Doug Ford Rejects New Funding Deal for Toronto

Ontario Premier Doug Ford announced that the provincial government will not offer a second new deal funding agreement to the City of Toronto. The original 2023 agreement, which provided billions for transit, shelter operations, and capital funding, is scheduled to expire on March 31, 2027. Ford cited a provincial deficit that has risen to $16.9 billion as the reason for the decision, stating that the province must be prudent fiscal managers.

While Ford rejected a comprehensive new deal, he indicated a willingness to discuss specific priorities, such as increasing subway policing to combat crime. However, he maintained that the city must be responsible for its own budget.

Toronto Mayor Olivia Chow faces a $1.12 billion budget shortfall and has pledged to keep property tax increases around the rate of inflation. City budget chief Shelley Carroll has argued that Toronto remains the only city in North America with a robust subway system that lacks a predictable, permanent source of operating funding from state or federal governments. Critics warn that the absence of provincial support could result in double-digit property tax hikes and an increase in homelessness.