Cities to share $4B in virus aid for Ontario

Federal, Queen’s Park monies destined for transit, critical services

The mayor of Ontario’s largest city applauded the announcement Monday that municipalities in the province will share $4 billion in funding to help cover budget shortfalls caused by the COVID-19 pandemic.

The city of Toronto alone faces a shortfall of $1.35 billion by the end of this year after city staff identified opportunities for savings. Most of that budget hole — $700 million — is attributed to the TTC and declining ridership.

“I am hopeful that we can get the entire $1.3 billion but I can’t say that I’m expecting it,” Mayor John Tory said after the announcement of the provincial and federal funding plan for 440 cities and towns.

Earlier, the city outlined significant cuts to services that would be required if funding did not materialize, including to libraries and police.

Tory said the city does not have the breakdown for how much Toronto will get, but called the announcement a “very positive sign.”

He encouraged the province to use up-to-date information such as transit ridership to determine how the money is shared between municipalities.

Premier Doug Ford said the money announced Monday will ease budget shortfalls and that details will come in the next few weeks.

“This funding will help restart our economy,” he told a news conference at Queen’s Park, noting it’s part of a $19-billion deal negotiated by the provinces with the federal government last week.

There will be $2 billion for transit systems, split between Queen’s Park and the federal government, and $2 billion for municipalities, including $777 million from the feds and $1.22 billion from the province.

Transportation Minister Caroline Mulroney said some transit systems have lost 90 per cent of their ridership and face higher costs for cleaning, making financial assistance crucial to keeping lines running for essential workers and others to get to their jobs.

“It’s an important investment in communities in every part of our province, and in Ontario’s economic recovery,” said Jamie

McGarvey, president of the Association of Municipalities of Ontario.

Municipal and regional government leaders from the Greater Toronto Hamilton Area (GTHA) called the funding promise a “positive sign” in a joint statement after a meeting Monday.

Municipal Affairs Minister Steve Clark said money won’t be provided until the federal government releases it and calculations can be made to determine how much each municipality gets.

Opposition parties said municipalities need more funding, particularly for daycare and long-term-care homes.

“Unless the government is willing to shore up child care with an immediate investment, there will be an exodus of working moms from the economy,” warned Green Leader Mike Schreiner.

“It still fall far short of what will be needed to protect jobs and public services over the long term,” said New Democratic MPP Jeff Burch (Niagara Centre).

After the $19-billion deal was reached last week, Ottawa said $4.5 billion would be to buy personal protective equipment plus $3 billion to support provincial purchasing efforts; $4.28 billion will go to testing and contact tracing; $2 billion for municipalities; $1.8 billion for transit that the provinces must match; $1.1billion for temporary income support for sick leave; $740 million to support vulnerable populations and long-term care; $700 million for health-care capacity plus $500 million for mental health; and $625 million for child care.