nstn
02-15-2006, 05:16 PM
Toronto has recently found increasing difficulties meeting its financial obligations as a result of provincial downloading of programs and costs such as land ambulance and housing. Will Kingston and other local governments also face these same problems? Based on the current level of financial disclosure at city hall it would be extremely hard to tell.
City deficit could hit $1.5B, CFO predicts
CBC Feb 15 2006
Toronto could face an annual budget shortfall of $1.5 billion by next year unless it makes drastic service cuts or finds a new source of revenue, the city's chief financial officer is warning.
"There's a good chance the city of Toronto's deficit [will be] bigger than the province of Ontario's deficit," Joe Pennachetti told councillors Tuesday during deliberations over this year's budget.
This year's shortfall is now pegged at $415 million, but only because the city is putting off critical infrastructure spending on roads and transit.
If that spending had not been postponed, this year's budget deficit would be closer to $1 billion.
"We're bankrupt. That's the bottom line," said Coun. Frances Nunziata. "When is the time we have to declare it?"
City budget chief David Soknacki said Toronto isn't teetering on the brink of insolvency, but admitted that deep service cuts are looming if the provincial government does not offer some serious financial assistance.
The alternative is a property tax increase of as much as six per cent, double the maximum promised by Mayor David Miller.
City deficit could hit $1.5B, CFO predicts
CBC Feb 15 2006
Toronto could face an annual budget shortfall of $1.5 billion by next year unless it makes drastic service cuts or finds a new source of revenue, the city's chief financial officer is warning.
"There's a good chance the city of Toronto's deficit [will be] bigger than the province of Ontario's deficit," Joe Pennachetti told councillors Tuesday during deliberations over this year's budget.
This year's shortfall is now pegged at $415 million, but only because the city is putting off critical infrastructure spending on roads and transit.
If that spending had not been postponed, this year's budget deficit would be closer to $1 billion.
"We're bankrupt. That's the bottom line," said Coun. Frances Nunziata. "When is the time we have to declare it?"
City budget chief David Soknacki said Toronto isn't teetering on the brink of insolvency, but admitted that deep service cuts are looming if the provincial government does not offer some serious financial assistance.
The alternative is a property tax increase of as much as six per cent, double the maximum promised by Mayor David Miller.