Toronto mayor's final budget mostly unchanged, keeps tax hike

Mayor Olivia Chow presented a mostly unchanged final version of her 2025 city budget Thursday, which keeps a proposed 6.9 per cent tax for homeowners, saying Torontonians want improved city services and a better quality of life — and they're willing to pay for them.

The updated version of the mayor's first budget proposal from Jan. 13 includes an operating budget of $18.8 billion, as well as a $60-billion 10-year capital plan. It's set to go to council on Feb. 11.

The proposed budget would pay for services including transit improvements, expanded school meal programs, protections for renters and increased spending on affordable housing programs, Chow said at a news conference Thursday morning in the city's St. James Town neighbourhood.

Money would also go toward expanding library hours, the TTC fare freeze and the hiring of more emergency responders and traffic agents.

"Tough choices have to be made as we continue to climb out of a decade of neglect," Chow told reporters, defending the proposed tax increase. "We cannot balance our budget on the backs of cuts to the city services people rely on."

The proposed budget also has $680 million in "reductions and offsets," Chow said. She said the city has worked vigorously to secure funding from the provincial and federal governments for a variety of city needs, but Toronto still has to find money to improve services and help overcome a $1.2 billion budget shortfall.

The only major change from the first version of the budget, Chow said, is the expansion of property tax relief for seniors and people with disabilities. It raises the property tax deferral and cancellation income threshold for those groups by five per cent to $60,000. That would support an additional 2,300 households, Chow's office said in a release.

Chow said the lack of changes to her final budget was in response to what she heard in budget consultations with the public since Jan. 13.

"What they said really confirmed the proposed budget that we launched," she said. "We must invest to make life easier."

WATCH | In year-end 2024 interview, Chow talks important issues, upcoming budget: 

Olivia Chow talks Toronto’s housing crisis, city budget in year-end interview

1 month ago

Duration 5:21

Olivia Chow says tackling the city’s housing crisis continues to be her top priority. CBC’s Shawn Jeffords spoke with Chow one-on-one to reflect on her time in office this year and the city’s continued financial challenges.

The fact Chow had few changes in her final budget, and has faced less backlash compared to last year's budget talks, is a good sign that she's in tune with constituents and councillors, says Joe Mihevc, a former city councillor and current York University adjunct professor.

"Boring is good with budgets," Mihevc said. "That really is a statement that the management of the city, on the civil service side and on the [side of the] mayor's office, that they're in a good place and that they're listening." 

But the proposed tax hike has drawn some pushback.

Coun. Brad Bradford told reporters Thursday his inbox was full of emails from constituents telling him they couldn't afford the increase.

"Clearly, [Chow] hasn't been listening," Bradford said. "This budget continues to be very out of touch with the priorities of everyday folks here in the city, and the number one thing is affordability."

WATCH | Chow proposes a 6.9% tax increase for Toronto: 

Breaking down Toronto Mayor Olivia Chow’s proposed 6.9% tax hike

18 days ago

Duration 4:02

Toronto Mayor Olivia Chow has released a proposed 2025 city budget that includes a 5.4 per cent property tax increase and the annual 1.5 per cent "city building levy." CBC’s Sarah MacMillan breaks down what Toronto residents need to know.

In a letter Chow wrote Thursday to outline her budget, she acknowledged another increase would be "challenging for many across the city."

This year's proposal includes a 5.4 per cent property tax hike in addition to the annual 1.5 per cent "city building fund" levy, which goes toward major infrastructure projects.

The increases would amount to an additional $268 annually for the average Toronto homeowner, according to budget documents released earlier this month.

Last year's budget raised the property tax by 9.5 per cent, the highest increase in decades.

Advocates say not enough spending on youth issues

The city's official youth advocacy body criticized Chow's newest proposal Thursday, saying it fails to address the socio-economic needs of young people in the city.

The Toronto Youth Cabinet, along with two city school boards, has been calling on the city to invest $46.2 million in youth programs, employment and violence prevention.

Toronto Youth Cabinet executive director Stephen Mensah said the mayor's final budget does nothing to address those issues.

"If you're tired of hearing about young people robbing jewelry stores, carjacking vehicles, or invading homes, this budget ensures those crises will continue, and at worse rates," Mensah said in a release.

Chow said earlier this month that the city has been working to create employment opportunities for young people, including by increasing its parks and recreation budget and hiring more youth in the division.

The union representing roughly 30,000 city's workers, CUPE 79, also criticized the mayor's budget for failing to invest in "the staff who run our city," saying  in a release Thursday that more needs to be done to retain and recruit city employees who provide the services Chow wants to improve.

The union is currently negotiating a new agreement with the city, with members voting last week in favour of a strike mandate.