Toronto's $1.2 billion provincial deal expires as Chow wins again

CTV News reported that talks with the province over Toronto’s budget pressures loomed over Mayor Olivia Chow’s election win. The 2023 deal she negotiated, worth $1.2 billion in operating cash from Ontario, is set to expire this year. The city puts its 2027 budget shortfall at roughly $1.1 billion.

An operating budget pays for running services year to year; a capital budget pays for building and replacing long-lasting assets. Toronto’s staff-prepared 2026 budget has an $18.9 billion operating budget and a $63.1 billion capital plan for 2026-2035, which the City calls its largest 10-year plan. The provincial money in the 2023 deal was operating cash, not construction money.

Ms Chow repeated her promise to keep property tax increases at or around inflation. The City says it has limited revenue tools. It is not confirmed that the expiring deal and the 2027 shortfall are linked, or that Ontario will renew the money.

Sources: CTV News · City of Toronto