Physics Lesson

Think budgeting in this city has evolved under John Tory, out and up from the morass of political sloganeering and accounting sorcery of the Ford administration? clownsinavolkswagenThink again, mes amis. Here’s a pre-masticated chunk for you to chew on.

In the rate supported solid waste budget already approved in December by city council, there was a savings of a little over $2 million with the elimination of the city rebate for those XL garbage bins some households have. You know, the ones the size of a fucking Volkswagen. A family of 7 clowns could comfortably live inside one. City staff thought maybe we shouldn’t be subsidizing people to throw away a lot of garbage that costs all of us to haul away and store in landfills especially since it seems that those with XL garbage cans recycle and green bin their organics less than others.

Council agreed. But now, with a submission to committee yesterday, the budget chair, Councillor Gary Crawford (presumably with Mayor Tory’s blessing) headscratcherwants that $2.23 million XL garbage bin rebate “reinstated”. This, while they’re raiding reserve funds, demanding $5 million more from the TTC and not funding about 60% of the promises and pledges council and the mayor have made. The budget chair wants to remove $2.23 million from the proposed operating budget back to rebate XL garbage bin users. (h/t to Matt Elliott for explaining the nuanced dance of rate and tax supported budgets.)

Maybe it’s simply being used as a bargaining chip, to be given up during the horse-trading that’s going to only intensify between now and mid-February when city council finalizes this budget. Still. It seems impossibly, I don’t know, short-sighted and… dumb. There’s not a word in my arsenal I can summon to describe it.

I get that XL garbage bins are used in multiunit residences, like rooming houses for example. Surely though, we have the technology to determine between those and single family homes using this type of receptacle, and can adjust the rebates accordingly. Because, right now, in 2016, there’s no way single families shouldn’t be paying full cost for the use of XL garbage bins. None. Zip. aimlesslyForget about it.

It’s a tiny, tiny matter in the bigger $11 billion picture of the 2016 budget for sure but it just epitomizes for me the amorphous direction of this administration, two budgets into its term now. Keeping taxes low is the only touchstone, exactly like the Ford years, with big promises of improvements to our quality of life but woefully short on the follow through. Outside of that (and keeping talk of new sources of revenue at bay), anything goes. Just meet that property tax rate increase cap, and it’s all good.

Actually, what it feels like, and forgive me the sports analogy here, is a baseball manager’s long, deliberate walk from the dugout toward the mound, taking his time to make sure the bullpen arms are good and ready to jump in and offer immediate relief. Mayor Tory’s stalling, waiting, hoping for money to start flowing in to the city’s coffers from senior levels of government, fullclosetespecially the feds who seem itching to start spreading infrastructure money around in order to help out the teetering economy. If he can just string things out a little bit longer, keep things duct taped together for one more budget cycle, until the cavalry arrives…

That would be welcome, of course, and long overdue. But it isn’t realistic to think either Queen’s Park or Ottawa is going to fill our every need, is it? Should they? Yes, they should be redirecting money back to cities on things municipalities should never have been paying for off of the property tax base in the first place including affordable housing and a transit system that provides a regional service. Arguably though, we aren’t even properly funding the things we should be paying for, like parks, planning and libraries, off the top of my head, forcing ourselves to make hard choices about need-to-have versus nice-to-haves through our collective refusal to reach a little deeper into our own pockets.

John Tory promised to bring a more clear-headed, rational, reasonable way of doing things to City Hall. We gave him a mulligan on his first budget, as we tend to do to most new mayors, as they are inheriting somebody else’s work in progress, let’s call it.bulldurham Second time around, however, we’re expecting a little more ownership, a sense of purpose, a manifestation of a mandate.

What’s on offer right now from Team Tory is a black hole, sucking the operation of this city into it. A patchwork of cuts here, additions there, amounting to little more than numbers summing up to zero for no other seeming purpose than because they have to. Governance entropy, waiting, fingers crossed, for an injection of life and energy from somewhere out there in the cosmos.

nonevently submitted by Cityslikr

Half Measures

Earlier this week, I wrote a little something something about the “incrementalism” of Mayor Tory, as mostly supporters of his might call it. babysteps“Small, tangible actions that add up over time to real progress,” according to Siri Agrell, director of strategic initiatives in the mayor’s office.

Yesterday, in his State of the City speech at the Economic Club of Canada, Mayor Tory unleashed some of that incrementalling with a surprise announcement of a .5% Capital Building Fund levy to be added to our municipal tax bills beginning in 2017. Additional money that will be dedicated to alleviating some of our much needed capital infrastructure in transit and housing. Capital investment, currently unfunded to the tune of $20 billion or so, portrayed as a menacing iceberg in City Manager Peter Wallace’s powerful presentation to the Executive Committee on Tuesday.

Woah!

Could it be, might it be this mayor finally gets it? The news from the new city manager that the city is, in fact, revenue starved got through his low-tax mantra haze? capitalicebergFrequent critics of the mayor, Metro’s Matt Elliott and the Toronto Star’s Edward Keenan, folks I rarely have policy issue beefs with, were more than cautiously optimistic about Mayor Tory’s seeming about-face. A new era of forward-thinking might just have been ushered in at City Hall.

I don’t know, though. Call me skeptical.

Incrementalism or a half measure?

In presenting staff’s 2016 budget, the city manager forcefully opened the door to a much needed, larger discussion about how Toronto funds the kind of city it wants. Let’s talk first about the things we want to do, want to build and then proceed to the way we plan on paying for it. For too long, it’s been done the other way around. Here’s what we’re going to spend and here’s what we’re going to spend it on. (Steve Munro does a much more thorough job explaining the process than I could.) emptypocketsMoney for our civic aspirations has remained in short supply.

