The "one cent now" solution being proposed by city hall does not show our municipal system in its best light. Instead of working on a defensible case to redress decades of bad policy, the city administration seems to have chosen a strategy simply on party politics.

 

At the heart of the issue is an inglorious history of misaligning responsibilities and finances. Provincial governments of all persuasions have mandated responsibilities to municipalities, yet not provided adequate supporting revenues. Whether it is $200 million per year for the city's portion of social housing or $170 million for costs associated with drug benefits and disability support, or the many smaller costs, they all add up.

 

Those taking a contrary view will point out that this provincial government has started paying more, a few functions have been taken off the property tax bill, and the city operates some programs above mandated service levels or at high cost. But the bottom line, especially for Toronto with its huge investment in public transit, is a chronic deficit.

 

To seek redress from the province would be the appropriate strategy. The provincial government has all of the policy levers. It can match responsibilities and funding.

 

Without a doubt, untangling decades of poor policy but pragmatic politics will be a major challenge. As examples, the outside regions are frustrated by paying for social services in Toronto, while Toronto's businesses pay higher education taxes. Nevertheless, injustices are recognized and legislators from both levels have been working at solutions.

 

From a policy perspective, Toronto's plan to solve its financial woes by squeezing the federal government simply buries poor governance under billions from Ottawa. If the feds lose their senses and oblige, no municipality or province nationwide would need to sort out any of their jurisdictional messes. In our case, Toronto wouldn't need to address strategic issues on its services. There would have been no point for the province to grant Toronto new taxing powers.

 

It's so much easier for the city to blame someone else, in this case the federal government. City hall cannot understand that the federal government has little appetite for ongoing involvement in what the government believes - correctly - to be within provincial jurisdiction. One of the core values of the current federal government is tax reduction. Another is not to meddle in provincial issues. It would much prefer to provide some of its revenues to the provinces unencumbered or refund part of its surplus directly to taxpayers. 

 

The recent announcements for funding transit and transportation fit both the prejudices and needs of the federal government. They were targeted, limited in duration, approved through the provinces, politically beneficial and uncontroversial.

 

The most problematic part of the city's strategy is wilfully ignoring parts of the solution that lie squarely within its jurisdiction, and the balance that are the responsibility of Queen's Park. By attacking the federal government, critics will invite the public to look at the credibility of the city's entire case. The city's present position has done itself a disservice.

 

And even if there was the faintest possibility of consideration from the federal government, launching a partisan attack from unfertile political territory makes movement almost impossible.

 

Maybe these calculations are incorrect. Maybe the federal government will be so swayed by the buttons, snappy posters and bluster from political enemies that it will happily send $400 million a year to Toronto.

 

Don't count on it.