Here Comes The Hike… OUCH

It was only a matter of time. The Federal Budget, while providing some stimulus, falls short of funding many of the Province’s and Toronto’s needs. Premiere McGuinty shrugged off the Fed’s budget since he was already thinking of running defecits as well. The buck stops in Toronto as it can’t spend in excess of taxes collected.

The result was predictable, taxes can’t be kept at inflation as hoped, the budget is here. Toronto now faces tax increases. Predictably the city has opted for increases to taxes (an average of $89 per year mostly through property taxes). Why? Four major cost drivers for the city’s 2009 budget are significant improvements to TTC, increases to the Police budget, increased snow clearing costs, rising welfare caseloads during this recession and labour cost increases after recent TTC and Police labour settlements. What to do?

Cry? Moan? Scream?! Well not about everything. Programs to waive or defer tax increases for seniors and low-income earners will be expanded. Best of all TTC fares are FROZEN and not cut as they have been in the past during tough times. There’s small comfort that the increases are being made to balance the budget and maintain services. It still hurts though.

1 Comment so far

  1. moyra on February 11th, 2009 @ 7:16 am

    I wouldn’t mind paying more taxes for snow removal – if they’d remove the damnable snow!!!



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