Toronto asks residents to push federal government to fill $235M funding gap

The City of Toronto is urging residents to call on the federal government to provide $235 million to help the municipality cover a massive pandemic-related budget shortfall.

In a statement released Tuesday, the city said the federal government had committed to match provincial funding to cover expenses largely related to reduced transit revenues and increased shelter costs during the pandemic.

Deputy Mayor Jennifer McKelvie said the city is now asking residents to contact their local federal representative — by sending an email the city has provided a template for — to demand Ottawa support Toronto.

"We are standing up for Toronto — Canada's economic engine — and asking residents to join us in this fight," she wrote in the statement.

"The City of Toronto does not have the resources or revenue tools to address the unprecedented financial pressures of the COVID-19 pandemic. We need the Government of Canada to keep Prime Minister Trudeau's election campaign promise."

Toronto's budget that was approved by council in February was balanced on the assumption the provincial and federal governments would come up with a combined $933 million to bail out the city's pandemic-related shortfalls.

The city email template that residents are being encouraged to use states that without the federal funding, "future frontline services will be affected."

The federal government didn't immediately respond to a request for comment.

Toronto has received 'massive support': Freeland

Federal Finance Minister Chrystia Freeland said in late March that Toronto had received "massive support" from Ottawa throughout the pandemic, including $1 billion as part of a program to help municipalities recover lost revenue.

Coun. Gary Crawford, who is also the chair of the city's budget committee, said Toronto has tried its best to cover its pandemic-related expenses and urged Ottawa to hold up its end of the bargain.

"Since the onset of the COVID-19 pandemic, we have identified more than $2.5 billion in city-led savings, offsets and mitigation efforts," he wrote in a statement Tuesday.

"This year, we introduced the largest residential property tax increase since amalgamation, and we have increased other taxes and fees ... It's time for the Government of Canada to keep its promise."

McKelvie has previously said that the city's next mayor will have to oversee cuts to services if help from other levels of government isn't secured.

The city said it recently received $235 million in funding from the provincial government and noted Ontario has committed to providing $37 million in additional transit funding. Toronto said it has asked Ottawa to provide "at minimum" a matching $235 million to help with the budget shortfall.

Toronto votes in a mayoral byelection on June 26.