Taxation Shouldn’t Be A Dirty Word

In the lead up to today’s kick off of Budget 2014, here’s the headline to a Toronto Star article: Toronto budget committee braces for tax-hike debate.texaschainsawmassacre

So in many ways, despite being turfed from most of his mayoral responsibilities last week, Rob Ford has established the terms by which we’re going to go about discussing the city’s budget priorities.

It’s all about the taxes, folks.

Which shouldn’t be all that surprising or abnormal. Taxation is how we pay for the kind of city we want to live in. But it’s the de-contextualization that’s disconcerting. As if it’s only about how much we the taxpayers are handing over and nothing about what we’re getting in return.

We all know that .5% of any property tax increase we see for next year is going toward the building of the Scarborough subway extension of the Bloor-Danforth line. taxesThat’s tangible even if disagreeable to many of us. It’s a direct cause and effect.

After that, it’s all presented as just some random number, picked out of thin air. The mayor wants nothing more than an additional 1.25% for no other apparent reason than to go into next year’s municipal election campaign claiming this year’s increase was less than 2% total, lower than any other city in the known universe, he’ll likely claim, as if a place’s worth can only be measured by how small a tax bill its residents receive. Others, including the budget chief, think staff will be asking for a 2.5% tax increase in total, a reasonable number by any other measure aside from the Fordian scale of All Taxes Are Bad (But Some Are Worse Than Others).

In reality taxes aren’t just money we hand over and receive nothing in return. accoutantThey serve as a marker for the transaction made between residents and the city for services that are provided to them. This time around, let’s talk about those first, shall we, the services we receive. The things we think are important to making Toronto somewhere people want to live rather than a place we wind up in and reluctantly are a part of.

What is it we’re willing to pay for rather than how much we’re willing to pay should be the starting point for any budget conversation. (Yes, yes. As hard as it is to believe that point has to made, it’s proof of the degree to which tax haters have infected our civic discourse). Today’s as good a day as any to begin having that conversation.

hopefully submitted by Cityslikr

Welcome To The Hot Seat, Mr. Budget Chief

Anybody else pause a moment reading the Toronto Sun’s Don Peat write that our budget chief, umwhatCouncillor Frank Di Giorgio, suggests the process of balancing the 2014 operating budget might ‘require a few miracles’? The man in charge of the $10 billion (more or less) purse strings casts an eye heavenward in hopes of some divine intervention to make sure revenues match expenditures because actual math might not do the trick this time round. Fingers crossed. Say your prayers. Hope there’s a rabbit to pull out of the fiscal hat.

I’m sure it was just an expression and the budget chief isn’t really that concerned. He has no choice but to balance the budget. The province mandates that he does so. It could even be he’s simply ramping up the concern, clearing the way for either service cuts or tax increases as necessary in order to meet the zero bottom line. ohdearHe won’t be the first budget chief to do so.

But it could also be that Councillor Di Giorgio, in his first kick at the can as budget chief, is now staring into the hard reality of Mayor Ford’s voodoo economic model for running the finances of the city. Cut revenues, cut the gravy but whatever you do don’t cut services the public actually wants. Those are much tougher numbers to crunch. And if all that easy waste wasn’t nearly as prevalent as the mayor claimed?

Well, that’s enough to make any budget chief look for a little guidance from the big guy upstairs.

The almost impossible task the budget chief faces was made glaringly apparent at yesterday’s budget committee meeting. City staff reported a $58+ million projected surplus after the 2nd quarter of 2013, made up largely of bigger than expected revenues from the Land Transfer Tax and money saved from unfilled staff vacancies, now in excess of 2500 positions including in vital departments like Human Resources, Planning, Health and IT. squaringthecircleIn order to keep the city in the black, it seems, the budget chief is going to have to keep that tax revenue coming in and maintain a freeze on making new hires.

The problem arises, however, when his boss wants to reduce that particular tax by 10% and preserve the façade of putting customer service first and foremost which entails keeping departments properly staffed up. Cut revenue and increase costs. It’s a difficult equation to keep in balance. Less money in + more money out = the same 0 it has to be every year.

