Toronto is Canada’s economic engine, anchoring a region that generates 20 per cent of the country’s economy.
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that → anchor → economy
But behind the gleaming skyline, international festivals and world-class institutions, it’s an engine on shakier ground than its reputation suggests.
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reputation → gleam → ground
Toronto’s prosperous reputation no longer translates into gains residents feel.
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residents → translate → gains
Median income growth severely lags peer cities.
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growth → lag → cities
Our GDP per capita — our productivity — has stalled.
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GDP → stall → capita
On top of that, we now find ourselves in a spiraling trade war that threatens to deliver a serious economic shock to this region.
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that → find → region
What does this have to do with Toronto’s municipal election?
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this → have → election
The damage of this trade war should be an inflection point for a growth-oriented culture change at all levels of government.
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damage → orient → government
For two decades Toronto Region Board of Trade has been warning about the city’s increasingly unsustainable fiscal position.
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Board → warn → position
Over that time, we’ve put forward solutions that could help Toronto turn a corner on its perennial budget challenge, without derailing our social progress while also improving economic competitiveness.
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Toronto → put → competitiveness
For just as long, successive governments have kicked the can down the road.
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governments → kick → road
The truth is, the city’s existing fiscal framework isn’t equipped to deal with everything on its plate.
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framework → exist → plate
The scale of the city’s obligations to deliver services in federal and provincial program areas crowds out funding for essential services and infrastructure that have made Toronto a livable, world-class city.
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Toronto → deliver → services
Core investments in new infrastructure to support our communities and investments to maintain existing infrastructure alike are deferred, scaled back or never advanced.
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investments → support → infrastructure
Toronto cannot grow its way out of this challenge without a fundamentally different approach to its budget strategy.
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Toronto → grow → strategy
This must include a plan to grow its tax base and find new ways to offload costs — as was done with the 2024 fiscal “New Deal.”
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This → include → Deal
The board’s just-released Funding Public Services issue guide demonstrates the scope and scale of the structural challenge and the need for a durable framework that aligns responsibilities with revenues.
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that → release → revenues
But this is a municipal election, so let’s focus on what Toronto can control: taxes, fees, regulations and permitting, service levels and city-owned assets.
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Toronto → let → taxes
This is a time to move away from more incrementalism.
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This → move → incrementalism
On taxes, Toronto’s employment lands play an outsized role in funding the city’s ongoing operations.
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lands → play → operations
Employment areas occupy about 12 per cent of city land but generate approximately 27 per cent of its GDP.
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areas → occupy → GDP
Yet, these lands remain under threat from conversation to residential uses.
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lands → remain → uses
Protect employment lands
Protecting and marketing the city’s employment lands can help increase revenues generated from new and expanded economic activity.
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Protecting → protect → activity
Every dollar of revenue these lands generate is more profitable than every dollar generated by residential.
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lands → generate → residential
Without the need to service libraries, parks and community centres, their costs are lower, while helping pay for these residential neighbourhood services.
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costs → service → services
Since people need to both live and work, cities need both housing and employment lands; this is not to argue against more housing, or well-considered conversions.
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this → need → housing
We all need to recognize that when we convert employment lands to residential development, the city permanently loses the taxes businesses provide.
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businesses → need → taxes
Greater density in existing neighbourhoods costs less to service than a brand-new neighbourhood.
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density → exist → neighbourhood
The city also needs to finally put its asset base to work and unlock capital for reinvestment through structured partnerships with, say, Canada’s pension funds, while leveraging private sector investment to finance revenue-generating infrastructure.
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city → need → infrastructure
EnWave and the Regent Park revitalization are strong examples of Toronto getting it right.
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it → get → ?
The fact is, you only need to look around the city to see that Toronto can’t continue to fund everything on its own and also deliver the quality of services Torontonians expect.
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Torontonians → need → services
Rathan than having a city that can’t afford to keep up with its needs, well-structured partnerships can build new and maintain existing infrastructure for everyone’s benefit.
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partnerships → have → benefit
We’ve been relying on incremental tweaks, one-time provincial and federal top-ups and Band-Aids to fix a structural problem.
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We → rely → problem
We need candidates to demonstrate they understand what’s at stake and to tell us how, say, over the next two terms the city will be restored to a sound fiscal footing.
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city → need → footing
And how it will be done that enables Toronto to turn a corner as a place that can attract business, investment, opportunity and the talented residents who will contribute to an improved standard of living for everyone.
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who → do → everyone
The Aporia
