Business

Toronto the Bad:
Proposed 2006 city budget a disgrace

Spending projected to rise 17.3% from 2005

Council priorities misplaced

Toronto: The Canadian Taxpayers Federation responded today to the 2006 municipal budget briefing given this morning at Toronto City Hall.  The proposed 2006 budget projects a 17.3% net spending increase over 2005 and includes an operating shortfall of $532 million.

"This budget proposal is an absolute disgrace.  The Citys priorities are completely misplaced and it has failed to find efficiencies to make up for its budget shortfall," said CTF Ontario Director Tasha Kheiriddin, who attended the briefing. "Instead, it once again intends to look to the provincial government and taxpayers to fix this mess."

Based on the budget document, certain areas will see their budgets increase greatly on a percentage and / or dollar basis.  These include:

At the briefing, the increase in the budget for the City Clerks Office was explained as a response to the new City of Toronto Act, which would have to be studied for its impact on the city.  Commented Kheiriddin, "This new Act is supposed to make Toronto more efficient.  Instead, it will cost taxpayers $9 million just to figure out what it means."  

The proposed budget also outlines Councils highest priorities for 2006, which are listed as "Strong Neighborhoods, A Clean and Beautiful City, Year of Creativity, and the Waterfront Initiative."  Increases to these priorities total $3.584 million, including $1.5 million for the Year of Creativity.

"Citizens should be outraged that Council places a higher priority on flowerbeds and art projects than on stopping the gunfire on our streets," said Kheiriddin.  "Torontonians dont need a Year of Creativity.  They need a year of safety, jobs, and fiscal accountability.  This budget doesnt prioritize those concerns at all."

In his remarks today, Budget Chief David Soknacki did not rule out property tax increases to offset some of the budget shortfall.  According to Kheiriddin, "Tax increases should be off the table.  The City should do business more efficiently, contract out work at lower cost, and cut unnecessary spending to make up the shortfall.  If this were the provincial government, it would be facing the equivalent of a $5 billion deficit.  This is a completely unacceptable situation."

Tasha Kheiriddin

CTF Ontario Director