Ford rules out Toronto 'New Deal 2.0' as Chow looks for a structural fiscal fix

Ontario Premier Doug Ford said at Queen's Park on November 4 that he will not sign a second long-term funding agreement with the City of Toronto, saying there will be no "New Deal 2.0." Re-elected Toronto Mayor Olivia Chow responded on November 6 that the city must find another structural financial solution.

Ford: province has given $9 billion; city must manage its own budget

According to CP24 and Global News, Ford was asked on November 4 whether he would sign a new deal and replied bluntly that there is no 2.0. He said the province has given Toronto $9 billion, that the city must be responsible for its own budget, and that it cannot always rely on the province during "really tough times." The first "New Deal for Toronto," signed in November 2023, was a three-year, $1.2-billion agreement under which the province took over the Gardiner Expressway and the Don Valley Parkway, along with $7.6 billion in capital funding and $1.2 billion for transit and shelter operations; it is now expiring. Ford nevertheless left room to talk about specific priorities with Chow, such as fighting crime and adding more policing on the subway. Finance Minister Peter Bethlenfalvy also said the province has no plans for a new deal; Ontario is projecting a deficit of nearly $17 billion this year.

Chow: hiring freeze on non-front-line roles; line-by-line review

Speaking at an event on November 6, Chow said the city has to find a path forward for a structural financial solution because not being able to sustain it in the long term is always a problem. She said the city will freeze hiring for non-front-line roles while continuing to hire front-line staff, and will carry out a line-by-line review of spending to find savings, as it did last year. Toronto is preparing its winter budget with a shortfall of about $1 billion. The mayor's office said Chow looks forward to meeting the premier to discuss shared priorities including housing, transit and public safety. Ford also reminded Chow of her campaign promise to keep property tax increases in check.

(Sources: CBC; CP24; Global News; CityNews.)