The Canadian Taxpayers Federation is pushing back against Ontario municipalities’ demand for billions in funding from the federal and provincial governments because they need to tighten their belts and get spending under control.
“Municipal governments are peddling a false binary to deal with the holes in their budgets: raise taxes or cut services,” said Jasmine Moulton, the CTF’s Ontario Director in a release on Tuesday.
“There’s a better option for struggling taxpayers: municipalities should tighten their belts, stop wasting taxpayers’ money and bring spending under control.”
Meantime North Bay Council unanimously agreed to support the funding request recently with a letter to the Prime Minister, and the Minister of Infrastructure and Communities.
“What they said from the beginning was if you give $10 billion to municipalities, divide it with a fair formula, there are larger and smaller centres, but everybody gets something, it will help them to be able to deal with the shortcomings that are coming,” explained Mike Anthony, North Bay city councillor.
“I believe it is a respectful request but if we can continue to make some noise, continue to join others, encourage our neighbours to join in as well, I would be hopeful that the government would hear.”
See related: Council supports FCM request for $10 billion in federal funding to help municipality during the pandemic
The Association of Municipalities of Ontario issued an emergency call for financial support on Monday, joining the national effort led by the Federation of Canadian Municipalities. At least $10 billion is being sought from the federal and provincial governments. About $4 billion would be distributed to municipalities in Ontario that say they’ll raise property taxes, user fees and charges and cut services if they don’t receive the money.
Moulton believes municipalities should be looking for ways to save instead of raising taxes and begging for taxpayers’ money from other governments.
She thinks this could be done by reducing government employee compensation and cancelling pet projects.
The CTF released a report showing Toronto’s proposed Rail Deck Park would likely cost at least $3.8 billion, more than double the city’s original estimate of $1.7 billion. Despite the economic crisis, Mayor John Tory said the city will proceed with plans for the park.
More than 2 million Ontarians lost their jobs or have had their hours significantly reduced since the lockdown and 87 per cent work outside government.
The CTF has called for government employees to help shoulder the burden of the economic crisis, citing high politician pay, government employees’ 10.3 per cent wage premium, and 375 city of Toronto employees with two pensions as a few examples that prove there’s room for savings.
“If municipalities were truly desperate, they would cancel pet projects and reduce the size and cost of government – including their own salaries which are grossly out of line with reality,” said Moulton.
“There’s a lot they could do to save money. Until then, they have zero credibility asking for more.”
