This is not Mayor Rob Ford’s debt. Don’t give him the credit. He doesn’t want it. He doesn’t deserve it.
As was pointed out in at least a couple corners (Matt Elliott here and Rob Granatstein here) yesterday, the Toronto Star’s headline, tagging the mayor with the increase in debt for capital spending was misleading at best, flat out wrong at worst. The city sets out a 10 year plan for capital expenditures which it adjusts annually. Incoming administrations inherit capital plans (and costs) from the preceding one and can only tinker so much with them. Such is the case currently. Mayor Ford took on much of the debt run up by the Miller administration.
AND THERE’S ABSOLUTELY NOTHING WRONG WITH THAT!
Among other things, the city is getting a new fleet of transit vehicles including much needed streetcars rolling out next year as part of the capital spending that’s lead to the debt. This is neither unusual nor a bad thing. Governments, businesses and individuals rarely purchase big ticket items with cash up front. It makes no sense to do so especially with things that are going to be used over long periods of time like streetcars.
But almost all government spending is anathema to politicians like Mayor Ford. Debt is a red flag to him, proof positive that the gravy train chugs on and wasteful liberals are out of control. Since becoming mayor, he has done everything in his power to roll back the city’s debt including diverting money from the operating budget to pay off capital purchases outright.
(Everything, that is, outside of ensuring a proper revenue stream. There was a compelling argument as part of Matt’s Twitter stream above that by reducing revenue in the form of freezing property taxes and cutting the VRT, Mayor Ford had, in fact, contributed to the growing debt. That’s not an unfair assessment.)
While certainly there is a bump in the city’s debt load currently, in looking over the various 10 year capital projections, you get a sense of, if not an overall decrease in debt, a definite flat lining of it. I think it’s safe to say that the mayor has successfully wrestled our debt to a stalemate. Done his best to put a lid on it.
Hold your applause, folks.
There’s nothing admirable in the mayor’s approach to debt. There’s nothing even remotely fiscally responsible about it. As was pointed out today in the probably not left leaning magazine, Canadian Business, congestion could be costing the GTA as much as $11 billion a year. Congestion caused by decades and decades of inaction on transit building.
And as was pointed out to us by the undeniably non-partisan storm on Monday evening, our sluggish investment in infrastructure under our streets is costing us millions and millions of dollars as well. “We’re hanging on by a thread,” said our debt-averse mayor in reaction to the damage inflicted by the heavy rains. Shut off your lights and power down your computer. Half measures, long after the barn doors’ been kicked from their hinges, called for by a mayor unwilling to spend the money on real solutions.
The truth of the matter is, in his obsessive drive to reduce government to little more than a police force that keeps our roads paved and clear of anything but cars and trucks, Mayor Ford is limiting our chances in dealing with some serious changes that have already arrived while we’ve been pretending not to notice. Councillor Janet Davis pointed out that over a billion dollars was cut in the 10 year capital plan for the city’s Wet Weather Flow Program in this year’s budget.
What’s that you ask?
“Toronto’s Wet Weather Flow Master Plan (WWFMP) is a long-term plan to protect our environment and sustain healthy rivers, streams and other water bodies. And it’s about reducing the adverse effects of wet weather flow, which is runoff generated when it rains or snows.”
“The adverse effects of wet weather flow…” Ring a bell for anyone whose basement flooded Monday or who hoped to go for a swim in Lake Ontario this weekend before this week’s massive sewage dump? Adverse effects? What adverse effects?
Earlier this year, Councillor Denzil Minnan-Wong, chair of the Public Works and Infrastructure Committee – the committee that oversees much of the substantial, debt-inducing spending that helps keep the city up and running properly – floated an idea to cap the revenue brought into by the Land Transfer Tax. It was intended to be a compromise between the mayor who wanted the tax eliminated entirely and those councillors who saw it as an important piece of the budget puzzle. The net effect, if it had been adopted by council (it wasn’t), would be to ultimately reduce city revenue.
We’re hanging on by a thread, and our mayor and chair of one of the most important committees in terms of building for the future are busy figuring out ways to generate less money. As if somehow, magically, leaving more money in the pockets of taxpayers will rebuild aging infrastructure and new transit lines and not simply rewrite the formula for inaction that it’s been for decades now.
So stop trying to discredit Mayor Ford with our increased in capital debt. It’s none of his doing. He hasn’t earned such praise.
— tightly submitted by Cityslikr
Maybe the question to pose would be: Who’s profiting from gridlock? Who’s soaking up the $6 – $11 billion/yr
Go after them for transit and infrastructure costs.
The money lost to gridlock is akin to emptying your wallet into a bonfire. There is no party that benefits on the other side of the transaction….
The debt has increased under Ford’s watch but so has our assets. Toronto has some $18 billion in assets. So we are not going bankrupt as right wingers fear monger.
We did get some infrastructure money from the 2009 Stimulus program. Miller submitted one thing – street cars.
Conservative Baird balked! So Miller submitted an infrastructure list for the time period and used the money it would have traditionally spent; on streetcars.
Ford wants to phase out streetcars at a time that we are receiving some 206 in the next few years?!