Budget cuts unpopular at city hall

Toronto's push to encourage frugality at city departments isn't going as smoothly as planned.

Budget chair Shelley Carroll asked all city departments in October to slash their budgets by five per cent in an attempt to balance the city's books. Ballooning welfare rolls and plummeting revenues are expected to present the city with a budget shortfall of between $400 million and $500 million this year.

By law, municipalities cannot run a budget deficit, so revenues will either have to increase or expenditures will have to be cut in order to break even.

But with municipal elections looming less than 10 months away, few politicians are willing to cut services.

Both the Toronto Transit Commission and the Toronto Police Service, which together account for more than $2.1 billion of the city's $8.7 billion operating budget, have asked for more money instead of less.

The Toronto Police Service has requested $896 million in funding this year, up from $854 million in 2009. Meanwhile, the TTC is looking for a seven per cent boost to its $1.3-billion operating budget.

In order for Toronto to break even, municipal departments, "especially … big service-driven divisions like the police and the TTC," are going to have to take the city's budget-slashing directive seriously, Carroll told CBC News on Tuesday.

But the two biggest departments aren't alone in their demands. The Toronto Zoo board, Toronto Public Health and the Toronto Public Library board are also asking for boosts to their budgets.

"Public health programs like dental, drug and addiction funding, and other areas of public health programming … are critical for the city and for certain populations in the city," said Coun. Janet Davis.

Rift in library board

Coun. Adam Vaughan, however, said the library board should think long and hard about making service cuts.

"We've got to come to terms with making some tough decisions. Does every library in this city have to be open on Monday? If we close them on Monday what are the savings?" said Vaughn, who sits on both the police committee and the library board.

But that suggestion was rejected in council, said Vaughn, who singled out Coun. Paul Ainslie for criticism.

"You have to talk to Paul Ainslie as to why he thinks that he should impose a five per cent [cut] on everyone else, but is exempt on the boards he sits on," he said.

Such suggestions are untrue, countered Ainslie, who sits on both the budget committee and the library board. Ainslie said he wants to see what cuts other groups submit before cutting the library budget.

Ainslie suggested in October that city departments should consider laying off staff, but did not specify where those layoffs should come.

The city is set to introduce its operating budget on Feb. 16. Torontonians will find out then which services have been cut and which will stay.

The city will hold public hearings in March before voting on the operating budget in April.