget unveiling comes after staff released a proposed version in early January, which was followed by public deputations, town halls, and finally recommendations for changes made by the budget committee helmed by Coun. Shelley Carroll.

Chow defended her decision not to further increase the police budget, saying the overall budget already funds hundreds of front-line emergency services positions across police, firefighters and paramedics.

All told, Chow said, the police are getting an operating budget increase of $60 million that includes $10 million for policing protests and other major events.

"We want to deal with the root cause of violence," she added. "That is why you see an investment in young people (in the budget)."

Toronto police Chief Myron Demkiw said he is “disappointed” in the mayor's decision, which he said will prevent the force from making the full amount of new hires it needs in 2024, which in turn will affect police capacity over the next two years.

“What we need now is more people,” he said, citing hiring freezes in 2016 and 2017 imposed after reforms under former police chief Mark Saunders and former mayor John Tory.

Demkiw said his team will be forced to look at difficult choices, including cuts to essential services that could include “proactive activities” such as neighbourhood policing.

He also said additional federal or provincial support would be welcome given the wider impact Toronto policing has on the region and country.

Demkiw did not say whether he hoped the $8 million left for council to spend should go toward police, but the head of the union representing rank-and-file officers said Torontonians should make that appeal to their councillors and to Chow.

It is "irresponsible" of the mayor not to meet the police board's full budget request," said Jon Reid, president of the Toronto Police Association in an interview with CP24.

Coun. Lily Cheng, a member of the police board, remains optimistic a "middle ground" will be reached on the police funding.

She said officers she meets are overworked because their ranks are stretched thin due to previous hiring freezes. She agreed with advocates who argue that investments in social services can help address the root causes of crime, but argued a "well supported police" also need to be part of the solution.

"I don't think anyone would say the two should compete for the same amount of money. Unfortunately, it does feel that way. But each needs to be well invested," said Cheng (Ward 18, Willowdale).

The $17-billion budget, which came with increases to funding for front-line emergency services, libraries and shelters, faced a $1.8 billion opening shortfall. Carroll attributed that gap in part to the end of pandemic funding from higher levels of government, but also to years of underinvestment and low tax increases.

As budget chief, Carroll also warned that the property tax increase may have to include an additional "federal impacts levy" should the federal government fail to provide $250 million in funding to shelter refugee claimants in Toronto.

After weeks of pressure, Immigration Minister Marc Miller announced Wednesday evening that the Liberal government will provide $362.4 million in new refugee support nationwide, with $100 million earmarked for Quebec. The exact figure going to Toronto has not yet been announced but it is unlikely to meet the full amount sought by the city. It is unclear if an amount less than $250 million would result in service cuts.

Funding for the Scarborough busway, now estimated to cost $67.9 million, will come from reallocating money in the TTC's capital plan. The busway would partially replace the route of the now-closed Scarborough RT until the subway extension is completed in 2030, but will still take at least two years to build.

Chow also announced Thursday she would reduce the total multi-residential tax rate increase to 3.5 per cent, which is low enough to protect tenants from rent increases above the provincial guideline.

An additional $2 million in funding for community recreation programs was welcomed by CUPE Local 79 representing about 30,000 city indoor staff, said local president Nas Yadollahi.

“Investing more money in community hubs is a long-term investment in the young people of this city,” who need a safe, productive place to hang out, said Yadollahi, a city youth worker who lobbied for the increase.

“When we increase staffing and programming, we’re also increasing accessibility,” so all kinds of people can use the hubs and feel welcome, she said.

Under the "strong mayor" system, a majority of city councillors can amend Chow's proposed budget. The mayor then has up to 10 days to veto the council amendments, if she chooses. Council could override a mayor's veto but only with the support of at least two-thirds of councillors.