OTTAWA鈥擳he federal government has bluntly rebuffed new mayor Olivia Chow鈥檚 call for more money for Toronto.
Chrystia Freeland, the deputy prime minister and finance minister, fired off a letter Monday to Chow鈥檚 office after the mayor and Premier Doug Ford demanded Ottawa foot most of the bill to resolve a crisis in refugee housing.
In the missive, Freeland referred to billions of dollars in federal aid Ottawa has given the city since the Liberals came to power in 2015, as well as billions given to the province especially over the course of the COVID-19 pandemic, saying it鈥檚 now up to those two levels of government to meet the city鈥檚 needs.
The letter hammered home what Freeland said she told Chow鈥檚 predecessor John Tory and the deputy mayor: that 鈥渢he province of Ontario has both the constitutional responsibility and the fiscal capacity to support Toronto. It is our firm expectation that they will do so.鈥
Freeland, Ford鈥檚 closest ally in Prime Minister Justin Trudeau鈥檚 cabinet, noted Ottawa has shared costs of 鈥渕any of Toronto鈥檚 biggest projects鈥 in the transit sector, infrastructure, climate action and addictions programs.
鈥淥ur federal government has provided more support to 海角社区官网than any other in Canadian history, with federal investments from 2015-16 to 2023-24 totalling $6.14 billion,鈥 she wrote.
At Queen鈥檚 Park, Ford鈥檚 office emphasized the current disagreement is between Ottawa and city hall.
鈥淭he request by the city of 海角社区官网for additional funding is directed to the federal government,鈥 said Caitlin Clark, the premier鈥檚 press secretary.
鈥淔or our part, Ontario has already stepped up with $3.3 billion in operational funding for 2023 and has fulfilled Toronto鈥檚 request to address their 2022 COVID-19-related budget pressures,鈥 said Clark.
鈥淲e hope the federal government and 海角社区官网can work together to find a solution.鈥
After she first placed all the blame on Ottawa, Chow said in a statement she is 鈥渉opeful鈥 the federal government will join the city and province in working together, 鈥渄espite today鈥檚 finger-pointing.鈥
鈥淪ince I took office earlier this month, the province has signalled its willingness to be a partner with the city of Toronto,鈥 she said.
Chow added the city has had recent 鈥渋mmediate short-term success鈥 working with Ottawa, referring to last week鈥檚 federal offer of an additional $97 million to help house refugees 鈥 many of whom had been camping outside a homeless service centre in downtown Toronto. At the time, Chow and Ford dismissed it as 鈥渟topgap funding.鈥
鈥淭hat is the kind of continued partnership we need,鈥 Chow said Monday.
Last week, the New Democratic mayor and Progressive Conservative premier had implored the Liberal federal government, which is responsible for immigration, to do more, saying their governments were each providing $6.67 million to support another 1,350 individuals and families in Toronto.
鈥淗istorically, the federal government contributes two-thirds of the cost of this program. To meet this commitment to help even more people move into permanent housing, we strongly urge the federal government to provide $26.7 million in funding,鈥 they said then.
Freeland 鈥 who represents the 海角社区官网riding of University-Rosedale 鈥 made clear Monday that the federal government does not accept that 海角社区官网is a municipality that should be crying poor, and noted provincial coffers would soon have a multibillion-dollar surplus.
In this fiscal year alone, Freeland said, the federal government committed $1.86 billion to the city, 鈥渁n increase of about $1.2 billion from 2022-23.鈥
That spending on 海角社区官网is expected to exceed $2.3 billion next year, far more than the $203 million 海角社区官网received in the last fiscal year of the previous Conservative government in 2015, she wrote.
At the same time, Freeland said the city has 鈥渇inancial reserves and reserve funds鈥 that in September 2022 held a balance of $11.2 billion 鈥 up $2.2 billion, or 25 per cent, from 2021.
Freeland said that money could be spent on replacing capital assets, on ongoing program costs or on 鈥渦nanticipated costs.鈥
Specifically, she said, Ottawa estimates that within those city-held reserves, at least $1.6 billion is available in uncommitted 鈥渟tabilization鈥 funds.
A city spokesperson said Monday that Toronto鈥檚 reserve fund totalled $5.43 billion as of the end of 2022, but almost 95 per cent of that money is already committed, and unless the city receives more funding it will be forced to 鈥渕ake a one-time draw from the COVID-19 backstop (part of the committed reserve funds).鈥 This is a 鈥渙ne-time solution鈥 and 鈥渙nce depleted, it will no longer be available for ongoing commitments,鈥 the spokesperson said.
Last week, 海角社区官网city council voted to make 150 new shelter spaces available for refugee claimants and asylum seekers.
In her letter Monday, Freeland referred to that same 2023 operating budget, and Toronto鈥檚 expectation of more than $933 million in continued COVID-19 support from Ottawa and Queen鈥檚 Park.
A federal official, speaking Monday on condition of anonymity, said that from Ottawa鈥檚 perspective, the city and province already have what it takes to cover the $933 million 海角社区官网says it needs.
Freeland said the federal government will continue to be 鈥渁 committed partner for the city of Toronto鈥 but she pointed out that the province got more than $10.2 billion in extra support from Ottawa throughout the pandemic and is projecting a budget surplus of $4.4 billion by 2025-26.
鈥淭he ability of the federal government to spend is not infinite 鈥 and the emergency support we provided during the pandemic led directly to the excellent fiscal position that the province of Ontario currently enjoys,鈥 she wrote.
With files from David Rider and Alyshah Hasham
Tonda MacCharles is Ottawa Bureau Chief and a senior reporter covering federal politics. Follow her on Twitter: Robert Benzie is the Star鈥檚 Queen鈥檚 Park bureau chief and a reporter covering Ontario politics. Follow him on Twitter:
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