In letter to Chow, Freeland puts Toronto budget bailout on province’s shoulders
Global News
A two-page letter from Deputy Prime Minister Chrystia Freeland to Olivia Chow in response to Toronto's request for additional help offered no new promise of funding on Monday.
Toronto Mayor Olivia Chow accused the federal government of finger pointing on Monday, as Canada’s deputy prime minister placed the responsibility to help the city with its pandemic-ravaged finances on the province’s shoulders.
A two-page letter from Deputy Prime Minister Chrystia Freeland to Chow in response to Toronto’s request for additional help offered no new promise of federal funding on Monday. Freeland, who is also the federal finance minister, said the Ontario government has the constitutional responsibility and fiscal capacity to support Toronto.
“It is our firm expectation that they will do so,” Freeland wrote to Chow.
The letter is the latest development in an ongoing saga between the different levels of government over how to tackle Toronto’s pandemic-related budget shortfall.
Chow wrote in a statement Monday that the province had signalled its willingness to partner with the city.
“I remain hopeful that the federal government will join us as well, despite today’s finger-pointing,” she said.
Chow inherited a nearly $1-billion budget shortfall, in large part tied to decreased transit revenues and increased shelter costs. Without more help, city staff have estimated next year’s budget shortfall could be up to $927 million.
Staff reports indicate Toronto could plug the hole in this year’s budget through a COVID-19 backstop fund, drawn from its already depleted capital budget.
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