Ford labels ‘pooling’ talks with Sousa ‘disgusting’

Mayor Rob Ford has escalated his war of words with the province, decrying his Monday meeting with Finance Minister Charles Sousa on a controversial funding deal as “absolutely disgusting” and “a complete waste of everyone’s time.”

Mr. Sousa struck a more conciliatory note, calling the meeting “constructive and frank” — but he acknowledged the province would not budge on plans to end a special “pooling” arrangement to help fund Toronto’s social costs. The mayor says the city was blindsided by the changes, which will rapidly phase out a provincial transfer the city says should have generated more than $100-million per year until at least 2018 to help pay for programs such as welfare and social housing.

“I’m very, very frustrated right now,” Mr. Ford told a throng of reporters after the meeting at Queen’s Park. “I’m getting punished for running an efficient government. That’s exactly what’s happening here [and] it’s absolutely disgusting.”

Asked whether his discussions with Mr. Sousa yielded any progress on the file, Mr. Ford responded: “None whatsoever.” He said he asked the finance minister to hold off on making a final decision until at least the end of the week, but Mr. Sousa — who later told reporters that more time “wouldn’t change the outcome” — refused.

“[The finance minister] basically told me to increase taxes,” Mr. Ford said. “This is a complete waste of everyone’s time today. I’m very disappointed.”

Mr. Ford, who maintains he will not impose a tax hike beyond 1.75%, says the province’s changes will come “on the backs of the most vulnerable people” in Toronto.

“We just have to shut down some programs ... shut down hostels, not provide the programs,” Mr. Ford said.

For his part, Mr. Sousa said he was still committed to working with the city of Toronto on jobs and growth, noting the province’s larger funding strategy will provide an “overall benefit,” cutting city costs by more than $100-million over the next three years. While the provincial “pooling” transfers of $100-million in 2014 and $50-million in 2015 will be less than the city expected — a 2008 document that Mr. Sousa called a “projection” outlined funding of $142-million in 2014 and more than $100-million in each of the following years up to 2018 — the ministry says it has more than compensated by uploading a host of other social costs and forgiving a loan worth $230-million to the city.

He says other municipalities have complained the “pooling” arrangement, exclusive to Toronto, was unfair.

“This is about fairness, fairness for the entire province, while continuing to invest in Toronto and supporting Toronto residents,” Mr. Sousa said.

“We listened, but I’m not sure the mayor heard us.”

Asked whether he had encouraged Mr. Ford to raise taxes to pay for any shortfall, Mr. Sousa said he simply advised the mayor he had “choices” available. The minister brushed off suggestions he was punishing the mayor for running a fiscally sustainable municipality.

“I’m not playing political games here,” Mr. Sousa said. “I’m trying to provide an economic blueprint that is fair to all of Ontario. [Mr. Ford] basically said, ‘I’m not going to increase taxes, so you go ahead and do it.’ ”