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Toronto to face budget shortfall of $177M in 2019 due to funding cuts: City Manager

Last Updated May 9, 2019 at 11:41 am EDT

City council has approved a 2.55 per cent property tax increase as part of the 2019 operating budget. CITYNEWS/Tony Fera

Toronto’s City Manager says funding cuts by the provincial government will lead to an estimated $177.65 million budget shortfall in 2019 alone.

In a letter to Mayor John Tory and City Council, Chris Murray outlined where their approved budget will come up short.

City staff estimate the cuts to Children’s services will amount to $84.8 million, while the shortfall from Toronto Public Health will be $65 million.

The cancellation of the planned provincial gas tax funding increase leaves them without an expected $24 million that would have gone towards the TTC conventional state of good repair capital program.

The city was also informed they will not be receiving a cost of living allowance increase for it’s land ambulance grant funding, amounting to a cost pressure on Toronto of $3.85 million.

The letter also outlines cuts to grants to Toronto organizations that do not have direct financial implication on the budget, but would affect Toronto residents and businesses.

These include the cutting of provincial funding to Tourism Toronto, cancelled future funding to the OCAD capital expansive project and 30 per cent funding cut to Legal Aid Ontario.

Mayor John Tory and Premier Doug Ford have been caught in a war of words over how much funding cuts will be affecting Toronto, specifically over the city’s claim they will be losing $1 billion in funding over 10 years to Toronto Public Health.