Need more cash? Ask Ford, not feds, says Freeland in letter to Chow

Deputy Prime Minister and Minister of Finance, Chrystia Freeland, has rebuffed Toronto Mayor Olivia Chow’s request for more money to help bail the city out of its pandemic-related budget woes, putting the onus instead on Doug Ford’s surplus-rich Ontario government.

In a two-page letter to Chow, Freeland highlighted a laundry list of investments Justin Trudeau’s government has aided both Toronto and the province on Ontario with, while noting that “the ability of the federal government to spend is not infinite.”

“In order to address the City of Toronto’s budgetary requirements, I must reiterate a message that I conveyed directly to then-Mayor Tory and Deputy Mayor McKelvie: the Province of Ontario has both the constitutional responsibility and the fiscal capacity to support Toronto. It is our firm expectation that they will do so.”

Chow has inherited a nearly $1-billion-dollar shortfall and has been vocal about needing more money from the federal government. The COVID pandemic cratered transit revenue, and shelter costs have skyrocketed.

Letter to Mayor Chow – Federal Funding to Toronto by CityNewsToronto on Scribd

But Freeland pointed out that the feds have already committed $1.86 billion in federal funding to Toronto for 2023-2024, and suggested the city could also look within its own coffers for much-needed cash.

“I would also note that Toronto, like other municipalities, maintains financial reserves and reserve funds, which accumulate over time and can be used to replace capital assets, fund ongoing program costs, or react to unanticipated costs,” Freeland hinted.

Chow responded to the letter, saying she remains “hopeful” despite Freeland’s ‘enough-is-enough’ tone.

“Since I took office earlier this month, the Province has signaled its willingness to be a partner with the City of Toronto. I remain hopeful that the Federal government will join us as well, despite today’s finger-pointing,” Chow wrote.

“Recently, when we worked together sheltering refugees, we saw some immediate short-term successes. That is the kind of continued partnership we need to deliver affordable housing, fast and reliable transit, and good public services for the people of Toronto for years to come.”