To my mind, rather than seizing the opportunity presented to him to lead that vital conversation, Mayor Tory’s sudden jerk in the right direction, nipped it in the bud. See? I listen. I respond. I am doing something.

But just how much exactly is he doing by floating this .5% capital building fund levy? Concluding a lengthy Twitter essay (yes, such a thing does exist), Councillor Gord Perks suggested that at its height in 2022, after a 5 year roll out, the levy will bring in about $65 million a year. “The $65 miillion tax increase proposed by @JohnTory will only cover 1/20th or 5% of our unfunded capital.”

Is that somehow supposed to show the other levels of government that the city has finally put on its adult breeches and is prepared to pony up and pay its way? Here’s a nickel on the dollar. We’re good?

Underwhelming, I’d call it. Mostly for show. It’s hard to imagine it really addressing the city manager’s call for a serious discussion.

While applauding the mayor for proposing the levy, Sheila Bock of the Canadian Centre for Policy Alternatives urged council to think bigger, revisit the revenue toolbox it has at its disposal. comingupshort“These untapped powers provide the city with a menu of options that could raise more than $400 million annually,” she wrote. Remember that Vehicle Registration Tax that got repealed a few years back? Generated about roughly the same annual amount as the mayor’s levy will in 2022.

Too rich for Mayor Tory’s taste, it seems. Little steps instead. Walk before running. “Small, tangible actions,” like his director of strategic initiatives might call them.

Or, as some of us less persuaded might see it, blunting any chance at forward progress or real change. The fact that the mayor vigorously denied the levy was actually a property tax increase in order to keep his campaign pledge of maintaining property taxes at or below the rate of inflation suggests that he’s not really prepared to take on the hobgoblin of misguided, small-minded Fordian penny-pinching ways at city council. babyfalldownHis initial attempt at implying his levy was simply replacing the Scarborough subway tax that was set to end in 2017 (spoiler alert: It isn’t) also doesn’t augur well for the strength of his convictions on revenue generation.

So yeah, I continue to see the glass half empty in terms of Mayor Tory’s motives with this move, half empty like the gesture it is, a mere token. Should he be applauded for giving the impression of being almost, kinda decisive? I don’t know. It’s been pretty much his approach to governance since day 1. Nothing about this strikes me as new or encouraging. A small step when what’s required is a big, bold leap.

unconvincedly submitted by Cityslikr

Who Should Pay The Piper?

This has been nagging at me for a couple weeks, and kind of bubbled up to the surface yesterday, following along with the TTC commission debate over a fare increase in the new year. forkitover“I believe fares should be adjusted every year because the cost of running the system,” Mayor Tory responded when asked about any possible fare hike. But when it comes to the question of property tax increases because the cost of running the city? Or, I don’t know, a vehicle registration fee to help pay for expedited repairs on the Gardiner expressway?

That’s another matter entirely.

There are those with a similar political bent to the mayor who don’t agree with such an obvious double standard, certainly when it comes to charging drivers more to pay the costs of roads. Postmedia’s Andrew Coyne, for one. He was on a panel I attended (and wrote about earlier this month) where tolling and road pricing was very much the rage. We must stop subsidizing car drivers, Coyne pronounced. We need to let the free market deal with congestion.

OK, sure. Let’s have that conversation. At least we’re agreed that drivers in no way, shape or form, fully pay the price of the road space they use.

And stop subsidizing public transit, Andrew Coyne went on. waitwhatWhy our public transit system is so bad, he stated, was because the ‘entrepreneurial spirit’ had been kept from performing its magic on it. (He’s been saying such things for a while now.)

If wishes were fishes and all that. An argument can be made that the private sector might augment the delivery of public transit but there are few examples of it doing so alone especially in larger metropolitan areas, and especially in North America. That’s not to suggest it couldn’t here but it does lead to a bigger question. Should it?

If public transit is, in fact, a public service, what role does the profit motive have to play in that? There is a considerable segment of the population living in places like Toronto who don’t view public transit as just another option to get around the city. It is the only way they can do it. They’re what we refer to as a ‘captive ridership’. They don’t choose to take public transit. They depend on it. Start with everybody under the age of 16 and count from there.tollroad

Should they be subject to the vagaries of the private sector as they endeavour to get to school, to work, to their doctor’s appointment?

I’ll take it a step further.

Shouldn’t those who use public transit as their mode of transportation be viewed as people actually delivering a public service rather than receiving a public service (for which they are charged here in Toronto nearly 75% of the operating costs)? Along with cyclists and walkers, aren’t transit users contributing to the quality of life in a city by not driving? Why does Andrew Coyne believe people using transit should be treated equally to those moving about a city in cars? No subsidies for anyone. Pay your way. Our current mayor, John Tory, is less even-handed, demanding “… those who use the system [public transit] should continue to maintain their proportional share of the cost.” crowdedsubwayHe wouldn’t dream of suggesting the same from car drivers.

The private vehicle is the least efficient, most expensive form of mobility there is in large urban areas like Toronto. Cars and driving place onerous demands on municipal budgets, pervert quality design and planning, overuse public space while underpaying for the privilege of doing so. So it’s way past time we have a discussion about them owning up to all that, starting with opening their wallets a little wider.

Those who either choose to or must use public transit have been paying more than their fair share, their ‘proportional share’ for some time now. We need to start acknowledging the contribution they’ve been making to this city and stop penalizing them for it. They’re doing us a favour while we keep acting like it’s the other way around.

fairly submitted by Cityslikr