Ontario cancels $150M in funding for Toronto

Ontario Finance Minister Charles Sousa speaks about $150 million of cancelled funding for Toronto, at Queens Park in Toronto, Friday, June 21, 2013.

The Ontario government has cancelled $150 million in funding for the city of Toronto, but Finance Minister Charles Sousa said the cuts in funding are fair and the province will continue to support the city in other ways.

In a letter issued to Toronto Mayor Rob Ford last week, Sousa outlined the cuts, which are expected to greatly affect the city’s programs.

The following programs will be phased out of receiving provincial funding over the next three years:

At a news conference Friday afternoon, Ford blasted the provincial government and said he was “shocked” to learn about a plan to withdraw crucial funding without any prior notice.

“These are vital, vital funds that we need to continue helping our most vulnerable residents,” Ford said.

The mayor said city hall will have to make up for the budget shortfall with cuts to social programs.

“I am not increasing taxes over what I promised – one and three-quarter per cent,” Ford said, adding he would not stray from his election promise to keep taxes low.

Speaking to reporters earlier Friday afternoon at Queen’s Park, Sousa addressed the letter.

"Other municipalities, they were complaining that Toronto was even getting more than they were, so we're just trying to be fair and equitable,” he said, explaining that the cuts affect a special pooling arrangement that is exclusive to Toronto.

He said Toronto will receive funding for the next three years, with $364 million slated for social programs this year, growing to $500 million by 2016.

Sousa emphasized that the province will continue to support Toronto in terms of transit and community housing, but said that the government must protect all Ontario taxpayers.

“Eliminating the deficit is very important step so the province can grow the economy, create jobs and continue delivering the best education and health care in the world.” Sousa wrote in his letter to Ford.

Toronto’s city manager Joe Pennachetti said the province promised the funding five years ago and the city was counting on that revenue to help fund the Toronto Community Housing Corporation.

“It’s about housing. It’s about a commitment that we thought was good until 2018,” Pennachetti said.

The mayor said he is “fully confident” the city and Queen’s Park can find a resolution.

He is scheduled to meet with Sousa on Monday to discuss the matter.

With a report by CTV Toronto’s Natalie Johnson