Ontario has promised Toronto over $1B in new funding. Here's how it would be used

Premier Doug Ford and Mayor Olivia Chow announced a major new funding deal for Toronto Monday, but despite its high price tag, much of the money isn't guaranteed until Ottawa takes a seat at the table.

Much of the attention on Ford and Chow's joint announcement Monday focused on the province taking over two major Toronto highways and the city stepping aside on the Ontario Place redevelopment. 

While major announcements, those two agreements are only pieces of the larger deal, which includes funding agreements that touch on transit, homelessness and housing. However, much of the money is contingent on federal funding. 

On Monday, both Ford and Chow also called on the federal government to similarly increase funding to the city, which has been a regular rallying cry from the pair in recent months.

WATCH | Premier, mayor announce new deal for Toronto:

Toronto uploads Gardiner, Don Valley Parkway to province

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The provincial government will take over responsibility for the two major Toronto highways, Premier Doug Ford and Mayor Olivia Chow announced Monday.

Here's what you need to know about the deal: 

Funding agreements between city and province

• Across three years: $330 million in operating support for new subway integrated provincial transit projects, starting in 2024.
• These funds will be spent on bringing the Finch West LRT and long-delayed Eglinton Crosstown LRT online.
• One-time funding: $300 million for subway and transit safety, recovery and sustainable operations. 

  • Conditional on: Toronto establishing a new transit rider safety committee. 

  • This money would need to go toward increasing the presence of police or safety officers in vehicles and at stations, expanding cell service across the TTC network and creating better emergency reporting options and response times for riders. 

• Across three years: $600 million in shelter and homelessness support for non-refugees. 

  • Conditional on: Federal operating funding support for refugees and asylum seekers. 

  • This spending would build on the province's existing homelessness prevention program, which helps municipalities provide affordable housing and support services. 

• Procurement funding of $758 million to modernize subway trains on Line 2. 

  • Conditional on: Matching funding from the city and federal government. 

  • This money would go toward the purchase of 55 new subway trains to replace those near the end of their life on the city's east-west line. Metrolinx would also purchase an extra 15 trains for the Scarborough Subway Extension and the Yonge North Subway Extension. 

• Across three years: Up to $342 million through the building faster fund.

  • Conditional on Toronto exceeding its annual housing targets by 125 per cent in 2024, 2025 and 2026. 

What do Ford and Chow want from the federal government?

Toronto city hall has been asking the federal government for money since before Chow was elected mayor. In April, deputy mayor Jennifer McKelvie wrote a letter to Federal Finance Minister Chrystia Freeland asking for funds to help the city cover budget shortfalls created by the pandemic. At the time, Freeland said the city it should ask the province. 

In September, Chow and Ford announced the formation of the working group that led to Monday's deal. At that time, Chow said the city is carrying more than $1.1 billion worth of services on behalf of the provincial and federal governments.

In light of Monday's deal, a spokesperson for Freeland said the government "has and will continue to be a strong partner for the people of Toronto."

Here's what Ford and Chow are looking for from Ottawa: 

• $200 million for East Harbour flood protection, which will protect a eight hectare parcel of land slated for significant development just east of the Don River. 
• $853 million for shelter support for refugee and asylum seekers across three years, including $103 million for 2023.
• $675 million to deliver 20 new 80 bed shelters. 
• $235 million for an outstanding federal contribution related to the city's 2022 COVID-19 operating budget pressure. 
• $758 million for new subway trains on Line 2. 

What else came out of the deal?

Aside from the monetary commitments, the province and city have agreed to work together on other goals like increasing the housing stock and reducing gridlock. 

• Within six months, the city and province will look for surplus lands they own that could be developed into housing. Within 18 months, those projects should be started. 
• The city will look for five properties where it could develop modular homes, with a demonstration site ready by Fall 2024 and construction beginning in 2025. 
• The city and province will look to advance immediate opportunities for Waterfront Toronto to build housing on its property. 
• The city and province will work with Metrolinx to manage construction schedules in a way that reduces gridlock. 

As well, the province and city will undertake a review of the sustainability of the city's finances by 2026, which would determine if more action will be necessary and how each level of government can play a role.