To be fair to this administration, not filling staff vacancies – ‘gapping’, to use the euphemism — didn’t start in 2010. It has been an ongoing issue for some time now as an unobtrusive way to keep costs contained that isn’t immediately felt by the general public. A slight delay here. An unreturned call there. An accumulation of neglect owing to fewer and fewer bodies present to do the jobs that need getting done. workaloneKicking the can down the road, essentially, in the name of fiscal prudence.

Things become acute however when such gapping is combined with a downward pressure on revenues. Never mind hiring to fill in the gaps. The gaps just get bigger, deeper.

Under questioning from councillors, City Manager Joe Pennachetti admitted that maybe they had cut a little too much in the Human Resources department at City Hall over the last few years. So there aren’t enough people to hire other people in other departments. The gaps just get bigger, deeper.

Team Ford stalwart and budget committee member Councillor Frances Nunziata tried to suggest that many of these unfilled vacancies were unnecessary management positions that didn’t affect front line services. The city manager gently disagreed, saying the bulk of the vacancies were front line workers. He will deliver a report to next month’s meeting setting out the numbers in more detail.texaschainsawmassacre

But it’s hard to believe that the 36 vacancies in the planning department, say, are unnecessary management type positions. The understaffing in that vital department has long been decried, going back to at least the Miller years if not before but it’s staggering to think that it’s continuing all during the building boom that the city has been experiencing, not to mention the fact that we’re also reviewing our Official Plan… with a depleted planning department.

The city manager did point out that Toronto isn’t the only municipality experiencing problems hiring qualified people to fill its bureaucratic ranks. Competition is tight from competing cities as well as the private sector. It’s not as easy as just topping up your human resources department and telling them to go out and get hiring.

It’s going to take opening the wallets up and creating a desirable work place environment in order to successfully recruit candidates here. Both conditions seem to be the exact opposite of how the current administration operates. badnumbersDedicated to the best customer service that the money we refuse to spend can buy.

If that unworkable kind of Dr. Doolittle, push me-pull me approach wasn’t evident to the budget chief before yesterday’s meeting, it certainly should be now. How he’s going to straddle that divide, God only knows. So far, there’s no indication the budget chief does.

celestially submitted by Cityslikr

One Is The Loneliest Number

It would be easy to write off the city’s new budget chief, Councillor Frank Di Giorgio as… invisibleman1ineffectual, let’s call it to keep things on a civil level. It’s difficult to point to a single contribution he’s made during his undistinguished time in office. His one stand out quality seems to be posing the most baffling of questions during council meetings. If there’s a current councillor who elicits more “I’m sorry. I’m not sure what you’re asking.” responses one doesn’t immediately spring to mind.

Yet there he is, a North York and Toronto councillor since 1985 save the first term of the amalgamated city. That’s 25 years for those of you counting at home. He’s got to be delivering the goods in some way, doesn’t he? whateverOtherwise, you’d have to conclude that his residents aren’t really paying that much attention to who represents them at City Hall, and their voting habits consist of nothing more than checking off the most recognizable name on the ballot.

Let’s not travel down that cold, bleak road.

Instead we’ll assume that Councillor Di Giorgio is one savvy political survivor. A canny operator who knows what needs to be known, does what needs to be done to continue getting elected to public office.  He has his finger on the pulse of what Ward 12 York South-Weston voters want and expect in a councillor.

Now, after years in the wilderness of obscurity, he has finally ascended the heights of prominence. Clawing his way up over the corpses and cast offs of a once powerful army, he is the last man standing. solesurvivorThe chosen one from the dwindling ranks. The few, the proud, the Team Ford.

Being budget chief is a tough, thankless job at the best of times. Arguably, this is not the best of times. The position kicked the stuffing out of his predecessor, Mike Del Grande who seemed to have coveted the job from the time he was first elected as councillor in 2003. Why would Councillor Di Giorgio want to travel down that same grueling path with a crowd not playing at the top of its game and hardly noted for overt displays of loyalty toward those who’ve offered up their services for the cause?

