Governments around the world face large budget deficits, some of which are structural. Addressing them will require significant fiscal and operations changes within governments. (Source: Mowat Centre and the School of Public Policy and Governance, University of Toronto)
Toronto is not alone in having the same challenges. That is why for the 2012 Budget we will be having a full Operational and Capital Review of what we do, why we do it and importantly how to pay for it.
As Budget Chair, I have directed that we have the discussion of reviewing our expenditures and revenues in a way that has never been done. Standing Committees will need to review and prioritize what is important and how much our money will allow us to spend.
It is not business as usual because we have a $774 million dollar shortfall which has been structural. We will look at spending and revenue and the levels of service that we provide.
We will also have to examine shedding assets to create an income base to offset the $450 of interest and principal costs per year.
As wages comprises 50% of our costs, we will have to examine what is the best way to deliver services that we can afford. Some of our contracts have wording that reduce management's right to manage. Employees play a big role in the life of the City but government employees have been sheltered through the recession and it is difficult to meet the continuing demands for more. Out sourcing will be considered as part of the exercise.
Public consultation can take place at standing committees, town halls, e-mails, deputations and any other vehicle for input.
It will be a change and for some change will be difficult but we cannot do nothing. Our shortfall must be addressed.
