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.