Surely the councillor’s been around the political block enough times to know that he’s not going to make a lick of difference in the direction the budget takes as long as the mayor’s brother sits to his left as the committee’s vice-chair. Sure, there are five other members on the committee but with hyper-Fordian Councillor Frances Nunziata now one of them, it’s hard to see much of a free flow of ideas happening that don’t carry the imprimatur of the councillor-brother. liontamingIt’s obvious who’s running the show at budget committee in everything but name.

We here at All Fired Up in the Big Smoke were on record for not thinking much of the former budget chief’s job. In our humble opinion, he never fully grasped the nature of public finances, maintaining a very cloistered view that saw debt and taxation as unnecessary profligacies. But Councillor Del Grande was no toady. He possessed an independence of attitude that, more often than not, overlapped with Mayor Ford. When it didn’t? Well, ultimately that’s why he quit the post.

Watching Budget Chief Di Giorgio’s inaugural budget committee meeting as chair last Thursday, independent minded was not the first thing that sprung to mind. He was solicitous and polite and did not commence the meeting with a bang of the gavel. Granted, the meeting was light on business and for the most part, items sailed through with very little fuss or bother. rubberstampNobody set about re-inventing the wheel on this particular day.

And then came the last bit of new business.

An item from the February Government Management Committee meeting to purchase a little over a third of an acre of green space from a surplus TDSB school along Dufferin Street in Ward 15.

For most of the committee members in the room, this was the first they’d heard about the item and understandably wanted to get a little more information before giving it a green light. (Councillor Nunziata took the opportunity for her familiar complaint refrain about not getting the parks in her ward cleaned let alone getting a new park.) Due diligence and all that.

But the budget committee vice-chair took the wariness a couple notches higher.

A million bucks for a park?! Who did the math on this? Fair market value, the budget chief assured him.grandstanding

A park on Dufferin Street?! Who would want their kids playing there? Well, the area is lacking green space, the budget chief told him.

If we buy a park for Ward 15, where’s the park for every other ward in the city? Let’s keep everything at the lowest common denominator, folks. Parks for all or parks for nobody. And it’ll be for nobody since a million dollars for a park is outrageous.

So it went until the committee voted in favour of sending the item onto Executive Committee without recommendation, effectively washing their collective hands of making any decision on it.

While such an excessive outburst is nothing new, this one was something of a head-scratcher even by Councillor Doug Ford standards. Alone among budget committee members, the councillor was not unfamiliar with this particular item. As part of the Government Management committee, not only did Councillor Ford debate the item a month earlier, he actually moved the adoption of the motion.

Now, here he was railing about it.

Whatever was behind such a pronounced flip-flop?

Follow me as I make a wild guess here.

The chair of the Government Management Committee? A certain Councillor Paul Ainslie. pissingmatchWhat happened in the interim between Councillor Ford’s apparent approval of the purchase of the parkland in February and his about face on it a month later? A little accusation of more questionable public behaviour on the part of Mayor Ford at the Garrison Ball earlier this year by – you guessed it – a certain Councillor Ainslie.

Who did the math on this?!

This is the kind of eradicate, sideshow conduct Councillor Di Giorgio has signed up for in taking the position of budget chief. Entirely extraneous, personality driven politics diverting attention from the task at hand of running the city. As the administration wobbly heads into an election year, completely sidelined on most of the important issues on the municipal docket, is this really the kind of increased profile the councillor is looking for? outsidethecircleBudget chief in name only and subject to the turbulence of a populist administration constantly undercut by a lack of realistic policy goals and regular questions about the mayor’s off-field behaviour?

Unsurprisingly, after the conclusion of Thursday’s budget committee meeting, the budget chief was left alone, talking to someone in the public seats as the media chased Councillor Ford out of the room. It’s a scenario Councillor Di Giorgio probably should get used to.

singularly submitted by Cityslikr