D-Day

It's provincial budget day, folks, and that means we'll soon find out whether Hamilton will get the $14.2 million it needs to keep property taxes to two per cent. Read the full story here.

There's been a lot of speculation over the past few months about whether or not we would get this funding. Back in October, the city was already wringing its hands about whether the cash would come through. At the time, Mayor Fred Eisenberger said he wasn't "getting warm and fuzzy feelings" from the province about this year's grant. All signs were pointing to a 'no.'

However, a few things have changed since then. My colleague Andrew Dreschel argued last week that the recent cabinet appointment of MPP Sophia Aggelonitis will help our chances.

"McGuinty knows he'll be facing a political dust storm anytime he pulls the rug out from under Hamilton's request for the special grant," Dreschel writes. "But it became politically impossible for him to do so after he chose the popular Aggelonitis to replace her mentor, MPP Ted McMeekin, as Hamilton's cabinet minister. ...It would have flattened Aggelonitis before she'd even had a chance to gain her feet."

Let's hear your predictions. Will the province come through like they have before? Or will this be the year that Hamilton is left high and dry?

Comments

[ed]

Why do some people think McKinky is worried? We pensioned him off, he'll live a very nice life thankyou. For all the lies he told us about taxation and the underhanded way he introduced green fee taxes, hes doing alright. I don't know whether hamtown will get its money or whether we even deserve it after all the mismanaging of our own finances, but one thing is clear..McKinky couldn't care less.

[Brian Henley]

It would be a gross injustice if Hamilton did not get most, if not all, that money in question.
In my mind, it is far too easy to jump all over City Council for their actions (I've been known to do it myself !)
BUT the 14 million plus represents the shortfall relating to the costs of provincially downloaded programmes - anybody remember the revenue neutral pledge when this first happened?
These programmes are mandated by the provincial government and neither council nor city administrators are able to control those costs - Ontario Works is the biggest but not the only provincial programme like that.
My prediction - hope I'm right - is that we'll get $ 14 million, but not $ 14.2 million.

[Markalanwhittle]

Why on earth should the province pay Hamilton for a self-induced problem? I watched the budget speech today and nothing was mentioned about bailing out cities like Hamilton, who don't want to fix the problem, just continue with the status quo, failure to create jobs or prosperity.

[Michelle Hruschka]

It does not matter what happens, as it will be those at the bottom that will pay the highest price.

[Markalanwhittle]

According to city documetation the short-fall is not just Ontario Works costs and the tax increase will be 4.4% not 2%, fool me once, shame on me. Fool me twice, shame on you. Mayor Fred has some explaining to do. Being truthful might help.
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If the city receives provincial funding, property taxes will have to climb by 4.4 per cent to balance the budget and maintain current service levels. Without the province's $16.5 million, homeowners would face a 8.4 per cent increase.

Cash crunch

What's causing the projected shortfall?

* $9.2 million increase in social assistance costs

* $3 million loss in recycling revenue

* $1.3 million loss in HSR fare revenue

[Tom Robertson]

Mark...Taxes will not go up 4% this year. It is an election year. Deficits will be hidden to be carried over to next year and we will have a 6% hike.

[Markalanwhittle]

According to Mayor Fred on CHML 900 radio the tax increase this year will be 2% or less thanks to another multi-million dollar hand-out from the Province. I would like to know what cuts were made to accomplish this and whether the suburbs will pay the same amount as the rest of us will be paying to maintain the status quo?

[frs]

I am thankful that the Province provided the money to offset the Ontario Works costs.

I don't quite understand why the province downloaded this only to have to pay for it every year anyway.

[Tom Robertson]

Ontario is just using the tax dollars we pay to them