Toronto Council sets a zero target for city departments for 2018 budget

“This is just the starting point of a process that gives direction (to staff) on how they’re going to develop the 2018 budget,” said budget chief Gary Crawford during the May 25 debate over the proposed budget plan for election year 2018. "This is not an easy process nor should it be. We need to set certain fiscal expectations.”

The 2018 budget plan came forward from Toronto’s city manager Peter Wallace, early in the year. Wallace has identified a shortfall of more than $340 million, and also noted that in 2018, there are few options for finding one-time revenue sources to close that gap.

But he has not, as he did last year, recommend trying a 2.6 per cent cut in spending in city departments – which he acknowledged last year was seldom reached at the end of the process.

Crawford and supporters hinted broadly that by the end of the process, something similar might well happen.

"There was almost nothing that got minus 2.6 per cent this year and there would be some who would be critical of that," said Mayor John Tory. He and others noted that the 2018 budget will inevitably be reflective of the city's values just as was 2017's.

But opponents said that as long as Toronto continued to track toward a property tax hike of no greater than inflation, it is not likely possible to avoid deep cuts.

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• Dec 31, 1969
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That's because a freeze in spending doesn't take into account inflationary costs including wages that rise above the rate of inflation.

“Your staff have told you only have two options,” said Parkdale-High Park Councillor Gord Perks. “You can either increase taxes or make deep and sustained cuts to programs.”

Perks said that those councillors lacking the courage to raise taxes “need to show courage saying which program they wish to harm.”

“It’s been suggested by some at the end of the process we’ll massage it and fix it, and it will be OK,” he said. “Staff have said you can’t do that.”

Perks was speaking in favour of Coun. Mike Layton’s motion to exempt from the freeze poverty reduction programs, shelter services, affordable housing, Toronto Public Health and the child-care growth strategy – which lost 17-27.

Council also voted down a motion by Coun. Stephen Holyday to cut by two per cent, by 9-35.

Council did support a motion from Coun. Giorgio Mammoliti to look at savings that might be accrued if various city-provided services were to be uploaded. And they approved a motion by Layton asking for a report on existing council spending commitments, both capital and operating.

Council approved referring the budget plan to by 30-14.