Ford Budget Gets Passed – What’s Next?

In its front page headlines yesterday, the Toronto Star totally ignores the Ford's administrations efforts to reduce the operating deficit to create efficiencies in the City of Toronto's bloated administration.  http://bit.ly/Ar8DwS   Rather than focusing on a budget which limited the property tax increase to 2.5%, reduced the draw in City reserves by over $250,000,000 from the year before, and substantially reduced expenditures, the Star chose to focus on relatively small amendments to Ford's proposed budget that Council ultimately approved totaling $20,000,000.   Having Council agree to restore certain cuts in the budget is merely evidence of a democracy working well.  It should not be viewed as a defeat to the Ford administration which accomplished its goal of substantially reducing expenditures and draws on reserves.  It should be viewed as a recognition that the municipal system operates substantially different from the provincial and federal government systems where one party controls all of the decisions.  The Mayor has only 1 vote on Council.  Out of all of the major cuts, only $20,000,000 was restored by Council.   Politicians do not win popularity contests for cutting expenses which will naturally result in programs being cut, reduced or user fees increased.  That is the reality that cities must face and that countries around the world are facing.   Now that this year's budget has been passed, the next major hurdle will be the negotiations with City staff.  Either way, the City loses.  If the administration caves in to avoid a strike, the inefficiencies and costs that were strongly objected to during the last strike will continue.  If the strike, however, is allowed to take place in order to achieve an equitable and finally acceptable result to the City, the cost to the City in lost revenues and the economic price will be huge.  On the development side alone, delays in processing zoning applications, permit applications, inspections, etc., could result in millions of dollars of additional carrying costs for numerous projects, either in the planning stage, in the midst of construction or approaching completion in the case of condominiums, registration.   We can only hope that resolution to the labour dispute can be achieved quickly but without sacrificing the economic goals that the administration is trying to achieve for the City and its citizens, while maintaining a fair resolution for the City employees.