Early Tuesday morning, Toronto Mayor John Tory sent a letter and a list of budget recommendations to Ontario Minister of Finance, Charles Sousa, calling on Ontario to become “a full partner in cost-sharing of major infrastructure investments going forward.”
The letter outlines Toronto’s infrastructure expectations given the province’s rejection of tolls. Tory said the province has an “obligation” to help the city pay for the maintenance of both the Don Valley Parkway and the Gardiner Expressway, in addition to helping pay for new lines in the transit network, like the Yonge Relief Line.
Tory’s budget recommendation included the approval of a new revenue tool — a levy on hotel and short-term accommodation. The city of Toronto needs legislative authority from the province in order to tax lodgings; however, it doesn’t want this tool to interfere with the funding already given to Tourism Toronto. Tory is proposing a four per cent tax on hotels and short-term accommodations like airbnb.
In addition to a revenue tool, Tory has outlined a list of recommended items the province should fund, including $820 million to help rehabilitate the Gardiner Expressway, $3.36 billion for the transit network plan, $863 million for Toronto Community Housing, and $50 million for child care subsidies.
These recommendations follow a public exchange by Tory and Ontario Minister of Transportation, Steven Del Duca on Monday, in which Tory told the media the province was not acting like a “full partner” in their commitment to build transit. Tory stood at the Bloor – Yonge subway platform and said the province needed to come up with a plan to help contribute to the relief line and other transit projects. He suggested the province, as well as the federal government, each contribute 40 per cent of the funds for the project. Toronto would then pay for the remaining 20 per cent.
Del Duca responded with his own press statement, saying the Ontario government has “always been a strong partner with Toronto city council” and that they were “not going to play political games with transit.” With words bolded and underlined, Del Duca mentioned the measly $150 million the provincial government has already pledged to the relief line and claimed to be a “stable provincial funding partner at the table” unlike the federal government.
The reality is that Toronto needs billions to develop its transit network — a network that will benefit residents throughout the GTHA as more people use public transportation instead of driving on already congested roadways. The refusal of the provincial government to allow Toronto to fund its own projects through revenue tools like tolls puts projects like the downtown relief line in jeopardy. Toronto’s growth and development is, effectively, at the mercy of Queen’s Park.
Tory understands this and is fighting back. He is trying to make it abundantly clear that if the province doesn’t allow Toronto to explore and use its own revenue tools, then it has to step up to the plate and help pay for these important projects.
There are universal benefits to developing Toronto’s transit network. It will help reduce carbon emissions as less people drive into the city. It will help connect the Greater Toronto Hamilton Area so that people can get from their home to work in a seamless manner. And it will help reduce congestion for those who have no choice but to use their car to get around.
Funding this network is a win-win scenario — and if the province is not going play politics with transit, they would see that.