"the Ontario-Toronto New Deal" | action ASAP SVP
James Ker
From: Councillor Alejandra Bravo <councill...@toronto.ca>
Date: Thu, Dec 21, 2023 at 5:18 PM
Subject: Community Update: Ontario-Toronto New Deal, Happy Holidays, and more
To: James Ker <james...@gmail.com>
James --
City Council met last week to discuss a number of key items, including our submission to the federal Housing Accelerator Fund, strengthening our public and not-for-profit child care system, a plan to responsibly grow our night economy, and several pieces of our work on climate action. I’d like to zero in on one item in particular—the Ontario-Toronto New Deal, negotiated by Mayor Chow and the provincial government to support Toronto’s financial sustainability.
For too long, both the provincial and federal governments have been downloading responsibilities to our city without the financial support required to sustain them. Our transit system supports the movement of all of southern Ontario, our highways are predominantly used by people who live outside of Toronto, and we’ve seen unprecedented need for emergency shelter from refugee claimants who are fleeing violence and persecution and need support.
In the Ontario-Toronto New Deal, the City and Province have come to an agreement about shared priorities and financial support to aid the City’s financial sustainability. The terms of the agreement include:
- $300 million in one-time funding for TTC operations to support ridership recovery, sustainable operations, and safety.
- $330 million over three years to support the operations of two new transit lines—the Eglinton East LRT and the Finch West LRT.
- $600 million over three years to support the operation of shelter beds, contingent on the federal government providing funding for their responsibility to refugee claimants seeking shelter.
- Provincial responsibility for at least $1.9 billion in projected costs associated with the operation and maintenance of the Gardiner Expressway and Don Valley Parkway. Going forward, the province will take full responsibility for these two highways.
-
$758 million to support the
purchase of 55 new subways cars for Line 2. This funding
represents one-third of the purchase cost.
- The City of Toronto has committed funding for an additional one-third, with the purchase contingent on the federal government providing the remaining one-third.
- $342 million over three years through the Building Faster Fund if Toronto exceeds our yearly housing targets by 125%.
The Province of Ontario has also agreed to support the City of Toronto through debt financing, the new Ontario Infrastructure Bank, potential management of City reserve funds through the Investment Management Corporation of Ontario for improved returns, and by aligning the City’s Vacant Home Tax and Province’s Non-Resident Speculation Tax.
This deal is an important step forward. Now, we need the federal government to step up and honour their responsibilities.
Over the summer, the federal government announced $97 million in funding for emergency shelter support for refugee claimants, but the City has still not received a cent of this money. . That funding covers only part of the costs r paid by the City of Toronto this year—the federal government needs to commit an additional $103 million to cover their responsibilities for 2023. Moving forward, $250 million per year for shelter for refugee claimants in our city is needed.
We also need the federal government to come forward with one-third of the cost of new subway trains for Line 2, support to expand capacity in the base shelter system, reimbursement for outstanding costs related to the COVID-19 response, and funding for flood protection along Lake Ontario. All of these costs have been historically borne by all three levels of government, and not the City alone. That’s why we urgently need the federal government to come to the table.
You can read more about the Ontario-Toronto New Deal Agreement here.
This update is my last e-newsletter of 2023—I wish you a very happy holidays and all the best for 2024. I look forward to our continued work together as a community in the new year.
Sincerely,
Alejandra
Bravo
City Councillor • Ward 9 • Davenport
Chair,
Economic & Community Development Committee
