Cities face massive financial shortfalls because of COVID. How can they cope when they can’t run deficits?

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Toronto projects a budget shortfall totaling $780-million over 12 weeks, an estimate that assumes there will be no property tax defaults. The city is keeping its longer-term projections under wraps

The scope and shape of the problem facing cities, and ideas about solutions, vary across the country.

Calgary and Edmonton, already suffering from Alberta’s prolonged economic downturn, were among the first cities in the West to do wholesale temporary layoffs. Edmonton furloughed 2,000 employees doing non-essential services on March 31, while Calgary laid off 1,200. “We’ve got staff that are watching the data … but to be able to fine-tune that number, that’s one of the most challenging numbers to try and predict a change,” said Toronto’s chief financial officer Heather Taylor."I don’t actually expect to see significant MLTT impacts until the latter part of 2020.

Mayor Valérie Plante’s administration is asking the Quebec and Canadian governments to inject money quickly to help relaunch the Montreal economy and to consider reimbursing it for certain spending, Mr. Dorais said. For decades cities have assumed ever-larger responsibilities. They’ve faced more demand for transit or they’ve had to take on social services downloaded to them from above. But they receive only a small percentage of what is paid in taxes.

 

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EvanLSolomon ..they cant and other levels of govt broke ..major layoffs and service cuts coming ..and they will try to hammer the already strapped and broken homeowner/renter class

EvanLSolomon CUT SPENDING, stupid.

EvanLSolomon Thank goodness they can’t

Too bad public sector unions and politicians already used every penny and more. Will unions step up and give back?

EvanLSolomon They can't run deficits, but they could have been running surpluses if they were smart with the budgets up to now.......but the feds have taught us to live off the credit card.

The city can always tax people to death. And I want to know which councillors voted in favour

Just create another page. Deficits are just things to think about.

HOW? bring salaries & benefits in line with private sector

PLEASE HELP US FIX PAYMENTS FOR CERB FOR SERVICE CANADA. I SAW YOUR ARTICLE. CRA CERB GETS ANOTHER $2000 TODAY IN ADVANCE WHILE EI SERVICE CANADA WE MUST WAIT 4 WEEKS AND HAVE TO REPORT?! NOT FAIR SEND US OUR MONEY NOW TOO! WHY EI PPL SUFFER! WHY WE GET MONTH DELAY

Canada and Canadians first from now on. All taxes collected kept in Canada will help in long run

Surfer boy JT can stop giving away money for foreign aid and keep the money here in Canada.

Cities are already coping. Their bylaws officers are giving fines to everyone for breathing.

The answer is not to tax us more or claw back essential services. Cut high management wages, cut redundant positions, automate and reducing bureaucratic staffing levels, cut useless 'nice to have' programs and focus on delivery of core services only.

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