March 23, 2006
STRENGTHENING ONTARIO'S LARGEST CITY
Supporting Growth and Prosperity In The City of Toronto
The City of Toronto plays a vital role in both Ontario's and Canada's economies. It is a centre of commerce and innovation, and is the third-largest financial centre in North America.
The McGuinty government is the first to propose legislation that recognizes the City of Toronto as a responsible, accountable government. If passed, the Stronger City of Toronto for a Stronger Ontario Act would give Toronto the broad permissive powers needed to become more fiscally sustainable and autonomous. This Act would provide the City with potentially new sources of revenue and greater control over the services, programs and public assets it manages.
In addition to these proposed new revenue sources, the Province is providing significant new assistance to the City of Toronto in 2006. Key elements of this assistance include:
- A $200 million one-time transit investment that the City will be able to use to support Toronto Transit Commission subway operations;
- $1 million through Move Ontario towards an environmental assessment relating to the future of the Scarborough subway;
- $130.4 million in gas tax funds in 2006 — approximately $40 million more than in 2005 — available for support of transit operations, as well as capital expenditures;
- $10.4 million in increased land ambulance funding; and
- $35 million through a new enhancement to the Ontario Municipal Partnership Fund that addresses high municipal social program costs relative to residents' household incomes.
Taken together, these measures provide Toronto with multi-year funding to significantly address its budget pressures until a long-term solution to the fiscal imbalance with the federal government is reached.
Extending Toronto's Subway System
Toronto will also benefit from the $838 million provided through Move Ontario for priority transit projects in the Greater Toronto Area (GTA), the largest provincial investment in municipal transit infrastructure improvements in the GTA since the mid-1970s. Move Ontario transit investments would enable an additional 42 million transit rides in the GTA, resulting in 35 million fewer car trips on Ontario roads and highways each year.
Through the Move Ontario Trust, the Province will provide $670 million to Toronto and York Region. These municipalities will be able to use the funding for new subway construction that crosses a regional boundary in Ontario for the first time.
These priority transit projects in the GTA will not only improve transportation infrastructure and reduce the number of cars on the roads in and around Toronto, but they will have a positive benefit on the economy with the creation of about 23,000 jobs.
Providing Toronto With New Financing Options
To assist with brownfield redevelopment and public infrastructure development, the Province is proposing to introduce legislation to enable Tax Increment Financing (TIF). This new municipal fiscal tool would be introduced on a pilot basis, allowing for its prudent review in an Ontario context. If the legislation is approved, the two planned pilot projects would be the subway expansion involving York Region and the City of Toronto, and the West Don Lands brownfield redevelopment initiative, which is part of the revitalization of Toronto's waterfront.
Supporting Toronto's At-Risk Youth
Strong and safe communities support a cohesive society, strengthen economic growth, and improve opportunities for the most vulnerable youth, especially those at risk of engaging in violent behaviour.
At-risk youth in Toronto will benefit from the Province's investments in the Youth Challenge Fund, which is chaired by Toronto Argonauts head coach Mike "Pinball" Clemons and will support community-led programs offering young people positive alternatives to guns and gangs. The government is providing an initial investment of $15 million and has committed an additional $15 million over three years to match contributions by the private sector, for a potential total investment of up to $45 million in at-risk youth.
The fund will focus on:
- identification, prevention and early intervention;
- engage youth in activities to help them succeed, such as learning, sports, mentoring and tutoring, and job experience;
- provide a lever to stimulate community involvement; and
- support community-based solutions.
The government is also providing more than $28 million in the first three years of a new Youth Opportunities Strategy to expand employment and training programs and support the hiring of new outreach workers in at-risk communities across the province.
Contact:
Scott Blodgett
Ministry of Finance
416-325-0324
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You can access the 2006 Budget and all related documents at www.ontariobudget.ca,
or by calling 1-800-337-7222.