Before we proceed too far down the 2013 budget deliberation path, I really think we need to set up some sort of Budget Comprehension School. 
Barely out of the gate this year, and we already seem to be simply throwing numbers, big numbers around. Yesterday the CBC reported that the opening “shortfall” for next year’s budget was $200 million. “It’s nearly $500 million less than the ‘opening pressure’ identified by the city manager at the start of the budget process in 2011 when city departments were asked to cut their budgets by 10 per cent.” Actually, last year’s “opening pressure” was reported to be some $774 million. So that would make the difference closer to nearly $600 million not 500. But, who’s counting?
Apparently, different people with very different types of calculators.
Last week, when Budget Chief Del Grande went to the Toronto Police Services Board to tell them it’d be all belt tightening for realz this time, and not just some pretend spending reduction, we read that, in fact, the opening pressure was going to be some $465 million.
How can we possibly have a reasonable discussion about this city’s financial situation, conduct an honest debate about budgeting when we can’t even agree on a starting point? I get that, especially this early on in the proceedings, it’s all about estimates. We’re still, what, 5 months away from the 2013 budget vote? Never mind about 8 months from the end of the 2012 fiscal year when the numbers really solidify. But can’t we at least settle on something resembling a concrete estimate?
The problem with this “opening pressure”, aside from actually understanding what it is – the total costs the city estimates it will have to pay out in the upcoming year? – comes from it being used as a political football. If councillors and senior city staff want to scare Torontonians into favouring cuts to services and programs or have sign off on a tax increase, the “opening pressure” is always big and seemingly on the verge of being unmanageable without a heroic effort to tame it. On the other hand, if their intent is to display their fiscal acumen, the given number is low. See how we’re managing your money, Toronto.
The number we use as the opening pressure should be fairly straightforward, within reasonable limits of variation since it’s based on educated guess work.
And, of course, the opening pressure is only half the equation.
It’s all about projected costs. The full picture doesn’t come into focus until revenues are factored in. Crunching numbers solely on costs would be like tallying your mortgage, car, food, utilities, school tuition and all other personal expenses, panicking about the huge number staring up at you from the bottom of the column and deciding the sell your house to pay for all of it. But.. but.. what about your income? Surely, that’ll help offset at least some of those costs, yes?
An opening pressure is just that, a starting point. It should not be a number wielded above your head like an axe. Whether it’s $200, $465 or $774 million, this is not the amount of money we need to find in order to balance our books. And we always have to balance our books. It’s provincially mandated.
But forgive me. It seems I’m getting ahead of myself here. That’s lesson two. First, there’s still the matter of settling on our opening pressure. Without that, it’s all just hepped-up, partisan politicking.
— numerically submitted by Cityslikr
